Summary
Highlights
In 1972, IBM employees Dietmar Hopp and Hasso Plattner recognized the need for standard business software, leading them to create SAP. They developed a bookkeeping program for a nylon factory, ICI, using their computer at night. SAP rapidly grew providing solutions for accounting beyond IBM's offers at the time.
SAP expanded its software to include various business functions like purchasing, inventory, and HR. Their R/2 software was a game-changer, centralizing data management. They moved to Walldorf and, in the 90s, expanded to America with R/3, experiencing rapid growth and joining the DAX in 1995.
SAP faced competition from Oracle in the late 90s, leading to a personal rivalry between Hasso Plattner and Oracle's Larry Ellison. This rivalry involved corporate espionage and public disputes, including sailing regattas. SAP initially struggled to adapt to the internet era.
SAP reinvented itself by targeting medium-sized businesses, acquiring companies like Business Objects and Sybase to expand its capabilities in reporting and mobile software. These acquisitions were initially met with skepticism but ultimately proved successful, significantly increasing SAP's profits.
Hasso Plattner spearheaded the development of HANA, a new data architecture that drastically improved data processing speeds. This allowed SAP to enter the database market and enhance its existing products. S/4 HANA became a key component of SAP's product line.
Under CEO Christian Klein, SAP shifted its business model to cloud-based subscriptions. This transition initially caused market uncertainty, but ultimately proved successful, increasing cloud revenue and stock value. SAP faces challenges from competitors and the need to adapt to AI.