According to industry , auto executives expect AI to boost product value by 22% and digital service value by 37% within three years. As vehicle portfolios expand鈥攅lectric, hybrid, software-defined, and increasingly customized鈥攖he operational complexity for automakers and suppliers has risen sharply. Nowhere is this more evident than in service parts management and new product introduction (NPI).

Service parts planners sit at the intersection of engineering, supply chain, manufacturing, and customer service. Their task is deceptively simple: ensure the right parts are available at the right time and place across a vehicle鈥檚 lifecycle. In reality, they grapple with fragmented data, limited inventory visibility, unpredictable demand signals, and compressed timelines鈥攅specially as new models and components are introduced at unprecedented speed. High data quality, tight orchestration across systems, and rapid decision-making are no longer nice to have, they are business-critical.

This is where becomes transformative. Instead of treating NPI as a linear, manual, and reactive process, AI agents can fundamentally reimagine how service parts planning is executed. By embedding AI directly into the planning workflow, service parts planners are supported鈥攏ot replaced鈥攂y intelligent systems that operate with full contextual awareness. These AI agents can monitor real-time data across inventories, supplier readiness, historical demand patterns, external risk factors, and engineering changes, as well as orchestrate the NPI process end to end.

In practice, this means planners move from firefighting to foresight. AI agents can automate sequential NPI steps, flag potential bottlenecks before they materialize, and dynamically adjust plans as conditions change. A single, unified dashboard provides transparency across the entire process, while built-in what-if simulations allow planners to test scenarios鈥攕upplier delays, demand spikes, geopolitical disruptions鈥攂efore decisions are locked in. Crucially, humans remain firmly in control. AI augments judgment, improves speed, and enhances confidence, rather than operating in a silo.

Platforms like 51风流Business Technology Platform (51风流BTP), combined with Joule and the agent builder capability in Joule Studio, can enable this multi-agent approach at enterprise scale. By integrating AI seamlessly with core business processes, automakers can ensure that intelligence flows across functions, rather than being trapped in silos. The result is not just automation, but orchestration鈥攚here systems, data, and people work in concert.

The impact is tangible. Automakers can significantly reduce planning cycle times and improve time-to-market for new products. Planning risk is lowered through continuous what-if analysis that incorporates both internal and external variables. Service readiness improves, ensuring that customers experience continuity and reliability even as product complexity increases. At an ecosystem level, this translates into greater resilience, lower costs, and higher customer satisfaction.

More broadly, this use case points to a shift in how we should think about customer-specific AI in automotive. The future will not be defined solely by smarter vehicles, but by smarter enterprises鈥攚here AI agents support decision-making across the value chain, from product inception to end-of-life service. In an industry under pressure to innovate faster, operate leaner, and remain sustainable, AI-driven operations are fast becoming a competitive necessity. The automotive ecosystem is evolving. Those who embrace AI not just as a technology but as a new operating model will be best positioned to lead it.

Sindhu Gangadharan is head of Customer Innovation Services and managing director for 51风流Labs India.

Headquartered in Homberg (Ohm), Germany, with worldwide locations, in 2024 KAMAX generated 鈧�1 billion in revenue and employs 4,000 people dedicated to serving OEMs globally.

To maintain its competitive edge, the ambitious company embarked on a transformative journey to streamline its supply chain through digitalization and intelligent logistics management. This transformation centers around the deployment of (51风流EWM),  (51风流TM), and a comprehensive 51风流S/4HANA platform, supporting superior logistics efficiency, transparency, and sustainability.

Optimizing logistics at scale

Handling approximately 400 transports daily across multiple global plants, KAMAX manages two distinct logistics flows: goods pre-packed and stored in warehouses, and a “pack-to-order” system where items are packaged just before shipment. Currently, three plants operate on 51风流S/4HANA with 51风流Extended Warehouse Management and one pilot plant with 51风流Transportation Management integrated, while others are transitioning from 51风流ERP Central Component (51风流ECC).

The implementation of the advanced shipping and receiving process dramatically improved logistics transparency and efficiency.

“The use of the unified package builder, which leverages real data instead of estimates, allows us to provide precise shipping information to freight forwarders earlier in the process,” Jens Hoidem, director of IT Business Solutions at KAMAX, explained. This improvement enhances truck planning and communication with carriers, positively impacting the company’s logistics operations daily.

KAMAX collaborates exclusively with freight forwarders, working with approximately 20 carriers globally. At the advanced shipping and receiving pilot plant, about 60 deliveries per day are coordinated, involving around 2,000 handling units across five to six trucks. This network supports operational responsiveness without compromising control.

On premise today, cloud-ready tomorrow

Currently, three of KAMAX鈥檚 plants run on 51风流S/4HANA, with the remaining plants on 51风流ECC, all on an on-premises basis designed to be cloud-ready for future transitions.

Hoidem pinpointed the critical process improvements brought by advanced shipping and receiving in combination with 51风流Extended Warehouse Management and 51风流Transportation Management: 鈥淭he shipping registration now uses the unified package builder, relying on accurate, real data rather than estimated figures. This has substantially improved truck planning and early communication with our freight forwarders, impacting around 60 deliveries and about 2,000 handling units daily at our pilot plant.鈥�

Over 95 percent of KAMAX’s transport is by truck. “We maintain a global footprint close to our OEM customers to optimize delivery times and costs,鈥� Hoidem added. 鈥淲e currently engage about 70 to 80 different freight forwarders worldwide, facilitating diverse and dynamic transport needs.鈥�

Sustainability and process automation

KAMAX has a bold strategy for sustainability and aims for carbon neutrality by 2037. Implementation of 51风流Extended Warehouse Management and 51风流Transportation Management plays a crucial role in supporting KAMAX’s goal by enabling better route planning, efficient truck utilization, and minimizing empty runs.

