Last month when Oracle outbid German rival SAP in an attempt to acquire Retek, it handed over a $25 million break up fee that SAP will invest to carry forward its retail strategy. While that's asmart movesays AMR Reseach's Scott Langdoc, the company needs to do more anddo itfast. In a report published today he said, "SAP must use all of its industry efforts to build (or buy) improved capabilities important to its existing and future customers." He lists store-oriented technology, demand intelligence, merchant-centric usability, and core retail execution as the most important areas that retailers care about.
"SAP has a very limited window to play offense, not defense, in its Retail industry strategy, and having shown a willingness to spend $600M to stay aggressive, now is not the time to change that thinking. Retailers want nothing less," according to Langdoc.
With no push coming from new technology (that's pretty much left upto start-ups nowadays) ERP vendors are looking elsewhere for growth, whether be it via consolidation or expanding intoindustries ripe for technology upgrades, such as retail, or better yet, both as in the case of Oracle's Retek play. So I'd expect SAP to follow suit with vendors like JSA Software or Retalix as possibleacqusition targets.