Case Study Of SAP

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SAP, is a company who started in 1972 formed form five former IBM employees in Mannheim, Germany, states that it is the world's largest inter-enterprise software company and the world's number 4 independent software supplier.

1) What are SAP’s core competences?
The main SAP’s core business offer was an enterprise resource planning system shortly called ERP system. When they manage to successfully implement the ERP system it linked all fields of a company including human resources, management, manufacturing, financial systems and distribution with suppliers and customers. The companies that used their system have felt and “drastic decline in inventory, breakthrough reductions in working capital, abundant information about customer wants and
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SAP chose to use its connection to customers as a tool to be more innovative. One of the important decisions was made because they also had to overcome problems with cultural challenges. This is why they used the locations to satisfy the reginal demands, and spread its R&D labs globally, instead of centralizing near to headquarters. SAP opened development labs in high-tech areas such as Silicon Valley in order to leverage the innovation and entrepreneurial spirit, as well as the rich ecosystem of the venture companies, startups and academic institutions.
Martin Stork also said that “As a company on your own, you will never be really innovative” and he meant that SAP’s co-innovation labs constituted the third pillar of their R&D network. They have located six co-innovation labs, in India, United States, Brazil, South Korea, Japan and to the headquarters in Walldorf, Germany. They named their global Co-Innovation Lab as COIL and were having as key goals of network:
• Creation of co-innovated solution
• Acceleration of

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