The Woes of the Young SAP CIO
The SAP Executive Board technicians have historically faced significant challenges. They were either despised or adored. In any case, the role of Chief Technology Officer was accompanied by a considerable degree of drama and emotion. Until the very end, the role was not clearly defined, and the individual held a position between that of a CIO and a CTO.
One of the initial casualties was Chief Technology Officer Peter Zencke. He caused the loss of a billion euros in development budget by programming Business ByDesign. At that time, the markets for hosting, software-as-a-service, and cloud computing were undergoing rapid development. There was a great deal of enthusiasm, but a lack of experience.
Peter Zencke was on his own. SAP board member Gerd Oswald arrived on the scene too late to be of assistance, and by that time Zencke's fate had been decided. Hasso Plattner was displeased with the turn of events and placed the blame solely on Peter Zencke, who subsequently retired and received no messages of well wishes upon his departure.
The concept of Business ByDesign was sound, but the market and the technology were not yet sufficiently developed. There was a lack of performance and acceptance. Despite the desire of many SAP employees to discontinue it, Business ByDesign (BuByDe) remains in use.
The appointment of the technicians for the SAP Executive Board proceeded with a certain degree of emotional involvement. Shai Agassi's appointment as Chief Technology Officer marked not only a new addition to the SAP Executive Board, but also the introduction of a new product: SAP Business One. B1 was developed on a Microsoft SQL database (Hana was later added as an option) with the objective of becoming a formidable competitor in the ERP market, particularly against smaller but successful providers.
The technology of a CIO and CTO was not his domain, however.
Despite ongoing challenges with further development, Business One remains a successful product. Shai Agassi has not been a member of the SAP Executive Board for a considerable period of time. He sought to succeed Henning Kagermann, but Hasso Plattner favored a dual leadership structure comprising Henning Kagermann and LĂ©o Apotheker (see illustration). LĂ©o Apotheker's tenure as CEO was relatively brief, and he was succeeded by a new dual leadership: Jim Hagemann Snabe and Bill McDermott.
As the new Chief Technology Officer with CIO and CTO responsibilities, Hasso Plattner identified Vishal Sikka, a Stanford graduate with a PhD in mathematics, as a suitable candidate for the role. Sikka spearheaded the development of the Hana database in collaboration with colleagues from the Hasso Plattner Institute (HPI) in Potsdam. When Vishal Sikka had a different vision for Hana than Hasso Plattner, he was asked to leave.
Vishal Sikka was succeeded by Bernd Leukert, who, in turn, did not meet Bill McDermott's expectations. Vishal Sikka was succeeded by Bernd Leukert, who, in turn, did not meet Bill McDermott's expectations. Bernd Leukert is currently the Chief Technology Officer at Deutsche Bank and was succeeded by another Hasso Plattner protégé: Jürgen Müller, who, like Vishal Sikka, holds a PhD earned at HPI in Potsdam.
JĂĽrgen MĂĽller has apparently violated compliance regulations at an internal SAP event, resulting in his removal from the SAP Executive Board. The company has yet to announce a successor. It is likely that the cycle of woes SAP Chief Technology Officers face will continue.
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