13 November 2008
SAP, the global specialist in enterprise resource planning (ERP) software, will bring its solutions for small- and medium-sized enterprises (SMEs) to the Middle East, an area where small businesses are not in focus, said a company official at the SAP Forum in Dubai yesterday.

Under the theme 'Business at the Speed of Change', SAP executives and industry experts shared best practices and methodologies. The event also coincided with the first anniversary of the establishment of SAP Middle East and North Africa.

Traditionally SAP, a leading player in the ERP space, has had implementations for the Fortune 500 companies. However, the company has expanded its range to solutions for small- and medium-sized businesses. Medium-sized companies typically have 100 or more employees, while small ones have between five and 100.

"SAP has decided to offer solutions to the large, medium, and small organisations. We want to have complete coverage across all industries and, despite popular perceptions, SAP services are not targeted at only large companies. Solutions for small companies are also becoming popular. The small-size business segment is still new for SAP, as on a global level we have only 20,000 firms presently," said Claas Kuehnemann, Managing Director, South-East Europe and Middle East, SAP.

SAP has not yet made available its solutions for smaller enterprises in the Emea region. "In the region we are still looking at the top 25 industry sectors. Oil and gas, retail, engineering and financial services are the main target areas presently. Medium-sized businesses have been our target segment for some time but solutions targeted at small businesses are not yet rolled out," said Kuehnemann.

This also shows that SAP's high maintenance fee is not an issue for these customers. said Kuehnemann. "Total cost of ownership is essential and we have studies to prove that the TCO of our solutions are low. Customers have to look at it holistically, as SAP also keeps upgrading service and support offerings. A lot of the cost goes into integration, which is the biggest nightmare for every IT person. Integration of complex applications and architecture is the problem."

José Duarte, SAP President and CEO of Emea field operations, said organisations in the region are moving at an incredible speed and those that aspire to take their business to the next level require the agility and ability to react quickly and embrace change.

Sergio Maccotta, Managing Director, SAP Mena, said: "Middle East organisations of all sizes can benefit from the adoption of best-practice tools and methodologies. SAP has enabled the ongoing international success stories of some of the region's biggest public and private sector names."

By Nancy Sudheer

© Emirates Business 24/7 2008