SAP also trains sights on smaller customers Bill McDermott, its CEO in Newtown Square, has widened the focus from just large companies. New SAP president widens focus to medium and small firms

May 28, 2004|By Wendy Tanaka INQUIRER STAFF WRITER

When Autumn Bayles first went looking for a software system that could help Tasty Baking Co. keep track of inventory and other functions, European software giant SAP AG wasn't high on her list.

SAP, she assumed, was too big - and too expensive - for such things.

Bayles, the chief information officer at the Philadelphia maker of Tastykake treats, would have been right a year ago. But under Bill McDermott, president and chief executive officer at SAP's North American headquarters in Newtown Square, SAP has been aggressively targeting midsize and small businesses, as revenue growth from the Fortune 500 mega-companies that are its core business - it serves the likes of ExxonMobil Corp., Ford Motor Co. and Procter & Gamble Co. - has slowed.

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And it now counts Tasty Baking as a customer.

Bayles said her company would use SAP's software to track inventory on delivery trucks and to comply with new federal regulations on product recalls, among other things.

"Once a Krimpet rolls off the line, I want to know where it is at any given point in time," Bayles said.

Tasty Baking is one of many small to midsize companies that McDermott has wooed aggressively since he became SAP America Inc.'s fifth CEO in five years in October 2002.

The company would not disclose the number of new customers since McDermott came aboard, but it said its base of midsize customers - companies with about $200 million or less in annual revenue - doubled in the first quarter of 2004 from the same period a year ago.

McDermott, a former sales executive at Xerox Corp. and SAP rival Siebel Systems Inc., has overhauled the Newtown Square management team and refocused on direct sales to customers.

"It is an obsession of mine to connect on an intimate level with the customer," McDermott, 42, said in an interview last week.

To get there, McDermott hired former Oracle Corp. executive John Nugent as SAP America's executive vice president of sales, and Gregory McStavick, formerly of Xerox Corp. and tech consulting firm GartnerG2, to be SAP's senior vice president of field marketing.

The new team reorganized SAP America's national sales staff to focus on customers in their regions. Previously, salespeople were organized by industry expertise, which made it difficult for them to help customers in a timely manner.

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