Transcript SAP - HEC Paris

SAP in France
Best in France Case Study
September 2003 – May 2004
Mrs. Chalandon – Mr. Duchesne – Mr. Egret – Mr. Fischer – Mr. Hébert
Best in France case study
• Part 1 : You said SAP ?
• Part 2 : Conquest of France
• Part 3 : Golden Rules
Best in France case study
Part 1 : You said SAP ?
Best in France case study
SAP AG
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German company
Created in 1973
28 900 employees, in 50 countries
Number 1 in ERP software
12 500 clients, 1 500 partners, 23 industry
solutions
• 2003 turn over / profits : 7,025 / 1,08 Billion €
Best in France case study
Products & services
• ERP software: SAP R/3, Business One
(solution for SMB)
• Maintenance (follow-up of the current
customers)
• Consulting
• Training
Best in France case study
Clients
• SAP clients are companies
• 12 500 companies, 12 million of users
• 800 companies in France
Best in France case study
SAP in France (SAP France SA)
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SAP came to France in December 1987
366 M€ of sales
639 employees
40% on the French market
More than 800 clients
Business: ERP software, maintenance,
consulting and training
Best in France case study
SAP in France (European HQ)
• Corporate entity in Paris
• In charge of international operations
management
• Directed by Leo APOTHEKER
• Vice-president of SAP AG
• President of SAP France
Crucial position of the French BU
Best in France case study
SAP in France (SAP Labs)
• R & D entity in Sophia Antipolis (1998)
• Leads the research in innovative technology to
ensure that SAP remains on the cutting edge of
e-business development
• Bridges the gap between local market demands
and SAP's development organization
• Facilitates the country-specific and industryspecific enhancements to software
Best in France case study
Part 2 : Conquest of France
Best in France case study
Why did SAP come to France?
• Proximity to their French customers
• Contact B to C primordial, but difficult to
do from Germany
• Permit to develop the French business
network
Best in France case study
Company Values
• Corporate value : Spirit of INNOVATION
• European state of mind
– Integrity
– Responsibility
– Customers’ satisfaction
Best in France case study
French market constraints
• Labour law
• Complexity due to the 35h law (consulting)
• Labor unions
• French “comité d’entreprise”
• Company Law
• NRE (New Economic Regulation)
– Financial Security Law
– People and company Tax system
• Consulting market very competitive
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French Market Advantages
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Size of the potential Market
No major concurrent settled in France
Skills of employees
Financial advantages when installing in certain
parts of France
• French culture is an European one
• The French Riviera presents ideal working
environment for R & D teams
Best in France case study
Adaptations to French Market
• At the beginning:
• Necessity of German speaking people (enabling
communication with the corporate)
• SAP France founded by a French-German
Manager
• Nowadays:
• French management
• Multicultural teams (cross-cultural benefits)
Best in France case study
Adaptations to French Market
• In general:
– Need for translation of the Software
– Development of the consulting activity
– Understanding of the French culture
(particularly its social aspects)
– France is one of the two hardest cultures for
SAP, along with the Japanese one
Best in France case study
Part 3 : Golden Rules
Best in France case study
Advices for other firms
• Use French consultants for good integration
aware of :
– Social and company law
– Local implementation in such a business
• Take care of the juridical status of the firm
– SAS ? SARL ?
– SA ?
• Be careful during social negotiations
• Acquired advantages generally are long-lasting
Best in France case study
Advices for other firms
• Recruit a good HR Manager first !
• Experienced in social negotiations
• Take note that there’s a thin gap between
social and political unions’ claims
• Make employees to take advantage of the
French quality of Life
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Thanks to
• Emmanuelle BRUN
• Chief Financial Officer
• Sylvie PAUTOU
• Administrative and financial director
• Sandrine LAFUENTE
• Large Accounts manager
Best in France case study
Bibliography
• Site SAP France
• www.sap.com/france
• Bun & Bradstreet
• www.dnb.com
• Site des marchés extérieurs
• www.dree.org
Best in France case study
Our Team
• Anne-Sophie Chalandon
[email protected]
• Edouard Duchesne
[email protected]
• Michael Egret
[email protected]
• Viktor Fischer
[email protected]
• Quentin Hebert
[email protected]
Best in France case study