Why Germany Is Going Up the Drain

At a recent SAP meeting, colleagues and executives inquired about my ongoing criticism. I have been a member of the SAP community for over 30 years and have observed the turnover of numerous board members. There are undoubtedly more than one hundred executives. I can therefore state that I am a constant factor and close observer of SAP, DSAG, and the community.

SAP is not going down the drain, of course, but - as an interesting series of articles in the German-language Manager Magazin explains - is heading for further success: The series is called "Warum Deutschland den Bach raufgeht", which is an exciting statement in two senses. The authors are suggesting that things are on the up economically, socially, politically and culturally, but going up the creek, i.e. swimming against the current, also means going back to the source.SAP is not going down the drain, of course, but rather—as an interesting series of articles in the German Manager Magazin explains—is heading for further success. One of the articles is titled "Why Germany Is Going Up the Drain," which is an intriguing and thought-provoking statement. The authors posit that the economy, society, politics, and culture are all experiencing upward trends. However, this implies a return to the source, or swimming against the current.

SAP is not going down the drain, of course, but rather—as an interesting series of articles in the German Manager Magazin explains—is heading for further success. One of the articles is titled "Why Germany Is Going Down the Drain," which is an intriguing and thought-provoking statement. The authors posit that the economy, society, politics, and culture are all experiencing upward trends. However, this implies a return to the source, or swimming against the current.

SAP CEO Christian Klein and CFO Dominik Asam are effectively managing the company. The SAP share price has surpassed the 200-euro threshold, with some analysts forecasting an initial target of approximately 230 EUR. What are the sources of this success? Klein and Asam exercise prudent stewardship of the company's resources and assets. They are currently benefiting from the success of their predecessors. Similarly, the German economy as a whole has a high potential for exploiting opportunities from the past.

Christian Klein, however, is failing to anticipate future developments. The necessary resources are in place, which would guarantee success. Many transformation projects are running satisfactorily at SAP. However, the company has made only one public statement regarding its future in the ERP market: SAP S/4 Hana will undergo regular maintenance until 2040! While Klein's statement is important and reassuring, it is not sufficient for strategic ERP planning.

Global corporations like the one I represent as company CIO require more comprehensive planning scenarios. It is essential that we gain insight into ERP beyond S/4, and that we establish a BTP roadmap and vision. Should circumstances change, it would be beneficial to have a discussion about the future of SAP ERP beyond S/4, including BTP.

The SAP community is currently lacking this dialogue, which has resulted in a decline in perceived relevance compared to previous years. The most recent DSAG investment survey has made this shortcoming abundantly clear. Only one-third of DSAG members still perceive an increase in relevance, while over half believe SAP's importance is either remaining static or declining. This perspective does not align with the motivational approach of "going up the drain,"(as opposed to down) as outlined by Manager Magazin. In the current situation, the concept of improvement seems particularly relevant. In the spirit of the ancient Greek philosopher Plato's allegory of the cave, which deals with the ascent and descent from the cave into the light, SAP also appears to be in desperate need of enlightenment.

Any discussion of SAP's future of course involves new personnel. Following years of consolidation and the resolution of the Bill McDermott legacy through Hasso Plattner and Christian Klein, it is now time to define new goals. Given Hasso Plattner's departure as CEO, it may be an opportune time to consider reorganizing the SAP Executive Board. Christian Klein has achieved great things, but he should perhaps focus less on his own future and more on that of SAP.

The aforementioned S/4 maintenance promise until 2040 is not enough. The SAP community requires a pragmatic visionary, akin to Henning Kagermann. Currently, only Thomas Saueressig on the SAP Executive Board exemplifies this profile. The feasibility of recruiting an external candidate with comparable expertise is uncertain.