Business Unusual but SAP e-business Strategy Gains Traction

mySAP.com now 50% of revenue as customers embrace winning ethic

Brisbane, AustraliaSAP AG (NYSE: SAP), the leading provider of e-business software solutions, welcomes customers from across Asia Pacific to SAPPHIRE ’01 Brisbane as all evidence points towards a year that has established mySAP.com as the e-business solution of choice. Despite a chaotic business environment, SAP is reporting healthy figures and an extended customer list in key industry sectors.

“Business Unusual is the best way to sum up our current economic climate but even against this tide, we have continued to succeed in a difficult year because we have set the right strategy and our customers recognise that. In this uncertainty, SAP’s strength and commitment to deliver continually improving business value to our customers, will see us and our customers ride the storm,” said Les Hayman, President & CEO of SAP Asia Pacific.

SAP reported on October 18 that the first three quarters have yielded a 23% growth in revenue. In two key areas, mySAP Supply Chain Management (SCM) revenues are up 46% and mySAP Customer Relationship Management (CRM) up 55%. SCM is now 22% of total revenue and CRM accounts for 17% of total software license sales.
Additional revenue streams also saw considerable growth with consulting revenues growing 34% and training yielding a 20% rise on 2000. Across the global scene, SAP saw revenue of 1,649 Euros (AUD$ 2,843) for the third quarter of 2001. Of this 50% came from EMEA, 37% from the Americas and 11% from Asia Pacific

The mySAP.com strategy is proving sound as mySAP.com accounts for 50% of the overall revenue base. This year’s introduction of the latest version of mySAP CRM has been welcomed by experts with plaudits, and a Hurwitz Group report stated that the latest version means, “We may be seeing the birth of a new leader in CRM.” Indeed, Lehman Brothers reported in August this year that they believed: “this release is equivalent to the release of the supply chain management solution that was launched in February that catapulted them into the number-one position over a short six month period.”
In August, a Gartner report on mySAP SCM stated that the solution offers “robust functionality and compelling value. SAP has developed a wide suite of assets [and]…has more depth than i2 Technologies.” More importantly, however, the report goes on to say that mySAP SCM, “…has an even larger value proposition for enterprise process integration agility in combination with other product lines, such as SAP Portal, marketplace infrastructure using SAP Markets, analytics using SAP Business Warehouse and product data from SAP Product LifeCycle Management.”

Globally, SAP has more than doubled its CRM customer base since January 2001. Of its CRM sites around the world, 30 are in Asia and 15 of those in Australia and New Zealand. As the new version of mySAP CRM begins to ship, SAP Asia has already been able to announce the adoption of the latest solution by such prestige organisations as: Cheil Jedang (Korea), Yodabashi (Japan) and Yageo (Taiwan). Prior to this new release, mySAP CRM projects which have gone live in Asia Pacific include FAW-Volkswagen (China), LG Chemical (Korea) City Developments Limited (Singapore) and Siam City Cement (Thailand). Customers like Cadbury and Asian Paints (India) are using mySAP Business Intelligence to analyze customer data. Some of the customers who have selected mySAP CRM include Samsung Electronics Co. (Korea), LG Siltron, (Korea), Ayala Land (Philippines) San Miguel (Philippines), Tata Infomedia (India), MIRC Electronics (India), and DCM Shriram Consolidated Ltd (India). Announcing the full deployment across ANZ, for instance, of mySAP CRM, Jones Lang Lasalle point to total seamless integration as the secret to mySAP.com’s success overall. “SAP has always been and will always be better than everyone else at integrating with the back-end, especially third-party applications,” said Wallace Scales, Project Manager on SAP CRM at JLL. “You can have all the functionality, all the bells and whistles you like, but if it isn’t intuitively fundamental to the workings of the organisation as a whole, you’ve wasted your money.”

mySAP SCM has delivered more than 2,000 shipments of mySAP SCM to global companies. In Asia Pacific, companies who have selected mySAP SCM includes Hansol CSN (Korea), Cheil Jedang (Korea), Pacific (Korea), Marico Industries (India), Hewlett Packard Far East (Singapore), Unilever (Singapore) and Yageo Corporation (Taiwan).

In the region, mySAP PLM is being implemented by leading players companies like Korean Broadcasting Corporation (Korea), Inzi Controls (Korea), Shanghai General Motos Corporation, Ltd (China) and Schneider Electric (Singapore). SAP Australia also reports that as WMC Mining extends its SAP deployment this year, manufacturing and mining sector now accounts for 40% of overall ANZ revenue base. In other industries, SAP ANZ has added Airservices Australia, Australian Nuclear Science and James Hardie Australia to its extensive customer list.

“What we are seeing is the culmination of a long process of consultation with our customer base to deliver the right solutions to today’s business problems. Customers have said they want seamless integration across all their business processes, effective use of the Internet and mobile deployment. With over 50 mySAP.com customers in Australia & New Zealand, we have delivered that, and all the indicators show we have got it right,” said Chris Bennett, CEO and Managing Director, SAP Australia and New Zealand. “Our success proves that when companies need solutions that deliver real value, they turn to SAP. We are now number one for CRM in our customer base – this was our first goal to success in the CRM market. SAP is heading in the same direction for the Portals and SCM spaces.”
In its Magic Quadrant report this year, Gartner ranked SAP as the undisputed leader of the portal space ahead of its competitors.

SAP concludes additional investment in Commerce One, receiving U.S anti-trust authority approval for additional stock buy, bringing its overall share to 20%
SAP AG establishes Global Professional Services Organisation (Global PSO) to streamline global consulting services for SAP’s most high-profile customers, independent of geography
First SAP Australian Research Lab in Queensland announcement by Paul Lucas, Minister of Innovation & Information Economy at SAPPHIRE ’01