annualreport2008Select a Country Site
Image 01 Image 02 Image 03 Image 04 Image 05 Image 06 Image 07 Image 08 Image 09 Image 10

Responsibility opens up potential:
business model and management

Responsible action and business success are directly related to each other

Software AG develops business-critical software solutions for enterprise customers in some 70 countries. Banks, airlines, ministries, TV networks and import/export companies control their processes using our solutions and those of our partners. We have global responsibility for the success of our customers and partners. We can only be successful if our software solutions are reliable, cost-effective and fast. To achieve this, responsible action is a prerequisite at every level within the Company.

Responsible action as an innovation driver

We conduct research and development ourselves. Our customers’ requirements relating to our software solutions and the standard we set for ourselves of being the best in the market drive us to continuously improve our own processes and products. For the best software, we need the best employees: in terms of training and experience, motivation and loyalty, social skills and cultural diversity. We want to offer attractive workplaces where people can be successful and feel comfortable.

Responsible action adds value

Those who act responsibly are better. They make the fewest mistakes. They offer the fastest customer support. They design the most efficient processes with the lowest use of resources. They anticipate risks. Those who act responsibly are appreciated. Garnering appreciation is the best way of achieving customer loyalty, the most convincing way of retaining employees and creates the most credible public image. Responsible action is therefore neither an end in itself, nor the result of an altruistic attitude. Responsible action is a logical consequence of our own desire for success.

Responsible action in society supports sustainable business success

As the fourth largest software company in Europe and one of the 25 largest software companies in the world, we also have a responsibility to society. We are committed to policies that promote education and innovation and that recognize the importance of software as a strategic economic policy. We support universities and schools and build on alliances between companies as well as on regional clusters. An improved range of IT education and training today leads to qualified IT users. These may be our customers, partners or employees of tomorrow.

Responsible action means having a business model based on sustainability

Information technology is a fast-moving industry. Moore’s law states that the power of computer processors doubles every 18 months. This means that the total computing power needed for the first moon landing in 1969 now fits into a cell phone. Fast technology means rapid change. Products and companies come and go, but there are exceptions. Software AG is one of them. We were founded in 1969 and were one of the first international software companies in the world. Our business model is robust and sustainable. We adapt our enterprise software to the requirements of our customers. And we have a major shareholder with long-term perspectives, namely Software AG Foundation.

Global R&D network

We are positive that innovation, long-term customer relationships, efficient processes and cooperative inclusion of all stakeholders are pivotal to a sustainable business. The numbers are testimony.

  • 650 software developers
  • 1,600 employees in software project management and system maintenance
  • More than 40 patent applications filed in 2007- 2008
  • Use and development of more than 100 open standards
  • R&D spending is 14 percent of product revenue (2008)

Diversity

Software AG is international. This is not only illustrated by our presence in 70 countries around the world, but by our staff as well. At corporate headquarters we have employees from 19 different countries working under one roof. IT is a traditionally male-dominated industry. To achieve a more balanced work environment, Software AG strives to attract women from the fields of mathematics, IT, science and technology.

  • nearly 20 percent of IT-related or technical staff at Software AG are female
  • 30 percent of the total workforce in Germany in 2007 and 2008 were female

Responsibility as an employer

Software AG encourages employees to grow with the company through positive self-development. We know that dedicated, motivated employees are decisive to sustainable business success. Performance and success-based salaries, a flexible working model and ongoing personal/professional staff development create a constructive environment in which employees feel happy and which decidedly contributes to their identification with the company.

