Name: Creating Value for the High Tech Industry
Uploaded: 2024-12-17
Duration: 276 s
Description: Creating value for the high-tech industry involves managing cash flow effectively as growth leads to increased expenses. SAP S/4HANA Public Cloud can help software providers address these challenges by providing tools to optimize cash flow management.

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Explaining How SAP Creates Value for the High Tech Industry

<div id="content"><p tabindex="0">This video will equip you with the knowledge and tools to transform products, services, and IT operations while staying competitive. We will cover key trends shaping the High Tech industry and SAP's best-of-suite solutions for the High Tech industry value chain.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody">SAP employees and official SAP Partners can download the <a target="_blank" href="https://dam.sap.com/mac/u/a/mq4LjbZ?rc=10&amp;doi=SAP962194">slide deck</a>.</div></div><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_vnqkvbos"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Lesson Summary</h3></div><ul style="list-style-type:disc"><li tabindex="0"><strong>Industry Dynamics</strong>: The software industry is ever-evolving with new business models and regulatory compliance trends. Mid-sized firms are thriving despite the top five companies controlling 34% of the market. Innovative solutions are helping these firms tackle challenges like talent shortages.</li><li tabindex="0"><strong>Success Strategies</strong>: Companies like LeadSquared and Mobvoi have revolutionized operations using SAP S/4HANA Cloud. Their success stories offer insights into leveraging technology for business growth. Exploring these journeys provides valuable strategies for software providers.</li><li tabindex="0"><strong>Growth Hurdles</strong>: Expansion brings challenges in compliance, partnership management, and cash flow. Inefficient systems and manual workarounds hinder growth and competitiveness. Addressing these complexities is crucial for sustaining long-term stability in the market.</li></ul></div></div></div>

SAP Value Creation for the High Tech Industry

Introducing the High Tech Industry

<p>Creating value for the high-tech industry involves managing cash flow effectively as growth leads to increased expenses. SAP S/4HANA Public Cloud can help software providers address these challenges by providing tools to optimize cash flow management.</p>

Creating Value for the High Tech Industry

Hello and welcome to the SAP for Software Providers Training. In this insightful video, you will explore the ever -evolving landscape of the software industry and learn about the challenges and trends shaping the sector, such as new business models, regulatory compliance, and talent shortages. So let's deep dive and see how mid-sized software companies are thriving by innovatively tackling these hurdles and discover strategies that could propel your business forward in this dynamic market. Did you know that based on a Gartner report, the top five software companies combined had a market share of approx, 34% of the overall software market in 2022. But there is a significant market with an estimate of several thousand companies and constantly increasing that are counting to the mid-market segment and operating across various industries. Looking at the software vendor industry. Most companies are facing challenge on multiple fronts. With the shift to subscription and consumption-based business models, they often lack the platform to flexibly set up offerings and new monetization models. With these models, tracking the rights that customers have acquired, also known as entitlements, is key to remaining compliant and avoiding revenue leakage, and companies need to find a way to do this. The increased pressure on profitability in the industry lead that companies are asking how they can get better control of their bottom and top line. While at the same time, they need to have a system in place that supports their growth ambitions in a simple and non-disruptive way. Talent shortages, particularly in STEM, science, technology, engineering, and mathematics are hitting the industry and companies need to come up with a plan on how to attract, develop and retain rare talent. Companies in the industry are asking themselves how they can achieve all this while focusing on the business and not the technology, ensuring they deliver customer value. We have examples on how companies in the software provider industry have achieved this by implementing SAP S4/HANA Cloud Public Edition. If you want to learn more, take a closer look on the customer stories from SUSE, CEYONIQ and mobvai with the provided links. What are the key trends in this segment? Looking at their current business and the investment climate, the rule of 40 get increased attention by investors. where companies are evaluated by the sum of the growth, rate, and profit margin, which should exceed 40%. This puts increased pressure on the margin and cost management. While existing mid-market players are continuously expanding their subscription business, for cloudborne software as a service companies, there is an increased trend to provide offerings as a service with flexible monetization models like consumption-based models, resulting in the need for increased flexibility and automation. And while software as a service is marturing, this comes with increased customers' expectations around the ease of use of the offered software, but also ease of doing business with these companions, resulting in the need to provide a seamless customer experience. And, at the same time, the mid-market software companies have growth ambitions. They are expanding into new regions as well as expanding what they offer, but also the how they monetize it, with the move into models with higher market. like as a service models. And often, they are not doing this on their own but collaborate with partners in regions or for adding capabilities jointly with other vendors to scale and stay competitive. Looking at their growth ambitions, their existing systems often do not provide support to comply to legal and financial requirements that the companies are faced with if they step into new territories. And as well as the companies are missing capabilities to manage the processes that are coming with partnership business. To be able to run new business models, companies built workarounds, but while they scale, this leads to significant manual efforts to handle the operations. And finally, with growth comes growing expenses, and with this the challenges to successfully manage the cash flow of the company. Now let's look on how SAP S4/HANA Public Cloud can help the software providers addressing these challenges. This concludes part one. In the next session, let's look on how SAP S4/HANA Public Cloud can help the software providers addressing these challenges. Thank you for watching.