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SAP's new CEO to defend market lead

More than 500 implementations were undertaken in 2003 and further growth is expected this year. SAP, the global market leader in such software, is entering a period of market growth with a new president.
Grzegorz Rogaliński joined SAP at the beginning of the month from its chief rival, Oracle, which has been steadily expanding its share of the market. His predecessor, Grzegorz Kozłowski, had also been an Oracle executive before taking the top job at SAP. Oracle claims it is catching up fast and last year's estimated growth rate of more than 20 percent, as against a single-digit figure for SAP, seems to substantiate that claim.
But Rogaliński is defiant.

"We have an extremely wide product range and that is what sets us apart from our competitors, such as my previous employer," he said. As examples of the advantage that SAP enjoys, Rogaliński pointed to the supplier relationship management system, recently implemented at the Securities Publishing House (PWPW), and dozens of specialized systems for companies in specific industries.
He was also keen to stress the middleware layer, or SAP NetWeaver, as a piece of software that allows users to integrate applications supplied from different sources, or to add on new features to existing software.
"This allows for the smooth translation of a business decision into the IT sphere," he said. The system appeals mostly to larger companies, but that is not the market segment that is expected to enjoy a lot of growth. A recent report by DiS, an analytical firm, indicates that the market of large companies is close to saturation.

In consequence, SAP last year launched a drive to attract clients in the sector of small and medium enterprises, to which it had previously paid little attention. The firm expects 20 percent growth in its SME business this year, or a little more than the double-digit overall growth target.
SAP also hopes to exploit its position as a company, "with roots in the European Union," as Rogaliński put it, to win contracts in the public sector.
"Accession will inevitably require an improvement in the efficiency of administration," he said, adding that it would make sense to tap into SAP's experience and resources to achieve that end.

"There is no point in reinventing the wheel," he concluded. SAP will cooperate on public administration projects with IBM, following last year's agreement between the two firms. Rogaliński described IBM as "our natural partners".
SAP denies that the change at the top has anything to do with Oracle's claims to be closing fast on the market leader. But, unless the new CEO can reverse the trend, he may well be succeeded by yet another bright young Oracle executive.

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