Does the SAP rule prove that Europe cannot scale technology companies?

As investors in America (and also more and more China) have many large and fast -growing technology companies to choose from, there is really only one company in Europe that can be a comparison as a comparison Alphabet– Amazon– Apple– Metal– Microsoft– Nvidia and Tesla. It’s German SAPOr, as is sometimes known, der eine (one).

Expert Software for Company ERP (ERP) software (ERP) software in Europe (ERP) software is also the most valuable company in the main company, with market value approaching EUR 300 billion. Novo NordiskMarch this year.

It’s 450^th Location on the Fortune Global 500 list, employs 109,000 people in over 130 countries and offers a stellar customer list of 98 of the world’s 100 largest companies.

One of the secrets of SAP’s success is to understand that technology is never a good time to rest on your bearings, says Sebastian Steinhauser. « We remind ourselves every day that technology is the most competitive industry on earth. Every new wave of innovation, the technical space is redefined, new companies will appear and you have to prove yourself again. I am very pleased with it. »

113 SAP’s investment Fortune 500 Europe

SAP’s latest wave of change moves both its own processes and its customers’ processes out of traditional (and expensive), customized databases and clouds. Pivot began in 2020, and – regardless of the fact that the stock price was late for a party that was originally down by 30% – it has proven to be a rather intelligent transfer. The move of the cloud is a proverbial victory that breaks in advance and speeds up the implementation of users, while also producing stable and predictable new income for SAP itself.

It is also proof that despite getting wisdom, you do not always have to be an early adopter to win in technology.

« You have to remember that the ERP system is the most critical software asset for all customer. « If CRM (customer relationship management software) does not work for about an hour, it is difficult. But if ERP stops working, your entire business is in place. »

Strategy for AI

As a result, SAP customers prefer a proven solution that is a follower who is top-notch but unprecedented.

SAP estimates that performing a cloud change will convince continuous revenue growth until 2030, which will provide a welcome runway to prepare for the next wave of change – AI. « Our flagship offer is called by Rise with SAP. It is truly a change that begins with the transfer of ERP to the cloud. The next trip also means simplifying business processes, building and expanding the entire cost and business capacity of an integrated suite, » Steinhause says.

« We remind ourselves every day that technology is the most competitive industry in the country … »Sebastian Steinhauser, SAP’s Operations Director

As far as AI), he sees the greatest opportunities for both SAP and Europe as a whole in the application as well as development. « The wave of ai experiment has been, but now the real challenge is AI’s adoption and value, » he says. So as the AI ​​technology matures, the competitive advantage is less about who has the best technology and more about who gets their best information. « The actual separation takes place in a context where you can enter. »

SAP already has a lot of great information-integrating a lot of information so that AI agents can work to eliminate value to its clients, what is the much binding commitment to the IT database database. « It’s a perfect example of our strategy. We work with the best technology and then apply it to solve the most urgent business problems, » Steinhauser says.

SAP story may be missing in the inventions of Silicon Glitz Go-to business technology, such as Apple and Microsoft, but it is not as radical, says Gary Dushnisky, a professor of London Business School’s strategy and entrepreneurship. « SAP has used amazing anticipation for some of the strategies they developed, and they have also managed to come up with two or three times. It is something that many other companies have not done. »

In addition, SAP’s true commercial competitors are not so great for seven megacorps (many of whom are SAP users), but rather business service platform providers, such as Oracle– Serviceenow and Monday.com for background agency and workflow automation and also Saleswhich specializes in CRM but meets more and more SAP in battle to own a complete ‘customer experience’.

Stomizing them requires a certain amount of intuitive interest, Steinhauser says. « Ultimately, I’m not so interested in what this competitor or that competitor does because it does not make SAP unique. I am a lot of interest in how customer expectations develop with technology. »

The missing technical giants of Europe

Why more SAP competing companies in Europe? The stock answer is that European companies are simply not as ambitious, but it is too simple for Dushnitsky. He emphasizes structural differences, such as the huge differences in economic firepower available in the United States and Asia compared to Europe.

« The wave of ai experiment has been, but now the real challenge is to set up AI and create value. »Sebastian Steinhauser

This makes it much more likely that we get promising European companies before they can go global than the other way around. Another difference is the tendency of American founders to oppose potential purchasers instead of giving them: nerve say « no » when an attractive offer is on the table.

« Mark Zuckerberg said no, Sergey Brin said no. All around the world people who are able to build these big organizations are people who want to build instead of wanting to sell, » Dushnitsky points out.

Instead of blaming businesses, Steinhauser says that it is their environment that is environment. « I’m a passionate European, and there are all the ingredients in Europe. Some of the best abilities, the best universities and the best studies in the world are in Europe. »

But the continent disappears in other ways. For example,, such as Dragh’s report on European competitiveness in detail, technology companies that want to expand across Europe must negotiate at least 100 software regulations and 270 regulatory bodies. « We would like to see five more SAPs, but unfortunately I think (in Europe) we are still focusing on creating obstacles to innovation, » Steinhauser says.

Ultimately, focusing too much on origin and location issues can prevent you instead facilitates growth targets, ”says Steinhauser. « I believe that part of the SAP has a scale that we will never define ourselves in German or European, but as a global technology company, we need to compete with other global technology companies, 99% of which sits in the United States ».

Europe is delayed by the most important growth industry in the United States and China due to expensive energy and stagnant market reforms. This series of articles Examine how technology, regulation and innovation can revive their competitiveness.