SAP History of 40 years and Still Running Successfully with New Innovations


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SAP History of 40 years and Still Running Successfully with New Innovations

  1. 1. SAP HISTORY A 40 Years History of InnovationPrepared By: Ms.Pramila Nagaraj First Class MBA Finance Graduate (2009-10) Global Academy of Technology, Bangalore (VTU- Belgaum) Trained up in SAP FICO @ SAPTAC Bangalore (FRESHER)
  2. 2. A 40-year history of innovation In 1972, five entrepreneurs had a vision for the business potential of technology. With one customer and a handful of employees, SAP set out on a path that would not only transform the world of information technology, but also forever alter the way companies do business. Forty years and 195,000 customers stronger, we’re just getting started. Building on a track record of innovation and a vision proven true throughout every economic and IT shift, now more than ever, SAP is fuelled by the pioneering spirit that inspired its founders to continually transform the IT industry. SAP’s 40-year history of success is defined by a few key themes: A belief that “real-time” data processing can help bring people closer to business intelligence A dedication to innovation and an entrepreneurial spirit that enable SAP to continually push what’s technically possible And an early commitment to collaboration and co-creating solutions with our customers1972-1981: the early yearsBuilding on the dream of “real-time” computing: Software that processes data when customers askit to – rather than overnight in batches.1972-1981: Highlights1972Foundation: Five former IBM employees start a company they call SAP System analyse undProgrammentwicklung ("System Analysis and Program Development").Vision: Standard application software for real-time data processing is developed.Associations: Taking the initial form of a private partnership under the German Civil Code, thecompany establishes its headquarters in Weinheim, Germany, and opens an office in nearbyMannheim. However, SAPs five founders spend most of their time in the data centers of theirfirst customers, which include the German branch of Imperial Chemical Industries in Östringen.Night owls: Development of the fledgling companys first programs takes place mainly at nightand on weekends.Initial success: At the end of its first year in business, SAP employs nine people and generatesDM 620,000 in revenue.
  3. 3. 1973Modularity: SAP completes its first financial accounting system – RF. This system serves as thecornerstone in the ongoing development of other software modules of the system that willeventually bear the name SAP R/1.New customers: More clients in southwest Germany are running SAP software, including thetobacco company Rothändle in Lahr and the pharmaceutical firm Knoll in Ludwigshafen.Meanwhile, SAP itself is using IBM servers and the DOS operating system. 1974Flexible: SAP demonstrates its flexibility for the first time, converting its RF system from theDOS operating system to OS over an eight-week period.Customer base: Still just two and a half years in existence, SAP has a list of 40 referencecustomers.1975Integration: Companies can now handle their purchasing, inventory management, and invoiceverification with SAPs RM system.Trademark: An SAP trademark begins to emerge – the integration of all of the companysapplications. Materials management data flows directly into financial accounting on a valuebasis, while invoice verification and posting can be completed in one step.1976Legal transition: The limited-liability company SAP GmbH Systeme, Anwendungen undProdukte in der Datenverarbeitung ("Systems, Applications, and Products in Data Processing") isfounded as a sales and support subsidiary. Five years later, the private partnership is dissolvedand its rights are passed on to SAP GmbH.Continued business success: SAP and its 25 employees generate DM 3.81 million in revenue.1977Relocation: SAP moves its headquarters from Weinheim to nearby Walldorf.First steps abroad: The company begins installing its system for customers outside of Germanyfor the first time. Two companies in Austria decide to implement SAP software.Sales: SAPs reorganization strengthens its active sales. 1978Branching out: SAP completes the module Asset Accounting and a correspondingimplementation project at a pilot company.SAP parle français: The farm equipment manufacturer John Deere demonstrates SAPsinternational viability by developing a French-language version of the companys accountingsoftware in an in-house project.1979Centralization: SAP begins operations on its own server, Siemens 7738, for the first time. Upuntil this point, its employees development activities have been distributed across the datacenters of regional customers such as ICI, Thermal, Knoll, Grünzweig+Hartmann, andFreudenberg.A home of its own: SAPs first data center is still located in leased space, but the company hasalready broken ground on the initial construction of its own facility.Technological shift: An in-depth examination of IBMs database and dialog control systemcauses SAP to rethink its software, paving the way for SAP R/2.
