When the coveted Forbes magazine ranks you among the ‘World’s Most Valuable Brands,’ you know you’ve done something worthwhile. Well, the German behemoth, System, Applications, and Products in Data Processing or SAP, made it to the 2020 Forbes list, ranked at number 22!
Was it only because the brand’s net worth is a whopping $28.6 billion? You might think so, but if you take a closer look, you’ll see something really special about the SAP experience. Not only is this juggernaut the undisputed market leader in IT business solutions, but it is also one of the best places to work.
Need proof? The legacy vendor was also awarded a place among Forbes ‘World’s Best Employers 2021.’ So we see a more defined picture forming – performance, customer experience, or employee satisfaction – SAP seems to have it all under its belt!
But wait, there’s more! After all, when most Fortune 500 companies use SAP, you can rest assured that all these titles and accolades are just the tip of the iceberg. This guide will delve deeper into the history and current station of the German-based Goliath to understand why it’s so loved among Fortune 500s.
First Things First: From One Day to Day One
The journey of SAP technology dates way back to 1972 when five former German IBM employees – their names too ineffable to wrap one’s head around – set out with the vision to transform the world of Information Technology (IT).
However, this larger vision was disguised as a modest desire to enable companies to interact with a central database for real-time monitoring of various applications. Then, in 1972, the company released its first financial accounting system – R/1.
From this point onwards, it has been a steady climb. If you were to see the timeline, you’d see a constant string of innovations every year until, in 2000, SAP was declared the world’s top supplier of business software solutions.
Nearly 17 years and several ingenious launches later, the biggest announcement was made – SAP and Google partnered to make the SAP HANA available on Google’s platform. If you’ve wondered, “Does Google use SAP?” well, here’s your answer!
Still, five years later, the SAP revenue growth beats estimates, expected to be around $29.03 billion! The company is currently reported to have a massive client base of nearly 425,000 customers scattered across 180 countries. The enterprise software provider has offices across 78 countries, but the SAP headquarters is in Walldorf, Germany.
Company Name Website Country Employee Size Revenue Apple https://www.apple.com/ United States 154,000 $378 Billion Amazon https://www.amazon.com/ United States 1,608,000 $458 Billion Walmart https://www.walmart.com/ United States 2,300,000 $572 Billion Burger King https://www.bk.com/ United States 34,248 $1 Billion BMW https://www.bmwgroup.com/ Germany 118,909 $124 Billion
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Some Top Companies Using SAP
Can a company or its solution be dearly loved? Well, SAP is your “living” example! We have already talked about Google and its partnership with SAP HANA. Though this tech giant is definitely on top of the list of SAP Fortune 500, let’s see other prominent brand advocates of SAP.
When the #1 ‘World’s Most Valuable Brands’ also partners with SAP, you know it is something huge. As for Apple, it uses SAP mainly to develop native iOS apps. So, SAP’s footprint can be found on Apple’s online store, App Store, and iTunes.
The company also uses SAP for other departments’ efficiency, namely, finance and Human Resources.
This tech giant also uses SAP ERP for its business processes. Amazon even partnered with the SAP SE module so that employees could access millions of products on Amazon Business directly through SAP Ariba. This was done to help them offer assistance with corporate compliance.
Given its popularity and client base, Walmart must process at least half a trillion transactions yearly. The company’s primary focus areas are innovation and speed, which improved after using the SAP HANA business intelligence platform.
4. Audi AG
It is SAP S/4 HANA that fulfills Audi AG’s power system servers’ financial accounting needs. Not only that, but the SAP ERP has helped this automotive giant to take control of other areas such as supply chain, cost control, human resources, and plant maintenance.
5. Burger King
Burger King was the first company that employed two SAP modules simultaneously – SAP Ariba and SAP S/4 HANA. The purpose of using the two solutions was to derive meaningful insights from the massive volumes of data in its supply chain systems.
This helped the company make more intelligent business decisions for scaling growth.
