attracting and retaining r&d talent

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SAP AG 2000 Corporate Profile August 2000 /1 Attracting And Retaining R&D Talent

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Page 1: Attracting And Retaining R&D Talent

SAP AG 2000 Corporate Profile August 2000 /1

Attracting And RetainingR&D Talent

Page 2: Attracting And Retaining R&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)

Page 3: Attracting And Retaining R&D Talent

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

Page 4: Attracting And Retaining R&D Talent

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

Page 5: Attracting And Retaining R&D Talent

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

Page 6: Attracting And Retaining R&D Talent

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

Page 7: Attracting And Retaining R&D Talent

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

Page 8: Attracting And Retaining R&D Talent

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

Page 9: Attracting And Retaining R&D Talent

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

Page 10: Attracting And Retaining R&D Talent

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

Page 11: Attracting And Retaining R&D Talent

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

Page 12: Attracting And Retaining R&D Talent

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

Page 13: Attracting And Retaining R&D Talent

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

Page 14: Attracting And Retaining R&D Talent

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)

Page 15: Attracting And Retaining R&D Talent

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

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San F

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Santa

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Cities Around Palo Alto

$ ’0

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10%

20%

30%

40%

50%

60%

70%

Pe

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Apr-99

Apr-00

% Change

Page 16: Attracting And Retaining R&D Talent

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

Page 17: Attracting And Retaining R&D Talent

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?