Today, after a year of view, SAP Global CEO Henning Kagermann (Henning Kagermann) for Oracle (Oracle) CEO Larry Ellison (Larry Ellison) of attempting to rally really does not make sense.Last September, Ellison has talked wildly, claiming that the backwardness of SAP, Oracle, SAP has more than ten times, and leading more than two years.He also concluded that SAP is abandoning its growth strategy.Kong Han Ning Mingzhi chose silence.
Compared with a fierce rival, SAP middle age seems to be more calm, who is a physics professor Henning Kagermann naturally more inclined to pragmatism, not endless war of words.But this does not mean he indifferent to the intense market competition.
October 8 to 68 billion acquisition of SAP business intelligence software maker Business Objects, the news industry a breathing sound.Obviously, this is Oracle's tit for tat.March of this year, Oracle has just 33 billion acquisition of rival Business Objects Hyperion.
In fact the war started long ago, really amazing is that the industry, SAP's acquisition of handwriting in the same side against, while at the same time a strategic transformation of their own.In mid-September this year, SAP launched R & D in New York two years of high-profile "secret weapon" - a revolutionary software for small and medium enterprises, officially announced the acceleration into the low end.Henning Kagermann has developed an ambitious vision: By 2010, SAP will develop more than 10,000 new customers in the global market potential of over 15 billion U.S. dollars.
Placed in front of Henning Kagermann as important as the internal personnel changes.SAP engaged in a top-down personnel changes.Both in the United States and Germany are also listed within the SAP Center and the American Center in Germany is divided into two systems, known as the "Silicon Valley companies on the Rhine."A left to disclose the management of SAP China, although SAP had two factions within the culture of confrontation between the U.S. and Europe has been a long time, but in the face of new market competition, this family-oriented management software giant from product positioning to gradually shift the market-oriented, the United StatesSchool management ideas gradually gained the upper hand.
New Products
Most German companies are in on the pursuit of ultimate technology and quality as their own DNA, the world's largest enterprise software and solutions provider SAP is no exception.The past two months, SAP a "price" of the advertisements that the main surprise many people.SAP in the "Wall Street Journal," Chinese nets and the British "Financial Times" FT Chinese advertising network, has not see "the world's top 500 management guru behind" the words, but an eye-catching straightforward: "SAP software on-demandconfiguration, easy to use without expensive! "
Chinese users click on the "easy to use inexpensive," the ad link, enter the SAP that the Chinese site, "Small Solution" page.This sudden and to the "strong marketing" behind the SAP development effort in the global SMB market background.SAP recently announced strategic objectives, including, by 2010 the number of customers reached 10 million, as part of development objectives, Asia-Pacific SMBs plan to increase 3 times.
In 2002, SAP began to Rio Tinto SME information market in China.Despite the high-end market SAP basic seem invincible, but in the SME market, facing a large number of local Chinese software companies from competition, SAP did not achieve the desired results - now this market is still dominated by domestic software.The face of such pressure, the newly appointed CEO and president of SAP Greater China, Li Wenli was "blood boil.""SAP has been said, SAP Asia-Pacific in the future, I would say the future of the Asia-Pacific Chinese." Liwen Li stressed that his office is the responsibility of the O type blood, the president of Taurus distinctive and full of passion: "I flowed with SAPthe blood, the former SAP CEO for three months in China 10 years old, but rivals always excites me. "
Li Wenli confident because he is not fighting alone.In other global markets, the concern for SMEs has become a key strategic transformation of SAP.This strategic transformation to solve two problems: First, large enterprise customers to re-leveraging SAP enterprise software system requirements, profit growth; the other hand, in the new target market for customers.IDG Consulting's software analyst Caokai Bin said: "For SAP, it must continue to adhere to high-end technical and strategic investment, but also brought about a limited market share and profit contribution. Therefore, in order to grow, SAP must be cast aside, aimed at low-end market. "
SAP's secret weapon for SMEs, is the code for the AIS's Business ByDesign (on-demand business), specifically for 100 to 500 employees of medium-sized enterprises.The browser-based management software, SAP also indicates that access to the Internet software market, it is also called the market's most comprehensive on-demand software or called SaaS (software as a service) products.
Even SAP that 13 billion U.S. dollars in 2006 revenues of software giant is concerned, the new product also called a huge bet.Data show that in 2009, only software development costs, SAP's investment could reach $ 553,000,000.
