SAP is seeking growth in the local market through offering bolt-on solutions, but it also aims to expand north as the demand for enterprise resource planning (ERP) systems grows.
Simon Carpenter, director of strategic initiatives at SAP SA, says the country, as well as the sub-Saharan countries, accounts for about 1% of the global company's revenue. Carpenter says SAP aims to grow this, although its does not have a set revenue target.
The company is looking into buoyant and developing industries on the continent, with a view to selling services and systems into these industries, adds Carpenter.
He says the oil, gas and financial sectors are maturing, and ERP solutions are now becoming a viable option for companies in these industries.
Fast forward
As citizens seek greater clarity and transparency from governments, there are also opportunities to grow into the public sector, says Carpenter. “The public sector is an important sector for us right through Africa.”
Steve Rogers, head of business user and solution sales for the Europe, Middle East and Africa region, explains the public sectors on the continent have the potential to leapfrog several generations of systems, and go straight from a paper-based system to full ERP.
Although developed countries have a level of maturity in having implemented core ERP, Rogers says Africa - outside of SA - has great scope for installing the basics.
SAP has regional hubs in Nairobi (Kenya), Windhoek (Namibia), and Abuja (Nigeria), with Lagos, in Nigeria, to open soon, notes Carpenter. The company is likely to re-enter Zimbabwe when the country is once again stable, he adds.
“We will continue to invest and build capacity in Africa.” Carpenter points out this will involve working with local companies and developing capacity, and will result in job creation.
More than ERP
Carpenter says the local market is relatively mature, and SAP has a share of about 65% in the core ERP market in SA.
However, this share is now difficult to quantify, as the company has extended its offerings beyond just ERP. “We are building on a basic ERP platform,” he explains.
This takes the system beyond the simple solutions such as human resources and finance, and offers an end-to-end package that also has visibility down the supply chain. The company recently acquired Business Objects, which offers these bolt-on solutions.
Rogers notes SAP can also offer this solution to companies using other ERP systems. He says there is also “opportunity within our existing client base”, to sell this solution, which is an area of growth in SA.
Business Objects allows companies to plan should there be stock shortages, and inform customers in time, he concludes.
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