introduction to sage. 1 what sage does sage is a leading supplier of business management software...
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What Sage does
Sage is a leading supplier of business management software and services to 5.8 million customers worldwide. From small start-ups to larger organizations, we make it easier for companies to manage their business processes
Our vision is to be the most admired and respected business software and services provider in the world
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Key facts about our organization
Market Finances Customers
Global company with over 14,500 employees
Revenue of $2.55B
for FY2008
Provide advice to customers through 1.7 million support
contracts
5.8 million customers worldwide
Market capitalization of approximately $4.3 billion
Manage around 40,000 customer calls each day
One of the market leaders in the UK, North America,
Europe, South Africa and Asia
Made over 40 acquisitions since 1991
Work with over 27,000 reseller partners and over
40,000 accountantsworldwide
All revenues retranslated based on average exchange rates for the year ending September 30, 2008 at 1.97 U.S dollars per GBP.
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Our strategy
Long term goals Strategy
Be a key leader in all markets of the world
Supply business management software and
services that help our customers run their
businesses more efficiently
Develop products and services which are the
most compelling fit with a customer’s country
and industry
Maintain high levels of quality service support
that feed back into the product and services
development cycle
Have the most trusted brandsPosition our brands to meet our customers’
requirements
Have the most satisfied and active customers
in our industry
Focus on product innovation and
value-added services to meet the changing
needs of our customers
Experience superior organic revenue growth
versus our peer group
Develop the products and services that meet
the changing needs of our customers
Be recognized as one of the most admired
employers
Build organizational capability to drive
business performance
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How we work
Our business is guided by our five principles
which shape everything we do and how we do it
Simplicity Agility Innovation Trust Integrity
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History of Sage
1981
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1981Sage founded in Newcastle-upon-Tyne
1984Paul Walker, current CEO, joins Sage as 7th employee
1989Listed on the London Stock Exchange
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History of Sage
1981
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1991Entered the US market
1992Entered the French market
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History of Sage
1981
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2000 Reached 2 million customers worldwide
1999Entered the Portuguese and Swiss markets
1997Entered the German market
1999Became part of FTSE 100
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History of Sage
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
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2004Entered the Indian market
2003Entered 7 new markets
2005Entered the Polish market
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History of Sage
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2007Surpassed 5 million
customers worldwide
2006Entered the
Chinese market
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We group ourselves into four businesses
UK and Ireland Mainland Europe North America Rest of World
One of the market leaders in UK and Ireland
One of the market leaders in France, Spain, Switzerland and Poland,
Strong presence in small business and one of the leaders in key verticals
One of the market leaders in South Africa, Australia and Malaysia
Over 2,500 employees Over 5,600 employees Over 4,700 employees Over 1,700 employees
Over 750,000 customers Over 1.6M customers Over 2.9M customers Over 500,000 customers
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Which all operate under the guidance of our executive team
Paul Walker Paul Harrison David Clayton Michael Robinson Karen Geary
Group Chief
Executive
Group Finance
Director
Strategy, M&A Director Legal Director,
Company secretary
HR &
Communications
Director
Klaus-Michael Vogelberg Sue Swenson Guy Berruyer Paul Stobart Ivan Epstein
Group CTO CEO, North
America
CEO, Mainland Europe
& Asia
CEO, UK &
Ireland
CEO, South Africa
& Australia
What we supply in North America:Business management solutions
Accounting & Financial ManagementPeachtree by SageSage AccpacSage BusinessVisionSage BusinessWorksSage ERP X3Sage FAS Fixed AssetsSage MAS 90 and 200Sage MAS 500Sage PFWSage ProSimply Accounting by Sage
Human Resource Management & PayrollSage Abra HRMSSage Carpe DiemSage TimeSheetTimeslips by Sage
Vertical Solutions –HealthcareSage HealthPro XLSage IntergySage Medical ManagerSage MedWare
Payment SolutionsSage Card ProcessingSage Electronic Check ProcessingSage Gift Card
Vertical Solutions –NonprofitSage FundraisingSage MIP Fund AccountingMillennium
Customer ManagementACT! by SageSageCRMSageCRM.comSage SalesLogix
Vertical Solutions – Construction & Real EstateSage MasterBuilderSage Timberline Office
Integrated SMB Market Offerings
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What are business management solutions?
