- Forrester Councils
- Councils Overview
- log in
Posted by Paul Hamerman on March 22, 2010
Thanks to those of you that attended our SAP Jam Teleconference today, part of a series that will run throughout the week. For details on the next event in the series, see http://www.forrester.com/rb/teleconference/sap_jam_session_what_should_sap_clients/q/id/6292/t/1.
For those of you unable to attend, I will summarize some of the content that I presented on SAP’s overall growth and innovation strategy. SAP has a double-barreled product strategy focused on Growth and Innovation.
The Growth strategy rests heavily on the current Business Suite, which includes the core ERP product that is used by approximately 30,000 companies worldwide. SAP claims that it touches 60 percent of the world’s business transactions, which is hard to validate but not all that hard to believe. The main revenue source today is Support, which comprises 50% of the total revenues of the company at more than 5 billion Euros annually, and it grew by 15% in 2009. Other growth engines include:
Two other important strategic elements that we talked about during today’s SAP Jam Session included CRM and Sustainability, detailed by my colleagues Bill Band and Alex Peters, respectively.
Innovation is a high priority for SAP now, particularly since it has not been much of a factor in recent years. SAP is putting agile development methods in place to get products to market faster. This is important, because several product releases, including ERP 6 (originally called ERP 2005, released in June 2006), Business ByDesign and Enhancement Packages, have been slow to reach market and gain customer adoption.
On the technology front, 4 areas are key to SAP’s innovation strategy, as articulated by CTO Vishal Sikka:
SAP’s growth and innovation strategy have not changed materially since Bill McDermott and Jim Hagemann Snabe took over in February as Co-CEOs. However, further developments will likely be showcased at SAP’s SAPPHIRE conference in May. Stay tuned for our analysis as this even unfolds.
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »