SAP Closes Gap to Become Number Two CRM Player in Asia Pacific

July 1, 2002 by SAP News 0

Earns Accolade from Frost and Sullivan for Outstanding Competitive Strategy; Strategy Focuses on Enhanced Business Intelligence and Vertical Markets for Continued Growth

SingaporeAs a further testament to the company’s growing momentum in CRM, SAP Asia today earned the prestigious Market Engineering Competitive Strategy award for Asia Pacific from Frost and Sullivan. SAP was recognised for its competitive strategy excellence and new position as number two CRM player following a rigorous analysis of CRM industry in Asia Pacific by Frost and Sullivan, the international consulting and training firm.

“Although SAP is a relatively new entrant in the Asia Pacific CRM space, our recent studies show that the company has clearly demonstrated its ability to re-align itself in the CRM field and execute the right sales strategy,” said Manoj Menon, Director, Technology Practices at Frost and Sullivan. “This has resulted in outstanding CRM revenue growth for SAP in 2001 and enabled it to attain the number two spot in several key Asian countries with a market share of 18.1% in the region. In the years to come, SAP will ride high on leveraging its CRM applications on its installed base.”

Frost and Sullivan’s examination of the Asia Pacific CRM software market further revealed that in addition to market growth, SAP has also managed to narrow the gap by growing its market share in the region. The company noted that in countries such as Japan, Australia, Hong Kong, Singapore, Malaysia, South Korea, and the Philippines, SAP is being considered by several large conglomerates for their CRM deployments.

“SAP is honoured to receive the Frost and Sullivan Market Engineering Competitive Strategy Award,” said Hans
Peter Klaey, President, SAP Asia Pacific. “This is an important milestone for the company. We have achieved record CRM growth in Asia Pacific and are now recognised by the industry and customers as one of the leading players in the region. This is a direct reflection of our CRM strategy to provide an integrated and connected CRM solution that seamlessly aligns people, processes, and knowledge throughout a company’s entire value network around its customers to achieve strategic goals. mySAP CRM provides Asian companies with the ability to build customer-centric processes that enable the companies to better serve their customers at lower costs and to help the best-run businesses in Asia maximise their customer lifetime value.”

“Integration will remain a key factor for CRM success as companies look to seamlessly connect their front and back-end suite of applications. We have a distinct competitive advantage – no other vendor has the proven track record to deliver a comprehensive suite of integrated and connected CRM solutions to customers like SAP,” said Satyavrath Krishnaswamy, Director, Business Development – CRM, SAP Asia. “We have successfully delivered CRM implementations for several key customers in the region including Jebsen and Jessen South East Asia (Singapore), Unilever Philippines and Hankuk Glass Industries, Korea. We are also partnering with CRM and management consultants to bring best-practice strategies and conduct ROI measurement studies for our regional CRM customers.”

Strategy for Continued Growth
Frost and Sullivan’s study of the Asia Pacific CRM software market also reinforces the potential of the CRM market in the region, the key markets and drivers for growth. The company expects CRM revenues to reach US$808.4 million by 2004. In addition, Business Intelligence will be a key growth segment and is forecasted to reach US$151.5 million by 2004. Frost and Sullivan’s study also saw Japan emerge as the largest CRM market with revenues of US$111.9 million in 2001, followed by Australia with revenues standing at US$52.7 million.*

“Frost and Sullivan’s findings are in tandem with SAP’s strategy for growth and we intend to step up the momentum this year. Firstly, we are deepening the capabilities of our people-centric CRM solutions with enhanced business intelligence and analytics, as well as a more user-friendly and intuitive user interface, “ said Mr. Krishnaswamy. “Second, we will continue to leverage on our depth of expertise in vertical sectors to expand our CRM market share. Thirdly, we have doubled our CRM sales and consulting team in the region in 2001 so we are well positioned for growth.”

SAP’s major CRM regional customer wins in 2001 include FAW-Volkswagon (China), Jones Lang La Salle (Australia), Shanghai SVA (China), China Light and Power (Hong Kong), San Miguel (Philippines), LG Siltron (Korea), Siam City Cement (Thailand), Cheil Jedang (Korea), and Haitian Machinery (China).

Using an objective Market Engineering methodology in its research and consulting, Frost & Sullivan periodically selects companies displaying stellar performance and strategic excellence to receive its Market Engineering Award. This is the first time SAP is receiving the Market Engineering Award for Competitive Strategy in CRM.

* Frost and Sullivan Customer Relationship Management (CRM) Market Study, June 2002

About Frost & Sullivan
Frost & Sullivan (www.frost.com) is an international marketing consulting and training company that monitors the information technology & telecommunications industry for market trends, market measurements and strategies. Headquartered in Silicon Valley, Frost & Sullivan has a worldwide presence, with offices in the United States, Europe and Asia (www.asiapacific.frost.com). Using its Market Engineering methodology, its global team of analysts and consultants track over 200 key industries.