SAP AG (NYSE: SAP) today announced it will simplify its organisational structure and create a single development organisation to oversee innovation across the company.
The new structure will enable SAP to accelerate innovations powered by the SAP HANA platform for existing and new products, drive a cloud-first approach for the development of line-of-business applications, increase SAP’s leadership in mobile and further accelerate the company’s go-to-market for cloud and the SAP HANA Enterprise Cloud service.
“We have transformed SAP into a growth company built on innovation. SAP HANA has become the future innovation platform for our customers and is now radically changing the industry, while cloud disruption is redefining the market and business models. By creating one single development organisation under Vishal’s leadership, we will dramatically accelerate the speed of these innovations,” said Bill McDermott and Jim Hagemann Snabe, co-CEOs of SAP AG. “By leveraging development synergies across our cloud and on-premises areas, we can further accelerate cloud solutions for our customers.”
SAP will consolidate all innovation under Vishal Sikka, member of the Executive Board of SAP AG, Technology and Innovation. Effective 1 June, all SAP development and custom development leaders will report directly to Sikka. Additionally, the Executive Board has nominated Bernd Leukert, executive vice-president for Application Innovation, to the Global Managing Board of SAP AG. Leukert will report to Sikka and will strengthen SAP’s global development organisation.
“We face an unprecedented opportunity to rethink the world through technology with the combination of cloud-based ease of delivery, the power of SAP HANA to enable a new real-time across the trading world and the power of design to unleash our imaginations to build amazing products that open new horizons. We will do all of this non-disruptively and without compromise, just as our customers have counted on over the last 41 years,” said Sikka. “We are inspired by Hasso Plattner’s challenge to explore new frontiers and to intellectually renew SAP, and I believe this is only the beginning.”
SAP Executive Board Member Gerhard Oswald will take responsibility for a new Scale, Quality and Support board area. To meet the growing customer demand for SAP HANA, Oswald will be responsible for the operations of SAP HANA Enterprise Cloud. This new organisation will leverage the expertise of SAP Global IT infrastructure services to accelerate the build-out of SAP HANA Enterprise Cloud. Furthermore, quality, governance and production will drive quality across all development teams. Oswald will continue to be responsible for the SAP Active Global Support organisation, the SAP Labs network (jointly with Sikka) and Solution and Knowledge Packaging.
Along with SAP HANA, SAP has seen tremendous momentum in its cloud business. Since the acquisition of SuccessFactors, a SAP company, Lars Dalgaard has brought his unsurpassed passion, leadership and execution excellence in the cloud business to SAP. Dalgaard will step down from the Executive Board and leave the company effective 1 June to become an investor. He will continue to play an active role as an advisor to the SAP Cloud business and will stay closely involved in the future development of SAP’s cloud strategy. In addition, SAP Co-CEOs McDermott and Snabe will become Executive Board sponsors for SAP’s cloud business.
To further accelerate the success in SAP’s cloud business, the company will consolidate its cloud go-to-market under the leadership of Bob Calderoni, CEO of Ariba, a SAP company, president of Global Cloud Operations and member of the Global Managing Board of SAP AG, who will also continue to lead the Ariba business network activities. Calderoni will work closely with Rob Enslin, president of Global Customer Operations and member of the Global Managing Board of SAP AG, to maximise coverage for cloud solutions. Enslin will continue to lead SAP’s worldwide sales and customer operations.
In addition, Luisa Delgado, member of the Executive Board of SAP AG, Human Resources, and Labour Relations Director, has decided to leave SAP to pursue a broader business leadership responsibility as CEO of another company. She will remain on board until 30 June to ensure an effective handover.
“We would like to thank Lars and Luisa for their strong leadership and wish them success in their personal and professional lives. They have an outstanding leadership record and nurtured excellent leaders who will enable a smooth transition for our cloud business and people strategy,” said McDermott and Snabe.
SAP Executive Board Member Werner Brandt will take on the Executive Board responsibility for Human Resources and become the Labour Relations Director in Germany in addition to his role as chief financial officer of SAP AG. In addition, Luka Mucic will become head of Finance to support Brandt in his expanded responsibilities. The Executive Board has nominated Mucic to the Global Managing Board.
SAP senior management hosted a conference call for media and analysts on Friday, 24 May, at 2:30pm CET/1:30pm GMT/8:30am EDT/5:30am PDT. The call will be Webcast at www.sap.com/investor.
Replay dial-in numbers:
United Kingdom: + 44 207 154 2833
United States: + 1 303 590 3030
German: + 49 69 58 99 90 568
Replay Passcode: 4621934
For more information, visit the SAP Newsroom.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back-office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organisations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238 000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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