In April 2006, the Director General of SAP AG Henning Kagermann faces a number of critical decisions. Over the past two years, Kagermann introduced a bold growth strategy - one that is aimed at transforming the business applications giant pioneer in the new service-oriented architecture (SOA) technology field, a leader in the small - to medium-sized enterprises segment and appropriate solutions provider to the general public about the business software users. Parallel to the development of this strategy, Kagermann introduced many internal changes and initiatives to make SAP in a more flexible, efficient and globally relevant organizations. In some cases, these changes in organizational structure, leadership, process management, culture, and values directly challenge what many consider the fundamental principles of this very traditional, 30 + years, the German company. Kagermann and plan changes will be made to the universal enthusiasm of employees or customers. About a year after its release of a new growth strategy SAP, Kagermann now have to evaluate the situation and decide how to proceed. He made numerous statements to the market by 2010, SAP would have transformed the company, and even publicize specific quantitative goals that would justify such a transformation. However, at the same time, the new development has not occurred. The revival in demand for application software SAP legacy accounts for revenue and profit and pushing the share price of the company SAP to new heights. As a result, Kagermann must answer several key questions. How can he determine if the current pace of execution in respect of a new growth strategy is the right one? How he should order the deployment of internal changes are still needed to support enterprise transformation? And given the environmental industry and resurgent growth legacy business SAP, as it must balance the distribution of resources between short-and long-term opportunities? "Hide
by Robert A. Burgelman, Tom Federico Source: Stanford Graduate School of Business 54 pages. Publication Date: Aug 08, 2006. Prod. #: SM153-PDF-ENG
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