Company Profile - On April 1, 1972, five former IBM employees – Dietmar Hopp, Hasso Plattner, Claus

Wellenreuther, Klaus Tschira, and Hans-Werner Hector – started the company SystemAnalyse
Programmentwicklung (System Analysis and Program Development). Their idea was to create standard
enterprise software that integrated all business processes and enabled data processing in real time. By
1975, they had built applications for financial accounting (RF), invoice verification, and inventory
management (RM). Some of their early customers were the nylon factory belonging to ICI in Östringen,
Germany, Knoll, Burda, Linde, and Schott. The blend of real-time data processing, standardization, and
integration were the basis for SAP’s transformation from a small German company into a global leader
in business software. In 1979, the company started developing R/2, the second generation of its
software.

Even while R/2 was enjoying huge sales success and one year before SAP went public with an IPO in
1988 – the company’s managers were looking ahead to its third generation of software. The SAP R/3
success story began in 1992, with the client-server software smoothing the path to a globalized
economy, turning SAP into a global player with subsidiaries and development centers across the world.
In 1999, SAP responded to the Internet and new economy by launching its mysap.com strategy. Ten
years later, the company branched out into three markets of the future: mobile technology, database
technology, and cloud. To rapidly become a key player in these new domains, SAP acquired some of its
competitors, including Business Objects, Sybase, Ariba, SuccessFactors, Fieldglass, and Concur.

In 2011, the first customers started using the in-memory database SAP HANA. Data analyses that used to
take days or even weeks were now completed in seconds. Four years later, SAP launched SAP S/4HANA,
its latest generation of business software, running entirely on SAP HANA. In 2019, SAP acquired U.S.
company Qualtrics, a leader in experience management software, placing SAP at the leading edge of this
growing segment. Today, SAP builds solutions for the Internet of Things and machine learning, for
complex analyses and blockchain. SAP HANA is available on the four largest public cloud platforms. The
company’s integrated applications connect all parts of a business into an intelligent suite on a digital
platform. SAP Business Technology Platform powers customers to become intelligent enterprises and
supports cloud, on-premise, and hybrid customer landscapes. It is a central element of SAP’s new “RISE
with SAP” offering. SAP has more than 238 million cloud users currently, more than 100 solutions
covering all business functions, and the largest cloud portfolio of any provider. SAP operates 70 data
centers at 37 locations in 17 countries.

Market Share - Market leader in business software, with more than 440,000 customers in more than
180 countries, and 102,430 employees worldwide (as of December 31, 2020). About 80% of its
customers are small and midsize companies. Total revenue in 2020 was €27.34 billion, including €8
billion from its cloud business (which is expected to reach more than €22 billion by 2025). SAP works
with about 22,200 partners and builds software solutions for 25 industries. In 2020, it invested more
than €4.4 billion in research and development, including at 20 SAP Labs development centers
worldwide. SAP’s business is helping customers optimize their business processes and run as an
intelligent enterprise. SAP’s purpose is to help the world run better and improve people’s lives. Today,
77% of all business transactions worldwide touch an SAP system. For example, SAP’s customers produce
78% of the world’s food products and 82% of the world’s medical devices.

Strategy - SAP’s mission is to deliver the Intelligent Enterprise. The Intelligent Enterprise is about
delivering end-to-end Business Processes as a Service in a complex hybrid architecture. It is about integrating
data and processes across all lines of business, without silos or monolithic “black boxes,” all while providing a
seamless and intuitive user experience.

SAP’s strategy is to offer our customers best in class business processes which support these key functions.

These business processes are customized to support 25 industry sectors, including telco, retail, energy,
transportation, financial services, etc. They manage all of our customers’ end-to-end processes with a unified,
role-based interface which allows users to focus on the problems they need to solve: a late delivery, a contract
to be renewed, components missing from production. They also provides the user with the best options for
solving these problems (for example, for a component shortage the system will propose the best options for
replenishment).

These business processes also incorporate innovative technologies such as machine learning, voice
recognition, and task automation which allows, for example, the automation of the creation of sales order upon
receipt of an email.