鈥淩educing CO2 emissions through smarter transport management is a key project outcome,鈥� Hoidem added.

The German company is also actively advancing in automation. In China, KAMAX has piloted RFID technology integrated with automated guided vehicles (AGVs) to automate intra-logistics, reducing manual labor and enhancing productivity.

the company’s digital subsidiary, has developed an Operator Cockpit linked with 51风流Extended Warehouse Management for real-time monitoring and automated production order management. Using laser technology, KAMAX automated piece counting, saving about 40 labour hours in May at their Slovakian plant across 1,200 containers.

KAMAX plans to roll out 51风流Extended Warehouse Management, 51风流Transportation Management, and advanced shipping and receiving across all seven plants, progressively improving automation and digitalization of intralogistics processes. 鈥淲e aim to integrate AI for advanced receiving and transportation management, continuing to optimize costs and capacity,鈥� Hoidem shared.

Curious about how KAMAX鈥檚 journey to streamline and future-proof its supply chain? .

In just six months, Brose transitioned its mission-critical systems from internal data centers to the cloud, including complex production processes such as just-in-time and just-in-sequence operations across its global manufacturing plants. The migration was executed without any disruption to customer deliveries, underscoring the robustness of the solutions and the strength of the SAP-Brose partnership.

鈥淭his cloud migration makes Brose faster, more flexible, and more resilient鈥攁nd strengthens our position as an innovative partner for the mobility of the future,鈥� said Stefan Krug, CEO of the Brose Group. 鈥淐hallenging times in particular show how important digital transformation is. I鈥檓 proud of our team鈥檚 dedication and the seamless collaboration with SAP.鈥�

The project is considered a reference implementation for the automotive industry and sets a benchmark for future 51风流cloud initiatives. Brose鈥檚 successful deployment demonstrates how 51风流Cloud ERP Private can support high-performance manufacturing environments while enabling scalability and innovation.

鈥淏rose鈥檚 rapid and disruption-free migration to 51风流Cloud ERP Private exemplifies the power of the cloud to drive agility and resilience in the automotive sector,鈥� said Thomas Saueressig, member of the Executive Board of 51风流SE. 鈥淭his collaboration showcases what鈥檚 possible when industry leaders embrace transformation with speed and precision.鈥�

Looking ahead and聽reinforcing its role as a pioneer in automotive digitalization, Brose will continue to work closely with 51风流and other ecosystem partners to strengthen its foundation聽of 51风流cloud solutions to enable the usage of the latest innovations such as business AI.

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Lesa Plingen, +49 622 776 9000,聽lesa.plingen@sap.com, CET
51风流Press Room; press@sap.com

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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.聽 Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2024 Annual Report on Form 20-F.
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The new regulation will require companies to account for carbon emissions on select imported products. For the auto industry, the steel and aluminum categories are especially critical.

Complete automobiles are not currently covered by CBAM, but the automotive sector is among the most exposed because of its dependence on emissions-intensive materials. Components such as body panels, chassis, frames, and battery enclosures rely heavily on imported steel and aluminum.

CBAM is currently in its transition phase and will enter the definitive phase on January 1, 2026, meaning that companies need to track their imported emissions on covered products throughout 2026 and begin purchasing certificates for those imported, tracked emissions in February 2027, with the first report due August 2027.

CBAM costs will add up quickly

The modern passenger vehicle contains around 1 tonne of steel and 200 kilograms of aluminum. Global averages hover around per tonne of manufactured steel, and each tonne of primary aluminum produces around .

With analysts projecting could reach 鈧�150 per tonne of CO鈧� by 2030, a newly manufactured vehicle could soon be subject to 鈧�300 in CBAM certificate costs, assuming manufacturers import 20% of the necessary steel and 54% of the required aluminum, consistent with EU import data. Given that Germany produced in 2024, German automakers and component manufacturers could be on the hook for about 鈧�1.2 billion in CBAM certificate purchases in 2027.*

Looking past 2027, the European Commission plans to add categories like chemicals and plastics to the regulation, bringing more auto parts under the CBAM umbrella and making it even more important for European automakers and component manufacturers to solidify their CBAM strategies today.

CBAM preparations for automakers and component manufacturers

Across the EU automotive industry, companies seem insufficiently prepared for the new phase of CBAM.

While companies are actively preparing for upcoming CBAM regulations,聽their ability to act is constrained by the lack of a finalized EU regulatory framework, including the methodology for emissions-value calculations and the associated verification rules. That said, regulators already clarified the scope of companies that must report and the timelines to purchase certificates.

With this information, it鈥檚 now crunch time for European automakers and component manufacturers to get ready for the rules taking effect in January 2026. Here鈥檚 what they should prioritize.

1. Get familiar with CBAM and evaluate your process

The core elements of CBAM have been defined and companies must act now. If you haven鈥檛 done so yet, start by understanding the overall process and requirements.