  4. 4. 1980Consolidation: SAP moves into its first facility on Max-Planck-Strasse in the Walldorfindustrial park. Its development area – now 50 computer screens strong – is finally unified underone roof.Upgrade: SAP augments its data-processing infrastructure by pairing its existing Siemens 7738with an IBM/370-148, which the company then replaces in the same year with a more powerfulIBM 4341. This model boasts 4MB of memory.Further expansion: SAP expands its product portfolio with RV, a custom development for salesand distribution.1981Debut: SAP makes its first event appearance at the IT trade show Systems in Munich, Germany.Stabile: SAP R/2 achieves high level of stability.Performance driving sales: The growing power of mainframe servers is enabling SAP toexpand its customer base to approximately 200 companies.Joint development: With the help of its customers, SAP expands its range of products with aproduction management module.1982-1991: the SAP R/2 eraReal-time touches more of the business: SAP R/2 packaged mainframe software applicationprocesses in real time and integrates all of an enterprise’s business functions.1982-1991: Highlights 1982SAP turns 10: The company celebrates 10 years in business. More than 250 companies inGermany, Austria, and Switzerland now work with SAP software. Having already outgrown itsown facilities, SAP constructs an expansion in record time.Growth by the numbers: SAP generates DM 24 million in revenue and reaches the 100-employee milestone. Approximately 96% of its customers use SAP software to manage businessprocesses.Taking leave: One of SAPs cofounders, Claus Wellenreuther, departs the company.
  5. 5. 1983Expansion in all areas: A third construction project is necessary to create space for thecompanys workforce, which continues to grow at a rapid pace.Key figures: By midyear, SAP employ 125 people, and generates DM 41 million by the end ofthe fiscal year.Trendsetter: Heraeus of Hanau, Germany, becomes the first customer to install SAPs RM-PPSmodule for production planning and control. 1984Human resources: SAP hires 48 new employees, in particular to meet its significant personnelneeds in developing the new modules RK, PPS, and RP.Alpine outpost: SAP (International) AG is founded in Biel, Switzerland, as the starting point forSAPs efforts in markets abroad.Number crunching: SAP and its 163 employees generate revenues of around DM 48 million. 1985Tools for the job: SAPs data center now boasts three IBM servers and one Siemens server.Employees can access a total of 64MB of main memory in developing and enhancing thecompanys software.International business: Around midyear, five SAP employees from Walldorf move into the newoffice in Switzerland and begin supporting the companys international efforts. At the end of1985, more than 250 people work at SAP, generating DM 61 million for the year.Increasing quality: A new quality assurance committee is established to help increase thestability of SAP software. 1986More business abroad: SAP opens its first international subsidiary in Austria. It alsostrengthens its presence in western Germanys Rhine-Ruhr region, opening its first branch officein Ratingen (near Düsseldorf).Organization: SAP significantly increases its capital stock to DM 5 million, an increase of DM4.5 million. The companys workforce has also grown to a point where its 300 employees nowrequire smaller organizational units led by department managers.Revenue: Thanks to new legislation requiring governing balance sheets, 100 new orders forSAPs Asset Accounting modules are received. SAPs revenues reach the DM 100 million –enabling SAP to reach this milestone sooner than expected.Development: After three years in development, SAPs software for human resourcesmanagement is made available to customers.Presentation: The company showcases itself at the worlds largest computer trade show CeBITin Hanover, Germany, for the first time. 1987Under construction: SAP breaks ground on its new training center in the Walldorf industrialarea. Construction also continues at the companys main facility on Max-Planck-Strasse – now inthe fifth phase of expansion.More business abroad: Following the foundation of its first non-German-speaking subsidiary inthe Netherlands, SAP makes the leap to open offices in France, Spain, and Great Britain in thesame year. Meanwhile, customers in northern Germany receive support from the companys newoffice in Hamburg, and those in the south from its Munich branch. At the end of the year, SAPhas grown to employ more than 500 employees and generated DM 152 million in revenue.User conference: SAP holds its first software conference in Karlsruhe, Germany, to establish aplatform that enables current and potential users to share experiences.
