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Software AG GB 2012, englisch

STRATEGIC CHALLENGES REALIGNMENT OF BUSINESS MODELS AND ORGANIZATIONAL STRUCTURES Time and time again organizations are confronted with having to rethink their business models and processes in order to align them with key market and technology trends. Software AG does not make any exceptions here. 2012 was a year of transformation for us. We positioned our products, services and organization in a way that better prepares us for the future. We consoli- dated traditional areas of business and reinforced new areas of growth with targeted investments. In sync with the times with new products We have mastered the technologies that will revolutionize the business world. But innovation cycles in the IT sector are short. So we are constantly working to stay abreast of current trends and set new standards. For this reason we again invested extensively in research and develop- ment in the past fiscal year. As a result we were able to unveil the new version 9.0 of the ARIS and webMethods software products in mid-October. They will be available to the general public in 2013. They represent two important product innovations that address the technological mega- trends, mobile, big data, social collaboration and cloud. Our ProcessWorld customer event provided confirmation that we are right on track. More than 700 IT professionals from 30 countries attended. Sales and marketing initiative in high-growth U.S. market We began stepping up our marketing and sales activities with a regional focus on North America in the past fiscal year. We put a new person in charge of this IT market, the biggest in the world, and appointed him as a member to the Group Executive Board in 2012. This body consists of the members of the Management Board as well as divisional executive directors representing the operational areas of the Company. We expanded our sales network in North America primarily in order to boost our process and integration software business there. One measure we took was the creation of the Federal Unit—a team dedicated to business with the public sector. As a non-American company, this increases our chances when bidding on public contracts from the U.S. government and signing large deals with new customers in the public sector. Our expanded presence in the region is also an important factor. We not only moved our Chief Marketing Officer to Silicon Valley but also part of our Mergers and Acquisitions team. The region south of San Francisco, where the headquarters of our subsidiary, Terracotta, are located, is widely known as the leading hub of innovation for the entire IT sector. This allows us to identify and exploit marketing opportunities early, connect with young startups and initiate possible acquisitions. 32 SOFTWARE AG | ANNUAL REPORT 2012

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