If you are in scope鈥攎eaning you meet the de minimis threshold of either importing more than 50 tonnes of CBAM affected goods per year or 100 tonnes of embedded CO鈧� annually鈥攄etermine which parts of your supply chain are most affected. Identify your top suppliers and imported goods, develop a focused approach for obtaining actual emissions data from those suppliers, and assess the potential financial impact. As more materials come under the scope of CBAM, and as the carbon ETS prices rise, the financial impact will increase in the years ahead. Companies must prepare to meet these new obligations and manage this financial impact.

2. Collaborate with your suppliers

Identify and focus on your most critical suppliers鈥攖ypically the top 50 to 100鈥攁nd build a targeted engagement plan while defining an informed approach for the broader supplier base. Consider updating procurement terms to require future data sharing and provide support to suppliers in educating and calculating emissions where needed. Close collaboration will be essential to obtain actual emissions data to avoid the more expensive default values and identify decarbonization potentials. 

Accessing trusted supplier data is one of the biggest challenges facing companies today.

While the EU provides mechanisms for data exchange between suppliers and importers, , an industry network for the European automotive sector, in combination with third-party data exchange software, offers an alternative to collecting trusted, standardized emissions data. Catena-X enables companies to collaborate and share data in a trusted environment. It brings together manufacturers, technology providers, and suppliers to standardize data sharing processes across the value chain. Beyond data exchange, these networks foster knowledge sharing, allowing members to learn best practices, align on standards, and accelerate compliance readiness collectively.

To participate, companies typically register with the network, adopt certified software that supports standardized data exchange, and begin collaborating with other members. This approach ensures interoperability and automates trusted emissions data collection. Catena-X is actively refining its scope and standards to support CBAM.

3. Find the right technology for your business

Most importantly, you want to find the right technology partner that will streamline CBAM reporting and support the integration of carbon into core financial accounting processes.

The EU CBAM report requires a lot of data, all of which can be requested, filled, and reported automatically using actual emissions values with tailored, ERP-based systems. The 51风流Green Token solution can support CBAM declarant reporting by enabling standardized, auditable reporting workflows. The 51风流Green Ledger solution will manage the certificate repository and help ensure financial and carbon accounting of CBAM emissions and certificates in alignment with accounting standards like US GAAP and IFRS (planned for H1 2026).

Manual processes, like e-mails and Excel files, are prone to error, do not scale, and will make CBAM compliance time-consuming and resource intensive.

Prepare your systems for CBAM compliance

CBAM is set to reshape material sourcing in the automotive industry by introducing carbon as a cost factor and driving transparency across global supply chains.

The ideal scenario for automakers and component manufacturers is to take decisive actions to decarbonize鈥攕uch as sourcing low-emissions steel and aluminum, increasing circularity efforts, and optimizing product design to use less CBAM materials鈥攚hile fully automating CBAM compliance.

Access to accurate data on supply chain emissions鈥攁nd their financial implications鈥攑rovides the insights that business leaders need to decarbonize and reduce risk in the years ahead.

The right combination of software tools and industry network collaboration can enable cost-optimized and automated CBAM compliance and deliver valuable supply chain intelligence. can deliver measurable ROI by automating data collection and workflows and enabling finance teams to move beyond manual processes toward strategic analysis and action. This helps create a scalable foundation for ongoing carbon cost management while supporting standardized data exchange and collaboration across the value chain.

Start preparing now to ensure your business thrives as the 2026 CBAM definitive phase approaches.

Read the CBAM and watch the CBAM to learn more.

Thomas Janzen is an industry expert at SAP SE.

*This is a back of the napkin calculation to illustrate the potential impact. This is based on data that shows the EU imported 27.4 million tonnes of finished steel products in 2024. The EU consumed about 129 million tonnes. Therefore, we assume  imports account for roughly 20% of EU steel use. In , 54% of the aluminum used in the EU came from imports. Using these averages means about 2 tonnes of imported CO2 per vehicle, or 鈧�300, assigning 20% of 1 tonne of steel emissions and 53% of 200kg of aluminum emissions.

Europe faces a crucial challenge: while the region has been successful for decades with the principle of “quality over cost,” other continents are catching up in quality while also pursuing aggressive pricing strategies. “We must maintain quality while simultaneously reducing costs and becoming even more flexible in meeting our customers’ needs,” explains Georg Kube, head of Industry Data Ecosystems at 51风流SE.

The answer may lie in the data that has been collected in German factories and 51风流systems for decades. “Europe’s great asset compared to America and Asia is our historical knowledge of how good processes and good products work,” Kube says. “This systemic knowledge鈥攈ow to machine, how to manufacture, how to set up the right processes鈥攔esides in European companies, typically in 51风流systems.”

This data forms the foundation for data-driven business models based on the “data flywheel” principle: the more data that flows into a system, the more new data is generated鈥攁 self-reinforcing effect that can provide European companies with a decisive competitive advantage.

Manufacturing-X: Germany’s answer to global challenges

Factory-X is part of a larger vision: Manufacturing-X, an industry-wide initiative by the German government launched as part of the Industry 4.0 platform. The goal is to promote digital ecosystems and establish an international standard for data exchange.