As for Porsche, it has worked with SAP on several projects, including the PIA order management system. This partnership helped Porsche by streamlining service appointments and giving direct access to car details.
SAP has immensely helped BMW, primarily by developing two service prototypes. One prototype was about personalizing promotional offers to customers, while the other involved helping drivers find their way to vacant parking spaces.
8. Boston Consulting Group (BCG)
Even this mega management firm has turned to SAP for cloud transformation. SAP partnered with this firm recently in May 2022 to enable organizations to strategize and execute sustainability practices.
9. Blum Inc.
Blum Inc. has adopted SAP for future-proof next-gen ERP capabilities. The main areas SAP is used for are financial management, risk management, and automation of several repetitive tasks. This has not only helped boost the organization’s efficiency but also helped them make better use of resources and time.
10. ConAgra Foods
This is another brand that has experienced superlative organizational performance through SAP. The company used SAP to innovate its packaged goods menu. This resulted in greater employee efficiency as well as higher customer satisfaction.
Reasons for SAP Fortune 500 Ranking 2022
After walking through the top 10 SAP companies in the world, you’d naturally want to know what the hype surrounding SAP is all about. The company’s portfolio spans several IT solutions – SAP solution manager, SAP NetWeaver, SAP Business Suite, SAP HANA, etc.
No matter the offering, it has a loyal client base of Fortune 500s is enough to spark curiosity into the different areas of customer satisfaction that SAP has taken care of. Let’s go through each of them:
People see this term and find it odd because why would Fortune 500s need cost-effective solutions. This is mainly based on a perceived interchangeability of cost-effectiveness and affordability.
While both sound similar, they’re not because SAP is definitely not a cheap software! However, how it unifies all business operations under a single bracket is undoubtedly cost-effective for its price. Who wouldn’t want a bang for their buck, right?
2. Tolerable Level of Complexity
This is definitely subjective but easily applicable for Fortune 500 companies that use SAP and whose business operations are complex enough. Mid-market businesses find SAP to be complex because it offers a wealth of functions, some of which they might not need.
However, a more nuanced view will reveal that SAP’s complexity is not more than its competitors while it offers a seamlessly integrated solution for all specialist departments. This ensures a steady flow of data. When it comes to Fortune 500s and their enormous volumes of data, this is a win-win.
3. SAP is Always Up-to-Date
So, we see the alikeness between SAP and Google here, notwithstanding their domains. By employing nearly 15,000 developers worldwide, the company ensures not just a steady stream of innovations and upgrades but also repairs.
These innovations and rectifications ensure that SAP users always stay on top of the market trends and quickly grab new opportunities. One of the reasons why a company is a Fortune 500 is because it corners the market through early leverage of opportunities – you get the drift.
4. Promotes an Agile Business Environment
Agility is more than an overused business term. Only rapid and systematic evolutionary growth will help companies maintain a competitive advantage. SAP knows this and supports agility. For instance, data need only be entered once in SAP, which smoothly flows through automated workflows, companies get real-time data updates, and efficient risk management.
This creates an environment conducive to business innovation.
5. Offers a Highly Customized Solution
SAP Fortune 500 ranking 2022 is also based on the distinctiveness of the company. Is it any wonder they need solutions that are as unique as theirs? By SAP’s own definition, the company claims to analyze its client’s ‘As Is’ stage and implement a plan accordingly.
This is done to help the company reach its ‘To Be’ stage. All functions are tailored to suit the company’s unique needs. Bearing the name of a Fortune 500 company can be a pressure in itself, but SAP opens up a world of possibilities to keep the course.
It’s a SAP Wrap!
SAP has rightfully been considered one of the “business criticals.” It undoubtedly is at the heart of future competitiveness when handling transactions across all business operations, from finance to sales and HR.
Fortune 500s will also be the pioneers in the future market, leveraging heavier use of Analytics and more advanced functions of AI and ML. As to what exactly will the picture look like? SAP’s rich archive bears testimony that it’ll be nothing short of galvanic.