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SAP and The Evolving Web Software ERP Market: A Case Study On.
SAP and The Evolving Web Software ERP Market: A Case Study On.
1. Production planning
2. Materials management
3. Financial accounting
4. Asset management
6. Project systems
Weaknesses Threats
•Cost of customization was too high for •Oracle emerged as a strong competitor
consulting companies •Increasing demand and popularity led to
•Difficult and expensive to implement several SAP divisions which led to lack of
•Was too standardized coordination and monitoring
•During reconfiguration, a lot of time was
consumed
•Many a time, expectations were not
matched
R/3’s Effects
•
R/3’s popularity led to decentralization of marketing, sales and
installation of its software.
•
By 1995, it had 18 national subsidiaries and today it has over 50.
•
But decentralization led to growth in consultants, who tried to fulfill their
vested interests.
•
This led to a backfire of company’s mission which was to supply software
that linked functions and divisions.
Contd…
Price was based on –
number of users within a company
number of different R/3 modules that were installed
degree to which users utilized R/3 module
platform
Victims of Weaknesses
Adopting Standardized & Hierarchical approach
major competitor.
Oracle was cheaper and easier to implement quickly
Competitors started providing specific aspects of ERP system but not full
of ebusiness solutions
Customers also wanted total solutions package that would take care of
MySAP would help to leverage and build upon customers’ core competencies to
MySAP was completely compatible with R/3 system to enable customers to expand
SAP offered in-house training and development programs for consultants and
programmers
Key differences
Embraced the concept of Open Architecture, such that its MySAP Applications
were compatible with other software manufacturers such as Microsoft NT, Sun’s
Java and UNIX
Realized the need for strategic alliances and acquisitions to mitigate increasing
Ex. Allied with Commerce One to compete in B2B segment, joined with IBM to
Even Microsoft recognized the enormous potential threat from SAP and introduced its XP OS which was
However, MS later adopted to open architecture policy announced that its next version of XP would support
Each group will be treated as an independent profit center & head of each group
Competitors are allowed to work with SAP teams to make their products
coordinated way.
R/3 Enterprise: Collection of web software that can be easily added to R/3
To become jump from 3rd place to 2nd in being the largest global software
company
Thank You..