SAP reorganizes business units to align sales and product strategy

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SAP on Thursday announced several key organizational changes aimed at unifying the company’s communication channels and product strategy and improving integration scenarios across its product portfolio.

The enterprise software giant, which is moving forward under the dual leadership of Jennifer Morgan and Christian Klein after CEO Bill McDermott left in October, is embracing a new organizational model that aligns functions across divisions.

Specifically, the company establishes six core product areas: SAP Customer Experience, S/4HANA, SuccessFactors, Intelligent Spend (which includes SAP Ariba, Fieldglass, and Concur), HANA and Analytics, and Qualtrics. The SAP Cloud Platform will serve as the underlying technology platform for all of these areas, the company said.

Meanwhile, SAP’s sales, service, and customer success organizations will be consolidated under the Customer Success board domain managed by Adaire Fox-Martin. Product management, development and support will also be brought together under a single board of directors led by Thomas Saueressig. SAP’s overall platform and technology development will be managed by Juergen Mueller.

For SAP, the new organizational structure could help the company present its product portfolio to customers in a less confusing and disjointed way. The company has long had a reputation for being complex and expensive, with customers sometimes struggling to understand the connection between price and value when it comes to the multitude of SAP products. SAP also struggled to successfully steer acquired businesses and technologies with its core product.

SAP has taken steps in the past to shake off this perception, including a similar reorganization in 2018, in which the company consolidated its multiple sales teams into a single global customer organization (GCO) to coordinate customer engagement.

“Our customers rightly expect our service portfolio to be seamlessly integrated and that all solutions work together seamlessly. SAP’s success depends on customers’ confidence in our competence and ability to solve their future challenges,” said co-CEO Klein.

SAP also announced that board members Stefan Ries and Michael Kleinemeier are leaving the company.

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