Sap Case Study

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SAP Business Model Case Study Abstract Systems Applications and Products (SAP) was a company invested in the software industry that went through significant growth in a very rapid time frame. During their growth, the company faced some challenges such as changing its employee functions from internal to a consulting culture. SAP had to change its business model from being a software only provider to also being customer service driven. This case study will focus on few key issues such as SAP’s management challenges as it grew from a small company to a globally focused company, its hierarchy management model, and the company’s organization structure. Keywords: Business management, organizational structure, hierarchy level, customer service SAP Business Model Case Study Introduction Systems Applications and Products (SAP) began its business in 1972 with five former German IBM computer analysts. They designed software that would allow information in organizations to be coordinated and processed centrally. The software was called “enterprise resource planning (ERP) system. ERP system provides a company with a standardized information technology (IT) platform that provides managers with complete information about all aspects of its business processes and cost structure across all functions and divisions” (Jones, 2013, p. 431). The benefit of ERP is to increase productivity, lower costs and improve controls. Over the years, SAP evolved at various stages of its business growth. As it evolved, it went through various stages of challenges. In its initial stages of their evolution, SAP focused its business model on multinational companies with “revenues of at least $2.5 billion” (Jones, 2013, p. 432). Once SAP penetrated the large multinational companies, they began to increase their customer base globally. SAP
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