Presented To: Prof.

Sukrit Basu
Presented By: Aditya, Nikhil,
Jyotsna, Surya, Vishal

Contents
1)
2)
3)
4)
5)
6)
7)
8)

Introduction
History
Current
Business Model
Competitors
Clientele
Financial Highlights
SWOT Analysis

INTRODUCTI
ON

1.1 Introduction
About SAP:
SAP, started in 1972 by 5 formerIBMemployees in
Germany, it is the world's largest inter-enterprise software
company and world's 3rd largest
independentsoftwaresupplier, after Microsoft & Oracle.
The original name for SAP wasGerman: Systeme,
Anwendungen, Produkte, German for "Systems
Applications and Products.
The original SAP idea was to provide customers with the
ability to interact with a common corporate database for a
comprehensive range of applications.

1.2 Introduction
Vision and Mission:
SAPs vision is to help the world run better and
improve peoples lives.
SAPs mission is to help every customer become a
best-run business.

Ambition 2015

Double our addressable market to US$230 billion.

Generate 20 billion in annual revenue.
Reach 1 billion users.
Generate 2 bn in the cloud business.
Become the fastest growing database company.

1.3 Introduction
Snap Shot:

Type: Aktiengesellschaft (AG)/ Incorporated

Industry: Enterprise software
Founded Weinheim, Germany (1972)
Founder(s)

Dietmar Hopp
Hans-Werner Hector
Hasso Plattner
Klaus Tschira
Claus Wellenreuther

SAP Key People

Name
Hasso Plattner
Henning Kagermann
Werner Brandt
Claus E. Heinrich
Peter Zencke
Gerhard Oswald
Deiter Matheis
Wolfgang Kemna
Leslie Hayman
Leo Apotheker
Erwin Gunst
Karl-Heinz Hess

Executive Office
Co-CEO, Co-Chairman and Co-Founder
Co-CEO, Co-Chairman and Co-Founder
CFO
Executive Board, Human Resources,
Industry Solutions Development, and
mySAP.com
Executive Board, Industry Solutions,
Customer Relationship Management, EBusiness and Global Research
Executive Board, Information
Technology Infrastructure
Extended Management Board
Extended Management Board,
Americas; CEO, SAP America
Extended Management Board, AsiaPacific
Extended Management Board, Europe,
Middle East, and Asia
Extended Management Board,
Germany and Switzerland
Extended Management Board,
Technology Development

HISTO
RY

2.1 History
SAP AG was founded in 1972 by five German
engineers with IBM in Weinheim, Germany;
Founders
Hasso Plattner,
Dietmar Hopp,
Klaus Tschira,
Hans Werner Hector

2.2 History
When an IBM client asked IBM to provide enterprisewide software to run on its mainframe
The five began writing the program only to be told the
assignment was being transferred to another unit
Rather than abandon the project altogether, they left
IBM and founded SAP

2.3 History
Without the benefit of loans from banks, venture
capitalists, or the German government, SAP began
fashioning its software business gradually through the
cash flow generated by an growing stable of
customers

Development of R/1:
Working at night on borrowed computers, Plattner
and colleagues built SAP's client list, beginning with
a German subsidiary of the global chemical
company ICI and later adding Siemens and BMW.

2.4 History
R/2 in the Late 1970s
In 1978 SAP began developing, and the following year

released, R/2 (R for "real-time"), a mainframe-based,

standard business software suite modules for:
Accounting,
Sales and Distribution
Production
Enabled customers to consolidate their financial and

operational data into a single database and reducing costs

2.5 History
Introduction of R/3 in the 1990s
R/3 had been launched with the expectation that it would
complement R/2's multinational-oriented niche by
extending SAP's reach into the mid-sized, less mainframedominated business software market
R/3's release coincided with a growing trend toward
corporate downsizing, and even SAP's largest customers
began eyeing R/3 as a less labour-intensive replacement
for R/2
As a result, in the space of one year (1992-93), the
percentage of SAP America's total revenue generated by
R/3 catapulted from five to 80 percent
R/2's status as SAP's flagship product dwindled from 95
percent of revenues to only 20 percent.

