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WALLDORF SAP SE (NYSE: SAP) today announced that an international study found that access to appropriate budget is key to digital transformation in the midmarket.

The SAP Digital Transformation Executive Study* found that more than a fifth (21 percent) of all small and midsize enterprises (SMEs) surveyed cited lack of budget as the biggest hurdle to becoming a true digital business. This reason was followed closely by lack of time (15 percent) and sophisticated technologies (15 percent).

Lack of employee know-how does not appear to be a reason for the slow pace of digitalization in the midmarket. Just 8 percent of the SMEs found this to be the biggest challenge and only 7 percent see poor planning as a problem for their digital journey. As such, the SME segment differs greatly from large enterprises, who say their biggest challenge is a lack of employee expertise (25 percent).

Additional insights include:

  • Customer experience is the starting point for digital transformation. Almost all (92 percent) of the most successful “digital leaders” – a group the study identified as leaders who are more intelligently, effectively and quickly creating change than their rivals – surveyed have a digital process in place to improve customer experience.
  • The same group of “digital leaders” overwhelmingly (73 percent) said that digital efforts aid in attracting and retaining top talent.
  • More than half (57 percent) of all SMEs surveyed see a shorter time to market as the biggest profit driver for their companies over the next two years. An increase in brand awareness ranked second (39 percent), followed by an increase of employer engagement (38 percent) and the development of new products and services (36 percent).
  • Only 3 percent of SMEs said their digital transformation projects were managed by dedicated teams, compared to 24 percent of large enterprises.
  • No matter the size, the main responsibility for digital transformation in the enterprise lies with the IT department (75 percent), making it critically important to have an active role in corporate planning and setting strategy.

Visit the SAP News Center. Follow SAP on Twitter at @sapnews.

Media Contacts:
Angelika Merz, SAP, +41 (58) 871-7216, angelika.merz@sap.com, CET
Erin Albright, FleishmanHillard, +1 201-572-1802, erin.albright@fleishman.com ET

*Methodology: Oxford Economics was commissioned by the SAP Center for Business Insight program to conduct and analyze a survey of over 3,000 executives in 17 countries about their readiness for digital transformation. The survey included more than 1,300 companies with revenues below US$500 million. Also analyzed were responses from companies with $500 million to $1 billion in revenue to understand better how digital transformation efforts change as companies grow. Fieldwork for the SAP Digital Transformation Executive Study took place from January through May 2017.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. Such statements reflect our current views and assumptions and all forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those statements. The factors that could affect SAP’s future financial results are discussed more fully in our filings with the U.S. Securities and Exchange Commission (SEC), including the most recent Annual Report on Form 20-F filed with the SEC. The future-oriented statements reflect the point of view at the time they were made. Readers are cautioned not to place undue reliance on these forward-looking statements.
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Read more http://news.sap.com/sap-study-budget-is-biggest-roadblock-to-digitalizing-the-midmarket/