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SAP and Partners Co-Develop Industry Cloud Offerings

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SAP and partners continue to work together to build industry cloud solutions that help customers improve their mission-critical business processes.

The German enterprise software giant’s ecosystem consists of a network of partners, customers, and experts that is highly collaborative and dynamic. Customers have the opportunity to customise a wide variety of resources and providers of software-enabled services and support, all of which are backed by SAP’s ties with various businesses located all over the world.

In the recently concluded SAP Sapphire 2022 hybrid event in Orlando City, the company highlighted a number of partnerships that are related to SAP industry cloud efforts. During the conference, SAP announced a partnership with American multinational technology corporation Apple for a series of new supply chain management mobile applications on the Apple App Store, including the SAP Warehouse Operator and SAP Direct Distribution. The event also saw the launch of SAP Digital Manufacturing Cloud solution which leverages an integrated cloud manufacturing execution system (MES) and analytics to enhance manufacturing operations.

According to Liz Herbert, Vice President and Principal Analyst at Forrester Research in Cambridge, Massachusetts, SAP’s emphasis on cloud partnerships correspond with its previous advances into vertical markets. She stated in an interview with TechTarget that SAP collaborated with third-party companies to develop an earlier series of industry offerings that were based on its on-premises ERP Central Component (ECC) platform. 

“SAP has a long history of co-innovating with partners on industry solutions,” Herbert remarked.

She further explained that when compared to prior years, today’s co-innovation is marked by a significant shift brought on by the cloud. The present environment is also shaped by the clean-core approach, which ultimately results in higher levels of uniformity and fewer versions across all clients, Herbert added.

New Co-Innovation Efforts Between SAP and Partners

SAP, EY, and Microsoft have also come together to develop a partnership that will assist financial services companies in their journey towards transformation in the cloud. Under the agreement, EY will provide its intellectual property (IP) while Microsoft gets to offer its cloud infrastructure.

It can be noted that in March, SAP laid out strategic plans to co-develop IP and services within its ecosystem. Representatives from SAP have stated that partners will contribute 80{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} of the IP for the industry cloud offering through collaboration with the tech giant.

Meanwhile, McKinsey & Company, a management consulting firm headquartered in New York City, has also signed a strategic partnership deal with SAP. Providing S/4HANA migration services will initially be the companies’ primary focus, and they will primarily concentrate on the consumer products, retail, manufacturing, and automotive industries. The agreement is a part of McKinsey’s open ecosystem, which consists of acquisitions and other alliances, and is meant to increase customer impact in a market that is constantly evolving.

Commenting on the announcement, SAP Chief Executive Officer Christian Klein said during the SAP Sapphire 2022 conference:

“This alliance ensures that McKinsey and SAP can work side-by-side to focus on deploying the right ERP with the highest ROI and sustained value from technology investments, enabling clients to tap into numerous new value pools.”

Bob Sternfels, Global Managing Partner at McKinsey, believes that technology has the potential to play a significant role in industry growth that is both sustainable and inclusive. He concluded:

“SAP and McKinsey’s relationship brings together strategic thinking with technical implementation, helping the boldest leaders find enduring solutions to our most urgent challenges.”

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