Riding high on its strategic business applications, SAP India continued to be on the growth track during the FY 2016-17. The company, which has hugely banked upon its enterprise resource planning (ERP) solutions such as S/4HANA, is now spreading its wings to non-ERP areas too.
It is providing solutions in the cloud computing and digital arenas. According to the company, until about 2010, the ERP solutions used to churn 70% of its revenues, but from 2015 onwards, only about 30% is being contributed by ERP and the rest by non-ERP solutions.
However, still SAP rules the ERP software market in India, clocking a market share of about 48%. Its offerings also include analytics, customer relationship management (CRM), expense management, human capital management and business-to-business commerce.
The revenues of the company grew by 10% to ` 11,787 Crore in FY 2016-17 as against ` 10,715 Crore in FY 2015-16 on the back of ERP as well as non-ERP solutions. During the fiscal, SAP India stressed on offering some packages for small and medium enterprises. It also worked for utility companies and inked agreements with railways, ports and airports.
The most lucrative verticals for SAP in India are manufacturing, consumer goods, professional services and public services. At the same time, Oracle Corp gives it a tough competition in the banking, financial services and insurance sector. With an aim to become ‘The Cloud Company’, SAP had invested billions of dollars to acquire companies as Hybris, SuccessFactors, Ariba, Concur and Fieldglass, which offer cloud-centric solutions.
Globally, today it has over 200 million users on the cloud platform. However, in the near future, the company is planning to focus towards digital arena. Deb Deep Sengupta, President and Managing Director, SAP India, is aggressively working to ride on the digital wave and believes ‘phygital’, a blend of physical and offline firms, would be the buzz word in the days to come.
SAP has also evinced its interest in Internet of Things (IoT), with the acquisition of Plat.one—an IoT solutions provider. It has plans to pump in €2 billion over five years in the Internet of Things (IoT) space.
WE ARE CURRENTLY SEEING DISRUPTION OCCURRING AT BOTH THE TECHNOLOGY AS WELL AS POLICY LEVEL
What is your appraisal of FY 17 from an industry and SAP India’s perspective?
Last year was pivotal for the nation as well as India Inc. The impact of GST and demonetization has resulted in a strong push towards India becoming a formalized economy. The resulting impact is making India Inc. more process-driven by helping push the themes of efficiency, compliance and digital transformation of key operational areas. Technology will remain a critical enabler for India Inc. to quickly achieve this efficiency.
SAP in India has also been working closely with other key stakeholders, from policy-makers to MSMEs, to help address their needs through a standardized, innovationdriven approach, especially for game-changing reforms like GST. Our efforts have reached nearly 200 million people and helped bring about real business transformation for small and medium enterprises. We are committed to continuing this momentum and aspire to become the digital partner for more than 100,000 diverse companies in India over the next five years.
What are the 2 big challenges that took most of your management time during the last fiscal?
India is on the cusp of growth and transformation; in the current environment, large corporates, as well as SMEs, are seeking to accelerate their digital growth journeys. By unlocking the potential of enabling digital technologies, we have been helping our large customers decode this emerging digital paradigm.
Two great examples of this are TataCliQ, which has transformed and leveraged digital to connect more than a billion Indian consumers across 900 cities and 1000 villages to deliver a modern retail experience. Similarly, Reliance Jio is collaborating with SAP to create a holistic digital experience for Indians. We are co-innovating with them to create one of the world’s largest customerengagement platforms that are scalable, reliable and real-time.
On the other hand, we continue to expand our collaboration with MSMEs, which require resources and technology capabilities to fuel their growth strategies. A continued push towards the systematic digital enablement of 40+ million small businesses in India is a key imperative. We at SAP have been pioneering our efforts to equip MSMEs with the necessary technology capability and resources through our Code Unnati and Bharat ERP initiatives aimed at empowering citizens through digital literacy.
How would you place SAP in India right now given the disruptions happenings in the tech space?
We are currently seeing disruption occurring at both the technology as well as policy level. As stated earlier, embracing digital and creating a robust foundation for growth are two clear imperatives for the ecosystem. SAP would like to remain foundational in India’s digital transformation and will continue to increase our relevance across all key stakeholders in this rapidly expanding digital economy.
What would be the direction for SAP India in FY 18?
SAP’s vision will remain aligned to India’s growth imperatives as well as the government’s efforts and is to help India run better and improve 1.2 billion. people’s lives. We will accomplish this through continued co-innovation with our customers, partnering in India’s Nation Building initiatives as well as helping the MSMEs become globally competitive.
—DEB DEEP SENGUPTA President & Managing Director