SAP Extends Executive Board Contracts to Maintain Growth Trajectory

⇨ SAP reaffirms its commitment to innovation and leadership continuity through the extension of executive board contracts for Julia White and Scott Russell, demonstrating their outstanding contributions towards the company's growth trajectory.

⇨ Meanwhile, Sabine Bendiek, Chief People & Operating Officer and Labor Relations Director, has decided not to renew her Executive Board contract, which expires on December 31, 2023.

⇨ SAP had impressive growth in cloud revenue, partly due to the success of SAP S/4HANA Cloud ERP. RISE with SAP’s customer-engagement program helped simplify the ERP deployment process, furthering the company's commitment to enhancing customer experience. This aligns with findings from the recently published SAPinsider SAP S/4HANA Migration 2023 Benchmark Report by Robert Holland, VP & Research Director for SAPinsider.

SAP recently announced the contract extension of Executive Board Members Julia White and Scott Russell for another three years through 2027. The SAP Supervisory Board granted the extension, expressing appreciation for how White and Russell met challenges and moved the company forward. 

 “We express our gratitude to Julia and Scott for their excellent work, which has significantly propelled the company forward. With their exceptional skills and expertise, we are confident that they will continue to provide the necessary drive for their respective Board areas to manage the opportunities and challenges ahead,” said Prof. Dr. Hasso Plattner, Chairman of the SAP Supervisory Board. 

Meanwhile, Sabine Bendiek, Chief People & Operating Officer and Labor Relations Director, decided not to renew her Executive Board contract, which expires on December 31, 2023. The SAP Supervisory Board expressed its disappointment over her decision. Bendiek will remain in her role and fulfill her responsibilities for the rest of her tenure while SAP searches for a successor. 

“The SAP Supervisory Board deeply regrets the decision. At the same time, we respect this choice and thank Sabine for her excellent work and commitment to SAP’s transformation. Sabine promoted new ways of working, bringing people, processes and technology together,” said Plattner. 

SAP’s Growth Trajectory 

SAP CEO Christian Klein is now well-positioned to maintain the company’s growth trajectory, focusing on “business transformation as a service” and “intelligent and sustainable enterprises” technology offerings. The company’s RISE with SAP offering has streamlined moving to SAP S/4HANA Cloud and made it easier for organizations to optimize, transform, and extend their ERP systems using services from SAP Signavio and SAP Business Technology Platform (SAP BTP). This has recently been enhanced with the inclusion of SAP Build which includes unified, low-code solutions built on SAP BTP.

Recent SAPinsider research confirms the impact of RISE with SAP on SAP S/4HANA adoption. In the SAP S/4HANA Migration 2023 Benchmark Report, Robert Holland, VP & Research Director for SAPinsider, writes, “SAPinsider started tracking SAP S/4HANA adoption in 2019, and since that time we have noted a steady growth in those reporting they are using it. This is consistent with the numbers that SAP has reported in quarterly earnings calls, although the focus in the last year has been more on the cloud ERP story to which RISE with SAP and SAP S/4HANA Cloud is central.” 

SAP’s Impressive Growth in Cloud Revenue 

SAP recently reported its Q4 2022 and full-year 2022 results, showcasing impressive growth in cloud revenue and earnings per share. The company reported an increase in cloud revenue for its flagship product, SAP S/4HANA, indicating a growing customer base. 

SAP’s growth in cloud revenue is partly due to the success of SAP S/4HANA Cloud, which experienced a 101% revenue spike in Q4, reaching $720 million. With the refactoring of all SAP’s apps onto its business technology platform, the modular architecture of SAP S/4HANA Cloud makes it easier and more beneficial for customers to deploy financial management and HR apps with the cloud ERP suite. 

SAP’s current cloud backlog increased by 27% to $13.11 billion, with the total cloud backlog up by 35% to $37.28 billion. For S/4HANA Cloud, the current cloud backlog is up by 86% to $3.47 billion. PaaS revenue, of which the business technology platform is a significant component, also increased by 53% to $1.73 billion. 

SAP hopes to achieve a similar result for midsize organizations through GROW with SAP. The new program was announced by SAP North America President Lloyd Adams when he kicked off SAPinsider 2023 Live Conference Event with a keynote message on the human side of digital transformation. 

SAP’s Commitment to Innovation and Leadership Continuity 

SAP’s impressive growth in cloud revenue, underscored by the success of SAP S/4HANA Cloud, demonstrates the company’s commitment to innovation and leadership continuity. With ongoing investments in new and innovative solutions, SAP is poised for continued success. 

SAP now focuses on enhancing customer experience through digital sales channels and expanding customer success initiatives. With the ongoing investments in new and innovative solutions, SAP remains committed to driving its respective Board areas towards success. The company’s Q4 and full-year 2022 earnings report confirms its commitment to innovation and leadership continuity, making it a top choice for businesses looking for digital solutions to enhance their operations. 

SAP’s recent announcement regarding the contract extensions of White and Russell, along with Bendiek’s decision not to renew her contract, demonstrates the company’s commitment to leadership continuity and the pursuit of excellence. With SAP’s impressive growth in cloud revenue and ongoing investments in innovative solutions, the company is poised for continued success. 

Businesses looking for innovative digital solutions to enhance their operations can count on SAP to provide them.