  6. 6. Branching out: IBMs new generation of servers makes SAPs software available to midsizecustomers, generating between DM 30 million and DM 200 million. SAP establishes SAPConsulting to support new customers.The next generation: Early attempts at establishing norms in software production are a keyreason why SAP begins developing its next software generation: SAP R/3. 1988Transformation, going public: SAP transforms from a private, limited-liability company intothe publicly traded SAP AG. In two increments, the company increases its capital stock fromDM 5 million to DM 60 million. SAP then issues its initial public offering in October 1988 at ashare price of DM 750. The 1.2 million shares issued in the names of their respective owners arelisted at the German stock exchanges in Frankfurt and Stuttgart.Ongoing expansion: SAP continues to bolster its global business by opening internationalsubsidiaries in Denmark, Sweden, Italy, and the United States. Back in Walldorf, the companyalso opens its International Training Center, which includes an adjacent fitness area for the SAPworkforce – now 940-strong and generating annual revenues of DM 245 million.Customer milestone: Dow Chemicals becomes SAPs 1,000th customer. Meanwhile, SAPbegins developing RIVA – a billing and administration system for utility companies – to meetthe requirements of select industries.1989Easier to use: SAP introduces its new, more user-friendly interface for SAP R/2. The companyalso kicks off various development projects – in production and other areas – with new tools,such as the ABAP/4 programming environment.Growth demands investment: SAP R/3 is also beginning to take shape. A total of four UNIXsystems from different manufacturers are incorporated into the companys development efforts.At this point, SAP is investing around DM 85 million – approximately 33% of its revenue – inresearch and development alone.A bigger data center: SAPs data center now contains servers from IBM, Siemens, DEC, andHewlett-Packard – providing a total memory capacity of 1,224MB.International business: SAP (International) AG in Switzerland controls 12 internationalsubsidiaries in Canada, Singapore, Australia, and other countries. With offices in 15 countries,SAPs 1,400 employees generate DM 370 million in revenue.Financial markets: In its very first full year on the stock exchange, SAP is named "Company ofthe Year" by Manager magazine.1990Research and development: By issuing preference shares, SAP AG increases its capital stock toDM 85 million. These additional funds enable the company to finance its rising investments.SAP invests DM 110 million in research and development to further develop SAP R/2 and thenew SAP R/3 system. Initial prototypes of the financial accounting and materials managementmodules are already complete.Holdings and acquisitions: SAP increases its focus on midsize companies by acquiring a 50%holding in the German software company Steeb and taking over the software firm CAS outright.Reunification and expansion: The reunification of West and East Germany brings the nationseconomies and currencies together – giving SAP the chance to expand to the latter region as itfounds the joint venture SRS in Dresden along with Siemens Nixdorf and Robotron. Thecompany also opens a branch office of its own in Berlin.New and ongoing construction: Having exhausted the real estate on Max-Planck-Strasse inWalldorf, SAP begins building a sales and development center next to its training center. The
  7. 7. company invests DM 135 million into this new construction project. Meanwhile, its 1,700employees help surpass DM 500 million in revenue. 1991Sneak preview: SAP presents the first applications in its SAP R/3 system at CeBIT in Hanover,where the response is highly positive. With its client-server concept, uniform graphical interface,dedicated use of relational databases, and support for servers from various manufacturers, SAP isset to tap into new market potential: midsize companies, as well as the branch offices andsubsidiaries of larger corporate groups.Looking east: SAP responds to the fall of the "Iron Curtain" with numerous activities in easternEurope. It concludes a cooperative agreement with the largest Russian software company ZPSand begins developing a Russian version of SAP R/2.Trending upward: SAPs revenue and employee numbers continue their rapid ascent, reachingDM 707.1 million and nearly 2,700 members, respectively. The company now has 14international subsidiaries and more than 2,200 customers in 31 different countries using itssoftware.1992-2001: the SAP R/3 eraReal-time reaches the desktop: A client-server version of the standard application software allows businessesto run more efficiently around the world.1992 - 2001: Highlights1992The next generation arrives: Following successful installations with select pilot customers, SAP bringsSAP R/3 to the general public and enters a new level of growth.Ten twice over: Not about to let its 20th birthday pass without a proper celebration, SAP marks theoccasion by opening its new sales and development center. Erwin Teufel, Minister President of the state ofBaden-Württemberg, is among the guests. The company now manages its 15 international subsidiariesfrom Walldorf to make better use of its existing infrastructure.Increasingly international: Of its DM 831 million in total revenue, SAP is now generating nearly 50% of itoutside of Germany. Meanwhile, its global workforce grows to 3,157 employees by the end of the year.Preparations: To ready itself for potential acquisitions and holdings, SAP adds another DM 15 million to itscapital stock, bringing it to a total of DM 100 million.
