This Case is about INTERNATIONAL BUSINESS, SUPPLY CHAIN
PUBLICATION DATE: August 05, 2014 PRODUCT #: W14332-HCB-ENG
SAP The Challenge of Aligning Sourcing and Innovation Strategies case solution
In late 2011, the German leader in the enterprise software business, SAP, announced an important investment strategy for growing in China and also got a leading American company in cloud-based human capital management applications. At first, these investments looked quite unconnected.
A closer look at the strategy of SAP, however, disclosed a unified and strongly linked network of investments and tactical decisions for which alignment and locating the correct equilibrium were crucial challenges. Therefore, it was critical to inquire: What were the principal challenges in aligning its invention and sourcing strategies for SAP? Compared to its key competitors – IBM, Microsoft and Oracle – how it aligned its invention strategy using its sourcing strategy?