SAP SE – Inspiring Journey of the Company That Emerged Out Of Rejection

It’s a tough task to manage the financials, logistics, HR and other business areas without the help of technological tools, especially for bigger companies. Such tools bring accuracy as well as transparency in the organization. The combination of various business processes is achieved through it. One of such Enterprise Resource Planning (ERP) software is SAP SE.

SAP SE journey – a very basic version of the most celebrated software as per fortune 500 companies

In 1971, Xerox left the hardware manufacturing sector and asked IBM to shift its business systems to IBM technologies. That time five IBM engineers from the AI department were working on enterprise-wide systems based on the software to which IBM has given rights to, Scientific data systems (SDS) /SAPE software. They were told that the project they are working on is not of use. That time, they decided to leave IBM and start their own company.

So, in 1972, those 5 engineers – Dietmar Hopp, Hasso Plattner, Hans-Werner Hector, Klaus Tschira, and Claus Wellenreuther founded SAP SE. currently, their headquarter is located in Walldorf, Germany and regional offices all over the world in 170 plus countries with more than 425000 customers.

Further Exploration of SAP SE

In the beginning, they developed programs for payroll and office for their first client Imperial chemical industries. Their software was real-time, unlike IBM.

In 1973, they moved to a commercial product which was their first financial accounting system. (SAP R/1) It has centralized data storage and improved data maintenance. In 1979, SAP involved other areas like material management & production planning. (SAP R/2). This SAP R/2 version did not improve until 1990.  SAP R/3 was released in 1992 and was developed with new features in 1995.

By this time, it already achieved the mainframe computing trend and the concept of business process integration came into the picture. To accommodate all these changes, SAP R/3 was replaced with SAP ERP central component in 2004. The latest version is of 2016, SAP ERP 6.0. Till 2016, SAP was the world’s third-largest software and programming company. As per recent reports, it is on number one. Most of the fortune 500 companies use this software.

Five Co-founders, One Dream

The five founders have different stories before they were in IBM and have different journeys with SAP. Let’s have a short introduction to the life of masterminds behind SAP SE.

Dietmar Hopp

Starting with Dietmar Hopp, who grew up in Hoffenheim. He was a telecommunications engineering student and after that, he joined as a consultant at IBM. Then SAP was founded, and he was the CEO of SAP SE from 1988 until 1998, chairman of its supervisory board from 1998 until 2003 and member of the board from 2003 until 2005. When he left the board, he kept 10% of the company’s shares.

Hasso Plattner

Plattner has received many awards and recognitions for his commitment to economics and science ranging from Leadership Award for Global Integration to the “technology guru”. He was also estimated to be worth US$10.8 billion by Forbes in 2016.

Klaus Tschira

He got his Diploma in physics and worked at IBM before he founded this company, for which he was a board member From 1998 to 2007. He passed away on 31 March 2015 in Heidelberg. As well, he was a recipient of many honors in his lifetime including several doctorates.

Claus Wellenreuther

Wellenreuther studied business administration at the University of Manheim in operational research. He left the business in 1980 due to his health condition and got compensation of 1 million DM.

Hector

One of the founders, Hector, A trained mathematician successfully built up the North American market for SAP. Later, he was separated from the company in 1997 after a falling out with his partners.

CEO till 2019 – William R. “Bill” McDermott

Formerly William R. “Bill” McDermott was the CEO of SAP who is currently CEO of ServiceNow.  While he was the co-CEO and CEO, SAP’s market value increased from $39 billion to $156 billion. McDermott went to North-western University’s Kellogg School of Management where he earned his MBA. He joined SAP in 2002 as CEO and was designated to the SAP Executive Board in 2008. He did various roles in SAP.  On October 10, 2019, McDermott decided to leave SAP SE. In 2016, McDermott was named “Manager of the Year” by the German Business Daily. He also received the award as TOP CEO by Glassdoor.

Current Co-CEOs – Christian Klein & Jennifer Morgan

Presently, the duo Klein-Morgan handling the CEO position of the firm. Starting from Jennifer Morgan, she joined this company back in 2004. After serving for a long time, in 2017, she appointed in SAP’s Executive Board. However, she became the first female in America that first-ever appointed to the Executive Board. While Klein, the Co-CEO joined the company in 1999 as an intern. Thereafter serving at several positions he named as a CEO along with Jennifer.