Moreover, SAP was not a general release figure is low.This product features a month of the specific pricing, in the United States and China, a basic user per month is only $ 149 starting price, including software, infrastructure, services and support.And the hundreds of millions of large-scale SAP systems, more than 1000 yuan per dollar is the price drop in the bucket, not to mention the solution involves the financial, customer relationship management, human resources management, supply chain management, project management, supplier relationship management, compliance management, administration and other areas.Prices around $ 149 per month and convenient way to customize, it is clear than the tens of thousands of software prices and the long implementation cycle is more easily accepted.
Henning Kagermann to enter the low-end market for the ambitious: "not affordable by such complex products, will ensure that SAP's target for 2010: to open up more than 1 million new customers."
He could not help the future growth of this for the SAP is critical to carrying out the mission of the product much appreciated: "This is my 25 years working in SAP's most important product release time." Kagermann believes that its importance can be and in the 1990sThe R3 comparable products - just lay the SAP R3 dominant position in the enterprise, known as the noble enterprise software systems.
New strategy
To accomplish the ambitious goals of 2010, SAP plans to invest 300 million before the end of 2008 -4 million euros for marketing, service and support, which most of the costs for developing countries, including China, sales and research and development expenses,UF and Kingdee and entrenched for many years, private enterprises in the Yangtze River Delta and the Pearl River Delta together designated as priority development areas.
However, the transition to the SAP user is really a huge change.China is a globally recognized center for SMEs, SAP global R & D headquarters of SMEs in China, Business ByDesign as one of the first on the market now that the new solution but also by the SAP at least 80% of their sales until 2008will be totally dependent on the future partner.SAP Business ByDesign Ching-head of China's prediction: "SAP Business ByDesign in 2007 in the Chinese market, the goal is 15-20 customers on-line, manufacturing, wholesale and retail, services, consumer goods industries as priority areas to promote. 2008, there were 120-130 new customers from the SAP Business ByDesign, 2010 reached 800. expects the Chinese market will account for 70% of additional profits. "
To successfully achieve goals, SAP market for SMEs in China conducted a series of strategic adjustments.First, the technical side, in July of this year, SAP launched SAP All-In-One ERP 6.0 native version of integrated solutions in China, ranging from marketing to sales to implementation of all business, another flagship product, Business One has released "Agile Financial "and" all effective management "of two promotional packages.Secondly, the services provided to SMEs are also more intimate, according to SAP on a global scale to promote the financing plan, the company can provide customers with unsecured loans, the longest loan term up to 7 years.SAP recently appointed vice president of Greater China, responsible for the channels He Shaoxian told the "Business Weekly", "If the standard package in accordance with Business One, 9.8 million, implementation and maintenance fees for two years, 36 months installment, monthly customerjust over 3,000 yuan. "
This expansion in the channel an important part of the SMB market, SAP also introduced some new support strategy.According to He Shaoxian introduced in 2006, SAP set up in Chengdu, a partner center, and each partner with a consultant, basically to achieve a more detailed communication.Currently in China, 36 SAP channel partners, the company's goal this year is amplified partners.Partner Edge program through, SAP will further enhance the training efforts of partners, while further broken down by industry and regional channel partners, expected in the near future to have a most extensive coverage in China, stable channels of the highest rates of co-operationpartner ecosystem.Recently became responsible for the SAP consulting and He Bin, vice president of Greater China, told the "Business Weekly", in order to meet the service 10 million customers in the program, SAP 2010, China plans to develop 20,000 advisers, is now the number is 2500people - almost a 10 times increase in the target.
"The existing training center is not enough, we must first certified training partners more to help the market develop more consultants, which are certified partners not only on Beijing, Shanghai, also in Dalian, Chengdu, Qingdao, Hangzhou, Suzhou and other places, there will also set up training partner. "said He Bin, and previously served as consulting SAP Singapore company director.
New team
Despite the careful arrangement, He Shaoxian recognition task is still arduous.Performance can bear the burden, natural is a big challenge SAP team.You know, this is a brand new team.
SAP China is considered to be the number one engine of global growth, increasing performance over the years, the first quarter of this year, SAP's growth in China is as high as 45%.Good performance makes the SAP HR in China in a decade as solid as iron, North Asia and Greater China in 1997 became president of the German Seaman undoubtedly be considered a large contributor.
