SAP admits it lost customers’ trust

SAP admitted on Monday it had lost the trust of some of its customers as the world’s largest business software maker sought to justify a sudden management reshuffle.

Hasso Plattner, SAP’s chairman and one of Germany’s most prominent business figures, said he and the company had made mistakes and vowed to restore customer confidence in the group.

The comments came after Sunday’s abrupt departure of Léo Apotheker, the company’s former chief executive.

Mr Plattner said SAP had made a mistake with its attempt to increase maintenance fees last year in the middle of the economic crisis.

“Unfortunately, SAP has made a few legal and technical mistakes, especially in Germany,” the billionaire co-founder of the 27-year old software maker said.

“This is nothing that can be put into Leo’s shoes – we have made a mistake. […] I was personally involved in decisions about the maintenance fees.”

Mr Plattner’s public confession was seen as a rare move by a company director in Germany, underlining the depth of turmoil within the software group.

It followed a customers’ outcry over the fee plans and delays in the introduction of a new software system for small and medium-sized enterprises.

Mr Plattner, whom the supervisory board has just entrusted with a “strong role” on advising on technology and innovation, vowed to put the company back on track.

“We have lost here and there the track and I am totally committed with the team that we will change this and change this quickly,” he said. “Here is a message to our end customers: we have not forgotten you.”

Paul Hamerman, an analyst at Forrester, the research group, said Mr Plattner bore some responsibility for SAP’s problems, but he also accepted it.

“It is good to see him back in command,” he said.

Mr Apotheker had lost confidence of the supervisory board after a recent employee survey highlighted disatisfaction in SAP’s top management. Only 50 per cent of the employees gave a positive vote of confidence for the executive board.

The company has reinstated a tandem leadership structure, with Bill McDermott, head of field organisation, and Jim Hagemann Snabe, head of product development, acting as joint chief executives.

Mr McDermott, an American, and Mr Snabe, a Dane, will be the first foreigners to lead SAP – a rare move at a German blue-chip company.

Mr Plattner said the joint-CEO structure would be a long-term solution, pointing towards SAP’s tradition of such a leadership and towards other companies such as Microsoft.

“Microsoft had its best times when Steve Ballmer and Bill Gates were working together,” he said.