An Organisational Analysis of SAP Labs India Pvt. Ltd
Archit Prasad (12 DM-037)
Debaleena Biswas (12HR-007)
Himanshu Garg (12 FN-054)
Madhavi Verma (12 DM-081)
Tapapriyo Maitra (12 DM-151)
Yogaesh Sharda (12 FN-159)
Yogesh Khanna (12 IB- 061)
India has always been chosen as the preferred Research and Development centre by many multinational organisations; SAP Labs was no exception. SAP Labs India Pvt. Ltd is SAP AG's largest R& D center in the world. The functional areas of SAP Labs India are Research & Breakthrough Innovation, Product Development, Customer solutions and Operations, etc. Due to its excellent employee learning system, ...view middle of the document...
By our participation in the innovative business and technology community , we pursue the ongoing discovery of superior technologies and their application by an empowered team of people. “
SAP Labs India Pvt Ltd started as a small company which then grew at a very rate working hard to achieve its mission.
The strategy of any organisation should be devised to achieve the maximum success in its domain. So, before understanding strategy of SAP Labs India, we should focus on the trends of the software solution market.
It has been forecasted by Gartner Inc.that in 2012, India will be the fourth largest enterprise software market in Asia/Pacific. The country is forecast to account for 11.4 per cent of the region's total revenue of $ 30.30 billion this year, the equivalent to 1.24 per cent of the total worldwide software of market share of $ 278 billion. According to Asheesh Raina, the research analyst at Gartner, the emerging trends are leading the app demand towards newer architectures, business models, programming languages and user skills. Emerging mobile applications are transforming the app development space drastically and are one of the top three priorities at the enterprise level. It is also envisaged that trends of cloud computing and open source software will continue to dominate the market.
Thus, SAP Labs India has developed a strategy to work towards “Bridging the gap between local market demands and SAP's development organization thereby setting standards for excellence in innovation, efficiency, and reliability.” Infact, ‘localization’ of the products has been the key strategy of SAP Labs for expansion into new markets. It can be clearly understood that the strategy of SAP labs India was always focussed towards gathering expertise in every sphere of IT solutions and not only ERP. In the last ten years SAP Labs has acquired three companies namely Virsa, Yasu Technologies and Business Objects which has added to the capability of the organisation to gain expertise.
SAP AG is targeting 1 billion customers by 2014. To do this it has acquired SuccessFactors, a cloud computing company. Cloud computing is one of the most attractive industry as of now and SAP, by acquiring SuccessFactors, hopes to become a dominant player there. It is also in the process of acquiring Syclo.
Life Cycle Stage of the Company
SAP Labs India is the fastest growing arm of SAP Labs which shows a growth rate of 35% (revenue-wise) year-on-year. The growth in the number of customers is also quite steady as shown . The organisation is also continuously working on diversifying its product range and it has successfully captured the market in areas other than ERP. Hence, it can be concluded that the organisation is in the ‘Elaboration’ stage of its lifecycle which means it has attained maturity. The characteristic of this stage with respect to SAP Labs has been discussed below:
Structure: SAP Labs India is SAP's second largest Research & Development...