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SME deal a move in the right direction for SAP

Small toy business Jellycat has implemented an SAP application to integrate its business functions.

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Small toy business Jellycat has implemented an SAP application to integrate its business functions.

SAP's SME-specific Business One package will automate the company's processes and provide financial reporting.

Danny Olive, finance director at Jellycat, said, "We needed a comprehensive, integrated and scalable solution to help us continue our business success."

This follows a push by SAP to expand its offering into the SME market. Jim Hageman Snabe, co-chief executive officer of the firm, said the company had made recent inroads into the sector.

Clive Longbottom, analyst at Quocirca, said SAP is attempting to attract mid market companies, having reached full penetration of larger organisations. "To get more licence revenue it is beginning to look elsewhere," he added.

But Longbottom is doubtful that SAP will make headway in the sector. "The perception outside Germany is that [SAP platforms] are expensive, complex and constraining. And there are already a lot of IT suppliers operating in this market."

"Their penetration for larger organisations is about 56%, but for the mid-sized part of the market it's in single figures - and it's unlikely to move beyond that as there are other options that make more commercial sense to smaller businesses in terms of price and ease of implementation," he said.

In a recent survey nearly three-quarters of SAP users expressed frustration at how long it took SAP to bring its SaaS suite to market.

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