SAP provides innovative solutions for cybersecurity and privacy in ERP
solutions. Also, SAP supports greener and energy efficient solutions, minimizes
waste by resource utilization and improves the quality of life and welfare
for its customers.
They developed “Blockchain” technology for
transactional applications. This innovative technology raises efficiency
and reduces transaction cost in supply chains. They are planning to be
leading innovator with this technology (Innovation at SAP, 2017).
“Digital boardroom” solution is another innovation
they started which helps managers (decision-makers) to view company operations
with real-time reporting, make them understand the past and predict the
future and take action.
SAP made a partnership
with Microsoft for running SAP HANA database which provides fast access
data to users in Microsoft’s Azure cloud and integrated SAP software to
Microsoft Office 365 (BrandZ, 2017).
They started SAP Code Weeks program in the Middle East for teaching ERP coding skills
to children to make them professionals.
marketing strategy: SAP releases
upgrades in ERP products in specific periods with enhancement packages
with no fee from customers. Each
enhancement package contains new and developed functionalities. (This new
approach is available in SAP ERP 6.0 product) (Wailgum, 2008)
strategy: SAP focus on market
expansion (enter new markets) for gaining new customers, enter new
industries (small, medium, large). Moreover, their strategy is customer
retention and makes them buying licenses, maintenance and services for
many years (Wailgum, 2008).
strategy: SAP is continuing offer ERP products for key
industries which have unique needs in their processes. They achieve it
with the help of product management teams, developers, customers and
partners. With this strategy, they aim
to raise market share in different industries such as oil and gas,
chemicals etc. (Wailgum, 2008).
consulting strategy: SAP does not
give consultancy service. They have got partners to give consultancy after
the sale to the businesses like
Accenture, Itelligence, Deloitte
1.1. Improvements in Marketing Strategy:
SAP ERP product is the
market leader and their strategy is maintaining their position in the market
against competitors. However, they need to improve their products for
sustainable growth. For instance, most
of the companies want split payroll in HR ERP solution. If an employee
transfers another location or branch of the company in the same month, then
there will be two different payrolls for the month (split payroll definition). Normally, SAP does not support split payroll
like the other systems. When the customers want split payroll as a consultant
we need to make so many developments and write new legal reports. For this
reason, consultancy companies increased the project prise and some of the
customers cancel their request and they chose simple payroll without a split. If they improve their HR ERP software to
support split payroll they will increase customer satisfaction and create
difference according to competitors.
SAP has outsourcing consultancy
strategy which means they have not got a consultant
to develop projects in the companies. They make alliances with consultancy
companies such as Accenture, Deloitte etc. In
the long term, they can start to give their own consultancy to decrease
their dependency on the partners.
has a partnership with fewer universities
like American InterContinental University, Virginia College. They can make more
partnership with high ranking universities and give seminars. In this way, they
can raise awareness of SAP brand and its solutions, train talented students for
professional business life and increase the profit
of the company.