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SAP's Platform Strategy in 2006                                                                                                                                                                                                                                            
Product Ref: 06/278C Company: SAP

Product Type: Case Industry: Software & Services

Related Product(s): Teaching Note
In face of globalisation, outsourcing, changing regulations and rapid technological innovations, companies in 2000s were increasingly challenged to devise and implement adaptable business models. This entailed putting in place enterprise applications that were open-source, simple to implement and easy to integrate within and without the organizational bounds. Because traditional enterprise resource planning (ERP) systems were generally complex, proprietary and difficult to install, ERP systems providers had to reposition themselves strategically. SAP, the leading company in this space, faced this challenge by transforming itself from a closed source software developer to an open source software integrator. By opening up its proprietary software products as an open development and integration platform, SAP would allow its customers to modify their ERPs to suit their specific needs. This new strategy, however, would fundamentally affect the Company's business architecture. In other words, SAP had to rethink the totality of how it would define its value proposition, identify and target its customers, deploy its resources, configure its business processes, manage its alliances, and develop and maintain its profit and growth engines. How could the Company pull off this repositioning initiative? Would it be able to attract the global army of independent developers in supporting its new software platform strategy? How would the ongoing consolidation in software industry affect the Company's new strategy? What would be the reaction of the main competitors such as Oracle, IBM, Microsoft, and a host of companies emerging in India?
Functional Area : Strategy & General Management

Issues: Industry development, strategic positioning
Length: Text: 17 pages
Exhibits: 10 pages
Country: Worldwide

Pub. Year: 2006 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
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