This is a Information System project on Business and Financial Analysis of SAP

1. BUSINESS AND FINANCIAL
ANALYSIS | SAP | GROUP 6

2. Who Am I ?
▪ SAP stands for Systems, Applications, Products in data processing.
▪ German multinational software corporation.
▪ Headquarter: Walldorf, Baden-Wurttemberg, Germany with regional offices in 180
countries.
▪ CEO: William R. Bill McDermott
▪ The company has over 425,000 customers all over the globe.
▪ The acronym describes the process that SAP allows marketing departments to use,
going from systems and processes to then sell more products
2

3. Products
▪ Business suite software:
▪ ERP(Enterprise Resource Planning)
▪ CRM (Customer Relationship
Management)
▪ PLM (Product Lifecycle
Management )
▪ SCM(Supply Chain Management)
▪ SRM (Supplier Relationship
Management)
▪ Industry specific software
▪ Software for small and mid-size
enterprises
Products and Values
Values
▪ Driving customer value through
intelligent data
▪ Increased customer interaction, leading
to more customer satisfaction.
▪ Efficient communication with the
clients with more timely data
▪ Reduced data redundancy.
3

4. 4
Market
Process Industry
Food and beverages,
paints, textiles,
pharmaceuticals
ONGC
Coca-Cola
Dulux Paints
Discrete Industry
Automobiles,
furnitures, toys,
smartphones
Tata Motors
Samsung
Consumer Industry
Durable goods, non-
durable goods,
services
Videocon
Pepsi
Nestle
Service Industry
IT, consulting, mass
media,
telecommunication
TCS
Deloitte
L&T
Infotech
Wipro
Financial Services
Banking and
insurance, healthcare
Bright House
Financial
AIG
Public Services
Revenue collection,
budget operation and
planning,
Market served by the company

5. Growth trend and Market Share
• The global cloud ERP market is expected to be worth $28B by 2022,
attaining an eight percent compound annual growth rate (CAGR)
between 2016 and 2022, according to market research
firm Statista.
• The cloud ERP market size is estimated to grow from $18.52B in
2016 to $29.84B by 2021, attaining a CAGR of 10 percent in the
forecast period.
• The North American cloud ERP market share is predicted to grow
from $8.4B in 2018 to $11.1B in 2022, attaining a CAGR of 5.7
percent, according to Statista.
• According to Gartner, by 2020, at least 35 percent of
new product-centric ERP deployments in large
enterprises will be software as a service (SaaS)
loosely integrated with on-premise manufacturing
execution systems (MES)
SAP
23%
ORACLE
12%
SAGE
6%
WORKDAY
6%
INFOR
5%
OTHER
48%
MARKET SHARE ERP

6. Competitors
6
SAP
ORACLE
NETSUITE
Microsoft
IBM
Sales Force
AdobeVMware
Workday
Symantec
Tableau

7. 7
SAP vs ORACLE
SAP ORACLE

8.  Data model Complexity
Analysis of raw data is difficult therefore accurate business decisions are hard to make.
▪ Configuration
Disparity in the configuration of the existing business systems and the system that SAP uses,
which implies that it takes a long time to integrate such systems in the business environment.
▪ Data Volume
Problems associated in loading large amounts of data into the system which makes it difficult to
retrieve a particular data.
▪ Poor Data Quality
To find errors in data would be like finding a pin in a haystack and if it is not identified in an earlier
stage later on goes on to accumulate to a significant value.
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Challenges Faced by the Company
 Legal
Teradata, a business and cloud analytics firm has filed a lawsuit against SAP, in which it has
accused Vishal Sikka(Chief Technology Officer) of being aware of stealing trade secrets in building
the Hana platform from an aborted joint venture product between the two firms.
 Technical

9. Financial Ratios and Analysis
9
Ratio 2016 2017 2018
Current 1.20 1.17 1.59
Working Capital 1.20:1 1.17:1 1.59:1
Debt Equity 0.25 0.20 0.37
Asset Turnover 0.5024 0.5767 0.5215
Return on Equity 13.8149% 15.7308% 14.1393%
Return on Assets 8.2361% 9.4539% 7.9295%
Net Profit Margin 16.52% 17.13% 16.53%

10. 10
1.195 1.168
1.585
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2016 2017 2018
Current Ratio
1.20 1.17
1.59
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2016 2017 2018
Working Capital Ratio
0.25
0.2
0.37
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2016 2017 2018
Debt Equity Ratio

11. 11
8.2361%
9.4539%
7.9295%
7.0000%
7.5000%
8.0000%
8.5000%
9.0000%
9.5000%
10.0000%
2016 2017 2018
Return on Assets
0.5024
0.5767
0.5215
0.4600
0.4800
0.5000
0.5200
0.5400
0.5600
0.5800
0.6000
2016 2017 2018
Asset Turnover Ratio
13.8149%
15.7308%
14.1393%
12.5000%
13.0000%
13.5000%
14.0000%
14.5000%
15.0000%
15.5000%
16.0000%
2016 2017 2018
Return on Equity

12. 12
0.1652
0.1713
0.1653
0.162
0.164
0.166
0.168
0.17
0.172
2016 2017 2018
Net Profit Margin
Earnings and Growth Estimates

13. THANKS!
13
Aravind Ganagani (MBA2019-018)
Isha Chaudhari (MBA2019-055)
Mohit Modi (MBA2019-084)
Sagar Vijay (MBA2019-115)
Sneha Khan (MBA2019-140)
Venu Vedant (MBA2019-169)