SAP's co-CEO, Bill McDermott, on "Industry Transformation" at CGI

Bill McDermott, co-CEO, represented SAP at the Clinton Global Initiative. He gives a great summary of SAP's sustainability strategy and how it translates into “industry transformation.”

Watch the complete video at http://www.clintonglobalinitiative.org/ourmeetings/2013/webcasts/archives/view_webcast.asp?id=8

We recommend you check out the following segments of the video in which Bill is speaking:

·         18:00 min: “Leaders who don’t transform their industries will be irrelevant”.

Bill talks about how SAP reinvented its strategy – to stay relevant: 84% of the millenials say their purpose is to help the world. That’s how we defined our purpose and this is what we do through our solutions. Bill then provides short examples of how SAP helps Standard Bank or Swasa shops do things in new ways. We understand how industry transformation with modern technology changes people’s lives. We see it in connected cars and smart sourcing. This thinking defines our purpose as a company.

·         31:00 min: “Involving people in the choices you make.”

Bill explains that all change needs to be desirable, feasible and viable (design thinking). He then discusses SAP’s carbon target, our need to increase women in management and young talent hiring, and our need to reduce travel. It is essential to involve everyone in the journey.

·         40:30 min: “Applying new technology to help transformation”

Big data can revolutionize the sourcing process when a “sustainability index” is applied. You’re either part of the network or not. In this way, sustainability becomes a business prerequisite, not just a “nice to have”.

·         54:20 min: “My big idea? Co-innovation and business model innovation!”

The young generation will demand that companies change their behavior. Example: The Automotive Industry. In the future, people will want to buy mobility, not cars, which has significant implications all the way from parking to fueling and insurance. You need cars that are connected to get this done. We have the technology to do this today! Let’s work together to innovate and to change existing business models.