attracting and retaining r&d talent - oecd › sti › inno › 1875375.pdf · sap ag 2000...
TRANSCRIPT
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
0
100
200
300
400
500
600
700
800
900
Belmon
tCup
ertin
oFos
ter C
ityM
enlo
Park
Mou
ntain
View
Palo A
lto
Redwoo
d City
San C
arlos
San F
ranc
isco
Santa
Clar
aSun
nyva
le
Cities Around Palo Alto
$ ’0
00
0%
10%
20%
30%
40%
50%
60%
70%
Pe
rce
nta
ge
Ch
an
ge
Apr-99
Apr-00
% Change
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?