SAP has restructured its AI operations, appointing Philipp Herzig, formerly head of cross-product engineering and experience, as its new chief artificial intelligence officer (CAIO). Herzig now leads a newly formed “end-to-end growth area” focused on AI within the company. In his new role, Herzig reports directly to CEO Christian Klein and oversees SAP’s entire AI value chain, from research and development to customer implementation.
The restructuring aims to accelerate SAP’s AI development, as stated by the software manufacturer. This new organization’s establishment underscores AI’s critical role in driving SAP’s future growth strategies. Herzig’s team will collaborate closely with other innovators at SAP to seamlessly integrate AI across the entire portfolio, ensuring consistent use of SAP business AI solutions by customers.
“SAP’s increased focus on business AI marks the start of a completely new generation of enterprise innovation, and I’m honored to have the chance to help customers make the most of this unprecedented opportunity. I look forward to working with our team, as well as our ecosystem of customers and partners, to drive the development and delivery of relevant, reliable, responsible business AI that fundamentally changes the way business runs.”-
Walter Sun, who transitioned from Microsoft to SAP in September 2023, assumes the role of Global Head of AI, overseeing the development of SAP’s upcoming enterprise software worldwide. Within Philipp Herzig’s team, Sun serves as the lead AI product developer. Notably, Herzig was Sun’s superior before his recent transition to SAP.
Redefining Organizational Structure
In addition to the appointment of Walter Sun, SAP has undergone further changes in its reporting structure. At the start of 2024, the company introduced a new department within the Executive Board, Customer Services & Delivery. Leading this department is Thomas Saueressig, whose primary objective is to accelerate the adoption of cloud technologies among customers.
Muhammad Alam, who previously oversaw Product Development, now assumes this role within the Executive Board. Alam’s promotion coincides with his transition from Microsoft to SAP at the end of January 2022, which is similar to Walter Sun’s career trajectory.
The recent leadership changes at SAP have prompted a significant organizational shift affecting the entire company. In January 2024, SAP CEO Christian Klein announced a comprehensive restructuring initiative impacting approximately 8,000 employees, equivalent to around 7.5 percent of the workforce. Despite assurances against job cuts in Walldorf, management emphasizes the necessity for SAP’s capabilities and resources to align with future business demands.
CEO Klein’s focus appears to steer the German software giant towards cloud and AI technologies, which is evident in ongoing internal restructuring efforts. Alongside a heightened emphasis on strategic growth areas, SAP aims to optimize operational structures to leverage organizational synergies, achieve efficiency gains through AI, and position the company for scalable sales growth in the future.
FAQs
1. What prompted SAP’s recent organizational restructuring?
The restructuring was announced by SAP CEO Christian Klein in response to evolving business demands and strategic priorities, particularly emphasizing the adoption of cloud and AI technologies.
2. How many employees are affected by SAP’s restructuring program?
Approximately 8,000 employees, constituting around 7.5 percent of SAP’s workforce, are impacted by the restructuring initiative announced in January 2024.
3. Are there any assurances regarding job security amid SAP’s restructuring?
While specific details vary, SAP’s management has indicated no immediate plans for redundancies or job cuts at its Walldorf location. However, the company underscores the importance of aligning qualifications and resources with future business needs.
4. What are the primary objectives of SAP’s restructuring efforts?
The restructuring aims to realign SAP’s internal structures to support strategic growth areas better, optimize operational efficiency by integrating AI technologies, and position the company for future scalable sales growth.
5. How does SAP intend to adapt its organizational structure to meet future business requirements?
SAP is focused on redesigning its operational structure to capitalize on organizational synergies, achieve efficiency gains through AI implementation, and ensure readiness for future business challenges and opportunities, particularly in cloud and AI domains.
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