  8. 8. Joint success: Expecting high demand for SAP R/3, SAP augments its partner strategy. Independentconsulting firms, which SAP refers to as "logo partners," support customers in implementing the newsystem.1993Partnerships: SAP begins working with Microsoft, the worlds largest software maker, to port SAP R/3 tothe Windows NT operating system. SAP also begins participating in the IXOS project, a joint undertakinginvolving the development and marketing of an electronic archiving system for original documents.International expansion: The construction of a development center in Foster City, California, gives SAP apresence near Silicon Valley. Meanwhile, the company establishes its 18th international subsidiary in theCzech Republic.Technology: SAP delivers a version of SAP R/3 with support for kanji characters to the Japanese market.SAP R/3 is also being ported to SUN hardware, enabling it to run on all relevant RISC platforms.By the numbers: SAP reaches the 10-figure mark for the first time, generating DM 1.1 billion in revenuewith a workforce of more than 3,600.1994SAP R/3 and Microsoft: The SAP R/3 system is released for Windows NT. One month later, a Swisscompany becomes the first customer to go live with this new version.Reinforcing retail: SAP bolsters its efforts in developing a retail solution for SAP R/3 by acquiring a 52%holding in DACOS Software GmbH.In faraway lands: SAP kicks off its marketing activities in the Chinese market with presentations in Beijing,Shanghai, and Tianjin. It also opens its 19th international subsidiary in Mexico City.Partners and customers: The IBM corporation, a longstanding SAP partner, is now using SAP R/3 tomanage its global business processes. The corresponding contract is the largest in SAPs 23-year history.Key figures: SAPs revenues have grown to DM 1.8 billion, of which the United States accounts for 34.3%.At years end, the company is employing 5,229 people.1995A midmarket push: SAP begins to focus more marketing efforts on midsize companies with the help ofsystem resellers.Customer trust: The U.S. company Burger King, Inc., becomes the 1,000th customer to implement SAPssoftware for human resources management. Meanwhile, Microsoft joins the ranks of high-tech companiesopting for SAP R/3. Deutsche Telekom AG sets a new record as the largest of SAPs contracts to date with30,000 SAP R/3 workstations and collaborates with SAP on a solution for the telecommunications industry.Success in the capital market: SAPs share price soars following its addition to Germanys DAX stockindex and the transition to a minimum par value of DM 5. Shortly thereafter, Manager magazineonce againnames SAP "Company of the Year." Now nearly 7,000 strong, SAPs workforce generates DM 2.7 billion inrevenue.1996SAP goes online: SAP introduces its joint Internet strategy with Microsoft. Through open interfaces,customers can now connect online applications to their SAP R/3 systems. They can also take advantage ofIBMs new AS/400 platform.Accolades: SAP is named "Company of the Year" by the European Business Journalists Association andfor the third time by Manager magazine.More renowned customers: Coca-Cola, the worlds largest manufacturer of soft drinks, decides toimplement SAP R/3.Ubiquitous: SAP raises the bar with its numerous customer events, welcoming 4,300 guests interested inthe companys products and strategy to the European SAPPHIRE event in Vienna. Meanwhile, over 8,000attendees flock to the corresponding event in the U.S., and more than 5,000 are on hand for the first
