Group C6 consists of 6 students: Anand P, Irshad Anwar, Mohamed Anas, Prabhu P, Ram Kumar V, and Shyam Prasath B. SAP is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. It is the largest business software company in the world. To foster innovation, SAP adopted new strategies like establishing co-CEOs, acquiring companies, developing products faster, and simplifying processes using Lean principles. These changes helped SAP adapt to new technologies and business models to remain competitive.

1. GROUP C6
ANAND P (16/128)
IRSHAD ANWAR (16/149)
MOHAMED ANAS (16/150)
PRABHU P (16/155)
RAM KUMAR V (16/159)
SHYAM PRASATH B (16/171)

2. SAP - Systems, Applications and Products in Data Status
Processing
REVENUE €14.233 billion
PROFIT €3.438 billion
June, 1972, Walldorf, Germany Major Products
 CRM
Makes enterprise software to manage business
 ERP
operations and customer relations  PLM
 Business Warehouse
 Knowledge Warehouse
Market leader in enterprise application software
Workforce
Employees: 61,344
World's largest business software company & 3rd highest
revenue independent software provider Operating Regions
 EMEA
 APJ
Nearly 80% of the Fortune 500 use SAP software for processes like  Americas
inventory planning, and 63% of worldwide financial transactions  LAC
are processed through SAP software at one point or another

7. Need For Innovation
Software license sales fell
28% forcing the company to
layoff employees
Under attack from
smaller software-as-a-service
(SaaS) and on-demand vendors
Value of maintenance fees was
being questioned like never
before
Buzz around next-gen
cloud-computing offerings
cast gray skies over SAP's
established business model
Every order acquired
by SAP for itself gave a
free business to Oracle

8. Innovation at SAP
Leadership Vision
Technology Products & Strategy & Culture
Services Structure
The Market International
Environment

9. Technology

10. Products & Services
Prior to 2008 Post 2008
ERP In Memory Database
SCM On Demand Services
PLM On Mobile Apps
CRM Analytics
SRM Business One
HRMS Business By Design

11. Products and Services
Prior to 2008

12. Post 2008

13. Management Structure
Before 2010
SAP
CEO
Leo Apotheker
Post 2010
SAP
CO-CEO CO-CEO CTO
Jim Snabe Bill McDermott Vishal Sikka

14. Dual Core Approach to Foster Innovation
Management
Core
Technical Core
• Direction Of Change: Top-Down
• Type of Change: Structure

15. Transformational Leadership
Hasso Plattner confessed that
• Company had lost the trust of its customers and that its
employees were miserable
• Development processes were outdated and ineffective
• Lost touch with what the majority of its customers wanted,
needed and expected from SAP
• Fired former CEO Leo Apotheker and appointed co-CEOs Bill
McDermott and Jim Snabe who blew out the company's stuffy
and inflexible culture and myopic management perspective

16. • Set the goals right
• Setup Co Innovation Labs to harness Open Innovation
• SAP Imagineering Labs with mantra “Jump and finding
your wings on the way down” to promote risk taking
• Established HANA Olympics
• Global Research & Business Incubation for creating
sustainable business network and future factory

17. Clear Focus
Eliminate bureaucracy
Grow by acquisition
Get products to market fast
Kill the project that built bureaucracy & encouraged
internal thinking

18. Implementation Strategy
SAP acquired Sybase and came up with a new In
memory database called SAP HANA
SAP now delivered the entire stack to the customers
and built application that are supported on cloud, on
mobile and analytics
Acquiring companies like Ariba, Sybase, Successfactors
Adoption of LEAN to foster innovation and established
centre of excellence for LEAN

19. Implementation Strategy
Developed a rapid innovation cycle for enterprise
applications and shrank it to 6 months from 15 months
Innovation cycle for Business ByDesign, a SaaS
offering, will be 6 weeks
Shrank the installation time for ERP system from
months down to weeks
Streamlined customer sales and support by combining
nearly 10,000 field sales reps with 14,000 consultants
who customize products

20. Customer Centric Approach
"Instead of building software for companies, which SAP has always done,
we are now designing software for people“
- Jim Snabe
Give customers
the insights Real time
about SAP best business
practices
Analytics Customer
Engagement
Revamped
Development CUSTOMER Mobile
Process

21. Simplification
Simplification, Jim says, is one of the key demands of
customers. “For years we have added complexity. Now
we need to add simplicity, not by focusing on solving
simple problems but by innovating.” Innovations like
SaaS and rapid deployment solutions also contribute to
the simplification program

22. Lean Transformation to Foster Innovation
Lean Thinking at SAP Reasons for Lean
Implementation at SAP
Innovative solutions to bugs
Integration of team results
very cumbersome
Quality Issues
Very long release Cycles
Continuous Improvement How Lean was implemented?
• Managers as CI Specialists • Agile & Scrum enabled the
• CI Backlog implementation of Lean
• Communities enable sustainable
• CI Expert Team
implementation of Lean & Agile

23. Scrum at a Glance

24. Results of Lean Transformation
 Bugs are found earlier, solved with innovative solutions
 New ‘Business by Design’ release successfully delivered in good
quality on time
 Regular task based delivery-due to Scrum
Biggest Impact of Lean
Transformation
Culture Change
Employee perception changed
 Behaviors
 Attitudes
 Beliefs
Improvement in productivity expected
SAP sees 80% of LEAN opportunity in
culture

25. Change Thoughts
Prince of Process
Sultan of Sameness Speed to value
Count of Conformity People centric Software
Tailored business outcomes

26. Stock Price from 2008-12

27. REFERENCES
 Understanding the Theory & Design of Organizations by Richard L. Daft
 http://www.sap.com/india/about/company/saplabs/index.epx
 http://en.wikipedia.org/wiki/SAP_Labs#Organization
 SAP Basic Scrum training, Lean & Agile @SAP trainings
 http://www.informationweek.com/global-cio/interviews
 http://tech.fortune.cnn.com/2012/03/29/sap-makeover-mcdermott-hagemann/
CONTACTS
Christian Schneider Sheela Dominic
Product Manager, Executive Asst. to M.D.
SAP Labs, SAP Labs India,
Walldorf, Whitefield, Bengaluru,
Germany India
Harish R Parth Yadav
Manager, Quality Engineer,
SAP Labs India, SAP Labs India,
Whitefield, Bengaluru, Whitefield, Bengaluru,
India India

28. We Make the World Run Better!!
SPECIAL THANKS TO
PROF. MANISH KUMAR