Step-By-Step Explanation: To What Extent Are Innovation and Sourcing Strategies Aligned at SAP?

SAP, a global software company, aligns its innovation and sourcing strategies to a great extent.
The
company's innovation strategy is focused on developing cutting-edge software solutions that meet the
needs of its diverse customer base. This is achieved through a worldwide presence, which allows SAP to
understand the unique needs and challenges of different markets.
On the other hand, SAP's sourcing strategy is designed to support this innovation. The company sources
talent globally, ensuring a diverse workforce that can bring a wide range of perspectives and ideas. This
global sourcing strategy also allows SAP to be close to its customers, understanding their needs and
challenges firsthand.
The employees' implication refers to the active involvement and commitment of SAP's employees in
understanding and meeting customer needs. This is a key aspect of both the innovation and sourcing
strategies, as it ensures that the solutions developed are customer-centric.
Therefore, the innovation and sourcing strategies at SAP are closely aligned, with a shared focus on
understanding and meeting customer needs through a global presence and the active involvement of
employees.
match with competition, all 3 are important
2 frameworks: strategic sourcing and resourced based view RBV  co can gain advantage by following
resources (resources can be anything of value i.e. processes, people)
3 main ways o Leveraging capabilities of suppliers by partnering with them o Inhouse R&D o Acquisitions
Step-by-step explanation
*To what extent are innovation and sourcing strategies aligned at SAP?
 The story of SAP demonstrates how a software firm was able to fend off rival actions,
which were destabilizing the current mode of developing software, and led to its adoption
of a new sourcing activity. The case of SAP is interesting because it started out as a
disruptive idea that challenged traditional models of developing individual customized
solutions for businesses. Over time, it was able to adapt to changing technological shifts,
which enabled it to obtain and maintain a market leader position in developing ERP
systems. SAP's entry into the new market in the 1970s was made possible because the
founders of SAP were able to utilize knowledge of the market from their prior positions
in IBM. In 1998, a new interface was launched - EnjoySAP - at SAPPHIRE in Los
Angeles. SAP planned to make its software easier to learn, faster to work with, and
simpler to customize to customer needs. SAP's founders had traditionally worked with an
industry leader, aiding its ability to survive entry into the race through knowledge of the
market. Its ability to develop modules that inscribed "common business functions"
reduced the cost of developing the system. As we have seen in the case study,
competition and technological evolution have made a significant impact on software
development, and technology management, thus organizations change their sourcing
arrangement to respond to these shifts over time. A closer look at SAP's strategy,
however, revealed a closely connected and coordinated network of strategic decisions and
investments for which alignment and finding the right balance were key challenges.
1. SAP, a leading provider of enterprise software, aligns its sourcing and innovation strategies to a great
extent. SAP's sourcing strategy involves partnering with various vendors and suppliers to ensure the best
quality and cost-effective resources. On the other hand, its innovation strategy is focused on developing
cutting-edge solutions that meet the evolving needs of businesses. The two strategies are aligned in the
sense that SAP sources from partners who can contribute to its innovation goals. For example, SAP often
collaborates with tech companies and startups for innovative solutions, thus aligning its sourcing and
innovation strategies.
2. The extent to which SAP's competitors align their sourcing and innovation strategies can vary greatly
depending on the specific competitor. Some may have a more integrated approach, while others may
treat sourcing and innovation as separate entities. However, without specific examples of competitors,
it's difficult to provide a detailed comparison.
3. Yes, there are alternative sourcing and innovation strategies. For sourcing, companies can choose to
source locally or globally, depending on their needs and the nature of their business. They can also
choose to outsource certain functions or keep them in-house. For innovation, companies can choose to
focus on incremental innovation (improving existing products or services) or disruptive innovation
(creating new markets and value networks). The choice of strategy depends on the company's goals,
resources, and market conditions

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SAP, a global software company, aligns its innovation and sourcing strategies to a great extent.

match with competition, all 3 are important

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