  9. 9. SAPPHIRE event in Japan.Key figures: SAPs revenues climb to DM 3.7 billion, and its employees number 9,202 by years end.1997A quarter-century: SAP celebrates its 25 years in existence in Mannheim. German Chancellor Dr. HelmutKohl is among the guests at the festivities.An outstanding year: SAP sees its financial results before taxes reach the billions for the first time (DM 1.6billion). The companys revenues grew by 62% to DM 6.02 billion, 81% of which comes from outside ofGermany. SAPs workforce also expanded to nearly 13,000 employees – a 40% increase.SAP R/3 still resonating: High-profile customers, such as Deutsche Post AG, Daimler-Benz, and GeneralMotors, implement SAP R/3. More than two million users work with SAP solutions. Right on schedule, SAPcompletes release 4.0 of SAP R/3 and delivers it to pilot users at the end of the year.Further internationalization: SAP resolves to enter the New York Stock Exchange (NYSE) in Q3 1998. Indoing so, it mainly aims to raise its profile and presence in the worlds biggest and most important marketfor information technology and strengthen its relationships with shareholders.1998Changing of the guard: Dietmar Hopp and Klaus Tschira, two of SAPs cofounders, announce in Februarytheir decision to resign from the companys Executive Board. Both make the transition to the SAPSupervisory Board in May, where Hopp takes over as chairman. Meanwhile, the Supervisory Board namesHenning Kagermann co-CEO of the company alongside cofounder Hasso Plattner.SAP takes New York: On August 3, 1998, the letters "SAP" appear for the first time on the big board at theNew York Stock Exchange, the worlds largest trading floor. SAP co-CEO Hasso Plattner calls thecompanys debut on Wall Street a necessary and momentous milestone in SAPs history.EnjoySAP: More than 15,000 customers, partners, and other interested individuals descend upon LosAngeles, California, for SAPs 10th SAPPHIRE event – breaking the previous attendance record. The eventfocuses on a new strategy, EnjoySAP, which places its focus squarely on SAP users. SAP plans to makeits software easier to learn, faster to work with, and simpler to customize to customers needs.Help wanted: SAP plots a course for further success, which will continue to require motivated, qualifiedemployees. It hires 6,500 new employees in 1998 – a 50% increase that expands the companys workforceto over 19,000 by years end. SAPs fiscal year revenues come to €4.3 billion.1999The revolution: In May, SAP co-CEO Hasso Plattner announces a new strategy thatcompletely realigns the company and its product portfolio: This reorientation will combine e-commerce solutions with SAPs existing ERP applications on the basis of cutting-edge Web technology.Excelling with Enjoy: The Enjoy SAP initiative serves as the foundation for mySAP.coms success.Studies carried out in the summer of 1999 by Mannheim University clearly show how much time customerscan save in training and everyday use with new self-perception: Along with its products, SAPs self-image is changing due to Thecompany reorganizes its Executive Board areas and founds the German Internet subsidiary,reflecting an even stronger focus on the customer in the Internet age.Major successes: SAP does not have to wait long to welcome its first customers. The soccerclub FC Bayern Munich, the financial services provider MLP, and others sign up in October, whileNovember and December witness the arrival of Hewlett-Packard, the Ford subsidiary Visteon, and thepharmaceutical group Hoechst Marion Roussel.Key figures: More than 20,000 employees generate €5.1 billion in revenue for SAP. The company investsnearly 15% of this sum into research and development.
