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© 2011 SAP AG. All rights reserved. /

April 18, 2012 Evan Welsh, Director, Global Media Relations, SAP [email protected] @evwelsh

Measure Your Media Relations Initiatives to Generate Truly Impressive Data


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SAP HELPS THE WORLD RUN BETTER.


SAP CUSTOMERS… …PROCESS 2.5 BILLION UTILITY BILLS PER YEAR

…PRODUCE 2.2 MILLION TONS OF CHOCOLATE

…MANAGE 50 MILLION BANK ACCOUNTS


SAP Helps the World Run Better.

30 mn Smart grid solutions from SAP

help to enable 30 million households use energy more

responsibly.

800 mn Product safety solutions from

SAP help 800 million consumers live safer and

healthier.

>50 mn HCM solutions from SAP help

over 50 million employees work in an attractive and

encouraging environment.


WHAT ARE WE MEASURING? WHAT ARE THE OBJECTIVES? TAKING MEDIA MEASUREMENT BEYOND COUNTING CLIPS


What Are We Measuring?

1. Media

a) Volume

b) Share of Voice

c) Favorability

d) Message Penetration

e) Quote Penetration

f) (+ SAP TV)

3. Industry Analysts a) Share of Voice

b) Tonality

c) Net Market Impact

4. Employee Communications a) SAP News Readership

b) Dialog

c) Subscriptions

d) Innovations

5. Government Relations & CSR a) Sales Support

b) CSR Impact

6. Operations 6. Innovations

7. Reporting

2. Social Media a) Share of Voice

b) Favorability

c) Net Impact Score


Media – How Metrics are Calculated

1. Based on media list = Corporate, IT Trade & Vertical

2. Volume: simple count of number of articles coded

3. Share of Voice: volume divided by total volume of all peers and expressed as %

4. Favorability: impact on readers based on a scale 0 to 100; where 50 is neutral. Takes into account placement, content and bias of article

5. Message penetration: number of articles containing at least one key message divided by total volume, expressed as a percentage

6. Quote penetration: number of articles containing at least one quote from an SAP spokesperson divided by total volume, expressed as a percentage


Global Message Penetration

Messaging SAP Peer 1 Peer 2

Total volume of articles 3913 4321 5428

Global message penetration* all media (% and volume of articles with at least one target message) 20% (789)** 12% (518) 17% (933)

Global messages – all competitors 905** 536 974

Company has right strategy for sustained growth 139 64 270

Company is a leading innovator 98 20 95

Company is customer-centric 82 6 38

Company delivers benefits and value to customers 586 446 571

Results from our media tracking company CARMA

* Global messages ** One article can carry more than one key message. Therefore, the total volume of messages differs from the total volume of articles carrying these messages.


ALIGN MEDIA RELATIONS GOALS TO BUSINESS OBJECTIVES, INCLUDING SALES AND ENHANCED REPUTATION


Aligning MR Goals to Business Objectives

Achieve customer net promoter score of X.X

Achieve employee engagement index of X%

Drive +X-X% SSRS growth

Expand operating margin by X.X pts

Drive external communications to position SAP as the innovator that helps the world run better (brand) Excellence in corporate Media Relations

Drive internal communications to build understanding of strategy, goals, progress (inform) - focus on clarity and brevity

Drive external communications to position the customer value of SAP solutions (sales support) Excellence in P&S and geography Media Relations

Further increase efficiency & effectiveness of communications processes & content creation - incl. synergies w/ other departments


Aligning MR Goals to Business Objectives What are the top business objectives? • Customer Success • Employee Engagement • Growth • Margin Expansion Setting MR goals – aligned to business objectives • Media monitoring: improve results versus 2011 despite budget cuts • Successfully execute key SAP media events

Measuring Results 1.Achieve X% Share of Voice in business media (2011:X%) 2.Achieve global Message Penetration of X% in business media (2011:X%) 3.Achieve spokesperson Quote Penetration of X% in all media (2011: X%) 4.Secure X# TV interviews (X% increase) on top TV (2011:X#) 5.Reach business media Favorability of X# (2011:X#)

How valuable is information that we keep out of the media? Can this be measured?


Reporting Achievements / Results to C-Suite

Global media favorability up from 55 (2010) to 60 (2011)

Global message penetration 17% (Peer 1 10%)

Spokesperson penetration 33% (Peer 1 34%, Peer 2 21%)

Share of voice held at 29%.

SAPPHIRE-specific news in May generated 378 articles and a 71 rating – two points higher than in 2010

Success Factors acquisition generated more than 700 articles, 69% positive, with favorability rating of 61

CEO visibility: Bill McDermott favorability 67 (2010: 58); Jim Hagemann Snabe favorability 69 (2010: 60)

Social media: share of voice up from 31% in 2010 to 48% in 2011 and favorability from 55 to 60. Favorability tied with Peer1 and ahead of all other peers

SAP TV: total of 132 interviews (TV and radio) broadcast – record high


Creating, Leveraging and Measuring “Reputation Capital”

“Reputation is emerging as a driving force and differentiator in the success or failure of individuals and companies.”

Mark Yolton Senior Vice President SAP Community Network


CASE STUDY CORPORATE SOCIAL RESPONSIBILITY


IN A BETTER RUN WORLD, IT DRIVES ECONOMIC OPPORTUNITY FOR ALL PEOPLE SAP’s CSR Program helps meet basic human needs, drives education & creates economic opportunity through IT


SAP VISION Help the world run better by improving people’s lives CSR FOCUS Enhance education for underserved

youth and propel emerging entrepreneurs to foster economic growth

GUIDING CSR PRINCIPLES

• Create social impact. Make strategic social investments that have a lasting benefit on society

• Leverage our core expertise. Utilize our technology and talent to help find solutions to social issues

• Generate lasting impact on SAP. Align approach to support our market and people strategy

• Engage multiple stakeholders. Drive innovation through a multi-faceted dialogue with internal and external stakeholders

Social Investment Vision


Impact Through Social Investment

TECHNOLOGY Enable 1,000 non-profits with ≥80% aligned to focus

TALENT Activate 100,000 hours with ≥10%

skilled volunteering

CAPITAL Impact 1,000,000 lives with ≥80% aligned to focus


Corporate Social Responsibility Outcomes

1. Technology: Enable 1,000 non-profits with ≥80% aligned to areas of focus

2. Talent: Activate 100,000 employee volunteer hours with ≥10% skilled volunteering focus

3. Capital: Positively impact 1,000,000 lives with ≥ 80% aligned to areas of focus

4. Media (joint KPI): increase volume of CSR-related media coverage by 50% (as our Share of Voice has decreased versus Peer1 in 2011)


In Summary…

Clearly define what you’re measuring How are metrics calculated Moving beyond counting clips – message and quote penetration Align MR goals to business objectives Align MR goals to sales/marketing Report agreed upon metrics/results to senior leadership You can measure reputation

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