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Location Strategy at SAP AG

In: Managing Innovation from the Land of Ideas and Talent

Author

Listed:
  • Clas Neumann

    (SAP Labs India Pvt. Ltd.)

  • Jayaram Srinivasan

    (SAP Labs India Pvt. Ltd.)

Abstract

SAP started its global journey during the 1980s, when it opened subsidiaries in neighbouring countries to Germany (Austria, Switzerland and France were among the first countries) and then started overseas with an office in the U.S. At that time, customers in many other countries, whether in Japan or China, were still served by central teams in Germany or by local SAP partners. In the mainframe world, it took some time to develop the idea of standardized software and to get customer traction. Big majors like IBM and DEC were dominating the hardware market, Nixdorf was strong in Europe and those companies were still selling big systems bundled with operating systems and the business applications to be run on them. The greatest technological revolution at the end of the 20th century was the appearance of the PC and the consequential evolution of client-server technology. Under the leadership of executives like Hasso Plattner, Peter Zencke, and Gerd Oswald, SAP was the first company to realize the potential of this new technology, and to make it available for its clients. R/3, which entered the market in 1992, was a real hit and created an unforeseeable global demand for SAP’s products. SAP expanded quickly into new markets like Turkey and the Middle East (1992), Japan, Brazil (1993), India (1994), and China (1995), by opening subsidiaries and making the products locally available.

Suggested Citation

  • Clas Neumann & Jayaram Srinivasan, 2009. "Location Strategy at SAP AG," Springer Books, in: Managing Innovation from the Land of Ideas and Talent, chapter 2, pages 19-37, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-89283-0_2
    DOI: 10.1007/978-3-540-89283-0_2
    as

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