Post-Apotheker, SAP Faces Challenge of Restoring Trust

With Leo Apotheker gone and Bill McDermott and Jim Hagemann Snabe now co-CEOs, SAP must regain customer trust, ramp up its cloud and SaaS business, and reignite revenue growth.


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Posted on Mar 08, 2010

SAP AG is once again under new management. But the company’s newly named co-CEOs, Global Field Operations President Bill McDermott and Business Solutions and Technology head Jim Hagemann Snabe, won’t have much time to celebrate their promotions. Their shared plate is overflowing with urgent tasks.

Among them, say customers and analysts: Restore trust in SAP among customers and employees, rapidly accelerate innovation, clearly communicate the company’s roadmap, and execute quickly on that roadmap. And, oh yes, they also must reignite revenue growth and margin improvement.

McDermott and Snabe replaced CEO Leo Apotheker less than a year after he had replaced long-time CEO Henning Kagermann. Although SAP co-founder and Supervisory Board Chairman Hasso Plattner has declined to publicly provide reasons for Apotheker’s quick departure, two things are clear: Plattner made the decision, with buy-in from SAP’s executive and supervisory boards; and Plattner was concerned about what he saw as growing dissatisfaction among SAP’s customers and employees.

“I am responsible for making the change,” Plattner said in a Feb. 8 press conference announcing Apotheker’s dismissal. Plattner added, “We have lost here and there trust. I am committed with the team that we change this and change this quickly.”


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