CustomersImprove serviceMeet their needsBuild loyaltyMultiple payment optionsMultiple channels
OperationsManufacturingDistributionServicing
PeoplePay correctly & on timeRecord sickness & absenceFile legal documentsManage performanceDevelop potential
SuppliersGet what you need on timeManage costs
FinancesManage debtors & creditorsManage cash flowImprove revenue and profitForecasting & planningElectronic payment processing
AdvisorsFile accounts Statutory reportingForecasting & business planningAdvice & help from Sage
Software and services that help SMBs manage their business processes and relationships.
Yourbusiness
Customers
People
Fina
nces
Operations
Suppliers
Advi
sors
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How does our business split across these areas?
Although our business began as a provider of accounting software only, we have expanded our offerings and accounting solutions now represent 55% of our total turnover.
Accounting$1,405M*
Payment Processing$104M*
HR &Payroll$286M*
CRM$136M*
Industry-specific$621M*
* All revenues retranslated based on average exchange rates for the year ending September 30, 2008 at 1.97 U.S dollars per GBP.
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We offer a range of local industry specific and specialized solutions
UK & IrelandMainland Europe
North America Rest of World
Healthcare
HR & Payroll
Construction/ Real Estate
Transport/ Distribution
Payment Processing
Accountancy
Not-for-profit
Manufacturing
Retail
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To what kind of businesses?
Upper mid-market8.6% growth
6% of Sage’s customer base
Lower mid-market7.7% growth
10% of Sage’s customer base
Entry-Level6.4% growth
0 E
MP
LOY
EE
S
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5
00
5,0
00
Enterprise(2.3)% growth
84% of Sage’s customer base
CAGR 2007-2012*
Source: *Gartner, SMB ERP software Europe and North America, 2008 Gartner ERP software worldwide
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How do we measure up to our competitors?
Business management solutions providers
In the small business market* Sage is regarded as a clear market leader
Oracle17%
SAP32%
Sage5%
Others39%
Microsoft3%
Infor4%
Microsoft12%
Sage21%
Oracle9%
Others49%
SAP3%
Intuit6%
Source: AMR, Global Enterprise Application Market Sizing Report, July 2009
Source: *IDC, October 2006, Worldwide ERP applications 2005 vendor shares, based on ERP revenue small business; <500 employees
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Sage’s decentralized model provides local focus, with the support of global scale
Local focus
Empowered local management teams can respond quickly to local competitive and market changes
Products and services are developed locally to meet unique fiscal, legal and regulatory environments (not “globalized”)
Time to market for innovation in products, services and the business model is substantially reduced
Global scale
Successful innovations are shared quickly between Sage businesses
Global technologies can be shared between local markets
Sage can easily take advantage of lowest cost producer markets
Sage’s global brand and presence makes it a key business partner
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Our global reachCombined with our developers and business partners Sage has strong global presence
Direct presence Distribution
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How do we reach our customers?
Reflect our understanding of the SME market place
Ensure we are accessible and easy to do business with
Complexity of solution dictates which channel is most relevant
Global network of 27,000 business partners extend the Sage ecosystem and provide additional:
– Implementation and customisation– Training and support– Specialist sector knowledge
Sage’s network of 40,000 accountants and small business advisors play an important role as recommenders and resellers of Sage products
Routes to market
Retail Stores •Business
•Partners
Partn
ersh
ips
Eg: B
anki
ng
Accountants
internet
Dire
ct
Strong and diverse routes to market tailored to match customer needs:
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The customer experience
We stand apart through:
The breadth and depth of our offering
The flexibility of our solutions
Superior support delivered locally by experts who advise customers on technical matters and critical business issues relevant to their market
Providing services of the highest standard from the best people
We aim to:
Exceed expectations
Deliver extraordinary customer experiences
Enable our customers to be truly successful
By being local, by building long-term powerful relationships with customers we can deliver outstanding service which we believe is unmatched in our industry
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Bringing the customer experience to lifeWe listen to and involve our customers
Developing products that are easy to use
Customer surveys are built into products
Local support in every country offers technical product advice and guidance on business critical topics
User centered design labs, online customer communities, events, focus groups and more to seek feedback and customer insight
1.7 million support contracts, 81% renewal rate, 40,000 calls a day
We are recognised for our products & services
Winner in Best contact centre at World Contact Centre Awards in North America
Winner of the Golden Customer Relation Centre award in Spain
Business Software Supplier of the Year, UK
Our emphasis on support is reinforced by the resources we put behind it. Across the Sage business more than 40% of our people work in technical support, customer service or customer training roles