SAP Solutions for Small Businesses and Midsize Companies. Press Fact Sheet March 2008

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1 SAP Solutions for Small Businesses and Midsize Companies Press Fact Sheet March 2008 Small businesses and midsize companies (SME) are facing greater competition than ever across diverse industries. With pricing pressure and the increasing power of large rivals in some segments, they have a critical need to optimize business processes, cut operational costs and improve customer acquisition and retention rates. Success depends on having the ability to keep pace with rapidly changing customer and industry demands and execute quickly, the agility to quickly seize new opportunities and the flexibility to achieve sustainable business growth. In choosing their software solutions, these businesses must balance their long-term needs for innovative solutions to drive the next level of growth with their existing resources and shortterm needs for quick return on investment, low cost of ownership and minimum disruption to current operations. Many small businesses and midsize companies must also ensure integration into their corporate and partner/supplier ecosystems, often requiring the complete replacement of legacy systems. With the complexity and global reach of today s business environment, small businesses and midsize companies are also under increased pressure to monitor business processes and financial operations more closely. This challenge is intensified by stricter accounting and corporate governance requirements that place growing pressure on businesses of all sizes for greater transparency, timeliness and accuracy in reporting and managerial control. Small businesses and midsize companies are recognizing integrated business management solutions as essential for growth, scalability and competitiveness as the solutions become more affordable, easy to implement and adept at addressing industry-specific business processes. Business Benefits of SAP Solutions for Small Businesses and Midsize Companies With almost 70 percent of its software installations worldwide in small businesses and midsize enterprises, SAP builds on 30 years of industry expertise in providing vertical and microvertical solutions. Delivered through a global channel of qualified SAP partners, SAP s solutions for small businesses and midsize enterprises SAP Business One and SAP Business All-in-One, respectively are affordable, easy to-deploy, and proven business solutions to better meet the needs of customers across diverse industries. SAP Business ByDesign, the on-demand business software solution, is a new addition to the SAP portfolio of solutions for small businesses and midsize companies and does not replace any of the existing solutions. SAP Business ByDesign specifically addresses a new market of prospective customers: growing midsize companies that typically have not invested in the types of integrated business solutions SAP provides.

2 Page 2 SAP Business One SAP Business One is an integrated business management application designed to address the specific needs of small businesses, typically with 10 to 100 employees. SAP Business One covers the core operations necessary to run and grow a successful business, including customer relationship management, accounting, analytics, e-commerce, reporting, sales and distribution, purchasing, and warehouse and partner management. With more than 1,400 business partners, 450 industry- and process-specific solutions and add-ons worldwide, 17,700 customers and 40 country versions, SAP Business One is helping companies improve business-process efficiency, take advantage of growth opportunities and seamlessly link with parent companies, customers and suppliers using the SAP Business Suite application. Key Characteristics of SAP Business One Channel distribution. SAP Business One is sold exclusively through a channel of certified sales and service partners. Customization. SAP Business One is an out-of-the-box application with country-specific localization that can be deployed as is. An important part of SAP s offering for channel partners is the SAP Business One Software Development Kit one of the most advanced development environments available for small businesses. The power and flexibility of the software development kit allow SAP partners to provide significant benefits such as a high degree of adaptability to business processes and management, powerful customizations, formatted search and user fields, efficient systems administration and smooth upgrade processes. It also allows partners to build new business management extensions and offer solutions and services tailored to the distinct, industry-specific needs of customers. Software architecture. The application supports the Microsoft SQL Server database. Additional system requirements are Microsoft Windows Server (2003 R2, 2003 SP1), Microsoft Windows Business Server (2003 R2, 2003 SP1) and Microsoft Windows XP SP2 (standalone installations only) as well as Microsoft Windows XP SP2 Professional (workstation platforms). The application also supports Microsoft Office (2003 SP1, 2007 und XP SP2). Further Windows operating systems will be supported in the future. The open architecture of SAP Business One will integrate with SAP Business Suite, as well as other independent software vendors, allowing companies to realize the extensive benefits of SAP from the largest division to the smallest subsidiary. Customers. SAP Business One is designed for small businesses with up to approximately 100 employees. It is an entry point for those businesses looking for a basic, integrated business management software and is available with industry-specific and other applications through SAP Business One partners. Implementation and use. SAP Business One is easy to deploy, normally up and running within days. The application is also easy to use due to the Microsoft Windows look and feel and the intuitive navigation. Functionality. SAP Business One encompasses core business management functionality such as general ledger, analytics, reporting, sales, purchasing, inventory, costing and customer relationship management (CRM). With the new XL Reporter tool, SAP Business One also offers a strong business intelligence tool for small businesses leveraging Microsoft Excel to provide users with access to critical data and advanced reporting. SAP Business One also offers new CRM and e-commerce functionality enabling companies to set up online stores easily and to deploy CRM software quickly

