Announced in April, IBM and SAP are partnering to help organizations transform themselves to succeed in the emerging digital economy. And that means more than just reducing IT costs, which is the 2016 plan for companies globally. It means more than just revenue growth, something which IBM hasn’t been able to do for 16 consecutive quarters. For these two giants, it also means improving the customer experience to squelch disruption, the new imperative.
Since 2014, SAP and IBM have partnered to make SAP HANA the solution for clients with digital transformation ambitions. There are over 10,000 SAP HANA customers today, and S/4HANA is gaining significant momentum. In the first quarter, the company won more than 500 customers, a third of them new SAP customers. SAP’s dominance in enterprise IT will only be cemented with the IBM partnership.
Both know organizations that can’t adapt to the digital economy quick enough are handing business over to their disruptors. While digital disruption advances with each month, it takes years for a company to make some changes in the way they operate. IBM and SAP want to bridge that gap.
What they are offering is combined complementary technologies like IBM Cognitive, Cloud and Power Systems with SAP S/4HANA and SAP HANA Cloud Platform. They also intend to co-innovate solutions, probably industry-specific. They’ll offer solutions for customers who want a cloud infrastructure and those who prefer on-prem.
The two will also use their combined industry experience to help companies through migration. New collaborative consulting models and transformation roadmaps may just bring an end to the squawking that’s common with SAP implementations.
Their solutions are for those ready to digitally reinvent their companies, from materials planning and supply chain capability to product and service innovation, to improving the customer experience. Most CEOs feel the threat of increased competition from disruptors outside their industry. They believe the customer experience is well beyond products and services. They want their technology to strengthen customer relationships.
SAP has the track record of helping enterprises transform. IBM has deep penetration in enterprise architecture. Any company that can take advantage of their combined technologies and experience will have a competitive advantage. As long as their ready for a reinvention.
Is disruption from outside your industry keeping you up at night? Is improving the customer experience your new imperative?