However, beginning in April of this year, SAP launched a large-scale internal quietly organizational change.SAP for 10 years at the helm of Chinese business in China Seaman fade out, transfer, chairman of North Asia, the former president of China Taiwan and Hong Kong took over as President, Greater China Li Wenli and CEO.Another German nationality executives, former vice president of SAP Juan de China business in China also fade and become chief operating officer of SAP North Asia.
The former Chinese senior SAP that SAP must be from a global perspective with personnel changes in China.SAP engaged in a top-down internal personnel changes.Just as American politics known as "hawks", the "doves" of the points, has been, SAP America and Europe within two cultures, chess, the former acting publicity, market-oriented competition; the latter is calm, to serve customersoriented.
Previously, the EU sent the dominant culture is the SAP gene.On the surface, SAP and Oracle may be almost the same, all the big companies selling everything from stocks to resource planning (ERP) and customer relationship management (CRM) and other software.But both in fact very different.SAP as the enterprise applications software leader, has been growing on its own, rarely make up for their lack of mergers and acquisitions, on the contrary, rely on Oracle acquisition of PeopleSoft in 2004, after expanding rapidly into this field.Over the past three years, Oracle has spent 25 billion U.S. dollars acquisition of 30 companies.Although, if you do not consider Oracle's core business - the database market, only in the field of enterprise applications software, Oracle's sales volume is still far behind SAP.Oracle's market share of only 11%, while SAP, reached 21%.
2003-2006, Oracle earnings per share growth of 49%, largely thanks to its large acquisitions and aggressive marketing strategy.Oracle announced the first quarter of 2007 reported a profit increase of 25.4%, the share price is also at its best, up 29%.
Compared with vigorous opponent in 1972, the town was founded in Heidelberg, Germany, SAP Waldorf somewhat doom, so the biggest challenge ever faced.Although there are still more than 120 countries worldwide in more than 41,200 users running SAP software, although the world's third largest software maker is still the market value of up to 600 billion U.S. dollars, but the scale of a single management software business so frequently sounded in the capital markets "acquired, "the alert.Year, Oracle plans to Wall Street, it was rumored purchase price of 38.5 euros per share, SAP shares, share SAP8% stake.Over the past year, the German DAX index rose 17%, SAP's share price has nearly 20% all the way down, reaching historic lows.
In the face of market competition when new, this management software giant had to go step by step from product-oriented market-oriented positioning, reflected in a corresponding adjustment process management structure, global sales center reclassified to reflect the internal EU to send SAPSchool management ideas with the United States diverged more apparent.
Change the first from the center.Early March 2007, SAP supervisory board voted to current SAP CEO Henning Kagermann global mandate extended to May 31, 2009.Subsequently, SAP executive board member and president of Products and Technology Group announced the resignation Shai.The only 37-year-old executive director, has been identified as his successor.Shai quitting date, SAP shares fell to 33.32 euros, a two-year low.
Traditionally, SAP's sales center is classified as two centers in Europe and the United States, Asia Pacific Center reports directly to the United States.The end of 2006, the former president and CEO of SAP Asia Pacific Leihan Peng (Hans-Peter Klaey) was appointed president of SAP Global SME Division, Mei Ruoting (Geraldine McBride) replaced it from becoming president of SAP Asia Pacific.Mei Ruoting are American, which led directly to control in the Greater China market on a more competition-style oriented.After this reshuffle, SAP team completely out of German-born senior executives of Chinese companies.
Last March, SAP China Research Institute Rui Xianglin has pointed out, for how to treat the Chinese market, SAP also has two schools within the point of view.School of thought, SAP is facing unprecedented complex market environment, particularly in the fast growing market like China, the company should learn some business practices in the United States, a relatively intense way to fast to seize the market; those who know relatively conservative view is that, of course, M & Ato expand the business in a short time scale, but the attendant problems of integration is sufficient to drag on business, so they still maintain growth through a more appropriate self-improvement.
In the face of the new management, differences no longer exists, then a new coach Li Wenli from the "reform" the curtain quietly into May, SAP China, high-level frequent changes.Early June, ERP circles who have received the original SAP SME business in China is responsible for Huang Xiaojian, vice president text message, saying that due to family reasons, has officially left the SAP.A few months ago, Huang Xiaojian the baton has been passed to the SMB market has been responsible for training and strategic investment Wang Shengnan.