PALO ALTO, Calif. – SAP said it plans to aggressively pursue new markets with a slew of innovative new technologies for its troubled Business ByDesign on-demand suite of products for small and medium-sized business (SMB) customers. When SAP first detailed its plans for Business ByDesign a year ago, it was met with tepid reviews.
"When you come to challenging times, you have to take risks," co-CEO Henning Kagermann told a press conference at SAP's offices yesterday. "Business ByDesign is not just about product, we also want to focus on profitability, and in the volume business you have to do a lot of innovation to make the business profitable," Kagermann said.
At SAP (NYSE: SAP), the word innovation now takes on a whole new meaning. "You can look at it from two angles," said Jim Snabe, who heads SAP's business solutions and technology organization. "One is how to convert money into ideas; the other is how to convert ideas into money."
The new version of the suite will incorporate an innovative approach to customer relationship management (CRM) (define) and incorporate business intelligence technology from Business Objects, for which SAP bid $6.7 billion in October. The deal was finalized in December.