Strengths –

 Highly innovative product

 High on R&D
  Good Market Position

 Positioned very well

Product Offering – SAP S/4HANA Cloud, ERP for Small and Midsize Enterprises, Accounting and
Financial Close, Supply Chain Planning and many more. SAP product line covers all aspect
of businesses and provide solution to each process to make easy flow of information.

Integration Strategy - In February 2020, SAP’s Integration Plan in the Cloud was published
that outlines SAP’s integration strategy and related roadmaps for the Intelligent Enterprise
along following End-to-End business processes: Recruit to Retire, Lead to Cash, Design to
Operate, and Source to Pay. End-to-End business processes span across SAP’s Intelligent
Suite, partner and third-party solutions. SAP introduced distinct Suite Qualities that facilitate
a deep business process integration: seamless user experience, one workflow inbox, End-
to-End process blueprints, aligned domain models, consistent security & identity
management, coordinated lifecycle management and embedded & cross-product analytics.
SAP has published an updated version of this document including the latest roadmap status
and timelines in July.
SAP S/4 HANA is a 4th Generation ERP solution. SAP S/4HANA Cloud is a complete enterprise
resource planning (ERP) system with built-in intelligent technologies, including AI, machine
learning, and advanced analytics. It helps companies adopt new business models, manage
business change at speed, orchestrate internal and external resources, and use the predictive
power of AI. Benefit from tight, native integration between processes, industry depth, and a
consistent in-memory data model.

Modules & Implementation Support - SAP Implementation Support helps customers enhance
existing functionalities while enabling them to transfer daily management responsibilities into a
strategic method for improved effective and efficient operations. With Post SAP Implementation
Support Services our customers are offered 24/7 trouble-shooting support, enhancing existing
configurations, upgrades, maintenance, migration to new releases, and employee knowledge
transfer. Some 3rd party vendors are well equipped to support our customers through different
points of the SAP life cycle. SAP bring years of experience and unparalleled talent to each
engagement. SAP align customer budgets by eliminating unnecessary costs, improving
processes, insuring compliance, minimizing risks, and enhancing overall company performance.

Customer Service Module includes functions for Processing:

1. Service Notifications: Notification is a document created for capturing complaint from the customer.

2. Warranties: Warranty is a promise given for a product during the sales in terms of usage life which holds
guarantee (Repair or Replace a defective product or its parts).
3. Service orders: The details of actual service tasks with work center, cost center, activities, technician,
inspections, planned duration and components etc. are captured in the service order

4. Service Contracts: Service contracts are used to record the details of the service package that one have
agreed to provide a service recipient with over a specific period of time.( E.g. The routine service tasks which
are to be performed on a piece of machinery that has been sold or rented to a customer(Rental contract-
MV/Maintenance contract-WV)

 Service Contract with Periodic Billing

5. Service quotations: Service quotations are used to record the terms and conditions under which one offer a
particular service to a customer.

6. Repair orders: Repair orders provides you with a wide range of functions for managing all the necessary
activities which repairing goods for a customer entails, from registering the repair request from the customer
through to billing the customer for the services performed.

 Repair Process
 Maintenance & Warranty Processing
 Supply Replacement Material

Availibility of training –
ERP Implementation for ABC Corp

A Product Distribution Company would have lesser operational cycles and

Estimated Delivery – 6 Months

 Resource Utilization
o One Functional Analyst with 100% involvement with a salary of
40,000/- per month for 6 months
o Two Software Developers with 100% involvement with a salary of
20,000/- for 6 months
o  One Team lead or Project Coordinator with 70% involvement with
a salary of 50,000/- per month for 4 months
  License type
o Basic  – INR 2,00,000 (for 3 users)
o (Considering 1 license for each target location)
o ERP Partner’s Overhead cost – 40% = INR 3,36,000/-

For a ballpark, company ABC Corp is likely to shell out approximately INR
12,00,000/- for end-to-end implementation. Please note that this doesn’t
include the recurring Annual License Renewal cost and Annual Maintenance
Contract.