SAP Realigns Development Organizations, Leveraging Expertise to Better Meet Needs of Specific Industries
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SAP Realigns Development Organizations, Leveraging Expertise to Better Meet Needs of Specific Industries

/PRNewswire/ -- Newly Formed Business Solution Groups to Increase Focus on Developing

And Delivering Tailored Industry Solutions;

Application Platform & Architecture Group Created to Develop Component-Based

Solutions and Reusable Core Business Objects

WALLDORF, Germany, July 28 /PRNewswire-FirstCall/ -- In a further step in an ongoing effort to continually adapt its organization to best meet customer needs, remain competitive and achieve its strategic priorities, SAP AG (NYSE: SAP) today announced that it has realigned its development organizations to capitalize on its industry knowledge, business process expertise and integration capability. The realignment enhances SAP's ability to efficiently develop open, industry-specific business solutions by taking advantage of state-of-the art development processes such as reuse of software components. The new organizations enable the company to more quickly and effectively deliver on its SAP Enterprise Services Architecture announced earlier this year.

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SAP has created three new business solution groups (BSGs) that combine existing development organizations responsible for industry-specific solutions and generic business solutions such as customer relationship management and supply chain management. Each BSG includes solution management and application development teams. An Executive Board member or Extended Management Board member heads each BSG and will have full business responsibility and specific revenue, market share and customer satisfaction targets. The new BSGs strengthen the ability of SAP's development organizations to improve speed and efficiency. From a customer perspective, all that SAP has to offer is represented by a single BSG. This reduces the number of different organizations involved in projects between the customer and SAP, enabling SAP to more effectively meet evolving and demanding customer needs.

The three BSGs announced today include the BSG Manufacturing Industries, led by Claus Heinrich, SAP Executive Board member. This organization includes the development teams for the manufacturing and distribution industries and the teams responsible for the supply chain management and product lifecycle management solutions. The BSG Services Industries is headed by Peter Kirschbauer, SAP Extended Board member, and includes the development teams for the services industries, customer relationship management and the Global Customer Development Services organization. Henning Kagermann, CEO of SAP, leads the BSG Financial and Public Services. This BSG includes the development organizations for the financial service providers, insurance and public services industries as well as the human capital management, financials and enterprise resource planning development teams.

The BSGs were created to strengthen the interaction between SAP's development teams and its global field organization, which is unaffected by the realignment. By providing a single point of contact for customers to all solutions by industry, SAP improves its ability to deliver the full depth of its solutions expertise and thereby fulfill its strategic objective to be a trusted innovator.

Following the creation in February 2003 of SAP's Technology Platform organization (formerly Technology Development) led by Shai Agassi, member of the SAP Executive Board, SAP also announced today the newly created Application Platform & Architecture (AP&A) group, led by Peter Zencke, member of the SAP Executive Board. This group will drive the SAP Enterprise Services Architecture, enabling the BSGs to rapidly develop, configure and assemble industry and solution-specific capabilities. The AP&A group will develop reusable core business objects (such as cost/profit centers); business process patterns and user interface patterns as well as engines that are used in multiple industries (such as pricing engines); and product suite elements. The AP&A group will also facilitate and streamline all global research and innovation activities at SAP, focus on further improving time-to-market and enhance overall product quality.

The newly created AP&A group working together with the Technology Platform organization provides SAP with an effective and coordinated platform for focused innovation.

"Our new development organizations build on our more than 30 years of industry expertise with a renewed focus to help customers gain competitive advantage and achieve faster return on investment," said Henning Kagermann, CEO of SAP AG. "Additionally, our new modular software design process and reusable components will help our customers lower their total cost of ownership."

Today's announcement is the logical continuation of a series of changes SAP has implemented in several areas in the recent past, including the globalization and standardization of Global Marketing, Service & Support, SAP Consulting, Global Field Operations, SAP Education and Global SAP Human Resources to better align SAP to meet its goals. With this new organizational structure, SAP is well positioned to maintain its market leadership and to take advantage of new opportunities. The realignment has been designed to protect current customer engagements and ensure no disruption to day-to-day business.

About SAP

SAP is the world's leading provider of business software solutions. Through mySAP(TM) Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. The unique core processes of various industries, from Aerospace to Utilities, are supported effectively by SAP's 23 industry solution portfolios. Today, more than 20,000 companies in over 120 countries run more than 64,500 installations of SAP(R) software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at )

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's Annual Report on Form 20-F for 2003 filed with the SEC on March 21, 2003. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

NOTE: SAP, mySAP,, xApp, xApps, SAPPHIRE, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world.

All other product and service names mentioned are the trademarks of their respective companies.

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CONTACT: Herbert Heitmann, +49 (6227) 7-61137, or
Email Contact, or Laurie Doyle Kelly, +49 (160) 360-3229, or
Email Contact, or Markus Berner, +49 (6227) 7- 42548, or
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