2.6 History
Foreign Markets in the 1990s
SAP's sales to German companies had fallen to 37%
North American sales accounted for one-third of all
revenues;
Asia-Pacific market was expected to reach the same
level by the year 2000.
In 1996 SAP relocated most of its marketing operation
to its Wayne, Pennsylvania, complex.
Between 1992 and 1996, it opened subsidiaries in
South Africa, Malaysia, Japan, the Czech Republic,
Russia, China, and Mexico among others
R/3 was available in 14 foreign languages including
Russian, Mandarin Chinese, and Thai.

Current

3.1 Current
Today SAP is
The 3rd largest independent software supplier in the world
12 million users,
121,000 installations worldwide,
More than 1,500 SAP partners, over 25 industry-specific
business solutions, and more than
41,200 customers in 120 countries.
The firm is now committed to moving towards a full
service oriented architecture (SOA) with underlying Net
weaver integration platform and is aiming to move down
into the mid-market user base with its long-awaited
software as a service (SaaS) push through its recent
Business Bydesign announcement.

Business
Model

4.1 Business Model

4.2 Business Model

Business Process Applications

Customer Relationship Management

Enterprise Asset Management
Enterprise Resource Planning
Financial Management
Human Capital Management
Procurement
Product Lifecycle Management
Supply Chain Management
Sustainability

4.3 Business Model

Business Analytics

Analytic Applications
Business Intelligence
Data Warehousing
Enterprise Information Management
Enterprise Performance Management
Governance, Risk and Compliance

SAP Business One - A Complete Solution for your Small Business.mp4

4.4 Business Model

Technology

Application Foundation/Integration
In-Memory Computing
Enterprise Mobility
On-Demand Platform

Marke
ting
Shop
Floor
Sale
s
Mfg.

FA
Treas
ury
AP

GL

AR

Purcha
sing

Plant
s

HR

PP

Payr
oll

Competitors

5.1 Competitors
SAP vs Oracle:
23rd Nov10: Oracle sued SAP, alleging that SAP had
engaged in copyright infringement by downloading
thousands of copyrighted documents and programs
from Oracle's Customer Connection website.
SAP admitted that its subsidiary Tomorrow Now had
infringed Oracle's copyrights and a jury awarded
Oracle record-high damages in the amount of $1.3
billion.

5.2 Competitors
SAP vs Oracle (Continued)
The rivalry is heating up even more following SAP
CTO Vishal Sikkas recent comments that SAP plans
to support its flagship Business Suite ERP software
on its HANA in-memory database platform by the
end of 2012.
Industry observers see this as a move to entice
companies to choose HANA over Oracle databases.

Clientele

6.2 Clients
International Clients
P&G
Cameron
International
Capegemini
D. Swarovski & Co.
IATA
IBM
Japan Airlines Co.
Java Republic
Phillips
Unilever
Compaq

HP
AMD
Boeing
Mercedez
Toyota
Lucent
Hitachi
Nike

6.3 Clients
Overall
SAP HIGH TECH &
ELECTRONICS 11.3%

Others 11.5%
SAP BANKING 2.0%
SAP MEDIA 2.3%
SAP HEALTHCARE 2.3%
Metal, Paper & Wood
Products 2.8%
Services 3.1%
SAP OIL & GAS 3.2%
SAP TELECOMMUNICATIONS 3.4%
SAP PHARMA CEUTICALS 3.4%
SAP PUBLIC SECTOR
3.4%
SAP UTILITIES 3.9%

