SAP China’s current failure verified the importance of the 3 factors above
Since SAP globally changed its style from a stable and steady company to an sales-oriented company in 2007, SAP China experienced great changes. SAP China CEO were changed for 3 times in the 3 years, nearly all of top and middle level managers left SAP China, and even all the sales were changed. Many new employees came from Oracle whose work style was very different and contrary to SAP culture.
Without culture and believing, now SAP employee only thinks how to survive. Sales will try to take a deal by fair means or foul, they don’t care what negative results would be to the company in the future, and also they don’t want to do more developing and nurturing future market instead of the current year projects because they don’t know if they could survive in the company next year. Under the culture and style, sales not only had produced serious consequences external to the market and customers, they also caused grave consequences internal to the company. For example some VPs forced sales to do sales forecast skulduggery, so that the VP and sales could have longer time to survive. Team’s decay makes the company going down quickly.
SAP Brand was destroyed in China, many SAP customers stopped to extend their further SAP deployment, they turned other selection if there is, and more than 50% of SAP China customers refused to pay SAP maintenance fee before the end of 2009. SAP China’s decline gave its competitor Oracle chance to develop. In the new competition, especially in major state-owned companies Oracle won most of the new projects, even at SAP traditional advantage field like mining and steel industry.
To make a great team and a great company, belief is the key, it is not a slogan, but thoughts in each employee brain. In the past ten years, every SAP China employee believed that they could bring and create values to customers, but now they don’t although SAP China made a lot of sales and solution selling training, they just think that is a tool for sales.
salesinchina on Case study – SAP China busines… Mr WordPress on Hello world!