Thought Leadership
At SAP, a significant share of software development oversight is moving directly under CEO Christian Klein. Starting July 1, Klein will assume responsibility for multiple core development units, marking a notable shift in the company’s leadership structure.
The changes primarily affect SAP’s so-called Autonomous Suite — now positioned as the core of its enterprise software portfolio — as well as the Business AI Platform, which serves as the technical foundation for extending SAP systems and integrating third-party solutions. Both units will retain their current operational leaders: Manoj Swaminathan continues to lead the Autonomous Suite, while CTO Philipp Herzig remains responsible for the Business AI Platform.
What changes is the reporting structure. Instead of reporting through the Chief Product Engineering function, both units will now report directly to CEO Christian Klein, consolidating strategic control at the top level.
Product leadership reshuffle and Alam’s exit
The restructuring significantly reduces the scope of Chief Product Engineering head Muhammad Alam. He will retain only the smaller Product Experience division, which reportedly employs fewer than 2,000 people. Despite having a contract running through 2027, Alam is set to leave SAP. As of now, there is no announced successor, and SAP’s supervisory board has not issued any statement regarding a replacement.
SAP has so far declined to comment on the developments, which were first reported by the Handelsblatt.
AI strategy driving organizational change
The internal overhaul is closely tied to SAP’s broader artificial intelligence strategy, branded “All in on AI,” which has become a guiding principle for the company since the beginning of the year. Klein has previously suggested that within the next three to four years, traditional software development roles at SAP could largely disappear, as AI systems take over much of the coding workload.
The latest restructuring is not an isolated move. On April 1, SAP already reorganized its sales operations and appointed Thomas Saueressig as Chief Customer Officer in a newly created role. Overall, SAP is increasingly centralizing key operational functions at the executive board level while experienced product leaders exit without clear succession plans — signaling a broader strategic realignment under its AI-first agenda.
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