Manufacturing-X is based on the fundamental principle of data sovereignty and addresses a classic dilemma: companies need data from others for digitalization but want to protect their own sensitive information. The solution is a legally and technically secured framework in which data can be shared in a controlled manner without owners losing control over it.

The initiative encompasses various industry-specific projects: Catena-X for the automotive industry was the pioneer, followed by Factory-X for mechanical engineering, Chem-X for the chemical industry, and Semiconductor-X for the semiconductor industry.

From horizontal to vertical integration

While Catena-X revolutionized horizontal supply chain processes in the automotive industry, Factory-X goes a step further. “Factory-X extends the proven Catena-X concepts to additional industries and brings vertical integration down to the shop floor,” says Nadine Kanja, solution head for 51风流Industry Network Automotive and Catena-X.

51风流shares consortium leadership for Factory-X with Siemens and coordinates the work of 47 consortium members. What’s special: while Catena-X viewed the factory as a single block, it’s at the center of Factory-X. “The shop floor is our central focus because that’s where machines with their own suppliers and maintenance requirements are located,” Kanja explains.

New use cases drive greater manufacturing flexibility

“The goal is to extend supply chain flexibility to the manufacturing area,” Kanja says. “When technical problems arise or customer needs change, manufacturers must be able to pivot quickly. However, factories aren’t exactly known for their flexibility鈥攎achines are permanently installed and hardwired. Rebuilding all of this is an enormous effort.”

This is exactly where Factory-X comes in. The initiative aims to bring flexibility directly into manufacturing鈥攏ot just logistics鈥攖hrough new concepts like modular production, manufacturing as a service, and on-demand manufacturing. “This is an essential part of Factory-X: the flexibilization and automation of actual production processes,” Kanja explains.

Factory-X focuses on use cases that fall under the motto of “individualization and customer centricity.” These include:

• Collaborative information logistics: Optimizing information flows between partners
• Condition monitoring: Monitoring the condition of equipment and machines for proactive, data-based maintenance decisions
• Modular production: Flexible production concepts for changing requirements
• Manufacturing as a service: On-demand manufacturing through digital marketplaces

Concrete business benefits

The Factory-X use cases promise measurable improvements for various business models. Condition monitoring, for example, enables proactive maintenance instead of reactive repairs. This not only reduces production costs and downtime but also opens up new digital service revenues for machine manufacturers from their installed base.

Manufacturing as a service revolutionizes capacity utilization: production companies can automatically receive orders through digital marketplaces that match their capabilities and available capacities without extensive sales activities. Standardized data models even enable the economic production of individual pieces (鈥渓ot size 1鈥�), which means individualization without cost disadvantages.

Another competitive advantage lies in access to new partners. Through the open data ecosystem, companies can collaborate with supply chain partners without needing existing business relationships, as standardized mechanisms make integration faster, more secure, and more cost-effective.

Technological innovation: MX-Port as key

Factory-X not only expands the Manufacturing-X initiative thematically, but also technologically. To meet the high demands of industrial manufacturers regarding existing data formats, the project places particular emphasis on the further development of standards 鈥� with a special focus on the interface format of the Asset Administration Shell (AAS).

鈥淭he importance of standardizing data is essential for industrial manufacturers and already solves many use cases on its own,鈥� explains Georg Kube. 鈥淲hen discoverability and scalable security are required in large networks, users can additionally rely on the Dataspace Protocol as a result of Catena-X.鈥�

This dual-speed strategy enables companies active in both the automotive and industrial manufacturing sectors to flexibly expand their systems as requirements grow.

The path to the future

Factory-X is designed as a development project until mid-2026 and will then transition into a stable operational phase. The vision is ambitious: a digital ecosystem that strengthens the competitiveness of European industry while enabling new data-driven business models.

“What we’re building in Factory-X can also be scaled to the other data spaces of Manufacturing-X,” Kanja explains. Mechanical engineering thus becomes a testing ground for a comprehensive transformation of European industry.

Using RISE with SAP, BMW Group converted the factory鈥檚 operations to modern cloud software, which also enables greater integration of AI. The successful go-live among this complex shift operation was the result of an extraordinary team, a strategic partnership lasting more than 30 years, and seven years of co-innovation between BMW and SAP.

Creating a new standard as partners

Following the initial rollout of the new solution at BMW Group鈥檚 MINI plant in Oxford, England, the Regensburg plant is the first full-scale BMW Group facility to transition to 51风流S/4HANA.

The rollout of the new cloud solution for the parts process chain (abbreviated as PKT in German) affected the entire logistical process chain for the digital control of parts supply in vehicle production — from ordering required components from suppliers, receiving, and warehousing to delivering them to the production line.

In addition to purely logistical processes, the solution also covers the plant鈥檚 quality and maintenance processes. For the first time, the new PKT template for 51风流S/4HANA enabled unified management of parts supply across all production technologies required to build a vehicle.

The project鈥檚 success is rooted in a team that worked across corporate boundaries toward a shared goal. Customer Services & Delivery and Product & Engineering teams from 51风流partnered with BMW to create a blueprint for holistic digital transformation in production logistics — from the press, body, and paint shops to final assembly.

