For Business Process Professionals

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	May 19, 2006 SAP Acquires Frictionless To Bolster Sourcing App Gaps Remain In Its Supplier Relationship Management Suite by Andrew Bartels with Tom Pohlmann, Katherine Brown

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Executive Summary

SAP acquired eSourcing specialist Frictionless Commerce on May 17, 2006, filling a hole in its supplier relationship management suite. Forrester had expected such a move for some time. Our Forrester Wave™ evaluations of supplier relationship management (SRM) and spend management products such as eProcurement, eSourcing, and contract life-cycle management had shown SAP to be lagging behind leading competitors. The Frictionless acquisition does significantly improve SAP's product offering in sourcing. However, it still leaves other gaps in SAP's SRM suite, such as contract management, spend analysis, sourcing bid optimization, and supplier enablement. We expect SAP to close those gaps through a combination of: 1) internal software development (building); 2) one more acquisition (buying); and 3) partnerships with independent software vendors (ISVs).

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