Annual Report 2002 - Software AG

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20 A shift in strategic emphasis: From technology supplier to integration partner Software AG’s XML technology: The key to effective solutions Software AG is a leading provider of systems software and services for mission-critical IT. For more than 30 years, the Company has been dedicated to the development of innovative technologies for efficient data management. Since 1997 we have increasingly shifted the focus of our portfolio of products and applications toward data and document exchange. This includes the integration of established IT systems into today’s Web-based environments, and is achieved using the XML standard (eXtensible Markup Language). XML is a proven e-business standard, and a key enabling technology in the integration of data and applications. Our XML products do more than support inter-enterprise data transfer; they lay the foundations for seamless integration of business processes. The resulting increase in automation boosts productivity, eliminates human error, and cuts costs. It also becomes possible, on the basis of standard technology, to quickly and easily extend processes beyond the enterprise, to include customers, partners and suppliers. XML enables interenterprise collaboration, without forcing customers to abandon tried-and-trusted internal processes. Software AG’s XML technology harnesses existing IT investment: Established, tried-and-trutsed software can still be employed, in modified form. Blazing a trail with tailor-made solutions based on standard components Customers now expect much more from their software vendors. Corporate IT environments have become highly complex landscapes comprising disparate hardware platforms and operating systems. Our customers’ primary concern is no longer to develop an infrastructure for data management and exchange. More important to them is integration of data and applications, both within and beyond enterprise boundaries. The goal is the creation of endto-end, automated solutions for given tasks, such as contract management or supplier relationship management. However, the prohibitive risks and costs of developing applications in-house mean that more and more companies are looking for external answers to their needs. Customers want tailor-made solutions, based on proven components that guarantee rapid return on investment. With this in mind, we
do not simply offer software components, but have taken steps to broaden our portfolio. Software AG’s Executive Board has therefore moved to accelerate the Company’s journey from technology supplier to solution provider and systems consultant. Our efforts in 2002 focused on: Enhancing our product and service portfolio. Close cooperation with solution providers. Development or acquisition of software and software components. End-to-end customer service. Greater focus on specific industries. Solution-oriented sales and marketing. We implemented a range of measures to achieve these goals: New XML solutions Software AG’s Tamino XML Server Version 4.1 offers a significantly expanded solution for the generation, deployment and management of XML data. In addition, we have enhanced our integration platform with the launch of EntireX XML Mediator, a powerful tool for the coordination of XML applications. This provides customers with a fast and simple way to use XML applications. MANAGEMENT REPORT The next step was the further development of our XML technology in order to target potential highgrowth markets, such as content management, Web services and industry-specific software solutions. Users of our enterprise transaction products, Adabas and Natural, are also reaping the benefits of Software AG’s XML strategy. Using Web services, it is now possible to adapt existing applications to changing needs. This protects existing investments and opens up new opportunities. Web services: Building bridges between IT environments Implementing Web-services architectures is becoming an increasingly important aspect of Software AG’s business. Web services based on Tamino XML Server and EntireX, are a key enabling technology for the integration of diverse software systems – for instance, systems deployed by the various participants in a process chain, such as manufacturers, logistics providers and customers. It ensures seamless data transfer between the various applications and operating systems employed along the chain. The decisive factor is that the Web services are based on standards such as XML, SOAP, UDDI and WSDL, us- 21
Page 1 and 2: Annual Report 2002
Page 3 and 4: Table of Contents Letter to our sto
Page 5 and 6: Planning is the key to realizing yo
Page 7 and 8: Professional services and sales org
Page 9 and 10: Aug. 1 Natural Engineer WebStar mak
Page 11 and 12: today’s quoted companies. Softwar
Page 13 and 14: tions. The Swiss company leverages
Page 15 and 16: ister. The new solution is a signif
Page 17 and 18: One step ahead In today’s fast-mo
Page 19: transparency in business processes,
Page 23 and 24: importance in the optimization of b
Page 25 and 26: Web-enabling Natural-built applicat
Page 27 and 28: Sales and marketing: Broadening the
Page 29 and 30: training for customers implementing
Page 31 and 32: euros to 149.2 million euros. This
Page 33 and 34: Breakdown of costs in million EUR 2
Page 35 and 36: and furnishings. Investment in soft
Page 37 and 38: Employees: Our most important resou
Page 39 and 40: Research and development: Keeping o
Page 41 and 42: Events subsequent to the balance-sh
Page 43 and 44: There´s more than one way to pot t
Page 45 and 46: Equity and liabilities FINANCIAL ST
Page 47 and 48: Statement of Fixed Asset Movements
Page 49 and 50: On January 1, 2002, the Company acq
Page 51 and 52: Consolidated balance sheet and cons
Page 53 and 54: B. Notes to the consolidated balanc
Page 55 and 56: Frankfurt Stock Exchange over the f
Page 57 and 58: C. Notes to the consolidated income
Page 59 and 60: Europe Western Europe Southern Euro
Page 61 and 62: Notes to the cash flow statement
Page 63 and 64: Dietrich-Kurt Frowein Place of resi
Page 65 and 66: Financial Calendar 2003 April 24, 2
Page 67 and 68: workbench) for designing, developin

Annual Report 2002 - Software AG

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