Product risks

Close interaction between our sales force, which has in-depth knowledge of customer preferences, and the research and development team supports the launch of market-driven and thus highly marketable products. As is customary in the software industry, one of our greatest challenges is to optimally allocate our R&D resources. Development of the Crossvision business line is particularly susceptible to being impeded by new competitor products. We reduce this risk by implementing our functional triangle (Sales Marketing R&D) and by close contact with customers in all industries and countries.

Performance risks

Price is often a key factor in obtaining orders in the area of Professional Services. A special process approach streamlines our approval processes for Professional Services and places emphasis on adequate profit margins.

Ensuring productive acquisitions

Software AG is expanding its technological product range through selective corporate acquisitions. To ensure successful integration, we have defined processes to be employed in the periods before and after the acquisition.

• Pre-acquisition phase: Prior to a takeover, an intensive review is conducted to ascertain whether the technology of the company in question effectively expands Software AG’s product portfolio. Every acquisition is preceded by a precise analysis of the financial condition of the target company. Moreover, the question of whether its corporate culture is compatible with ours is explored.
• Post-acquisition phase: We identify potential problem areas as quickly as possible using specific control mechanisms. We look at key areas of the acquired company, including finance, legal affairs, research and development, sales, marketing, and internal communication.