Insufficient flexibility for business customization, poor ease of use, and long implementation have become major complaints about SAP’s core products by many SAP clients in China. Despite SAP’s wide adoption by large enterprises in China, including Nongfu Spring (the first one in APAC using HANA — in-memory computing platform — in production) and Sinopec (ranked No. 5 in Fortune 500 in 2012), these client issues are problems for SAP for its continued expansion into the China market. SAP uses its SAP Labs network across the globe to deliver local market-oriented solutions for different geographies. In my recent visit to SAP Labs China, one of the four hub labs that drive corporate product strategy and execution of global projects, I found that SAP is taking the right steps to integrate local requirements and deliver product capabilities that address the above issues:
Solutions customized for China regulations and business practices. SAP Labs China developed not only localized solutions for general purpose such as Golden Tax features, which is mandated by the Chinese government for its interfacing national taxing system, but also key solutions for local industries such as business real estate, international commerce, public finance, and healthcare.
More ease of use. To solve the ease-of-use problem, including the user interface look and feel and usage behavior of the product, SAP Labs China reinvented finance user experience and business processes for Chinese customers, and it also optimized the user interface for its human resource module.