3 Page 3 and simply via the Internet, extending the reach and accessibility of SAP Business One to a new set of users. SAP has incorporated the new e-commerce and CRM capabilities through the acquisition of Praxis Software Solutions, an SAP partner that developed the solutions based on SAP Business One. Integration. SAP Business One enables an easy integration of business processes. The Microsoft Windows environment within SAP Business One enables users to easily exchange data with other Windows desktop applications including office software. Enhancement packages. Enhancement packages for SAP Business One provide customers with faster and more frequent access to new functionality, best-practice tools and maintenance updates. These downloadable packages are planned for availability multiple times a year between major application updates. Enhancements include new capabilities in financials, including control accounts, general ledger reporting and document printing. The enhancement packages activate in a plug-and-play manner, eliminating the costs and disruptions associated with typical software upgrades. Additional information about SAP Business One can be found at: SAP Business ByDesign SAP Business ByDesign is a new solution for companies with 100 to 500 employees. The ondemand business software solution complements and does not replace any of the other solutions in the SAP portfolio of solutions for small businesses and midsize companies. SAP Business ByDesign specifically addresses a new market of prospective customers: growing midsize companies that typically have not invested in the types of integrated business solutions SAP provides. Fully leveraging enterprise service-oriented architecture (enterprise SOA), the solution was built from the ground up on SAP NetWeaver, providing a futureproof platform for business that provides for a high degree of flexibility to adapt business processes in order to address evolving market demands. SAP Business ByDesign is available today for selected early customers in the United States, Germany, France, United Kingdom, Italy, Netherlands, China and Singapore. In 2008 and 2009, the product is planned for expansion to additional markets. Pricing in the United States will start at a price of $149 per user, per month (including software, infrastructure, services and support), with a minimum of 25 users to be licensed per customer. Key Characteristics of SAP Business ByDesign Completeness. The complete on-demand business software solution supports a wide range of business operations, including compliance management, customer relationship management, executive management support, financials, human capital management, project management, supplier relationship management and supply chain management. Adaptability. Based on the industry s most modern business process platform, the solution delivers immediate business value and ongoing support, enabling customers to quickly and cost-effectively adapt their IT solution to unique and changing needs. Ease of Use. The solution provides a personalized, try-before-you-buy process with fast, intuitive software configuration and helps speed user adoption and productivity with a built-in learning environment.

4 Page 4 TCO Reduction. The solution is designed to lower total cost of ownership (TCO) by bundling software, e-learning, services and support for easy configuration and ongoing operation without requiring extensive IT infrastructure and resources. Additional information about SAP Business ByDesign can be found at: SAP Business All-in-One Solutions SAP Business All-in-One solutions are designed to meet the microvertical industry-specific demands of midsize companies. Based on SAP ERP, SAP Business All-in-One solutions are affordable and rapidly implemented, pre-packaged applications delivered by certified SAP partners to midsize companies requiring a high degree of vertical industry capabilities. Currently, more than 700 micro-vertical SAP Business All-in-One solutions are helping companies streamline business processes, increase efficiency and achieve a rapid return on investment. More than 11,300 customers and 1,150 partners worldwide further underline the solution s solid presence in the midmarket. With the new version of SAP Business All-in- One solutions, SAP and partners enable midsize companies to manage business processes at the micro-vertical industry level, drive new business value, increase revenues, support innovation and improve the effectiveness of sales and marketing campaigns even more effectively. The new version of SAP Business All-in-One solutions contains CRM capabilities optimized for the midmarket, with solutions enabling faster return on investment with a dramatically enhanced and more intuitive user experience, streamlined business scenarios and enhanced analytical reporting. Key Characteristics of SAP Business All-in-One Channel distribution. SAP Business All-in-One solutions are sold through a global network of certified solution partners and solution architects. Customization/preconfiguration. Delivering industry-specific best practices, SAP Business All-in-One solutions are tailored, pre-configured and equipped with microvertical capabilities by SAP and its channel partners. These predefined industry solutions are developed through continuous collaboration and knowledge exchange between SAP and its solution partners, and delivered maximum customer-ready, out-ofthe-box capabilities. Software architecture. SAP Business All-in-One solutions are based on the core components of SAP ERP, adding industry-specific capabilities from SAP and its partners which deliver micro-vertical industry best practices in 700 solutions. The solutions are modular, affordable and incorporate more than 30 years experience of SAP, partners and customers working in diverse industries around the globe. SAP s support of open standards and its development of integration capabilities allow customers in an SAP environment to take advantage of the open SAP NetWeaver platform. SAP can also support customers interested in deploying SAP Business All-in-One solutions on the open standards-based Linux platform. Customers. SAP Business All-in-One solutions are designed for midsize companies requiring a high degree of industry-specific functionality to manage their business processes. Implementation and use. SAP Business All-in-One solutions are easy to use and installed using rapid implementation techniques that can reduce costs by more than 50 percent over traditional approaches. With the more intuitive user experience that includes

