SAP Customers Report Significant Return On Investment from mySAP CRM

Business Wire, June 5, 2002

Business Editors/High-Tech Writers

SAPPHIRE '02

ORLANDO, Fla.--(BUSINESS WIRE)--June 5, 2002

Independent Studies Confirm Strong Benefits of "Connected" CRM

for Brother International, Canada Post, and Tyrolit Group

SAP AG (NYSE:SAP) today announced the release of three independent case studies citing significant return on investment (ROI) through "connected" customer relationship management for companies who have implemented mySAP(TM) Customer Relationship Management (mySAP CRM). The reports assess return on investment at 124 percent for Brother International, 26 percent for Canada Post, and 83 percent for the Swarovski affiliate Tyrolit. The studies were authored by the independent ROI Report, which is written for senior managers of global Fortune 1000 organizations and published by Boston-based communications consultancy Hill/Holiday. The announcement was made at SAPPHIRE(R) '02, SAP's international e-business conference being held in Orlando, Fla., June 5-7.

mySAP CRM provides a connected CRM solution that seamlessly aligns people, processes, and knowledge throughout a company's entire value network around its customers to achieve strategic goals. mySAP CRM provides companies with the ability to build customer-centric processes that enable the companies to better serve their customers at lower costs. The open architecture of the CRM solution is specifically designed to enable SAP customers to achieve maximum returns from SAP applications and any other applications that are integrated into the connected CRM process. This eliminates the typical categorization of "front office" and "back office," helping the entire organization to focus on the customers and their requirements.

"The SAP CRM customers in these studies recognize that CRM is a solid financial concept," said Don Peppers, partner with Peppers and Rogers Group, a management consulting firm that focuses on customer-based strategies and that independently reviewed the ROI studies. "As CRM practitioners, they know it is critical to understand their customers' needs and use that data as a powerful and measurable business strategy. The process used in these studies, which is consistent with our own rigorous approach to measuring ROI, succeeds in uncovering the long-term financial benefits for each firm's CRM initiatives."

Brother International

A growing global brand, Brother International Corporation is recognized worldwide for providing high-quality products for the office and home, ranging from fax, multi-function products, computer printers, and electronic stationery to domestic and industrial sewing machines. In implementing CRM in its Business Machine Group, Brother's goals were twofold: to create a "single faced" profile of the customer, regardless of the contact medium, and to enable anyone at Brother who interacted with a customer to obtain complete customer histories at the push of a button.

The report on Brother International cited several benefits from implementing mySAP CRM, including a reduction in product returns valued at more than $1.6 million annually. In addition, the report estimates that Brother reduced service time for end users by 40 percent at a savings of $1.80 per call and reduced service time for dealers by 50 percent, valued at $3.50 per work order and $10 per swap. Additionally, Brother's employees were able to identify customers in need of new products or software upgrades; quickly develop marketing campaigns for targeted customer groups; lower database maintenance costs; and view customer lifetime value rather than transactional value.

"mySAP CRM has provided us with the ability to turn customer data into business strategy and thereby customer relations into equity," said Dean Shulman, senior vice president of marketing, Brother International.

The ROI Report assesses the return on Brother International's investment in mySAP CRM at a minimum of 124 percent, with time to break even estimated at two years. Reductions in product returns account for the largest portion of the CRM benefit.

Canada Post

A recent winner of the prestigious Gartner Customer Relationship Management (CRM) Award of Excellence, Canada Post is one of the world's largest and most technologically advanced postal companies. With $3.84 billion (C$5.9 billion) in annual revenue, Canada Post provides delivery solutions to more than 30 million people and more than 1 million business customers.

Canada Post chose mySAP CRM for its flexible and integrated e-business system based on functional, technical, and commercial criteria. Canada Post implemented mySAP CRM as a cornerstone of its business transformation, particularly with regards to electronic shipping tools for commercial customers; Internet sales and service tools for customer self-service and easier access to services; and contact centers to give customer service agents integrated information for customer transactions.

"We saw mySAP CRM as a powerful solution to leverage knowledge gained from our customer interactions and to link CRM tightly with our core business systems," said Aaron Nichols, general manager of Business Transformation, Canada Post.