Sap Case Study

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SAP AG (System Application and Products) was started in the year 1972 by Five IBM ex-employees named as SAP the business management software company headquarter in walldorf, Germany with location in more than 1`30 countires and also the world leader in Enterprise Software and Software related services. Exploring over 40 years of innovation. SAP application and services enables more than 197,000 customers to operate profits. And now SAP is the world leader in entrerprise application software and worlds third largest software manufracture companyLeads a global for sustain related initiatives, from the creation of the solution for SAP customers to SAP operations. The five ex-employees work day and night to create a accounting software platform. In 1973 SAP first Enterprise Resource Planning (ERP) package was created known as R/1. SAP focused its R/1 on largest MNC because they reap the biggest cost savings stood to gain benefits from ERP and were willing to pay premium price for the product. SAP not only develop the product but also used its own consultant to install it at its customer centers. ERP installation is long and complicated. SAP’s outsourcing consulting process allowed to penetrate globally market quickly and has high consulting profits and also became dependent on other consulting companies that now became expertise in the field of installation. Sap failed to work quickly on its consultation and depends on external consultant to run parallel with them and later opened doors for Companies like IBM, Accenture etc. as their partners. Had a problem managing the growing business from a level to slowing their revenue and profits. SAP top manager focused on developing its technical competence. In 1981 the next generation ERP package was introduced as R/2 which is added to it as legacy database. SAP did not developed its R/2 to support its own database but also designed to be compatible with Oracle Database essentially moving its database into ERP and also...
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