SAP: The Challenge of Aligning Sourcing and Innovation Strategies Harvard Case Solution & Analysis

SAP, one of the leading software enterprises in Germany, pursued a strategic decision of acquiring a prominent cloud-based human capital management software American firm, along with significant investment for expansion in China at the end of 2011. However, there was not any alignment between these two strategic directions, but an in-depth evaluation disclosed a closely coordinated network of strategic decisions for which it was a challenge to find the alignment and the right balance between these two approaches. Thus, it was necessary to determine that what could be the possible challenges for the company to align its sourcing strategies and innovation? In contrast to the major rivals, including Oracle, Microsoft, and IBM, what would be the approach that SAP could follow for this alignment?

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