) announced two new strategic initiatives yesterday in order to
better serve its clients by improving forecasting capability and
dealer management solution. However, the announcements hardly
made any positive impact in the markets and the shares slipped
SAP launched new capabilities at the Gartner Supply Chain
Executive Conference 2013 yesterday. The new capabilities, or the
SAP Enterprise Demand Sensing, improve companies' demand
management and business planning processes with tools that
provide a real-time view of market information.
SAP Enterprise Demand Sensing comes with a real-time outlook
and analysis on all market activities, which include the
sentiments from social networks. Based on this, the companies
will be able to sense demand and accordingly promote products.
Thereafter, supply chain teams will ensure quick response to
changes in demand patterns.
This new software is expected to quickly improve the quality
of demand forecasts in order to reduce stock-outs, thereby
lowering costs and ultimately boosting sales. This new
application not only provides the current information about the
market trends and activities, but also provides historical
forecast trends, compares and accurately combines different
forecast sources with demand analytics and describes demand by
analyzing historical forecast accuracy, bias and intermittency
Therefore, through the launch of SAP Enterprise Demand
Sensing, the company now puts forward a complete, end-to-end
demand management solution to facilitate demand-driven supply
chains. SAP Enterprise Demand Sensing perfectly complements the
existing Demand Signal Management application and SAP Advanced
Planning and optimization component.
In addition, on the same day, SAP and
) expanded their global alliance through a reseller agreement,
whereby Accenture will deliver a comprehensive dealer management
solution for the dealer network of a heavy-equipment
manufacturing company. The solution will help dealers operate
their businesses more effectively through industry-leading
capabilities including mobility for field sales and service
personnel and improved business intelligence.
Accenture will act as a global value-added reseller (VAR) and
it will be the single point of contact to deliver both its
technology services and SAP products under a single structure
directly to Accenture clients. The dealer management solution
will comprise SAP software that Accenture will configure
depending on the dealers' use cases, by integrating industry best
practices for analytics, finance, sales, parts and service.
Prior to this, SAP and Hortonworks had entered an agreement
whereby SAP will be reselling the latter's Data Platform (HDP) to
its customers. Through this reseller agreement SAP will deliver a
complete Enterprise Architecture leveraging the industry's first
100% open source data platform powered by Apache Hadoop.
These strategic initiatives come at an opportune time as the
global competitive pressure is severely pushing the companies to
transform and upgrade their supply chains in order to become more
demand-driven/market-driven. Today, supply chain professionals
and the marketing force need to have more integration in terms of
work than ever before to generate value for their customers,
thereby improving their business efficiency.
SAP seeks to position itself as the market leader against
software giants like
). According to market research firm Gartner, worldwide
enterprise IT spending is expected to be $3.6 trillion in
Spending on enterprise software is expected to increase more
than 6.0% to $304.0 billion, driven by higher spending on
database management systems. Therefore, with innovations such as
these, SAP can clearly benefit from the increased spending in the
SAP currently has a Zacks Rank #3 (Hold).
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