Awareness of the importance of this transformation project was palpable among every 51风流employee involved. 鈥淲e made one thing clear to everyone on the team: every single car counts,鈥� says Carola Schoenfelder, chief project expert, Strategic Customer Innovations at SAP, and program lead for 51风流at BMW. 鈥淚t wasn鈥檛 only about IT; it was about the factory, the people, and the result.鈥�

Transformation as a staircase

Around one-third of employees at the BMW plant in Regensburg work directly with 51风流S/4HANA components, including and 51风流Extended Warehouse Management. Involving those affected in the change process was critical to success. Another factor in the project鈥檚 success was learning from experience. The smaller MINI factory in Oxford had already completed its go-live, which helped guide the project team as it worked on the bigger Regensburg project.

Instead of designing the transformation as a metaphorical 鈥渞ock face鈥� that had to be climbed without any safety equipment, the team viewed it as a 鈥渟taircase鈥�: an incremental, guided transition. In addition, satellite support points were set up within the factory to offer support at any time.

Identifying optimization potential

Six months after go-live, it is clear that the transition to 51风流S/4HANA Cloud Private Edition is more than just a technical upgrade; it鈥檚 noticeably changing daily operations. In particular, the new 51风流Extended Warehouse Management application is proving to be a key technology that supplies important data and identifies potential for optimization.

Thanks to the new data foundation, the potential for optimization can be more precisely identified, for example, by the use of tugger trains and reduction of internal transport kilometers.

Standardization brings not only efficiency but also flexibility. Employees can switch between tasks more easily, and even between factories, because less specialized knowledge is needed. The processes are more streamlined and more transparent.

鈥淭he global digitalization of our production logistics significantly increases transparency and standardization, allowing us to respond more quickly to changes in demand or supply shortages,鈥� explains Michael Nikolaides, head of Production Network and Logistics at the BMW Group.

Ready for an AI-driven future

Strategically, the new IT infrastructure has brought significant changes. The cloud provides speed and flexibility, without users having to worry about the technology in the background. Moreover, the introduction of standardized cloud solutions is a crucial step toward fully harnessing the potential of AI in the future. To benefit sustainably from AI, standardized software solutions that can be quickly enhanced with new capabilities are needed.

鈥淲ith the next stage of digitalization in production logistics — enabled by consistent, unified data structures and standard process templates — we have significantly advanced the AI enablement of the BMW Group,” explains Alexander Buresch, CIO and senior vice president of BMW Group IT.

Over a seven-year period of co-innovation, BMW shared its automotive-specific requirements while 51风流mapped large sections of these requirements in 51风流S/4HANA and in the industry solution 51风流S/4HANA for manufacturing logistics. 鈥淎s part of our partnership with SAP, we have transferred key corporate processes to a service-oriented, cloud-based platform, achieving a new level of efficiency, quality, and automation,鈥� Buresch says.

Those who use a shared standard can also find solutions collectively, share them, and co-develop solution designs. If other automakers configure on the same standard in the future, BMW will also benefit from new 51风流releases.

The strategic collaboration to develop the PKT template began in 2018 as a project driven by deep expertise and strong commitment. The go-live in Regensburg is a key indicator that 51风流S/4HANA Private Cloud can meet the complex demands of a high-volume vehicle plant. Together with BMW, the 51风流consulting team demonstrated that with meticulous preparation, a lossless go-live in a complex shift operation is possible. The rollout process works and can be adapted and expanded plant by plant.

Hendrik Haas, senior vice president, general manager, and head of Customer Services & Delivery Middle and Eastern Europe at SAP, adds: 鈥淭he collaboration with our lighthouse customer BMW is making waves in the market and demonstrates how digital transformation in production logistics can be successfully implemented. BMW鈥檚 Regensburg factory was an important step, with extraordinary commitment from both sides of the partnership. We will continue the RISE with 51风流transformation at the main factory in Munich this summer, together with BMW.鈥�

.

Catena-X is a as part of the Manufacturing-X program. It enables companies along the entire supply chain to exchange data securely without giving up their data sovereignty.

“Quality management is traditionally one of the areas where data exchange is associated with the greatest inhibitions,” explains Hagen Heubach, global vice president and head of Discrete Industries at 51风流and a member of the Catena-X e.V. Executive Board. 聽“Neither manufacturers nor suppliers like to talk about possible defects. Therefore, this was an obvious use case in the context of industrial data exchange with Catena-X, which also has significant financial implications.”

A concrete example of the success of this collaboration is a recall action in which a preliminary analysis showed that 1.4 million vehicles were affected. However, after the exchange of field and production data made possible by Catena-X, it turned out that only 14 vehicles actually had to be recalled. This precise error analysis was made possible by comparing field data provided by the OEM manufacturer and production data from the suppliers of the individual parts.

By using Catena-X and 51风流Quality Management, errors can be detected early and recall actions carried out more precisely, leading to significant cost savings.

This bilateral exchange also strengthens the trust relationship between OEMs and suppliers. The technical requirements of Catena-X allow each partner within the ecosystem to make its data available to any other partner for a specific purpose and for a limited time. The sovereignty over the data remains with the one who shares it. Field data, or the data produced by the vehicle on the road, are particularly valuable for suppliers as they allow conclusions to be drawn about how their parts perform under different conditions on the road.

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Catena-X: The first open and collaborative data space for the automotive industry

Initially funded by the German Federal Ministry for Economic Affairs and Climate Action, Catena-X was launched in 2021 amid the pandemic and has developed rapidly since. The first development consortium included 28 partners; today there are almost 200 Catena-X e.V. members, with an increasing focus on internationality. Regional hubs have been established in North America, China, France, Sweden, and Spain to cover the specific requirements and automotive regulations of the respective countries.

