Software AG - The XML Company
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  Progress on the strategic front  

On track to becoming a global networked company
Software AG is a global player, with a presence in 59 countries. Global reach offers enormous opportunities, which we intend to leverage by becoming a global networked company. This entails closer cooperation and greater knowledge transfer between all units and functions, with the goal of establishing a learning organization driven by the needs of our customers.

Global Networked Company

Synergy through a worldwide R&D organization
The implementation of an international research and development network is in progress. R&D centers in the US, the UK, Germany, and Spain are engaged in the optimization of the core products of both business lines, ETS and XMLi. Software AG India is responsible for some XML Business Line development. This new arrangement results in lower costs; a greater synergy and a greater focus on market requirements.

R&D activities were reorganized in order to concentrate more fully on the Company’s core competencies. Software AG now channels its R&D effort more directly into products and solutions with market potential. Technology architects act as interfaces between market requirements and Software AG’s R&D units. These architects understand customer requirements, product features and various best-practice projects. They help us to integrate and combine skills and resources throughout the enterprise in order to better meet customer requirements.

R&D employees by location

Customer-driven sales activities
In line with our new strategic focus, we strengthened marketing and sales efforts in the first quarter. The Customer First Program, originally developed in the US, will be implemented throughout the Group. The aim is to create a “customer-first” culture in all areas of Software AG. In other words, we wish to ensure that the Company is focused on the customer and customers’ requirements and not just on the sales front but in all aspects and activities of Software AG.

Quality of customer relationships improves
The Company also succeeded in broadening and deepening relations with key decision makers at customer organizations. According to market analysts, top managers are responsible for the allocation of more than 90 percent of IT budgets. As a result, maintaining good relations with key executives is vital to the generation of new business. We have intensified efforts to involve Software AG in the earliest possible phase of the sales cycle, helping us to gain access to high-value contracts.

Against the background of our renewed focus on market requirements, we have established a customer knowledge-management system. Designed to capture and collect knowledge relating to the market, customers and solutions, it aggregates information throughout the enterprise, and makes it available worldwide, and in real time. We are confident that this will provide further impetus for the Company.

  Interim Report Q1/04 (PDF)
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