SAP india

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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

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