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To: OverSold who wrote (11266)	6/23/1999 11:02:00 PM
From: OverSold	Read Replies (3) \| Respond to of 19080

June 24, 1999 Sap Slow getting into the E Business play. Tech Center SAP Shifts Board's Duties Sap is way behind Oracle. Good Reading and lets ORCL know just how good they are. Good Luck to Everyone To Boost Internet Strategy By MATTHEW ROSE Staff Reporter of THE WALL STREET JOURNAL LONDON -- SAP AG shuffled the responsibilities of its executive board members to speed the development of new Internet-related products, a fast-growing area the company has struggled to penetrate. The move simplifies SAP's board structure by centralizing global sales under co-chairman Henning Kagermann. Previously, responsibility for various regions had been split among board members. In addition, the company's other co-chairman, Hasso Plattner, will be solely responsible for mySAP.com, the name given to SAP's Internet strategy. The change comes at a time when the German software company is being criticized for not addressing fast enough the booming demand for applications that run over the Internet. SAP, which made its name by creating a complex software that automates companies' internal operations, has spent the past two years building a new set of products, dubbed New Dimensions. Many of its customers have chosen to buy from competitors instead of tolerating SAP's product delays and development glitches. New Dimensions Strategy Previously, SAP had said New Dimensions products will contribute 5% of annual sales this year, and as much as 30% of sales within three years. The strategy is part of the company's attempt to replace sagging sales of its flagship product, R/3. Rivals such as Oracle Corp. and PeopleSoft Inc., facing similar problems, are also moving in the same direction. SAP said the new structure reflected how the company has changed from a single-product organization to one offering multiple products with over 19 industry-specific variations, especially Internet-related software. "We will be able to more effectively and quickly execute on our plans ... and demonstrate that SAP has become the best-positioned solutions provider for the Internet economy," said Mr. Plattner in a statement. An SAP spokeswoman said the reorganization had been planned for a while, and that the aim is to consolidate software development. Most notably, the reorganization strips several board members of their regional sales responsibilities, leaving a more streamlined structure in which executives are in charge of global product lines. For example, Peter Zencke, one of the lead executives in charge of the New Dimensions strategy, loses control of the Asian region. He remains responsible for many of the New Dimensions products as well as managing partner relations and SAP's global development team. A Signal "I don't think they were internally clear right from the start and this is a quick way of telling the marketplace that mySAP.com has backing right from the top," said Derek Brown, an analyst with Deutsche Bank Alex. Brown in London. "They have to get momentum in the product and they haven't done that yet." Of the other board members, Claus Heinrich will supervise further development of SAP products, including R/3, a job that had previously been shared by several board members; Gerhard Oswald will be responsible for SAP's service sector, including training and maintenance. In addition to taking complete control of the mySAP.com initiative, co-chairman Mr. Plattner will also focus on marketing, communications and public relations. On the Frankfurt Stock Exchange Wednesday, SAP's widely traded preference shares closed Wednesday at 376.10 euros, down 2.90 euros. SAP's American depositary receipts closed at $32.5625, up 62.5 cents, in New York Stock Exchange composite trading Wednesday. -------------------------------------------------------------------------------- Return to top of page \| Format for printing Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.