SAP Korea Announces SMB Solution and Strategy

9 local channel partners selected, optimized industry solution incorporating SAP key technology and industry experience
Quick ROI and optimal pricing strengthens local SMBs’ business competency to large enterprise level

Seoul, KoreaSAP Korea, integrated e-business solution leader, held press conference at Seoul Grand Intercontinental Hotel today to announce an optimized Small and Midsize Businesses (SMB) solution and strategy incorporating its industry experience and key technology. SAP Korea, based on the superiority of its solutions proven in the enterprise applications market, expressed its commitment to establish itself as the market leader in the SMB market as well.

Robust industry solutions
The solutions announced by SAP today are mySAP All-in-One specialized for different industries and mySAP Business One slated to be shipped next year. The solutions reflect the characteristics of SMB market to the fullest extent and satisfy industry-specific requirements. To enable SMBs to introduce the products with appropriate budget, the solutions even boast reasonable pricing scheme. Kwang Sik Moon, SMB Sales Director at SAP Korea stressed that “SMB should not be categorized by the size of a company, rather it should be grouped by its industry” and “therefore SMBs are now in need of industry solution that guarantees quick ROI.” SAP developed ‘one-stop solution’ putting software, industry best practice, implementation and hardware into one, thus enabling implementation with minimum cost. Furthermore, it reduced implementation period to less than 150 days, which would allow SMBs to be nimble and competitive in the changing environment. The solution provides foundation for SMBs as they grow to exert capabilities as strong as that of large enterprise.

5 industries, 9 channel partners (mySAP All-in-One Value Added Reseller)
SAP Korea on the same day selected and announced 9 channel partners equipped with professional knowledge and expertise. The channel partners selected are BizTech Consulting, EWARESYSTEM, Ovytz, Trust, i-Sprint Consulting, Sejoong Consulting, SK C&C, Synergy C&C, and Bridge Solution Group, and these partners will introduce SAP SMB solution in cooperation with SAP. Indeed, the partners will also develop add-on solutions reflecting their own industry-specific experience based on SAP key applications to help customers minimize customization.

The announced partners were the ones that passed SAP’s strict selection criteria and will have to complete a tough training program. SAP’s Alliance Manager Chan-soo Kim, who was in charge of channel partner selection explained that “for SMB solution, our partners’ understanding and experience on different industries are as important as the value of SAP’s integrated business applications” and added “considering the significance of their role, we were careful in selecting the right partners to deliver practical values to our customer.” The partner evaluation process focused on whether the candidates had the prerequisites to deliver the services SAP wishes to provide to its customers; their experience and know-how in relevant industries, participation in the joint development of SAP’s SMB solution, solution completeness, substantial sales/marketing plan, and setup of a dedicated SMB team. Apart from the 9 partners selected for high-tech, automotive, chemical, consumer goods, and pharmaceutical industries, evaluation process is currently underway to identify capable partners in other industry areas.

Foundation for SMB market strategy enabling customers and SAP to succeed together
EN Han, Managing Director of SAP Korea said, “The problem with outsourcing solution development is that as time passes, TCO continues to increase” and stressed that “for SMBs that need to introduce solutions with medium and long-term vision, increasing TCO is the biggest impediment.“ Han also added, “mySAP All-in-One minimizes that need to outsource solution development and quickly reflects company’s requirements through continuous upgrade. With the selected outstanding partners SAP will do its utmost to provide the ideal solution for small and mid-sized businesses.”

SAP Korea predicts that the growth of enterprise solution market will coincide with the qualitative growth of SMBs and expects 20% of its total software license revenue to be created in the SMB sector by 2005. The company states that in the second half of this year, together with the 9 partners selected, it will initially focus on high-tech, automotive, chemical, consumer and pharmaceutical industries.

Meanwhile SAP Korea, to explain its SMB business to the potential customers in the focusing industries, will hold SAP Solution Fair for SMBs (Temp. Title) in Seoul next month and SAP Integrated Business Solutions for SMB (Temp. Title) in Ulsan and Changwon in November.