SAP South Africa has made strides in the past year to extend its reach into the enterprise performance management (EPM) market, notching up revenue growth rates that exceed those of other regions covered by the global software company.
EPM applications are those that address the strategic and managerial processes within organisations and that have a strong focus on analysis and decision-making.
According to a recent IDC report, “Worldwide Business Analytics Software 2009–2013 Forecast and 2008 Vendor Shares”, SAP AG is the market leader in performance management and analytic applications with a 20,3% share. This was on the back of a 13,9% year-over-year growth in a total market that grew 8,9%.
"SAP already enjoys a strong presence in South Africa due to a comparatively large installed based of its ERP solutions, which is where we are picking up a lot of new business from customers adding the EMP functionality,” explains Simon Carpenter, SAP South Africa director of strategic initiatives. “The local economy has also been somewhat sheltered against the fallout from the global economic crisis and although IT budgets have been under less pressure than elsewhere there is still a strong focus on EPM applications because they help to bring greater clarity to a very uncertain world.”
Carpenter says another factor, related to the downturn, is that customers have had to prioritise projects in which they can realise a quicker return on investment and gain immediate business performance benefits.
“Business intelligence solutions provide that as managers are able to improve visibility across the organisation almost immediately, while ERP systems generally take longer to implement.”
SAP's overall growth in this market segment comes on the back of it introducing new services and solutions over the past number of years that position it within the enterprise performance management sector.