CMI How to Win

SAP Business One Competition (Partner Version)

February 2019

CONFIDENTIAL – SAP PARTNER USE ONLY

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© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only 2
Executive Summary

Who Is the Competition? Why Should SAP Care?

▪ The SAP Business One competitor ▪ SME customers require higher business
landscape is a heterogeneous agility and faster delivery of new
environment with a mix of global and functionality
regional/local players
▪ Applications need to be quicker to deploy
▪ The landscape is also split between and easier to configure, accelerating time-
SaaS-only and mixed-mode players; to-value and enabling agility for growth
significant variation exists in cloud companies
deployment models, from SaaS-only
▪ Several SME ERP competitors offer a
to single-tenant managed cloud
native extensibility environment, giving
customers and partners additional flexibility
Key Win Themes to customize applications
▪ Position SAP Business One as a
complete end-to-end business
management solution with full integration
between all parts of the company
▪ Highlight that SAP Business One is the
first SME ERP solution on the market
that uses in-memory technology and
offers “freedom of choice” for
deployment models
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 3
Worldwide SAP Business One Competitor Landscape
Heterogeneous environment with a mix of global and regional/local players

EMEA & MEE Top Competitors

NA Top Competitors
▪ Sage
▪ Microsoft Dynamics 365
▪ Microsoft Dynamics 365
▪ NetSuite
▪ NetSuite
▪ Sage
▪ Exact Software
▪ Intuit
▪ Unit 4
▪ Epicor
▪ Abacus Selectline
▪ Zuchetti
▪ Divalto APJ Top Competitors
▪ Cegid
▪ 1C ▪ Microsoft Dynamics 365
▪ Netsis (RedCode) ▪ Sage
▪ Xero ▪ Yonyou
LAC Top Competitors ▪ Kingdee
▪ Ramco
▪ Microsoft Dynamics 365
▪ Xero
▪ TOTVS
▪ MYOB
▪ Intelisis
▪ Axoft
▪ Senior
▪ Sistemas Bejerman

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 4
Key Global SAP Business One Competitors
All vendors have embraced the cloud as their way forward

Strategic Direction Attack the Competition Watch Out

• Cloud expansion through Azure adoption via • Rather than closing functionality gaps, Microsoft • Positions Dynamics 365 BC as “familiar” and its
Dynamics 365 apps will aim to move existing Dynamics on-premise integrations with Office 365, Power Bi and SQL
Microsoft • Pushes Dynamics 365 Business Central (BC, customers to Office 365 and Azure Server
Dynamics formerly NAV) as Office-native financial • Most legacy partner apps have not moved to • Offers Dynamics 365 BC as a low cost, flexible,
management system including project and Azure and AppSource and fast-to-deploy alternative
365 expense management for the lower midmarket • Solution gaps exist as partners position legacy IP
(<50 users) to fill industry needs

• Builds on market leadership in small business • Has only offered software tools for very small • Extremely competitive price: The average
Intuit and self-employed financial apps companies. Capabilities of QuickBooks Online QuickBooks Online customer typically pays
• With QuickBooks Online Advanced, the focus is Advanced are new and not mature between $20 and $50 a month. QuickBooks
QuickBooks on customers that otherwise outgrow the • Customer complaints about lengthy upgrade of Online Advanced is available in the range of
functionality available through QuickBooks Online QuickBooks Desktop to newer Online versions $2,000 a year
• Broad SaaS ERP and CRM portfolio • Positions “native SaaS,” but portfolio is a growing • Complete SME solution, which includes
• Focuses on delivering the “Intelligent Suite” of mix of own, acquired, and partner products financials, order management, SCM, demand
Oracle- ERP for SMBs including e-commerce, core HR, • Not functionally rich; many dependencies on ISVs planning, procurement, inventory management,
and payroll (U.S. only), bringing customers live in and partners (procure-to-pay, MRP, inventory HCM, CRM, and commerce
NetSuite 100 days or less with industry-specific solutions planning, field service, equipment repair, process • Lowball entry fee, confusing customers with
(SuiteSuccess initiative) manufacturing, and more) complicated pricing
• No “freedom of choice” for deployment models

• Core accounting and ERP; pushes Sage One • Very slow adoption of cloud and mobility; • Acquisitions of Fairsail and Intacct closes Cloud
Sage and Sage Live cloud solutions in the lower conservative messaging on transitioning to the functionality gaps (HCM, FI)
midmarket cloud, or dismissive of the cloud • Clear migration paths and licensing options for
Business • Shift to subscription pricing for recurring revenues • Lack of local partners outside of key countries existing Sage customers
Cloud • Partner base is still struggling to find their value- • Sage One is a good choice for small businesses
add in the cloud that are currently running their business manually

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: SAP Market Model – Feb 2019, CMI Perspective, interviews and research from IDC, Gartner 5
Win Themes: SAP Business One (1/2)
SAP is a trusted partner focused on customer needs

