SAP’s product side is the problem

Dennis Byron here gives the most succinct gloss I’ve seen on the challenge before Hasso:

Hasso Plattner wants to drive a great deal of technological innovation at SAP, and did not believe it could happen under Leo’s leadership, and without Hasso’s very direct involvement…. The product organization is full of conflicting technologies, conflicting interests, and conflicting agendas. Driving change in this kind of climate will be very challenging for Jim [Snabe] and Vishal [Sikka].

Hasso stalks the product halls?

There’s one more challenge: SAP hasn’t been honest about what is working on the product side. BYD folks walked around like the cocks of the walk long after it was clear that BYD was in deep trouble.  And the leadership let them…

Hasso’s right: Leo couldn’t call BS on the product side effectively enough.  From what I can tell, he’s the only one left in SAP who can meld innovation with the market AND is credible and powerful enough to actually do it!

Unfortunately, I can imagine that many on the development time think that they’ve won and happy days are here again.  Hasso’s back and it’s innovation for innovation’s sake at SAP!  What…monetize?  Isn’t that what sales people are for?

Wow, Leo Apotheker’s gone already?

Unbelievable that Leo Apotheker has already fallen on his sword.  There has been tons of chatter about Leo and his demise (Dennis Howlett here, Larry Dignan here, Michael Krigsman here, and the #leogone Twitter feed is here).  Here are a few of my thoughts and questions:

  • Everyone at must be relieved that Hasso is back in charge, morale at SAP has been a mess for a while.  The honesty from Hasso in his press conference was refreshing…the lack thereof is one of the reasons I’m not there.
  • Blaming Business By Design on Leo seems ridiculous…I’ve seen that mentioned a couple of places (here’s Bloomberg).  Didn’t Peter Zencke fall on his sword for this already?  Anyway, absurd.
  • How can anyone have any confidence that giving the development side more power will be fruitful? (see “Blaming Business By Design on Leo seems ridiculous” above)  I agree this represents a shift back to product development.  But what then? 
  • What does the field have left?  Leo supposedly represented the field, but IMO the field has been carrying SAP for a long time.   Will Werner Brandt’s beatings continue until the field’s morale improves?
  • Who else is leaving?  I’m not sure that current leadership gets what Peter Goldmacher states bluntly: “I think SAP is structurally impaired.”  The rot runs much deeper than Leo.
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