Key learnings from SAP case

Following are the key learnings from the SAP case:

1) To gain the benefits of locational advantages of the different geographies SAP decided to
spread their R&D labs all over the world. Being an US company, it could have put up a
research center in its headquarters in US, but it chooses to decentralize it. So that they could
leverage the talent of the local employees which are working with SAP. It helped them
strategically also to be in close vicinity with its customers to gauge their demands precisely
and cater to their needs in an efficient manner.
2) Location of co-innovation labs were set-up in such a way that they are in close connections
with their partners and form an effective value chain. As partners of the SAP are
widespread it was a good idea to be close to them. So, in a way partners will come directly
in contact with co-innovation lab and then they will be dealing with SAP. This was helpful
as number of partners are very large in numbers which made almost impossible for SAP to
directly contact them.
3) The way segmentation is done by SAP of its customers is enhancing their ability to meet
customer needs. They have divided customers based on their usage of services and products
of SAP. Various application which constituted its core business, analytics, current trend of
cloud or category based on data science it helped them to serve those customer in a better
manner.