SAP users face cost squeeze, pressure to digitalise: survey

By Douglas Busvine

BERLIN (Reuters) – The customers of software group SAP <SAPG.DE> are suffering severe declines in revenue and earnings while at the same time facing intensifying pressure to hike IT spending to go digital, a survey showed on Monday.

The poll of SAP’s German-speaking user community found that nearly three-quarters were experiencing sharp drops in revenue. At the same time, over four-fifths said the coronavirus pandemic made digital transformation a more pressing task.

“At the centre of this crisis is the need for businesses to do more with less,” said Marco Lenck, chairman of the German-speaking DSAG user group that commissioned the survey.

The DSAG, which represents 3,700 businesses, is an influential lobby that has called on SAP to make it easier to upgrade systems traditionally hosted on site to run in remote datacentres.

Such cloud hosting makes it easier for firms to scale up or pare back their business process operations in line with need. But the initial cost and difficulty of making that move deters many.

SAP’s new CEO, Christian Klein, welcomed the DSAG survey’s findings, which he said were representative of how the group’s global business was performing.

Klein told a joint briefing with the DSAG that SAP had taken on board calls to improve integration between its four main processes: sales, procurement, human resources and supply chain management.

Work on creating a common data model, user interface and consistent security and identity management in these four areas was now 57% complete, he said. By the end of the year, 90% of the job will be done.

Klein also said that, given the cost pressures that some clients were facing, for example in the airlines sector, SAP was offering flexible payment terms to help ride out the economic slump.

“We expect the transformation in the

Geotab raises the bar by enabling companies to integrate valuable telematics data into their SAP software systems

Partnership allows customers to integrate MyGeotab platform with SAP technology via free application on SAP® App Center

Geotab, a global leader in IoT and connected transportation, today announced that a new integration application specifically created for SAP software users to enable access to fleet analytics and vehicle maintenance data insights, is available on SAP® App Center, the digital marketplace for SAP partner offerings.

This partnership will allow businesses using SAP solutions, who also utilize Geotab’s fleet management offering, to gain visibility into their company’s telematics data from SAP Cloud Platform.

With this new integration application from Geotab, businesses using SAP technology can access a range of possibilities such as end-to-end digital supply chain visibility, valuable reporting on ROI, improved asset management, insights relating to vehicle health and driver safety, and more – all from within their SAP user interface. This integration with SAP Cloud Platform will also allow others outside of an organization’s fleet management team – such as the C-suite, finance and others – to better visualize how vehicle data may impact other areas of the business.

“We are pleased to be working with SAP to help take enterprise-level telematics to the next level by giving customers worldwide the opportunity to easily access and integrate their telematics data into their SAP-powered systems,” said Neil Cawse, CEO, Geotab. “As a software powerhouse, SAP has relationships with some of the world’s biggest brands across the supply chain – an ecosystem where data reigns as a key factor in maintaining and improving current operations, as well as mapping out future planning. We believe that this new partnership will help sweeten the customer experience for businesses using SAP technology by providing them with streamlined access to their telematics data insights to aid in current and future business needs.”

“As a leading telematics provider,

SAP pledges to spend more on social, diverse businesses



FILE PHOTO: SAP logo at SAP headquarters in Walldorf


© Reuters/Ralph Orlowski
FILE PHOTO: SAP logo at SAP headquarters in Walldorf


BERLIN (Reuters) – SAP will try to allocate 5% of its procurement spending to social enterprises and diverse businesses by 2025 to encourage greater social and environmental responsibility.

The German software group, which has 440,000 clients, appealed on Tuesday to other companies to join it in supporting small businesses owned and run by women or minorities.

SAP’s procurement initiative follows its launch in June of a product to help firms track greenhouse gas emissions in supply chains, backing a view that being transparent about their carbon footprint will be good for business.

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The new initiative relates to so-called addressable spend, the share of a company’s procurement budget that can be allocated to social or diverse enterprises, which in SAP’s case equated to up to $60 million a year.

“We all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services and office supplies. These and many more are all products and services provided by social enterprises and diverse businesses,” SAP board member Adaire Fox-Martin said.

“This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?”

(Reporting by Douglas Busvine; Editing by Alexander Smith)

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