Posts Tagged ‘SAP’

IBM wins multimillion deal for Coke’s SAP cloud

April 8th, 2014

Drinks giant wants to unify platform across regions.

IBM will host and manage Coca-Cola Amatil’s cloud ERP in a deal worth millions of dollars.

The agreement will see IBM manage the SAP software in a cloud hosted at its own data centre in Sydney.

According to IBM, the cloud platform will “streamline CCA’s order management and distribution processes; increase operational efficiencies; and deliver consistent and exceptional quality of customer experience across the two geographies”.

Grant Thomson, cloud business leader at IBM, said: “CCA will be able to leverage best-practice processes from its Australian operation and apply them to the rest of the South Pacific region.”

CCA’s Australian and Indonesian operations will be onboarded first.

The system will later expand to CCA’s other operations in New Zealand, Papua New Guinea, Fiji, and Samoa.

“By using a common cloud platform across Australia and Indonesia, we will be able standardise and automate our operations and bring a consistent level of efficiency to our Indonesian business,” said CCA CIO Barry Simpson.


BMW, SAP launch competence hub in South Africa

February 7th, 2014

The BMW Group has officially opened a BMW SAP Competence Hub in South Africa. Together with two other IT hubs, situated in the United States and India, the BMW SAP Competence Hub will render IT services worldwide, concentrating specifically on SAP-based production applications.

“Today, process requirements and process solutions extend beyond all departmental boundaries. Therefore, we require end-to-end considerations of the technical processes and customer interfaces. As a result of the further development, BMW Group IT has taken another decisive step towards customer orientation, standardisation, agility and internationalisation by opening a SAP Competence Hub in South Africa,” explains Karl Probst, CIO for the BMW Group. “In order to meet the growing dependence on IT for all elements of the automotive industry, the choice of this location has been made, first and foremost, according to the availability of IT skills in the region.”

The pooling of specific application-based software at the IT competence centres sharing global responsibility, promotes the further industrialisation of BMW IT and the further development of the IT organisation from a federal IT structure with a central IT function on the one hand, and process-oriented specialized IT centres on the other, to a strengthened, centralized IT organisation spanning all departments and multiple global locations.

Thanks to the distribution of the competence centres across the global regions America, EMEA (Europe, Middle East, and Africa) as well as Asia/Pacific, it will be possible for these centres to understand and fulfil the local demands of markets, production locations and, in some cases, customers even better.

According to Bodo Donauer, Managing Director of BMW South Africa, the company has been exporting the BMW 3 Series Sedan to other parts of the world from South Africa since 1992. However it’s a little known fact that cars have not been the country’s only BMW export. For the past six years BMW South Africa has been outsourcing its local IT expertise to other BMW production locations around the world.

Concentrating specifically on configuring and enhancing SAP to cater to the specific requirements of the BMW Group production network, the work of these software engineers has allowed complex just-in-time and just-in-sequence production processes to operate seamlessly in markets such as China, Brazil and India. Additional SAP services ranging from Sales and Marketing, Logistics, HR and Finance solutions have been supplied to Germany, USA and the United Kingdom.

“The decision to establish a dedicated SAP Competence Hub in South Africa reaffirms the BMW Group’s confidence in the quality of the work our local software engineers have delivered to date. I am really pleased that South African ingenuity and skill has resulted in the opening of a local hub,” says Donauer. Unlike other markets in the world, South African SAP skills are unique in terms of how multi-skilled the resources are. For example, around 60% of all South African SAP configurators are also SAP software developers. This is attributed to the South African market being mainly comprised of medium-sized companies, which forces the consultants to be multi-skilled to enhance their competitiveness. This local skills base provides the BMW Group access to a unique resource pool.

The local competence hub, staffed with approximately 80 SAP software engineers, will concentrate its efforts on delivering world-class IT solutions to the BMW global production network specifically in the areas of BMW Internal Business Processes (production logistics, warehousing and production IT solutions). Each of these applications make it possible to produce highly complex and innovative vehicles just-in-time and just-in-sequence at multiple production locations around the world.

According to Pfungwa Serima, CEO at SAP Africa, the new BMW SAP Competence Hub will be delivering market-changing innovations for BMW subsidiaries across the globe. Based on the SAP real-time platform, these application allow for better-informed decision making and transformative innovation in the global automotive market. “When you can increase quality and manufacture efficiently while delivering excellent sales and service, you can significantly increase profitability and secure a competitive advantage. SAP is thus effectively powering the BMW value chain.”


Key Trends Impacting ERP Software Revenues For SAP In 2014

January 8th, 2014

German software developer SAP AG ( SAP ) is the global leader in ERP (enterprise, resource, planning) application software, with a market share of approximately 24.6% in 2012 and annual revenues exceeding $6 billion. ERP software product sales contribute to about 31% of SAP’s stock price, and is the most important driver for the company. SAP offers ERP software modules that serve companies across various operating groups (such as sales and marketing, finance, supply chain and logistics, engineering and manufacturing etc.), allowing them to manage and optimize their resources through its products, including Business All-in-One, Business ByDesign, Business One, Business Suite and mySAP.
In the current article, we study SAP’s ERP software division and take a look at the various trends shaping the global ERP market.

Since the launch of its high performance HANA platform, SAP has been integrating its application software modules with the in-memory platform to boost processing rates. In November 2013, SAP rolled out its Business All-in-One application powered with the HANA platform, for key industries in 52 countries globally. The integrated offering could be deployed on-premise as well as through a private cloud placement for more than 24,000 Business All-in-One customers. Additionally, SAP has previously integrated its Business Suite software with the HANA platform.

Going forward, we expect to see further integration of the HANA platform into SAP’s ERP application software packages. Moreover, the rapid rise in demand for SaaS offerings as opposed to on-premise offerings should accentuate the company’s position within the ERP market and boost cloud subscription revenues for SAP in the future.

SAP posted triple-digit growth in cloud subscription revenues for the three quarters in 2013, from €183 million in 2012 to €547 million in 2013. According to technology research firm Gartner, public cloud services globally are expected to reach $131 billion in 2013, up from $111 billion in 2012. Software-as-a-Service offerings are expected to account for 14.7% of the estimated $131 billion cloud service revenues in 2013. This translates into approximately $20 billion in cloud application sales in 2013, and presents a huge opportunity for on-premise software developers such as SAP, Oracle and IBM.

The adoption of ERP software by small and medium enterprise (SME) businesses is also crucial to SAP’s future growth in the ERP division. The SME ERP market lacks strong presence of legacy ERP systems due to their smaller financial position. Moreover, increasing demand for interaction and collaboration between application suites for business streamlining has favored the launch of modern, flexible cloud-based systems that are being adopted by SMEs. SAP’s competitor NetSuite leads the cloud ERP market space, and given that SME businesses prefer low cost on-demand offerings, SAP could face significant competition in entering the legacy-absent SME ERP market.

Additionally, mobile ERP platforms are expected to take center stage in the future, with business processes being conducted on smartphone and tablet devices rather than on personal computers. SAP is positioned to gain the most from the move to smartphone and tablet devices, with its Mobile Platform having a 49% market share according to IDC. IDC estimates the market size of applications developed on mobile development platforms to increase at an annualized pace of approximately 39% through 2017, and reach close to $4.8 billion from its current size of $938.5 million. Going forward, we believe SAP will increase its focus on cloud and mobile ERP product offerings, in line with the current market migration towards enterprise mobility and cloud ERP solutions.


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