  • Global standard for staff development
  • Personalized development plans and career paths
  • Various training programs and certification options
  • Work/life balance program

Family-friendly company: Harmonizing work and family

Jobs and families place high demands on employees. We aim to support both in a successful way. In Germany, for instance, we work with an independent consulting and placement agency, which actively assists our staff with its services. Services to our employees include:

  • Child and emergency care
  • Dependent care
  • Advice on various personal situations
  • Coaching and professional consulting

Corporate University

A focus of our long-term, responsible human resources strategy is the continuing education and qualification of our employees. Our Corporate University, started in 2006, conveys the message that lifelong learning and training are of strategic importance to Software AG. The Corporate University’s qualification program is geared toward all employees around the world. We offer training in social skills and special programs for global management development. The fields of technology, sales and marketing also continue to play a crucial role.

  • 2,000 employees took 182 instructor-based courses (2008)
  • 7,000 e-learning courses were taken
  • 355 different e-learning courses were offered in 2008

University Relations program

An important component of our Corporate University is the Software AG University Relations program. One of the goals of this program is to train 3,000 university students in Germany in SOA by the year 2010. Software AG provides its software free of charge as well as staff for organization and projects.

  • Free Software AG product licenses for teaching and research purposes
  • Guest speakers
  • Market-oriented SOA and BPM projects
  • Thesis advising
  • Internship positions
  • 183 academic departments are in contact with Software AG
  • 80 universities and colleges in 13 German states participate in the program
  • So far more than 1,000 students have received supplemental SOA training at a university or college in Germany

Developing and living our corporate culture

As a company, we consider our employees and their decisive role to be our greatest asset in meeting our goals. The way in which our staff members relate to each other and with our customers is characterized by our core values: innovation, trust, responsibility, open communication and a winning spirit.

  • Regular worldwide staff surveys on topics such as corporate culture
  • Employee suggestions as impetus for corporate culture initiatives
  • Worldwide workshops on communication of values and proposals for activities
  • Living trust: payment in the Darmstadt headquarters cafeteria is based on the honor system with no cashiers present

Business and ethics

Responsible action is the foundation of our business. It defines not just our conduct toward those outside the company, but our internal work processes as well. Software AG employs guidelines in all departments which facilitate good and responsible corporate leadership. We have also been complying with the recommendations of the German Corporate Governance Code since 2003. Our internal guidelines for business policies and practices control processes at global and local levels.

Software is a driver of growth and prosperity in society

Software is a key technology of the 21st century. Software is the most critical driver of productivity and process innovation. Both make companies and public institutions successful and thus play a decisive role in the competitiveness of national economies. Competitive economies usually offer their citizens more prosperity. They have resources for education, infrastructures and sustainable business. The prerequisites for the creation and application of software are education, research and development, partnerships and clusters. They are what enable the type of creative innovation that will move digital society – or “Webciety” – forward throughout the world. Because of their economic importance, Europe and the U.S. have a special role.

Software AG Executive Board’s political commitment

  • Membership in the presiding committee of the industry association, BITKOM, to establish optimal standards for the ICT sector
  • Chaired “I&C in small and medium-sized enterprises“ working group at German chancellor’s IT summit
  • Member of CeBIT steering committee to strengthen CeBIT as billboard for the IT industry and world’s largest ICT fair
  • Member of the Federation of German Industries (BDI) Asia committee
  • Member of the joint board of the non-profit initiative D21 e.V.

Good corporate citizenship

Software AG is a responsible member of society and considers this the foundation of our success as a software company. As a good citizen, we are active in the areas of education and innovation as well as in individual projects in and around Darmstadt. We promote select initiatives in our region, in Germany and throughout the world.

  • Local: Main sponsor of SV Darmstadt 98 soccer club and supporter of triathlete Frank Vytrisal, Darmstadt
  • Regional: Cofounder of the Rhein-Main-Neckar cluster
  • Global: “Move your feet“ – Software AG employees have run a total of more than 8,000 kilometers at official races around the world for a good cause. For every kilometer, Software AG and Software AG Foundation donate one euro to socially oriented projects.
  • Brazil: Supporter of the German School of Sao Paolo through the program, “Schools: Partners of the Future”
  • South Africa: Supporter of Habitat for Humanity