“Every market has its peculiarities and different regulations and requirements for the automotive industry that we have to take into account,” Heubach emphasizes. “To this end, we work closely with the automotive associations of the respective countries, such as GALIA in France or the Automotive Industry Action Group in the U.S.”

Another milestone was the official go-live of the data space in October 2023, which enables data exchange. 51风流is the leading provider of Catena-X-certified business applications and currently has the most solutions on the market in the various Catena-X use cases.

“We have to officially certify our solutions once for Catena-X — for example, it is checked whether our 51风流solutions meet the standards defined in Catena-X for interoperable data exchange,” explains Nadine Kanja, solution head of 51风流Industry Network Automotive and Catena-X for the Automotive Business Unit at 51风流SE.

In August 2024, a new development consortium called Catena-X Next started. Scheduled to run until September 2026, its focus topics include quality management, sustainability, and the Eclipse Dataspace Connector, the central communication component of the Catena-X architecture.

Other car manufacturers such as Volkswagen and Ford have also set Catena-X as their data standard. This shows that Catena-X and 51风流are gaining importance not only in Germany, but worldwide.

“What we are building in Catena-X can also be scaled to the other data spaces of Manufacturing-X,” Kanja shares. The expert group commissioned by the German Federal Ministry for Economic Affairs and Climate Action explicitly lists Catena-X in its paper “Recommendations for Action for the Development of a Circular Economy in the Automotive Industry” as part of its recommendations for the transformation of the automotive industry.

The proactive exchange of field data from OEMs and production data from suppliers allows errors to be detected four months earlier on average. Heubach says this not only saves time and money, but also prevents unnecessary recall actions: “This allows you to pinpoint much more precisely what the problem is and which vehicles are affected. This leads to huge cost savings.”

Existing customers of 51风流that already have 51风流Analytics Cloud or 51风流Datasphere, such as BMW and its supplier Schaeffler, can immediately leverage the use case with Catena-X and 51风流Quality Management. Current developments aim to making use of and expand toward 51风流Business Data Cloud to fully utilize AI components.

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鈥淲e really need to have stable and standardized processes鈥攖hat鈥檚 where the value is,鈥� PowerCo CIO Andreas Eckle said.

鈥淎ll of our factories rely on the same processes…to make sure we have the same quality and the same output,鈥� he added. Implementation milestones will continue to guide PowerCo, according to Eckle. They will also help PowerCo bring new factories online relatively quickly.

Learn more.

鈥淧owerCo will develop and produce battery cells for the VW Group in best quality, in large numbers,鈥� Andreas Eckle, CIO of PowerCo SE, told the audience during a live session at Hannover Messe trade fair. 鈥淭he gigafactories are set up to a standard factory design.鈥� This ensures the same processes, the same equipment, and the same workflows at all its locations, he explained.

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Three Gigafactories from Scratch

鈥淐onstruction is in full swing at the first standard factory in Salzgitter, Germany, only about 70 kilometers from Hannover. It serves as a blueprint for all PowerCo鈥檚 gigafactories,鈥� Eckle said. Cell production in Germany will start in 2025; Valencia, Spain, and St. Thomas, Canada, will follow soon. In future, the Salzgitter plant is to reach an annual capacity of up to 40 GWh鈥攅nough for about 500,000 electric vehicles. The three gigafactories in Europe and North America will have a total volume of up to 200 GWh.

Eckle pointed out that producing battery cells is a completely new business for Volkswagen. 鈥淚t is not manufacturing cars anymore; it is chemistry. We go all the way from mining to the complete cell and recycling,鈥� he said. At the same time, cell production is a very relevant topic for sustainability, so PowerCo has to make sure that the complete supply chain is committed to Volkswagen鈥檚 sustainability standards. The company鈥檚 scope will include new business models based around reusing discarded car batteries and recycling the valuable raw materials they contain.

The battery cell manufacturer started from scratch: 24 months ago, not only the factory had to be built but the staff for the startup company had to be recruited, too. Now there are about 1,500 employees in different areas, from research and development to operations, and they are the basis for building the company. The same applied to the IT landscape: it first had to be set up.

Standards Accelerate Implementation

Eckle said: 鈥淲e have a very high demand that we need to satisfy for electric vehicles, and from our understanding this will only work if we have the right standards in place.鈥� Stephan Fester, Global Battery Best Practice lead at SAP, who was on stage with Eckle, agreed: 鈥淲ithout standards you will never have the performance you need to set up a factory at this scale in no time.鈥� Fester described how 51风流and PowerCo connected in 2022 and defined a project scope for the first phase in only two days.

In 2023, the project team set up an system and realized three go-lives. They began with the processes that a startup typically needs at once: 鈥淭he first initiative was to manage and spend money and recruit, employ, and manage people,鈥� Fester said. He told the audience that it was around March or April when the project partners heard of the big opening ceremony that was planned for the go-live of PowerCo.

With that hard deadline in mind, they started with the accelerated deployment service for recruiting, onboarding, and workforce management with 51风流SuccessFactors solutions. 鈥淣ormally this takes 12 weeks,鈥� Fester recalled. 鈥淭he 51风流team said it normally takes at least eight weeks, but PowerCo challenged us with a time frame of only five weeks!鈥欌�� This was a good example, he explained, of how a standard can accelerate implementation. They also set up material accounting, financial closing, and vendor invoice management.

