SAP`s Innovation Approach: Boost Startups and Intrapreneurship

SAP`s Innovation Approach: Boost Startups and Intrapreneurship
Case Code: HROB248
Case Length: 18 Pages
Period: 2010-2022
Pub Date: 2023
Teaching Note: Available
Price: Rs.400
Organization: SAP SE
Industry: Technology & Communications
Countries: Germany
Themes: Corporate Entrepreneurship, Intrapreneurship, Employee Benefits,Organizational Behaviour
SAP`s Innovation Approach: Boost Startups and Intrapreneurship
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

SAP – Always In Support of Entrepreneurs

Most companies were generally not very receptive to new ideas at the workplace, as these ideas challenged the way things were being done and could be interpreted as being disrespectful to superiors or the product owners. In addition, implementation of new ideas meant an increase in workload, due to the need to bring about changes in existing processes. Furthermore, innovations increased risk as there was no guarantee that they would work or attract customers..

SAP in india: taking a lead in encouraging entrepreneurs

SAP Labs India (SLI) and SAP India Pvt. Ltd. (SIP) were wholly-owned subsidiaries of SAP. While SLI was the India R&D hub, SIP was the field operation managing the sales, marketing, consulting and customer-support function. From the time it was established in 1996, SAP’s India operations were the fastest-growing in the world..

SAP.iO – A New Way to Support Entrepreneurs

In 2017, SAP launched the startup incubator SAP.iO that intended to incubate startups both inside and outside of SAP, in order to grow and diversify the SAP ecosystem. It had an initial investment of US$ 35 million investment. McDermott said, “We’re looping in these early-stage promising startups and giving these entrepreneurs and small businesses a real shot at playing the field in a way they wouldn’t be able to otherwise. We have a message for entrepreneurs: if you have a bold dream to solve one of the world’s most significant challenges, join us and let’s chase your dream together.”..

Fine-Tuning The SAP.iO Initiative

Later, SAP started SAP.iO Foundries, a startup accelerator that sought to bring together experts, customers, and startups to enable mutually beneficial partnerships. SAP provided the tools and guidance to startups including sales and marketing experience, as well as exposure to SAP customers that was needed to launch, integrate, and scale up businesses..

Impact of SAP’S Intrapreneurship Programmes

SAP stated that the reward for intrapreneurs was “more intrinsic than extrinsic”. Earlier, intrapreneurs were given a bonus that was equivalent to their annual salary. Later, SAP began a “founder’s reward” program in which the founders of the idea got a share of the business and could even cash out if the venture proved successful..

The Road Ahead

Over the years, the SAP Social Sabbatical Program became a globally awarded and recognized corporate pro-bono volunteering portfolio. Through the program, between 2012 and 2022, 1,371 SAP employees helped more than 450 non-profits and social enterprises across 52 countries by putting in over 359,000 volunteer hours. The program claimed to have positively impacted more than six million people worldwide, since 2012..

Exhibits

Exhibit I: 10 Biggest Software Companies, 2022 (all figures in US$)
Exhibit II: Financial Performance of SAP (in millions of €)
Exhibit III: Overview of the SAP Social Sabbatical, As of 2020
Exhibit IV: Plans to Support Entrepreneurs of SAP EEI with its Partners
Exhibit V: SAP.iO Partnerships


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