SAP and GEA Team Up to Drive IoT Operational Excellence - Analyst Blog

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SAP SESAP has joined forces with GEA, the largest supplier of food processing industry, to implement an Industry 4.0 project for improving condition monitoring and predictive maintenance. Following this news, the shares of the company surged around 3% during the regular trading session on Mar 18.

Months ago, SAP and GEA had collaborated with an aim to provide machinery and engineering knowledge to the integrated and high-performance cloud offering that will utilize SAP HANA software.

GEA management now intends to collaborate with SAP for improving the performance of its separator and decanter machinery by utilizing the latter's cloud edition of Predictive Maintenance and Service solution. This solution, with SAP HANA Cloud Platform at its core, plans to amalgamate technology, sensors and machine data with business practices, applications and processes. Once completed, the solution will serve the dual purpose of minimizing structural complexity and maximizing operational excellence, thereby driving maximum profitability for companies in domestic and foreign markets.

GEA management expects that SAP Predictive Maintenance and Service, cloud edition, will help monitor status of machines at GEA customer sites, allowing easy detection of any irregular behavior of the machine on a real time basis. By leveraging the benefits of integrating SAP HANA's command on Internet of Things (IoT) and the efficacy of line recorder agent embedded ("LRAE") adapter 1.0 from IFM Electronic GmbH, GEA plans to collect all machine-related data in an effective manner. Additionally, the data, collected henceforth, will be refined by SAP's Business Suite Software that is currently being used at GEA, to attain whole new levels of customer satisfaction.

SAP's decision to partner with GEA for driving operational excellence by leveraging IoT reflects its concerted effort to simplify business operations. Previously, the company had teamed up with software firm, Jasper, and leading information technology services & consulting company, T-Systems, to optimize business value and networked logistics, respectively, on the back of IoT. According to management, the current business venture aims to capitalize on the gains of software-leveraged sensor data.

We agree that amid an ever-intensifying market competition, SAP's attempts to innovatively restructure manufacturing and administrative functions of companies will be beneficial for their survival. Dynamic companies that adapt themselves quickly to the changing consumer preferences hold the highest chances for survival. SAP's profound expertise in IoT will allow clients to predict future trends more accurately and take decisions on real time basis, thereby improving their performance. With increasing number of companies joining the race for innovation to outperform rivals, SAP's future shines bright.

SAP currently holds a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Interactive Intelligence Group Inc. ININ , MicroStrategy Inc. MSTR and DST Systems Inc. DST . All these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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