attracting and retaining r&d talent

SAP AG 2000 Corporate Profile August 2000 /1

Attracting And RetainingR&D Talent

SAP AG 2000 Corporate Profile August 2000 /2

SAP Today

� SAP AG in 1999 revenues: Euro 5.11 billion� 3rd largest independent software vendor in the world

� Market leader in inter-enterprise software solutions

� 13,000+ customers in 120+ countries� 30,000+ installations� 10+ million users

� Focused on users in all enterprises regardless of size� Increased customer satisfaction and stronger customer loyalty

� Heavy investment into SAP’s worldwide business community

� 22,900+ SAP employees (as per June 2000)

SAP AG 2000 Corporate Profile August 2000 /3

Human Capital – One Perspective

Market Cap (Billions)

Employees

Market Cap / Employee (millions)

Microsoft 270 40000 6.7

SAP 66 23000 2.9

General Motors 30 388000 0.08

Siebel (1993) 44 5000 8.8

Ariba (1996) 32 1800 17.5

SAP AG 2000 Corporate Profile August 2000 /4

SAP HeadquartersSAP AG

sales, consulting, research,development & support

SAP Labsresearch, development

& support

SAP Field organizationsales, consulting

& support

SAP group organization

SAP AG 2000 Corporate Profile August 2000 /5

SAP Research and Development Organization

Sophia Antipolis

Walldorf

Palo Alto

Bangalore

Tokyo

� Global ResearchNetwork

� 5 SAP Labscenters

� 5000+ developers

SAP AG 2000 Corporate Profile August 2000 /6

Why Multiple Labs?

� Better awareness of competitors and market dynamics

� Proximity to customers

� Product requirements

� Credibility in the market

� Support

� Assimilation of new technical and business concepts

� Many technical revolutions start in Silicon Valley

� Many early adopters

� Proximity to partners

SAP AG 2000 Corporate Profile August 2000 /7

Let’s have a lookinside...

SAP Labs India operates from International TechnologyPark Limited (ITPL) at Bangalore, that provides worldclass infrastructure for development of cutting-edgesoftware solutions.

The Office

SAP AG 2000 Corporate Profile August 2000 /8 Cafeteria

Conference room incl.video conference facilityExcellent work places

The guesthouse

The Office - Inside View...

High tech equipment

SAP AG 2000 Corporate Profile August 2000 /9

� Integration into the full project life cycle

� Training is a continuous and integral part of the job

� Customized career progression

� Industry best benefits program

� Top of the line compensation

� Very Aggressive bonus plans

� Global Career Strategy

Human Resources Strategy - Bangalore

SAP AG 2000 Corporate Profile August 2000 /10

SAP Labs, Palo Alto

SAP Labs, Inc. develops cutting-edge software and add-ons for theSAP R/3 System as part of SAP’s global development group.

The SAP Labs campus in theStanford Research Park,Palo Alto, California -- in theheart of Silicon Valley

SAP AG 2000 Corporate Profile August 2000 /11

� Hot work content

� Continuous learning

� Technical and non-technical (e.g. management, businessdevelopment skills)

� Attention to the individual

� Customized career maps

� Excellent benefits

� Attractive total compensation

� Reasonable upside potential

Human Resources Strategy - Palo Alto

SAP AG 2000 Corporate Profile August 2000 /12

Work Content

� Utilizing new technologies

� Java, XML, XSL, WebDAV

� New business processes

� RosettaNet

� New ways to interact with users

� Enterprise protal, mobile technlology, voice, GIS

� Envolvement in projects with the best customers

SAP AG 2000 Corporate Profile August 2000 /13

Fostering Innovation

� High (even unreasonable) expectations

� Recognize the desire to make a genuine difference

� Open market for new ideas

� Lower the risk of experimentation

SAP AG 2000 Corporate Profile August 2000 /14

Silicon Valley – Housing Costs

• Average 2BR 1BA Apartment July 2000:

• SF Bay Area $1800

(30 mile radius of Palo Alto)

• Palo Alto, Ca $2900

• Cupertino, Ca $1600

• Redwood City, CA $2100

• Foster City, CA No Vacancies

• San Jose, Ca $1500

(Includes undesirable areas)

SAP AG 2000 Corporate Profile August 2000 /15

Median House Prices

Median House Prices April ’99 - > April ’00

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Cities Around Palo Alto

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20%

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50%

60%

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SAP AG 2000 Corporate Profile August 2000 /16

Housing Costs

� Nearly 70% of households pay more than 30% of their income for housing.

� Since 1990, rents have increased at a rate more than double that of medianhousehold incomes.

� An employee earning $100,000 a year spends 40% of their income inhousing for Silicon Valley, while the same house at the same distanceelsewhere would only require 15-25% of the same salary.

� The same salaried employee renting a home in Silicon Valley would spend30% of their income on a rental unit while the same unit in Austin wouldrequire only 15% of the salary.

Silicon Valley Housing Trust Fund

http://www.housingtrustfund.org/overview.html

SAP AG 2000 Corporate Profile August 2000 /17

� Establishment of SAP Ventures

� Very successful in investing in numerous start-up companies(e.g. Commerce One, Red Hat, WebEx, Streamline)

� Participation of people in due diligence

� Spin-out of TeaLeaf (www.tealeaf.com) after determining thatthe technology has a better chance to flourish outside ofSAP

� Spin-out of SAPMarkets and joint engineering effort withCommerce One

� Building corporate research function

What Else?