Combined Management Report
Vision, Mission, and Strategy
SAP was founded in 1972 and is the world leader in enterprise applications in terms of software and software-related service revenue, and the world’s third-largest independent software manufacturer based on market capitalization. With more than 232,000 customers in over 180 countries, the SAP Group includes subsidiaries in every major country and employs more than 64,000 people.
Helping the World Run Better
The world is experiencing dramatic shifts in the economy, technology, demographics, and the environment. And the rate of change is accelerating. The global middle class is expected to grow to five billion by 2030. This growing population is more connected than ever – an estimated 15 billion devices will be connected by 2015. There are more than one billion people engaged in social networks. And humankind is generating more data than ever. The rapid pace of change has brought wider availability of information, which has led to the consumerization of IT. These changes require companies to pay increasing attention to prudent management of resources and sustainable business models.
Around the globe, there is an ever growing need for people, organizations, institutions, and the world itself, to run better.
In a better-run world, businesses will anticipate and respond to sweeping changes, using knowledge as the key to competitiveness, profitability, and customer empowerment. Governments will be more responsive to their citizens and more transparent in their operations. Consumers will know more about the products they buy, so they can make decisions that fit their lifestyles and their values. And the environment will become a key decision factor.
Our Vision and Mission
SAP’s vision is to help the world run better and improve people’s lives. Our mission is to help every customer become a best-run business. We do this by delivering new technology innovations that we believe address today’s and tomorrow’s challenges without disrupting our customers’ business operations: Enterprise mobilityenterprise mobilityTerm used in business and industry to refer to the concept and approach to making a business mobile. At SAP, we use “enterprise mobility” as our umbrella term for an overall mobile strategy. will transform consumption of IT; in-memory technology will simplify the IT architecture in the enterprise and drive high-value applications; and the cloud delivery of IT solutions will simplify the consumption of technology and enable business networks. By leveraging our leadership in applications and analyticsanalyticsData analysis typically generated in the form of reports and charts which can be used for business insight and decision making. and combining them with new technology innovations, we can offer solutions that make our customers run better. To help our customers derive value from their SAP solutions in a fast, cost-effective, and predictable way, we also provide professional services and support.
Our Goal: Sustained Business Success
SAP has strong ambitions for sustainable business success, both for itself and for its customers. By 2015, we expect to reach more than €20 billion in revenue, with a 35% non-IFRS operating margin. In addition, we aim to see one billion people interacting with our software. Our customers’ IT requirements are complex and ever changing and SAP helps meet this challenge. Consequently, we aim to build a €2 billion cloud business and remain the fastest-growing database company to complement our market leading on-premise business. Furthermore, in 2013, we aim to increase the indicator for customer success by eight percentage points and the employee engagement indexEmployee Engagement IndexA score for the level of employee commitment, pride, and loyalty, as well as the feeling of employees of being advocates for their company. to 82% (2012: 79%), all while minimizing our environmental impactenvironmental impactA positive or negative change to the environment. and positively impacting society. These goals affirm our focus on innovation and sustainabilitysustainabilityFor SAP, sustainability is the ability to manage economic, social, and environmental risks and opportunities holistically for increased profitability. It contributes to our vision to make the world run better and improve people’s lives. SAP is committed t... and help us deliver on our vision and mission.
Our Strategy: Innovative Solutions for Real-Time Business
SAP seeks to secure the growth of the company primarily through organic innovation of our portfolio productproductA non-versioned high-level view of software from a software logistics perspective. It is a “bracket” that contains corresponding software product versions. and solutions, focusing on market-leading innovation in five market categoriesFive Market CategoriesAnnounced in 2012, SAP’s corporate strategy for a sustainable, high-performance company, is built around the five key areas (Applications, Analytics, Cloud, Mobile, and Database and Technology), which represent the end-to-end software stack. With its port... – Applications, AnalyticsanalyticsData analysis typically generated in the form of reports and charts which can be used for business insight and decision making., Cloud, Mobile, and Database and Technology – powered by SAP HANASAP HANAFlexible, data-agnostic, in-memory platform that helps organizations analyze their business operations, using huge volumes of detailed transactional and analytic information from virtually any data source. The platform provides the foundation for innovati. We intend to increase SAP’s market leadership in the existing market categories of applications, analyticsanalyticsData analysis typically generated in the form of reports and charts which can be used for business insight and decision making., and mobile, and to position SAP as a market leader in the new categories of cloud and database and technology. Our SAP HANASAP HANAFlexible, data-agnostic, in-memory platform that helps organizations analyze their business operations, using huge volumes of detailed transactional and analytic information from virtually any data source. The platform provides the foundation for innovati platform allows our customers to take advantage of real-time in-memory technology across all five market categoriesFive Market CategoriesAnnounced in 2012, SAP’s corporate strategy for a sustainable, high-performance company, is built around the five key areas (Applications, Analytics, Cloud, Mobile, and Database and Technology), which represent the end-to-end software stack. With its port.... Expanding our partner network offers additional opportunities to develop innovative products and solutions and significantly increases our potential sales channels. Our growth strategy is also supported by mergers and acquisitions to accelerate our innovation strategy.
The world is undergoing a technology-driven revolution in which knowledge is the currency of success. Technology is both a cause and the answer to this change. We believe that we have the right team of highly qualified and motivated employees, the right portfolio of innovative products and solutions, and the right strategy to turn this technology revolution into business evolution for our customers. What’s more, we believe we are well positioned to become known as a knowledge company. By providing end-to-end solutions to our customers, we continuously gain a great deal of business and technology knowledge as well as a deep understanding of industryindustryAn economic sector characterized by a value chain, business processes, and a set of products and services that is typical or common for all companies belonging to this sector. best practices and value drivers. This knowledge is made available to our customers and partners to help generate business outcomes. The outcome of this strategy not only provides our customers a significant competitive advantage in this ever changing world, but it also helps them operate more sustainably.
For more information about SAP’s vision, mission, and strategy, visit www.sap.com/corporate-en/our-company. For more information about SAP’s goals, see the Medium-Term Prospects section of the SAP Integrated Report.