SAP, IBM to Transform Transportation Industry - Analyst Blog

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Shares of  SAP AG SAP rose about 0.3% since May 29 when the company revealed its collaboration with IBM Corp. IBM to leverage customized business applications and consulting services for the transportation and logistics industry.

SAP and IBM will together develop a transportation platform comprising advanced technologies including analytics, cloud computing and mobile solutions among others. This platform will be designed to standardize the functional processes and to optimize the operational performance by driving up innovation in business processing.

The challenging needs of this competitive industry are propelling the transportation companies to transform their businesses by upgrading the IT framework and improving customer relationships. This new platform will aid such companies to efficiently achieve their goals.

SAP's software strength and its drive for co-innovation will be perfectly complemented by IBM's expertise in consultation and strategic implementation. Further, IBM has ample experience in undertaking and managing transformation across large-scale global businesses.

SAP is intending to integrate some of its applications like SAP Transportation Management, SAP Event Management, SAP Customer Relationship Management and SAP Billing and Revenue Innovation Management solutions for this platform. Alongside, IBM via its SAP Center of Competence has gained in-depth industry knowledge, which will come handy in delivering customized SAP solutions to the transportation industry.

Apart from this, the two companies will be collaborating on issues pertaining to business development, sales, sales support along with marketing and consulting strategies. The new platform will be implemented by the transport organizations in phases considering their needs while utilizing the present infrastructure.

Prior to this, in May 2014, SAP also collaborated with Microsoft Corp. MSFT to enhance the Windows Azure Infrastructure Services with SAP's business applications. According to the agreement, SAP will be using Microsoft's cloud computing platform for its business applications, including SAP Business Suite software, SAP Business All-In-One solutions, SAP Mobile Platform and others.

SAP currently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry that can be considered at the moment is Blackbaud Inc. BLKB, which sports a Zacks Rank #1 (Strong Buy).


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