SAP sees significant momentum for its SME solutions in India

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

IndiaSAP India today announced the addition of over 433 new midsize enterprise customers over 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 and 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 All-in-One – SAP’s complete business solution specifically built for midsize companies to address the business software requirements of the most demanding midsize organizations saw increased customer traction with over 170 new wins for the solution. Delivered to customers through SAP’s All-in-One partners, this success also reflects the strength and maturity of SAP’ All-in-One partner ecosystem in India. Key Customers for SAP All-in-One include Total Environment, Interglobe Aviation, Donear Suitings, Add Corporation, Raymonds, ABAN Power among others.

SAP Business One – specifically built for the Indian Small Enterprises (SE) segment launched in India in early 2006 – saw outstanding market acceptance with over 263 new wins. Key Customers for SAP Business One include Pidilite Industries, Saint-Gobain Weber, TCL, Sony World, Edwards Lifesciences, Stanvac Chemicals among others.

To ensure that Indian small enterprises spread across the length and breadth of the country have access to a world class business software solution, SAP has built a strong partner network – with over 75 resellers and three national distributors.

SAP India has also witnessed a momentum of medium enterprises customers in the South in 2006 ranging from diverse verticals like hospitality, logistics, retail, home-building, constructions media-entertainment 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 South Include:

– Vasanth and Co, Leading Retailer, Chennai
– Mytec software Pvt Ltd, Leader in providing collaborative business solutions, Hyderabad
-Bhuruka Gases Ltd, Leading Industrial Glass Manufacturer, Bangalore
– Wirtgen India Pvt Ltd, Leading Mining Solutions Company, Mysore
-Watertec India Pvt Ltd, Plumbing Fittings Manufacturer, Coimbatore
– Sai India Ltd, Industrial Machinery Manufacturer, Bangalore
– ACE Designers, Leading Auto Components Manufacturer, Bangalore
– FIVES CAIL KCP LIMITED, Leading Sugar Factory Chennai
– Tejas Networks India Limited, Leading optical networking company, Bangalore
– Ushodaya Enterprises Ltd – Priya Foods Division, leading pickle manufacturer, Hyderabad
– Sivashakthi Bio Plantec Ltd, Leading Agri Inputs Provider, Hyderabad
– Hetero Drugs Limited, Leading Pharmaceuticals Company, Hyderabad

“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 enterprise segment is 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 Small Enterprises spread across the length and breadth of the country has access to a world class business software solution”.

Vasanth & Co, India’s no 1 dealer in consumer electronics and home appliances chain, is implementing mySAP ERP 2005 across its 41 showrooms to enhance operations and enter the next phase of its growth plans. “We chose to work with SAP because we felt that SAP has the best solution for us, has a clear road map and has a strong track record of delivering on its vision. SAP’s track record in this industry has been commendable and we are excited to see the impact of SAP’s best practices in a dynamic industry like ours. We are leveraging the best of breed solutions from SAP and launch our company into a new and exciting phase of growth” said H Vasanth Kumar, Chairman & Managing Director, Vasanth group of companies.

Provogue, one of India’s biggest fashion brands, chose SAP last year. Mr. Deep Gupta, Director Finance explains, our Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of seven years, it has established a strong brand identity in the minds of the urban consumer. “We needed a sound IT background to handle the growing business to maintain the brand identity which Provogue has earned”. Mr. Mukesh Agarwal – Head IT says, “We wanted a robust solution that would help us keep pace with technology and the fast evolving trends in the retail business, coupled with strong domain expertise and SAP fitted all our requirements.”

The Park hotels, one of the most renowned hotel groups in India, have recently implemented SAP ERP Human Capital Management (HCM) solutions which is a breakthrough deal in the hospitality industry. Mr. Vijay Dewan, Managing Director, The Park Hotels, says, “The Park’s vision is Leadership through Differentiation. By embracing SAP ERP HCM, we have initiated a trend-setting & far-reaching best practice in the Indian hospitality industry. Our people are our key strength and pivotal to our success. Hence, amalgamating our HR knowledge and functions with our business process and strategy through SAP will maximize our human resources potential.”

Saregama India Limited, a leading player in the Indian entertainment sector has implemented SAP solutions in 2006 for more effective revenue management through managing of its Intellectual Property and for enhanced operational efficiency. Amit Mukherjee, CTO, Saregama India Limited, explains, We wanted to implement a solution that could primarily help us manage our Intellectual Property better and also help us make informed business decisions in the rapidly changing business environment. SAP became an obvious choice as it is the only ERP solution provider offering solutions for IP management along with other business modules.” With this Saregama became the first ever Indian media-entertainment company to implement SAP solutions for its Intellectual Property Management.

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

The results 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).

Medium enterprises look to SAP for Best Practices

In another IDC custom survey sponsored by SAP of 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.

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.