Indian Small and Mid-size Enterprises in North India Chose SAP in Record Numbers in 2006, Increasing SAP’s Market Lead

March 20, 2007 by SAP News 0

Studies Show Small and Medium Customers Benefit from SAP’s Proven, Easy to Adapt and Affordable Portfolio of Solutions

New DelhiSAP India today announced the addition of over 433 new midsize enterprise customers in 2006, translating to the addition of more than one new customer per work day in 2006. SAP All-in-One – SAP’s solution for the mid market segment powered by SAP Best Practices was chosen by over 170 Indian mid-sized enterprises. With over 263 wins, SAP Business One – SAP’s solution for the small enterprises – powered ahead in 2006 across all the regions of India, bringing SAP’s small and mid-size customer base in India to over 883, doubling the base in just a year.

SAP India has also witnessed a momentum of mid size enterprise customers in the North in 2006 ranging from diverse verticals like textile, retail, real estate, constructions automotive components etc. amongst others, in some cases, for the very first time in the industry.

Some of the significant wins of SAP in the segment in North are:

– GHCL Limited
– Patel Wood Products
– Shriram Pistons and Rings Ltd
– Kajaria Ceramics
– Sutlej Industries
– BPTP
– English India Clay
-Vardhman Polytex
– Munish Forging

“SAP and its partners deliver affordable and easy to deploy business management solutions for quick ROI and low total cost of ownership by building in best practice know-how,” said Alan Sedghi, President and CEO, SAP Indian Sub-continent. “Small and medium enterprises are a key focus for SAP in India and the segment is expected to contribute significantly to achieving our target of 15,000 customers by 2010. SAP has built strong network of over 20 partners who offer micro-vertical capabilities and implementation services for SAP All-in-One solution. We are working with over 75 re-sellers and three national distributors to ensure that SAP Business One is accessible to the vast pool of SME’s spread across the length and breadth of the country “.

“SAP has been able to suitably integrate the various processes within GHCL, thus meeting the business objectives and justifying investments made” said Chandan Sinha, Chief Information Officer, GHCL Limited.

Speaking on the benefits derived from SAP All-in-One, Amrit Patel, Managing Director, M/S Patel Wood Products Pvt. Ltd. Said “The SAP SME solution which is globally proven and is based on industry best practices ensured better understanding of our needs and faster implementation, which has resulted in faster RoI.

Studies Show Customers Benefit from SAP’s Proven, Easy to Adapt and Affordable Portfolio of Solutions for SMEs

The result of IDC’s most recent biannual Asia Pacific (excluding Japan) market share analysis reveals SAP as the leader in Enterprise Applications market for SMEs. According to the research, SAP was the leader serving the APEJ SME market in 1H2006 in each application category IDC researched, including Enterprise Resource Management (ERM), also known as ERP, and including Human Capital Management (HCM); Customer Relationship Management (CRM); and Product Supply Chain (PSC), also known as Supply Chain Management (SCM).

The same sentiment is shared by customers who have benefited by using SAP software SAP All-in-One customer, Maestro Engineering Pvt. Ltd (MEPL), an apparel manufacturing and exports company based in India, is just one of an increasing number of customers in the north region benefiting from the accelerated time to ROI of SAP Solutions for SMEs.

“Our implementation partner, Caritor India, was able to complete the entire project on time, which not only helped MEPL strengthen our bottom line but also gave us an edge over our existing competitors,” said Paul Dueman, Business Analyst, Maestro Engineering Pvt. Ltd. “Through the implementation, we have witnessed a significant increase in overall operational efficiency and better customer and employee satisfaction. Not to mention, we had a 100% return on investment in just over one year!”

“Radico is controlling its inventory through SAP which has helped the company save 10% of its inventory cost, which translates into Rs. 3 crore. This alone has paid for the investment and subsequently added to our bottom line”, said Farhan Khan, Joint General Manager, Radico Khaitan.

Mid-sized enterprises look to SAP for Best Practices

In another IDC customer survey sponsored by SAP for 50 existing SAP SME customers in the region, preliminary results indicated the top reasons driving respondent companies to deploy SAP solutions included the need for higher levels of integration and collaboration, as well as the ability to control business costs. SAP’s SME customers also saw higher operations and process efficiency as top benefits as a result of using their SAP systems. Further, the survey highlighted that innovation and operational excellence are top strategic initiatives in helping respondent companies achieve their growth objectives over the next one to three years. Over all, the majority of respondents regard IT, including their SAP systems, as having the greatest influence on their operational excellence initiatives, followed by those on regulatory compliance and/or industry mandates, innovation, and channel sales model.

In addition to the IDC study, SAP Asia Pacific analyzed a number of its own SAP All-in-One customers which utilized SAP® Best Practices, a global portfolio of proven industry and cross-industry business scenarios and documentation, in their implementation. One-hundred percent of respondents confirmed that the adaptability, predictability and affordability of SAP All-In-One were key to their purchasing decision. A number of specific benefits of SAP Best Practices over traditional implementations were highlighted by the respondents:

• Deployments took half of the usual Consulting and customer resources
• Deployment times were reduced to an average of 32 percent with a savings of between 14 and 100 man days
•Average project duration was reduced by 10 weeks through productization from 30 weeks on average
•Solution fit out of the box was as high as 70% of customer requirements
• Customers saved an average of €45,000 with SAP Best Practices, with some saving as much as €150,000

Next Evolution
Delivering the value of enterprise service-oriented architecture (enterprise SOA) “by evolution” to midsize companies, SAP Asia Pacific is introducing the next version of its SAP All-in-One solutions. Based on mySAP ERP 2005, the latest evolution of SAP All-in-One solutions will enable faster return on investment with a dramatically enhanced and more intuitive user experience, streamlined business scenarios and enhanced analytical reporting.

Looking forward to later in the year, SAP plans to deliver new “SOA by design” solutions to an untapped segment of the midmarket. The solutions will leverage an entirely new platform built on end-to-end business processes and offering dramatic innovations in faster, lower-risk implementation, extreme adaptability and the complete management of the solutions in hosted and on demand alternatives for lowest total cost of ownership.