A Steadfast Allegiance

Particularly well-known for its focus on the consumer products sector, R5’s scope now extends to discrete manufacturing, pharmaceuticals, and service providers in IT and logistics. R5 prides itself on its cutting-edge business knowledge in the company’s target verticals and SAP applications. “We have access to competent and experienced consultants who possess both business experience and SAP expertise. The average age of R5’s consultants is 35, and the average SAP experience is 5.4 years.”

On sure ground

R5 believes it offers its customers a fairly unique selling point – stability in an uncertain market. The company has a solid foundation and can ensure its customers that it “will also be there tomorrow”. SAP has an important role to play in this promise. R5 has built its business around SAP solutions and its revenues are dependent on the SAP relationship. Since day one, the company has built a steady, long-term income based on its SAP partnership. Cooperation between the two partners is built on an open, dependable relationship. R5 professes 100 percent loyalty to SAP and expects this to be reciprocated.
SAP’s longevity was a major factor in R5’s decision to partner with the company. Add to this R5’s conviction that SAP software is unrivalled by any other vendor, and it is not difficult to see why the company went with SAP. R5’s CEO Søren B. Sørensen is testament to the company’s devotion, “R5 is proud to work with the best ERP software in the world.” SAP’s muscle and investment potential was another winning criterion. R5 is able to capitalize on SAP’s continued investment in solution development and R&D in the quality of its own products and ability to solve its clients’ business issues. The recognition the company gets from SAP training and certification also gives R5 a head start over the uncertified competition. “Partner certification provides a stamp of trustworthiness”.

Moving into mySAP All-in-One

In 2000, R5 became an SAP Value Added Reseller. The company has since become one of the most active partners on the reseller market – making investments in dedicated sales and implementation staff and education programs. Moving into mySAP All-in-One can almost be seen as a natural progression for the company. R5 was attracted by the fully integrated all-in-one concept because it is easy to implement and has the flexibility to grow with a company. R5 invested 2 months and 4 consultants (8 man months) in developing its mySAP All-in-One template and anticipates a solid return on this investment, with sales of 5-10 solutions per year.
To date, R5 has completed several projects with mySAP All-in-One. Two prime examples are Carlsberg, the well-known Danish brewery, and Metro Service, a small Danish company delivering services for the Copenhagen underground. In the case of Carlsberg, R5 was able to apply SAP across all areas, providing more comprehensive coverage than ever before. At the much smaller Metro Service, R5 delivered maximum value in minimal time well within budget.

New horizons

Looking ahead, R5 has plans to expand its horizons. The company’s major strategic objective is to use the acquisition path to gain greater geographical coverage and become a global SAP consultancy. With two offices in Denmark, one in Finland and another in Norway, R5’s next move will be expansion in Sweden and mainland Europe. The company is already making tracks on the Swedish market, having recently added Epona Data to its list of acquisitions. Next on the agenda are the UK, Germany, Benelux, Poland, and the US.
Through enlargement of its Nordic market share, R5 aims to grow into the “Nordic equivalent of the [former] Big 5” SAP consultancies. However, the company is quick to point out that the similarities stop there. R5 feels that it offers a more attractive value proposition than the (former) Big 5 – the same or superior levels of competency combined with greater commitment and deeper customer relationships. In R5’s eyes, the goal is not to impose a solution on its customers, but to work with them and listen carefully to their needs.
R5’s relationship with SAP seems to work on similar principles and the company stresses the importance of the human factor in their association. On a business level, SAP is R5’s bread and butter and the company is committed to working with SAP. Product quality is a big factor in this equation and R5 feels it can always rely on SAP to come up with high-quality goods. Marketing support is also a significant benefit, helping to drive R5’s own sales and marketing strategy. In addition, the SAP partnership opens doors for R5, giving the company easier access to customers – some of which it may never have reached without the SAP edge.
R5 is clearly ambitious both for itself and its SAP partnership. Its mission statement says it all: “No matter where the worlds leading companies are – we are too. Sharing visions, culture and knowledge to drive real value from SAP initiatives”.

Lindsay Johnson
Lindsay Johnson