  10. 10. 2000The new economy: SAP is now the worlds leading provider of e-business software solutionsthat integrate processes within and among companies. The company is also the third-largestindependent software vendor on the planet. Its workforce now numbers more than 24,000employees in over 50 countries, generating revenues of €6.3 billion in the 2000 fiscal year (a23% increase compared to 1999).Cooperating without boundaries: Comprehensive e-business solutions, innovativetechnologies, and extensive services come together in the forward-thinking mySAP.complatform. As a result, employees, customers, suppliers, and other business partners can worktogether across company borders – anytime, anywhere.Online marketplaces and portals: SAP enters the world of electronic marketplaces andcorporate portals by outsourcing its corresponding area to its SAP Portals subsidiary and startinga partnership with Commerce One.Solution-oriented: In continuing to expand its product and service portfolio, SAP demonstratesits commitment to evolving from a component vendor into a solution provider. Other world-leading companies recognize the value in this approach – Nestlé, for one, signs the largest SAPcontract to date 2001A new market: SAP adds a number of corporate portals to its solution portfolio by taking overTop Tier, the leading company in the corresponding Israeli market. TopTiers founder, ShaiAgassi, takes over the management of this business area and is appointed to the SAP ExecutiveBoard one year later.From revolution to evolution: SAP expands, making it a comprehensivetechnology for business applications. As a result, SAP has the architecture it needs to helpcompanies integrate a wide variety of IT systems.Ongoing growth: The "New Economy" bubble has burst, and the IT market is suffering from theresulting decline in investment. However, customer faith in SAPs solutions remains undaunted,and SAP increases its revenues once again by 17%
  11. 11. 2002-present: real-time data where and when you need itReal-time moves to the Web and beyond: Cloud computing, mobile, and in-memory computingopen up new horizons for real-time data access – anywhere.2002 - 2012: Highlights 2002More birthday cake: Thirty years after its foundation, SAP is the third-largest independentsoftware provider in the world and a paragon of the German economy. The SAP brand stands forhigh-quality business software.A rising star: SAPs portfolio is not the only thing witnessing constant growth. The companysworkforce also increases to around 29,000 by the end of 2002. Approximately 1,300 employeesmove into the new star-shaped building that has opened directly adjacent to SAPs headquartersin Walldorf.New blood at the top: The Executive Board bolsters its ranks with Shai Agassi, who assumesresponsibility for new technologies, and Léo Apotheker, who takes over global sales.2003End of an era: Hasso Plattner resigns from the Executive Board and is elected chairman of theSupervisory Board. Plattner is the final SAP co-founder to leave the companys managementteam, but remains with SAP in an advisory role. Upon taking his leave, the nautical enthusiastreceives a special gift – a sail signed by all of SAPs employees, which they hope will carry himto further success.Technology of the future: What began in the "new economy" as and evolved tomySAP technology reaches a new pinnacle in SAP NetWeaver. This technology enables SAP tooffer fast, open, and flexible business applications that support end-to-end business processes –no matter whether they are based on systems from SAP or other providers.Global developments: SAP Labs China marks the ninth opening of a development locationoutside of Walldorf. This and the other research centers in India, Japan, Israel, France, Bulgaria,Canada, and the United States help SAP convert IT expertise into business utility for itscustomers. The company now employs around 30,000 employees, approximately 17,000 ofwhom work outside of Germany.
  12. 12. 2004Major success: SAP brings the first version of SAP NetWeaver to market. The response to thisnew integration and application platform is overwhelming. By the end of the year, well over1,000 customers acquire the product, with even more on the way. Meanwhile, more than 24,000total customers are running 84,000 SAP software installations in over 120 countries.Joining forces: SAP announces its intention to acquire the remaining shares of its consultingsubsidiary SAP SI and to merge the company into its corporate group. This move strengthensSAPs global portfolio of strategic IT consulting and integration services and makes SAP the go-to provider of many customers – especially those in Germany, Switzerland, and the UnitedStates.A clear vision: SAP plans its future around the concept of enterprise service-orientedarchitecture (enterprise SOA). According to CEO Henning Kagermann, SAP will make all of itsbusiness applications service-based in the medium term to provide its customers with the mostflexibility possible. In doing so, SAP sets the standard for the rest of the market.Strong statistics: Under Kagermanns leadership, quarterly revenue gains and a constantlyincreasing market share keep SAP at the head of the pack in the rejuvenated IT market. BusinessWeek names Kagermann one of the 25 best business managers in Europe, praising