UPDATE 3-SAP to customize business software for Blackberry

(Adds analyst comment, paragraphs 7-9)

By Jim Finkle

BOSTON, May 2 (Reuters) - Research in Motion Ltd (RIM.TO: Quote, Profile, Research, Stock Buzz) is working with SAP AG (SAPG.DE: Quote, Profile, Research, Stock Buzz) to develop sales management software and other business programs for the Blackberry, seeking to expand the device beyond an e-mail and phone service.

The first programs are designed to help companies send sales leads to their staff in real time, then provide tools to let employees follow up on them, the two companies said on Friday. The software will be available within several weeks.

SAP, the biggest maker of business management software, designed the customer relationship management (CRM) system and RIM engineers developed tools that allow it to be fully integrated with the BlackBerry's own e-mail system, contact database and other programs.

RIM's BlackBerry competes with Palm Inc's (PALM.O: Quote, Profile, Research, Stock Buzz) Treo and smart phones using Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) software. Its newest rival, Apple Inc.'s (AAPL.O: Quote, Profile, Research, Stock Buzz) iPhone, is gradually gaining traction among business users.

Many companies, including SAP, already tweak their business programs to run on mobile devices, but RIM Co-Chief Executive Jim Balsillie said that such software has never been so tightly integrated with the BlackBerry device and network.

"Literally a person can do their work on BlackBerry without having to go back and forth between a laptop and a BlackBerry," he said during a conference call with media.

Canaccord Adams analyst Peter Misek said that ability gives RIM an opportunity to leverage its large market share and "a huge competitive advantage" over rivals.