SAP AG

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SAP AG

  1. 1. Presented To: Prof. Sukrit BasuPresented By: Aditya, Nikhil, Jyotsna,Surya, Vishal
  2. 2. Contents1) Introduction2) History3) Current4) Business Model5) Competitors6) Clientele7) Financial Highlights8) SWOT Analysis
  3. 3. INTRODUCTIO N
  4. 4. 1.1 Introduction• About SAP:• SAP, started in 1972 by 5 former IBM employees in Germany, it is the worlds largest inter-enterprise software company and worlds 3rd largest independent software supplier, after Microsoft & Oracle.• The original name for SAP was German: 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
  5. 5. 1.2 Introduction Vision and Mission:  SAP’s vision is to help the world run better and improve people’s lives.  SAP’s 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.
  6. 6. 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
  7. 7. SAP Key People Name Executive OfficeHasso Plattner Co-CEO, Co-Chairman and Co-FounderHenning Kagermann Co-CEO, Co-Chairman and Co-FounderWerner Brandt CFOClaus E. Heinrich Executive Board, Human Resources, Industry Solutions Development, and mySAP.comPeter Zencke Executive Board, Industry Solutions, Customer Relationship Management, E- Business and Global ResearchGerhard Oswald Executive Board, Information Technology InfrastructureDeiter Matheis Extended Management BoardWolfgang Kemna Extended Management Board, Americas; CEO, SAP AmericaLeslie Hayman Extended Management Board, Asia-PacificLeo Apotheker Extended Management Board, Europe, Middle East, and AsiaErwin Gunst Extended Management Board, Germany and SwitzerlandKarl-Heinz Hess Extended Management Board, Technology
  8. 8. HISTOR Y
  9. 9. 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
  10. 10. 2.2 History When an IBM client asked IBM to provide enterprise-wide 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
  11. 11. 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 SAPs client list, beginning with a German subsidiary of the global chemical company ICI and later adding Siemens and BMW.
  12. 12. 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
  13. 13. 2.5 History Introduction of R/3 in the 1990s  R/3 had been launched with the expectation that it would complement R/2s multinational-oriented niche by extending SAPs reach into the mid-sized, less mainframe- dominated business software market  R/3s release coincided with a growing trend toward corporate downsizing, and even SAPs 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 Americas total revenue generated by R/3 catapulted from five to 80 percent  R/2s status as SAPs flagship product dwindled from 95 percent of revenues to only 20 percent.
  14. 14. 2.6 History Foreign Markets in the 1990s  SAPs 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.
  15. 15. Current
  16. 16. 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.
  17. 17. Business Model
  18. 18. 4.1 Business Model
  19. 19. 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
  20. 20. 4.3 Business Model Business Analytics  Analytic Applications  Business Intelligence  Data Warehousing  Enterprise Information Management  Enterprise Performance Management  Governance, Risk and Compliance
  21. 21. 4.4 Business Model Technology  Application Foundation/Integration  In-Memory Computing  Enterprise Mobility  On-Demand Platform FA Payrol Market HR l ing Treas GL ury Shop AP Floor Purchasi Sales PP ng AR Mfg. Plants
  22. 22. Competitors
  23. 23. 5.1 Competitors SAP vs Oracle:  23rd Nov’10: Oracle sued SAP, alleging that SAP had engaged in copyright infringement by downloading thousands of copyrighted documents and programs from Oracles Customer Connection website.  SAP admitted that its subsidiary Tomorrow Now had infringed Oracles copyrights and a jury awarded Oracle record-high damages in the amount of $1.3 billion.
  24. 24. 5.2 Competitors SAP vs Oracle (Continued)  The rivalry is heating up even more following SAP CTO Vishal Sikka’s 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.
  25. 25. Clientele
  26. 26. 6.1 Clients Indian Clients• Bajaj Auto Ltd. • Aarti Industries• Dabur India Ltd. • ABB India• Haldia Petrochemicals• Oberoi Realty Ltd.• TATA• Ranbaxy• RIL• L&T• Mahindra & Mahindra• Palmolive Colgate• A2Z Group
  27. 27. 6.2 Clients International Clients• P&G • HP• Cameron • AMD International • Boeing• Capegemini • Mercedez• D. Swarovski & Co. • Toyota• IATA • Lucent• IBM • Hitachi• Japan Airlines Co. • Nike• Java Republic• Phillips• Unilever• Compaq
  28. 28. 6.3 Clients Overall SAP HIGH TECH & Others 11.5% ELECTRONICS 11.3% SAP BANKING 2.0% SAP MEDIA 2.3% SAP ENGINEERING & SAP HEALTHCARE 2.3% CONSTRUCTION 10.5% Metal, Paper & Wood Products 2.8% Services 3.1% SAP OIL & GAS 3.2%SAP TELECOM- Worldwide SAPMUNICATIONS 3.4% CONSUMER PRODUCTS SAP PHARMA - 10.3% CEUTICALS 3.4%SAP PUBLIC SECTOR3.4% SAP CHEMICALS 9.5% SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8% SAP RETAIL 6.3% Consulting & Professional Services 6.0%
  29. 29. FINANCIALHIGHLIGHT S
  30. 30. 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
  31. 31. 7.2 Financial Highlights Investment Profile as on March’12  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
  32. 32. 7.3 Financial Highlights
  33. 33. 7.4 Financial Highlights
  34. 34. 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.
  35. 35. 7.6 Financial Highlights Five-Year Summary - SAP Group(2007-2011)16,000 14,260 23,225 25,00014,000 12,538 20,841 11,73212,000 10,683 10,242 20,00010,000 13,900 15,000 13,374 8,000 10,161 6,000 10,000 4,000 2,000 5,000 0 0 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 Total revenue Total assets6,000 6,000 4,8815,000 4,768 5,0004,000 4,0003,000 2,591 2,588 2,701 2,698 2,824 3,000 2,435 2,624 2,3382,000 2,0001,000 1,000 0 0 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 Operating profit € millions, unless… Profit before tax Fig in: Million Euros
  36. 36. 7.7 Financial Highlights Five-Year Summary SAP Group(2007-2011) CONTINUED..4,000 3,4393,5003,0002,500 1,813 1,848 1,9082,000 1,7501,5001,000 500 0 2011 2010 2009 2008 2007 Profit after tax Fig in: Million Euros
  37. 37. 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 that company is
  38. 38. SWOTANALYSI S
  39. 39. 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
  40. 40. 8.2 SWOT Analysis• Weaknesses – Highly complicated – Its not user-friendly – Lack of diversification – Declining margins
  41. 41. 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
  42. 42. 8.4 SWOT Analysis Threats – Economic slowdown – Global economic slowdown – Foreign currency risks Regulations – Undetected product errors and security shortcomings
  43. 43. Thank You

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