his customer-oriented corporate philosophy.2005Excellence recognized: A study conducted on behalf of the business magazine Capital namesSAP Germany "Best employer of 2005" among other companies with 5,000 employees or more."I accept this award with pride and gratitude on behalf of the more than 32,000 people who workat SAP. For us as a company, it will mainly serve as motivation for the future. After all, SAPssuccess will continue to depend on the skills, drive, and dedication of our current and futureemployees," declares SAP Executive Board member Claus Heinrich upon receiving the awardfrom Wolfgang Clement, Germanys Federal Minister of Economics and Technology.Something cooking in the east: In February, SAP officially opens its new research anddevelopment facility in the Hungarian capital of Budapest. SAP Labs Hungary and its some 50developers join SAPs global network of research locations, which incorporates the brightestminds in IT all over the world.Organic growth: The year 2005 is marked by a series of acquisitions. While its competitorsinitiate their own major takeovers, SAP focuses on organic growth by acquiring smallercompanies whose specific solutions augment its portfolio in sensible ways. These companiesinclude the two retail providers Triversity and Khimetrics.Impressive numbers: The companys software license revenues increase by 18%, and it recordsparticularly high rates of growth in the Americas. The more than 35,800 SAP employees aroundthe world generate total revenues of €8.5 billion.2006International recognition: SAP once again garners numerous employer accolades. Along withSAP Germany, SAP Austria, SAP Chile, SAP Andina y del Caribe, SAP Mexico, and SAPRegion Sur win the "Great Place to Work" award from the institute of the same name. Inaddition, SAP Labs India receives the distinction "Recruiting and Staffing Best in Class" fromthe Indian Institute of Management Studies & Research for its innovative methods in workforceplanning and management.Harmonious partnership: SAP and Microsoft introduce Duet, the first product of the twocompanies joint efforts in development, support, sales, and marketing. This software enablesusers to quickly and easily integrate Microsoft Office and SAP-supported business processes.The partners sell 200,000 licenses in just the first three months.Onward to further success: At the first SAPPHIRE event of the year in Orlando, Florida, SAP
  13. 13. announces the general release of its flagship application, SAP ERP. "SAP ERP constitutes thefoundation of SAPs industry solutions and a springboard to enterprise SOA," says SAPExecutive Board member Léo Apotheker.Good news from the midmarket: SAP noticeably expands its share of the midmarket with thesolutions SAP All-in-One and SAP Business One. In June, the company announces that the lattersolution has gained its 10,000th customer. SAP also has generates around 30% of its €3.1 billionin total software licensing revenues from companies with fewer than 2,500 employees.2007Seizing new opportunity: When an acquisition makes sense in enhancing its product portfolio,SAP does not shy away from the investment required. The company buys Pilot Software – aprivate California provider of strategy management software – as well as Yusa, OutlookSoft,Wicom, and MaXware. SAP also announces its intention to purchase Business Objects, acompany specializing in business intelligence applications.Restructure of the Executive Board: Léo Apotheker is named SAPs deputy CEO at the end ofMarch. SAP also forms an Executive Council, which comprises corporate officers who shareresponsibilities for market and product strategies and report to the Executive Board. Thisrestructuring follows Shai Agassis departure from the Executive Board.Another year, another employer accolade: In its 35th year, SAP takes home the title of"Germanys Best Employer" for the third time in the annual "Great Place to Work" awards. Thecompany also receives a special prize for its comprehensive health management program. SAPLabs India also ranks eighth among other employers in India.Head start in the midmarket: As part of a special event in New York City, SAP reveals SAPBusiness ByDesign, a product designed specifically for small businesses and midsize companies.SAP CEO Henning Kagermann states that this new offering "represents SAPs ambitious attemptto create an all-new solution for an untapped market."2008In the bag: SAP successfully completes its acquisition of Business Objects. Purchasing theFrench provider of business intelligence solutions expands SAPs software portfolio and makes itthe market leader in business software, enterprise performance management, and businessintelligence.The choice of skilled employees: For the fourth time, SAP is named "Germanys BestEmployer" among companies with at least 5,000 employees. The company also receivesnumerous awards in other countries, including China, Bulgaria, Denmark, India, Japan, andMexico.A global focus: The SAP Supervisory Board names Léo Apotheker co-CEO alongside HenningKagermann. Two longstanding members, Peter Zencke and Claus Heinrich, resign from theExecutive Board. The board then welcomes Ernie Gunst, Bill McDermott, and Jim HagemannSnabe, whose international backgrounds will enrich SAPs executive management.Sustainable business: SAP proves its commitment to sustainable business practices, releasingits first Sustainability Report. As the leader in its market, SAP is in a unique position to provideinformation technology that helps companies and organizations of all sizes improve their trackrecords and achieve long-term sustainability2009Difficult times: With the effects of the global financial crisis having reached the real economy in2008, the business world faces its own plight. Susceptible to the situation at hand, SAP initiatespersonnel cutbacks and other cost-saving measures. As of Q3 2009, SAP still employs some47,800 people. Meanwhile, the company supports its customers with special programs designed