Ask the Customer Highlight SAP Business One Value Differentiate Against Competitors
“Is it important for you that • Complete end-to-end business management • The functional scope of competitor products
the solution supports your solution with full integration between all parts of the could be limited, especially when competing
key business requirements company (subsidiaries and inter-company against point solutions
out-of-the-box?” integration, mobile devices, Ariba Business • Solutions might require partner add-ons to fill
Network) product gaps, resulting in additional cost
• Customers have global visibility into the business
“Is it important for your • Can be extended without touching the source code; • If customers outgrow their solution, they could
business to invest in a can also be extended with industry-specific be required to migrate to a new product
solution that will help you solutions or horizontal extensions developed by • Make prospects aware that they take a close
transform your business in partners look at the financial viability of their software
any direction?” • Customers have the opportunity to move to other vendor
SAP solutions as they outgrow SAP Business One
• SAP is a reliable and competent partner with
guaranteed investment security and future safety
“Is it important for you to • Integration opportunities support networking • Competitors might not offer prospects the
leverage integration capabilities within and among companies to opportunity to leverage integration synergies
opportunities to benefit streamline business efficiency, profitability, and due to product or platform restrictions
from cost-effective processes (subsidiaries and inter-company • Customers might have to run disparate systems
business value?” integration, mobile devices) and miss out business value

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 6
Win Themes: SAP Business One (2/2)
SAP is a trusted partner focused on customer needs

Ask the Customer Highlight SAP Business One Value Differentiate Against Competitors
“How important is it for you • First SME ERP solution on the market that uses • Not all competitors offer in-memory technology
to have real-time insights in-memory technology, either for analytics or or embedded analytics capabilities. Instead they
into your business?” transactional data might rely on third-party technology, which
• Leverages SAP HANA innovations, such as comes at additional costs
high-end predictive analysis and algorithms

“Would you like an • On-premise version allows customers to leverage • Competitors often offer non-transparent pricing
affordable solution with the starter package for up to five users (incl. that might appear cheaper in the beginning, but
transparent pricing and low software and implementation) in reality includes hidden costs (third-party add-
operational costs?” • SAP’s lifecycle management process reduces TCO ons, additional technology, additional
by automating time-consuming maintenance tasks maintenance plan)
• Cloud edition is available for a monthly fee

“Would you prefer a • Can be deployed either on premise or as a • Not all competitors offer customers a choice of
solution with choice of multi-tenant cloud solution with browser access deployment
consumption?” • Can be run and operated by partners. In selected • Some competitors might not have the resources
countries, SAP Business One Cloud is run from to continuously invest in their products or offer
SAP data centers and managed by partners freedom of choice for deployment options

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 7
Objection Handling With SAP Business One

“SAP is too expensive” “SAP is not easy to use “SAP has limitations in
or customize” productivity or collaboration”

SAP Response: SAP Business One is a SAP Response: SAP Business One has a SAP Response: SAP Business One’s
complete business management solution, very comprehensive, clear, and easy user transformation into a business platform has
giving a clear view on TCO and avoiding interface and navigation concept. increased customer productivity and
project overruns caused by hidden costs. • SAP HANA scenarios provide a great self- collaboration.
• With an SAP full user license, customers service user experience • SAP Business One supports several types
have access to all modules available in • Position the personal work center cockpit of integration with one product. Customers
SAP Business One, plus mobile apps for for UI configuration and personalization, and partners can benefit from high-quality
iOS and Android: SAP Business One adoption of predefined work centers, and and low-cost individual integration, which
Sales and SAP Business One Service embedded partner solutions requires a low skill set to develop and
apps deploy
• For extensions, various options and
• SAP Business One also gives customers technologies can be used, such as the
the choice of various user types SAP Business One service layer based on
(professional / full user license + various OData. The service layer’s RESTful API
limited user licenses), providing a level of provides a flexible interface technology for
flexibility to choose licensing based on building extensions with any HTTP-
customer needs capable language or platform

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 8
SAP Business One Summary and Key Facts

Leverage the SAP Business One Outlook 2019 to support customers’ product adoption
planning activities, and help them match short- and long-term goals with technology plans

SAP’s business mgt. solution for SMEs Enables enterprises to operate worldwide
• proven by 61,000+ customers • wide and deep integration capabilities

Global solution with local focus Perfect fit for LE affiliates worldwide
• 44 country localizations and 28 languages • runs 5,600+ subsidiaries of large enterprises

Affordable and flexible deployment Fully future-proof

• available for cloud and on-premise • protects investment of partners and customers

Solid road map

• for adopting new requirements, technologies, industry trends,
see the SAP Business One Road Map

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ Confidential – SAP Partner Use Only Sources: CMI Analysis, SAP Business One Product Management – Feb 2019; SAP Business One Road Map – Feb 2019 9
Thank you.
For More Information –

Additional Documents
▪ CMI on Partner Edge