It has been successful even though there doesn't seem to be any huge increase in demand for a business-process platform.
2. Analysis:
1.
2.
1 The software industry analysis
• Motivation:
- To simplify use, to integrate system functions and to reduce costs
- Connect front and back office
? Companies can take advantage of increased communication and information between front and back
• Globalization
• Fast changing industry (creates need to adapt): Hardware became a commodity as software replaced it as a key thing... displayed 300 characters
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Then later, it focused on medium-sized companies
• Lower initialization fees
• Change in ERP systems
- Centralization ( Decentralization ( Moderate-Centralization
• Reasons for change in system and strategy: The previous one was too complicated with high failure rate during implementation, and demand of customization had increased…
Therefore they changed from closed source into open source, which has a lot of advantages (Customizability, User-friendly, 1st mover advantage, Faster updates, B2B good productivity, Reduces costs for company and switching costs for clients)
However, it also implied risk: Competitors can easily copy your system and ideas
• NetWeaver
- Web services and customizable (pick-and-choose”) modules
? Improves integration of applications
? Decreases development costs
- Modules can be made by other companies besides SAP as long as they follow the platform guidelines
- Strenghten two thirds of customers small to mid-sized businesses
- Strong competitiveness with some of SAP’s partners (such as IBM and Microsoft…)
3 Assess SAP’s key competitors
• Oracle:
- “Arch-Nemesis” of SAP
- Aggressively purchasing other application vendors (PeopleSoft, etc... displayed 300 characters