  14. 14. to help them emerge from the crisis with the strength to succeed. Thanks to these programs andits cutbacks, SAP is able to improve its operating margin despite the difficult circumstances.Another business milestone: At a launch event at its offices in New York City, SAP unveils itsSAP Business Suite 7 software, which is designed to help businesses optimize their performanceand reduce IT costs. A condensed ramp-up phase enables the first customers to go live with thesoftware in March. In early May, the next generation of the suite is released to the rest of theworld.Passing the torch: After 27 years at the company – including 18 years on the Executive Board –Henning Kagermann bids farewell to SAP. Léo Apotheker becomes the companys sole CEO. Inhis inaugural address to SAPs employees in June, he stakes out a clear new path for thecompany, including his plans for SAPs future, its purpose, and the associated values.In it for the long haul: SAP demonstrates how important it considers social involvement bysupporting PlaNet Finance, an international non-profit organization that aids microfinanceinstitutions (MFIs). SAP and PlaNet Finance aim to optimize the microfinance sector with acombination of financing, new technologies, and expanded value chains. In advance of the 15thUnited Nations Climate Change Conference in Copenhagen (COP15), SAP also offers itsassistance to the U.N.s Hopenhagen initiative. Last but not least, SAP employees continue tovolunteer their time in support of social projects all over the world.2010Dynamic duo: In February, the Supervisory Board names Bill McDermott and Jim HagemannSnabe co-CEOs of the company. Chief technology officer Vishal Sikka also joins the ExecutiveBoard. Angelika Dammann follows Sikka in July, becoming the first woman to serve on theExecutive Board as she assumes responsibility for global human resources and labor relations.Major acquisition: In May, SAP announces its plans to purchase the California companySybase for approximately US$5.8 billion. Sybase is the largest business software and serviceprovider specializing exclusively in information management and mobile data use. The synthesisof the two leading companies is to produce solutions for "wireless" companies.Real-time innovation: More than 50,000 customers and other interested people attend SAPsSAPPHIRE Now event either live or online – a new record. In addition to a comprehensiveoverview of SAPs product strategy, they witness numerous innovations – chief among them isin-memory technology which ushers in a new era of real-time processing in businessapplications.2011Outstanding results: The new year gets off to a great start. Software revenue of EUR 1.5 billionin the final quarter of 2010 enables co-CEOs Bill McDermott and Jim Hagemann Snabe to pointto the best quarter in SAPs history and pleases investors. Double-digit growth in the followingquarters shows that more and more customers are turning to SAPs software innovations.Anytime, anywhere: Customers, already excited in 2010 by SAPs vision of SAP in-memorycomputing, are able to take full advantage of its benefits in 2011. Initial customers implement thefirst in-memory product, the SAP HANA platform, enabling them to analyze data in secondsrather than the days or even weeks they would otherwise have needed. Demand for SAP HANAcan be compared to that for SAP R/3 software at the time of its launch. SAPs strategy for mobilebusiness applications is also bearing fruit. Since its acquisition of Sybase, an SAP company, in2010, SAP and its partners now ship mobile applications that open up the SAP world to a newtype of user – those who are out in the field rather than in the office.Growth: SAP announces its plans for growth: It is looking to expand in emerging marketeconomies such as Brazil, India, Russia, and especially China, and it intends to invest some EUR2 billion in the mid-market sector alone. It also has growth plans for its business in the booming
  15. 15. cloud-computing market. Just before the end of the year, SAP announces its EUR 2.5 billionacquisition of SuccessFactors, the leading provider of cloud applications.About SAP AG About SAP: Helping the world run betterSAP is the enterprise application software market leader, helping companies of all sizes and industriesrun better. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAPhelps people and organizations work together efficiently and use business insight effectively to stayahead of the competition. SAP applications and services enable more than 197,000customers tooperate profitably, adapt continuously, and grow sustainably.Note: This Document is for study purpose only.