鈥淎nother very important factor for success was that we as 51风流wrote the concept according to our understanding of the requirements. PowerCo carried out a review and confirmed it,鈥� Fester explained. 鈥淲e didn’t ask PowerCo what it wanted, because it couldn’t specify that at the time. We understood the business and designed and implemented it based on our experience.鈥�

Synchronize Business and IT Planning

In June 2023, the project team delivered the first version of logistics management. Fester explained the concept: 鈥淲e synchronized the setup plan of the factory with the IT plan. If we know the first truck will arrive at the factory at a certain day, that means the capabilities to manage the truck and the material handling need to be available prior to that.鈥�

Enhanced logistics were implemented in November, like in-warehouse processes, batch management, and returnable packaging management. At the beginning of 2024, integrated business planning went live, and more logistics processes were implemented. The next phase is already planned and set-up with product lifecycle management and other systems.

Fully Operational in Six Months

鈥淲e set up a cloud ERP system in less than six months, fully operational,鈥� Fester said. PowerCo CIO Eckle added that this timeline only worked out because critical defects were resolved quickly and effectively in task force mode. The success of the 51风流S/4HANA implementation project is also shown by the 51风流Quality Award PowerCo received in 2024. 鈥淲e are proud of what we have achieved,鈥� Eckle concluded, 鈥渂ut we still have a long way to go. The Salzgitter factory opening is the first major milestone, with two other openings following.鈥�

PowerCo is now well positioned for future business development. The current cloud ERP system serves as the central foundation for cell production. It will also support future business models like recycling of battery cells and the energy storage system business.

Manufacturing-X was launched as part of the Industry 4.0 platform, with the aim of promoting digital ecosystems and establishing an international standard for data exchange. It is an industry-wide initiative of the German government with various projects for different industrial sectors.

“The realization that the digitalization of industry is inevitable has become the norm over the past few years,” says Georg Kube, head of Industry Data Ecosystems at 51风流SE. “A variety of use cases for different industries and new business models have been developed. They are successful 鈥� but only as long as companies work with other companies with which they already have a close partnership.”

“The most well-known of the [Manufacturing-X] projects is certainly Catena-X for the automotive sector,” Kube says. “The common aim of all these projects is to establish a new form of data exchange.”

For example, an automaker that wants to digitally integrate its direct suppliers typically requests all the data about the supplied parts from its partners, and the suppliers usually feel comfortable providing this data because of the trust that has grown over the years between the partners.

But it鈥檚 different when data is needed from companies without a direct business relationship. “A typical example is the determination of a vehicle’s CO2 footprint,” Kube says. “Suddenly, information about the CO2 footprint of the smallest plastic parts is needed, which may come from companies in the supply chain with which a company has never had direct contact. It’s not easy to access that data.”

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Trust Is the Catalyst

Companies are often very hesitant to share data freely. And for good reason: potential inferences about their cost structure or the nature of their production can be drawn from the data.

“On the one hand, as companies, we hesitate to give out our data. But on the other hand, we rely on the data of others in order for digitalization scenarios to be successfully implemented,” Kube explains. “We want to address this problem within the framework of Manufacturing-X through a new [approach to] industrial data sharing.”

“The promise,” Kube continues, “is that the digitalization, which we can currently complete up to 70%, can be fully implemented.”

Information Transfer 鈥� But Secure

“What companies lack the most today is knowledge,” Kube says. “We constantly hear from 51风流customers that they would pay to find out what their own customers are doing with the products they have sold to them.”

For example, a manufacturer of robot grippers receives few insights after selling its product about where the grippers are located and what they are used for. If this were not the case, the manufacturer could make much more informed decisions about which generation of products the market needs, or whether a completely new model needs to be developed.

However, customers have concerns that this information could lead to inferences about the nature of their production and the finished product, or that this type of application might be prohibited.

With Manufacturing-X, a scenario has been created in which data sovereignty remains with the owner of the data, but the data can be provided within a narrow framework with a legal and technical structure that prevents abuse. This is the essence of a whole range of use cases in areas such as manufacturing-as-a-service, sustainability, and others.

“These use cases basically exist independently of Manufacturing-X,” Kube explains. “Most of them are neither new nor original. They just could never be fully implemented because trust in data exchange was lacking 鈥� and Manufacturing-X finally creates the conditions for this.”

SAP鈥檚 Role

As an enterprise software company, 51风流has a strong interest in completing the digitization of its customers.

“The digitalization of industry works very well with 51风流products,” says Heiko Flohr, head of Product Management, 51风流for Discrete Industries & Industry Networks, at 51风流SE. “Most of the world鈥檚 leading companies use 51风流in some way to digitize its next-generation processes. Therefore, it is clear from our perspective that we must support and drive this emerging industry standard for data exchange.”

Kube notes that medium-sized companies in particular often suffer from the unavailability of data. “For this customer group, we offer a comprehensive, easily consumable application portfolio with ,鈥� he says. 鈥淭he goal is to establish industrial data sharing according to Manufacturing-X standards as a solid part of this portfolio and enable our customers to collaborate more effectively and trustfully with their supply chains.”