SAP ENGINEERING &

CONSTRUCTION 10.5%

Worldwide

SAP AUTOMOTIVE 4.8%

SAP
CONSUMER
PRODUCTS
10.3%
SAP CHEMICALS 9.5%

SAP RETAIL 6.3%

Consulting & Professional Services 6.0%

FINANCIA
L
HIGHLIGH
TS

7.1 Financial Highlights

QUICK FACTS

Financial Highlights FY 2011 (IFRS)

Total revenue 14.23 bn
SSRS revenue 11.32 bn
Operating profit 4.88 bn
Operating margin 34.3%
Basic earnings per share 2.89
Free cash flow 3.33 bn
Employees (FTEs) 55,765

7.2 Financial Highlights

Investment Profile as on March12

Ticker symbol - SAP

Home exchange - Frankfurt Stock
Exchange - Germany
U.S. Exchange - NYSE (ADR)
ADR : ordinary share ratio - 1 : 1
Number of shares outstanding: 1,228 million
52 week range $47.39 - $71.55
Market cap: $85.51 bn

7.3 Financial Highlights

7.4 Financial Highlights

7.5 Financial Highlights

ANNUAL REPORT OF SAP:
The financial report shows the profit and loss
account maintained as per IFRS.

The P/L Account shows : Operating Profit increased by 12% in first half of
2012.
Gross margin improved by 110 bps.

As per Balance sheet : Profit after payment of taxes in 2012 is 1104 million
Euros which shows an increase.
SAP is keeping the future in mind, as it has
increased the assets from last year for the purpose
of growth and expansion.

7.6 Financial Highlights

Five-Year Summary - SAP Group(2007-2011)
16,000 14,260
14,000

25,000
12,538

12,000

10,683

11,732

13,374

15,000

8,000
6,000

10,161

5,000

2,000
2011

2010

2009

2008

2007

2011

Total revenue

2009

2008

2007

6,000

4,881

5,000

4,000

4,768

4,000

3,000

2,591

2,588

2,701

2,698

3,000

2,000

2,000

1,000

1,000

2010

Total assets

6,000
5,000

13,900

10,000

4,000
0

20,841

20,000

10,242

10,000

23,225

2011

2010

2009

2008

2007

2011

2,338

2,435

2,624

2,824

2010

2009

2008

2007

Fig in: Million Euros

7.7 Financial Highlights

Five-Year Summary
SAP Group(2007-2011) CONTINUED..
4,000
3,500

3,439

3,000
2,500
2,000

1,813

1,750

1,848

1,908

2010

2009

2008

2007

1,500
1,000
500
0

2011

Profit after tax

Fig in: Million Euros

7.8 Financial Highlights

SAP Financials 2007-2011
The annual report presented by SAP , shows the
total revenue from 2007-2011.The total amount in
2007 was 10,242 million Euros and in 2011 was
14,260 million Euros . It shows the constant
increase in the total revenue from 2007 to 2011.
The operating profit of SAP in 2007 was 2,698
million Euros which increased to 4,881 million Euros
in 2011. It is a good sign for SAP.
The profit before tax in 2007 was 2,824 which later
on increased to 4,768 million Euros in 2011.
The profit after tax in year 2007 was 1,908 and in
2011 was 3439 million Euros.
The total assets is 10,161 million Euros in 2007
and now in 2011 it is 23,225 million euros.It shows

SWOT
ANALYS
IS

8.1 SWOT Analysis

Strengths
Function Fitness
Market share leadership
Strong management team
Good Security
Focus on research and development
Diversified geographical spread
Strong position in business software

8.2 SWOT Analysis

Weaknesses
Highly complicated
Its not user-friendly
Lack of diversification
Declining margins

8.3 SWOT Analysis

Opportunities
Acquisitions
Ability to leverage market position
Move into the web based SaaS model
Strategic partnerships
Growing business intelligence platform market
Growing SaaS market

8.4 SWOT Analysis

Threats
Economic slowdown
Global economic slowdown
Foreign currency risks Regulations
Undetected product errors and security
shortcomings

Thank You