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Strategic change for Software AG SA

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 24 Oct 2014
Software AG is seeing keen interest in its new products from South African customers, says Mohamed Cassoojee, VP for SA.
Software AG is seeing keen interest in its new products from South African customers, says Mohamed Cassoojee, VP for SA.

Software AG has boosted its revenue and grown 30% in the year-to-date, compared with flat gains last year, after implementing a strategic change in January that saw staff upheaval.

Mike Slater, COO of Northern Europe and SA, adds the local unit has the potential to hit triple digits over the long-term as there are areas in which it sees substantial growth, which will balance out those that are not gaining.

Mohamed Cassoojee, VP for SA, says its traditional enterprise transaction system (ETS)/Adabas Natural business is still in high demand within the local market and it has also noted a keen interest in new offerings.

Slater says Software AG is on a transformation journey, and is seeing growth. He notes Africa is as important and paramount as ever and there are huge opportunities on the continent, but these must be chased in an "intelligent" way.

Lessons learnt

The local arm of German-based Software AG, which had 96 employees at the end of December, went through several changes in the past year, retrenching seven staff members and losing several key staff. It currently has 76 staff.

Slater adds Software AG has learnt customers will only buy its solutions if there is a clear business case, so it is now going to market with a clear business solution that has returns of between nine and 12 months. He says this approach requires a different type of sales person, who will focus on what is in it for the customer, and not just the numbers.

This strategic change is working well and has led to a "huge spike" in the pipeline, adds Slater. However, because Software AG is now looking for people who fit best with the company rather than just filling positions, it still has some vacancies, he says.

Cassoojee notes the entity has opportunities available for two regional sales managers, a sales director and a senior consultant. Slater adds: "I'd rather have fewer rock stars than many average people."

Software AG is also looking to bolster its partner ecosystem in areas that are not its "sweet spots," adds Slater. Cassoojee says the company is aligning more with partners to deliver its solutions to the local market.

Software AG is also focusing more on the private sector to balance out the highs and lows that come from dealing with government, as deals take a while to land there, says Slater. He adds using the partner ecosystem will also aid the company in making a "quantum leap" in sales, which cannot be achieved through only adding sales people. "South Africa is a bit like a goldmine."

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