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2005: EARLY NEWS
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Strategic measures for continuing growth
SAP has already made a number of strategic changes in 2005
aimed at continuing the Company’s success going forward.
- In January 2005, SAP announced that it is grouping all of
its customer-facing services – sales, consulting, and external
education – under the management of a single Executive
Board member. With that in mind, the consulting and
education services are being united in one organization
named SAP Field Services. This alignment is designed to
ensure “one face to the customer.” The further improvement
in SAP’s consistent, reliable behavior better meets
the needs of customers, who see one line of business with a
holistic profile.
- On March 1, SAP announced a realignment of its management
structure with immediate effect to reinforce the
Company’s growth strategy and better serve its customers.
The SAP Executive Board members’ responsibilities are now
aligned along the SAP solutions value chain – spanning
innovation, research and development, production, services,
marketing, training, consulting, and sales. Following along
this value chain, Peter Zencke is responsible for research and
breakthrough innovation including the application development
of Business Process Platform (BPP) as well as new solutions
based on it. Shai Agassi is responsible for all software
and solution development of existing products, including
SAP NetWeaver as an integration and technology platform.
He is also responsible for the Business Solution Groups,
which deliver SAP’s portfolio of 28 industry-specific solutions
and cross-industry applications. Shai Agassi is also responsible
for product and industry marketing. In addition to his existing function as head of Global Human Resources,
Claus Heinrich now manages all SAP’s research and development
centers around the world and is responsible for final
production and quality assurance of SAP software and the
internal security and IT organizations. Gerhard Oswald
continues to lead Global Service & Support. Léo Apotheker
retains responsibility for global sales, as well as field services
(consulting and training), but also takes over responsibility
for global marketing. Werner Brandt remains Chief Financial
Officer.
- At the start of 2005, Oracle Corp. completed its takeover of
PeopleSoft, Inc. This was the biggest-ever merger among
SAP’s peer group. SAP promptly introduced a comprehensive
program of support for the 2,000 companies that have
deployed both SAP solutions and software from PeopleSoft –
or from J.D. Edwards & Company (JDE), which PeopleSoft
took over in 2003. With this program, SAP aims to help these
customers away from uncertainty by offering them a clear
road map for the longer-term development of their business
application strategies. The offering includes support for their
PeopleSoft and JDE software, and offers other incentives to
migrate to SAP solutions. To back up the program, early in
2005 SAP acquired TomorrowNow, Inc., a U.S. company that
specializes in providing maintenance and support services
for PeopleSoft and JDE products.
- To enhance its software solutions and services for the retail
sector, on February 28, 2005, SAP announced that it had
signed a definitive merger agreement to acquire all of the outstanding
shares of Retek, Inc. (Retek) based in Minneapolis,
United States. The shares of Retek, which provides software
solutions for retail companies, are publicly traded in the
United States (NASDAQ: RETK). SAP intends to make a cash
tender offer directly for all outstanding shares of Retek at
US$8.50 per share. The aggregate purchase price, including
the cash settlement of Retek’s outstanding share-based
awards and net of cash acquired, is expected to be approximately
US$394 million (€303 million). The acquisition is subject
to customary closing conditions, including regulatory
approvals, and is expected to close in the second quarter of
2005 unless the offer is extended.
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Pursuing its policy of buying emerging dynamic companies
and software products to complement its own offerings,
at the beginning of 2005 SAP announced the acquisition of
Norwegian software company iLytix Systems AS, with all
of its 10 employees. iLytix is an unlisted company headquartered
in Oslo that specializes in reporting and analysis
software. Its core product XL Reporter integrates with SAP
Business One, the solution for growing businesses, and is
available with SAP Business One as of the end of March 2005.
This enables small and midsize businesses to leverage and
fully analyze their live mission-critical data. The Company
also purchased DCS Quantum, a vehicle dealer business
management system, from United Kingdom-based DCS
Group PLC. SAP will integrate it into the SAP for Automotive
industry solution set as SAP Dealer Business Management.
Based on mySAP ERP, the solution is designed to
enable vehicle importers, distributors, dealer groups, and
independent dealers to improve sales and service processes
and to achieve more effective collaboration with business
partners and vendors.
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