This episode explores the impact of AI and cloud computing on SAP's business model and the broader technological landscape. The conversation begins with an overview of SAP's market dominance and its deep integration into global business transactions, highlighting the challenges of switching ERP systems. Against this backdrop of customer dependence, the discussion pivots to SAP's pricing strategies and its efforts to address technological nationalism by developing sovereign clouds. More significantly, the interview delves into SAP's strategic shift towards cloud computing, acknowledging past hesitation and the subsequent challenges in adapting to a new business model. For instance, the CEO discusses the importance of change management and focusing on end-user experience during software implementation. As the conversation concludes, the discussion touches upon the future of work, emphasizing the transformative potential of AI-driven automation and the need for adapting workforce skills accordingly. This means for businesses a significant productivity boost, potentially up to 30%, through the implementation of agentic AI, while also highlighting the ongoing challenges of navigating evolving regulations and fostering a performance-driven culture within a European context.