5 Page 5 role-based navigation, object-based access and contextual help/training the new version of SAP Business All-in-One solutions will also improve user productivity and reduce training efforts. Functionality. SAP Business All-in-One solutions comprise basic ERP functionality such as general ledger, sales, purchasing, inventory, costing and order management. They also include micro-vertical components that are integrated into the core functionality as well as additional processes. Country specifics funtionalities as well as interfaces and technical infrastructures based on customer requirements complete the offering. Integration. SAP Business All-in-One solutions enable customers to easily integrate with the SAP Business Suite environment in use at their customers, partners, suppliers or other involved corporations using the SAP NetWeaver platform. SAP All-in-One solutions support business processes and collaboration across the entire value chain, thus establishing flexible supply chains and customer and partner extranets. Enhancement. The new version of the SAP Business All-in-One solutions combines the strengths and functional advancements of SAP ERP with enhanced SAP Best Practices for midsize enterprises to get every facet of the business running smoothly and efficiently from streamlined sales, manufacturing, operations, logistics to human resources, financial management, and strengthening customer relationships. The solution is packaged with quick start accelerators to deliver rapid time to value and a predictable cost of ownership. Additional information about SAP Business All-in-One can be found at: SAP PartnerEdge SAP solutions for small businesses and midsize companies are delivered through its global partner network. The SAP PartnerEdge program, SAP s next-generation, multilevel partner program, offers a robust set of business enablement resources and program benefits to help partners including value added resellers (VARs) and independent software vendors (ISVs) be profitable and successful in implementing, selling, marketing, developing and delivering SAP solutions to a broad range of customers. The partner ecosystem is very important for the success of SAP Business ByDesign. It is planned to integrate SAP Business ByDesign into SAP PartnerEdge within the course of the year SAP PartnerEdge is designed to address market dynamics and offer equal opportunities for partners of varying sizes and types. It fully supports SAP s corporate strategy to expand its applications business in the global small and midsize enterprise market with a framework that is flexible, fosters mutual growth and provides partners with the business resources to deliver long-term customer value. SAP PartnerEdge utilizes a unique system of Value Points. Unlike other channel programs, SAP PartnerEdge recognizes partners not only for sales transactions but also for capabilitybuilding activities such as training and customer satisfaction while ensuring that partners are well equipped to succeed in the market. Additionally, its distinct focus on rewarding solution development activities recognizes the importance of SAP s partner ecosystem in building integrated applications and extensions upon SAP solutions. SAP Partner Service Benefits Package, a comprehensive package of technical, service and educational enablement, helps partners deliver long-term satisfaction to SAP customers. Partner education: Sales training and qualification, technical training and certification

6 Page 6 Business enablement: Product margin and profitability, business development funds, lead sharing, partner locator SAP PartnerEdge P2P: An online business collaboration network that allows SAP partners around the globe to interact and list their industry-specific solutions and add-on functionality on the network. Partners can easily find solutions and make vital connections with other partners in order to fulfill customer needs Technology access: Demo software, software development kit/development software, ramp-up/beta testing, exclusive product briefings Development and support: Product certification, expert integration assistance, Webbased knowledge, access to SAP Developer Network, technical support, pre- and postsale support Marketing and sales: Market development funds, marketing service bureau, marketing tools, collateral, logo usage, partner logo, sales tools, success stories, customer references, access to SAP facilities Events and summits: Partner advisory councils, specialized workshops, executive business summits, partner conferences and Webcasts Leading analyst firms such as Gartner acknowledge that SAP PartnerEdge has set a new standard for innovation in channel development for the small and midsize business application market. For more information about the SAP PartnerEdge program and how to become an SAP channel partner, please visit Additional information about SAP Solutions for small businesses and midsize companies can be found at: # # # Copyright 2007 SAP AG. All rights reserved. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary. For more information, press only: Astrid Pölchen, +49 (6227) , astrid.poelchen@sap.com, CET SAP Press Office, +1 (610) , press@sap.com, EDT Torrey Fazen, +1 (617) , torrey.fazen@bm.com, EDT Tanja Charrier, +49 (69) , tanja.charrier@bm.com, CET