SAS: LEADERSHIP IN BUSINESS INTELLIGENCE

Group 7

Ankit Agarwal (BM19010)

Devesh Singh Tomar (BM19020)

Kamakshi Barman (BM19024)

Naina Singh (BM19028)

Rajeev Ranjan (BM19035)

1. Based on the evolution of the industry described in the case and your own research, what are
the key trends in the business intelligence, analytics and data integration industry? How is the
industry likely to evolve in the short and long term?

Ans: Change in approach:

 ‘Tool box’ approach.

Modern business intelligence and cloud analytics tools have broken the traditional data
warehousing paradigms by abstracting the end-to-end process, not requiring semantic models or
even a data warehouse. More businesses are investing in cloud-capable, robust BI platforms that
can handle multiple data management capabilities such as integration, storage, visualization,
statistical and quantitative analysis, instead of multiple specialty tool.

Artificial intelligence: AI analyzes deeper data and increases incredible accuracy.

Intelligence across internet of things: Increasing competitive advantage of IOT results in early
adopters. It helps in real-time analytics.

Cloud Analytics: Cloud helps to access data from anywhere at anytime. Thus cloud analytics will tend
to grow in future.

2. How do you think SAS will be affected by the evolution of the industry and the trends you
identify in (a) above? Are they well positioned for the evolution?

Ans. From tool to toolbox approach

● Eventually horizontal and finally vertical solutions

● Maintaining relationship with clients

● Forecasting and predictive analysis solution to companies

● Finally a tightly coupled package as a whole.

No. They are not well positioned due to the following reasons:

● Facing financial challenges and funding issues

● Delivering ability was not optimal

● Lacking “brand equity”

3. What should be the strategy of SAS to maintain and enhance its leadership position in the
industry? What products and services, geographies and market segments should it focus on ?

Ans: Strategy of SAS to maintain its leadership position :-

1. Keep investing in R&D: From the establishment of the company we saw that SAS has a practice of
reinvestment a big part of his profit to his R&D. as SAS is a software analysis company it is very
important for SAS to keep maintaining their upgradation process and make their software batter,
easy and more user friendly which in turn create greater customer loyalty.
2. Virtuals business cycle: Virtuals cycle means that business growth and people growth is not a
different things they are complementary to each other to create value. From the very first user
meeting showed how clearly the founders understood the importance of talking with their
customers and developing their software in respect of their customers review and demand.
3. Keeping good relationship with their employees: As SAS is a software development company they
realize that employees or engineers are the most valuable assets for them. So they always wanted
to maintained a good relationship with their employees and create a good work environment by
providing flat organisation structure. Provide lot of benefits to their employees like free on-site
health care center, fitness center,an additional paid week off between Christmas and New Year’s
Day etc.

Strategy of SAS to enhance its leadership position:-

1. Stock option plan: It’s give a specific power to the company employees to buy a specific
numbers of shares at a predetermined price for a specific time of period it can help to make
capital for the company. But it helps the company only if SAS become a public company.
2. Long term acquisitions benefit: Acquisitions can helps the company in the long term because the
firm would acquire knowledge and capability to solve specific business problems for the
customer and allow integrating this capability into existing technology.

SAS segmented his product & services accordingly requirement of the product. Base on his analysis they
define two solution :-
 1. Horizontal Solutions:- This solution were designed to solve function problems which is common
to many industry. This solution help the industry to monitored their business, manage cost etc.
Exp: IT service, risk intelligence, supply chain intelligence etc.
2. Vertical Solutions:- This solution were designed to solve several industry function problem (Gov,
Bank, Health care and retail).
Exp: AML (Banking sector solution), SAS Retail, CA etc.

4. Evaluate SAS’s acquisition strategy. Should they rely more on acquisitions for growth and product
line expansions? If so, what type of acquisitions should they focus on?

Ans: SAS acquisition strategy:

● Horizontal Solutions:-

There main focus to solve main functional problems to many industries like financial and operational
risk. They started giving functional solutions like supply chain intelligence, IT intelligence, customer
intelligence was added to the basic platform and this will definitely allow the client firm to set up a
scorecard to mainly monitor their business. Operational & financial risk intelligence were the main
areas of growth of SAS.

● A Customer-Driven Company:-

As SAS culture driven by the changes that market demands. They rely on the clients & try to reach
out what clients wants. Despite we say that Jim Goodnight preferences was organic growth he later
opted for acquisition. He decided that he will acquire the skills & peoples in his company so that he
can provide the solutions that the client demanding for.

● Moving From Organic Growth To Core Technology:-

SAS mainly develop the software within their own, but it may take time to move forward in the new
technology if they are opting for any new technology then they should go for core technology rather
than organic growth. As the competitors may launched the same products in the market before
them so they should go for acquisition to get the experts as well as the technology & can deliver the
services to the customers.

5. Evaluate SAS’ internationalization strategy. Would you do anything differently?

Ans: Internationalization of SAS took place very early in the company’s growth cycle. However, the main
challenge was distribution of its product across the globe as it lacked infrastructure and knowledge in
international arena. SAS therefore, hired consultants who recognized the numerous applications of
SAS’s software. The “Hybrid Franchise Model” was set up wherein SAS sold franchisee rights to develop
sales offices and support centers in Europe and Asia Pacific. Their headquarters was strategically chosen
to be in Heidelberg. Along the years, the area of its operations grew across Europe in Poland, France,
Denmark. The company faced the problem of piracy which it overcame by legalizing the software. In
2000, SAS International was set up to take over the operations in Europe and Asia Pacific. Another
problem of such model was that the subsidiaries worked independently and reinvested the profits it
earned on its own. The company recognized the need to be known to outside world create a brand
image. It therefore, launched aggressive marketing campaign and regulations to control the subsidiaries.
The company could have done a few things differently, like it could have introduced a standard feedback
mechanism from the start to serve the needs of customers well. Since its offset in the European sector,
it should have gone for brand differentiation. Partnering with local giant for sharing of resources for
smooth entry into a particular country’s market.