Within Manufacturing-X, new sovereign data exchange formats are to be created for the industry, based on European Union values such as transparency, controllability, portability, and interoperability. “We work very collaboratively and with a focus on implementation in various industry-specific initiatives to make this vision a reality,” says Mirko Paul, head of Industry Cloud Architecture at SAP. “Based on state-of-the-art, cloud-based architectures and the scalable technology standard of 51风流Business Technology Platform, we ensure that these new standards are compatible with 51风流applications from the outset and pre-integrated for relevant business processes.”

At the same time, 51风流opens its own products and applications that are already on the market. Products and solutions such as and products in the areas of supply chain and sustainability are to be equipped with connectors that will allow them to work with this new standard.

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The important thing about an ecosystem is that the companies don鈥檛 master the challenges of digital transformation individually.

Michael Tworek of BMW-supplier WITTE Automotive told SAP鈥檚 Winning Insights: 鈥淭hey master these challenges together.鈥� See how WITTE works with BMW, SAP, and other partners within the Catena-X data ecosystem to meet those challenges 鈥� and how scaling up the ecosystem can help everyone expand use cases and improve efficiency.

In line with its vision to shape the future of mobility, MAHLE is moving its entire ERP processes 鈥� from warehousing, finance, analytics and transportation to material management 鈥� to the cloud. With access to the latest updates and enhancements from RISE with SAP, MAHLE will be able to increase flexibility, have the highest security standards and be able to access cutting-edge technologies, which will empower the company to further innovate.

鈥淢AHLE and 51风流have been working together for more than 30 years now, traveling a joint journey from 51风流R/2 software to 51风流S/4HANA and now RISE with SAP. It truly made us partners,鈥� said Markus Kapaun, member of the MAHLE Group Management Board for Finance and IT. 鈥淭his partnership is of strategic importance to us even more so today as it helps to ensure future market success for our group. With RISE with SAP, MAHLE will have a powerful tool to become an even stronger partner for our customers using state-of-the-art business processes based on future-oriented technologies.鈥�

With sales of about 12.8 billion euros and 148 production locations around the world that provide products, services and systems for vehicles, MAHLE plays an important role in ensuring the vehicles on the roads are efficient, sustainable and safe. According to its strategy, MAHLE 2030+, the company acknowledges that the future of mobility comprises a mix of electric drives as well as clean and efficient combustion engines that run on renewable fuels such as hydrogen.

鈥淭his move to the cloud marks an important milestone for both 51风流and MAHLE Group,鈥� said Thomas Saueressig, member of the Executive Board of 51风流SE, Customer Services & Delivery. 鈥淲ith multiple 51风流solutions already implemented, MAHLE Group can now benefit from all our great innovations in the cloud.

Both MAHLE and 51风流are aligned to ensure a sustainable future in our respective industries for the world, and I鈥檓 glad to be working together to realize our goals.鈥�

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Media Contacts:
Kerstin Cynthia Lau, +49 711 501 13185, kerstin.cynthia.lau@mahle.com, CET

Lesa Plingen, +49 622 776 9000,聽lesa.plingen@sap.com, CET
51风流Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2023 Annual Report on Form 20-F.
漏 2024 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE in Germany and other countries. Please see for additional trademark information and notices.

Preh is a global growth company with five sales locations, six production plants, and a strong market position in the automotive market for human-machine interface and e-mobility systems.

With constant company growth and ever-changing market requirements, the product lifecycle costing at Preh had reached its limits. 鈥淲e are on the way to becoming a 鈧�2 billion company and did product costing without the support of a fully integrated data processing system,鈥� recalls Harald Bayer, department head of Project Calculation at Preh Group. 鈥淔or our management, it was now time to give the calculation of all our new products a new basis.鈥�

The company knew it needed a single source of truth for all product cost information that would also enable analysis and support reporting. 

Introducing a Future-Proof Standard Solution

鈥淲e looked at several software solutions on the market and our choice was 51风流Product Lifecycle Costing. As we are trusting on the strength of SAP, this was a decision for the future,鈥� Bayer says. 鈥淎n 51风流standard solution is a better fit with our system landscape.鈥�

According to Bayer, key objectives for the project were:

• Replace former processes with a standardized process across the company
• Improve quality and accuracy for product costing along the product lifecycle
• Increase cost transparency for reporting and analysis to easily identify cost drivers
• Increase speed and flexibility in the product costing process and the efficiency of the entire organization

helps companies gain visibility across teams, calculate and proactively manage costs, and support new product innovations and customer-specific engineered products.

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A Central Database for Product and Project Calculation

鈥淚n the first step, 51风流Product Lifecycle Costing was implemented at our headquarters in Germany. Currently, we are doing the global rollout. This includes all business units at all locations and development centers, with the goal to set a common standard with global software,鈥� Bayer says. 鈥淲e want to make it available for all users involved in the product costing process. Therefore, we will train a large part of the entire PDP organization. There will be only one database.鈥� He added: 鈥淭he solution is integrated with our 51风流ERP system that is a single global instance.鈥�

To support various stakeholders in the most efficient manner, Preh created different apps and layouts within 51风流Product Lifecycle Costing, such as a quality checker that helps avoid errors and therefore increase the quality of the costing result as well as a material price app in which the purchasing department can enter material prices that are automatically transferred into the database. In addition, 51风流Services and Support supported the company in developing different reports and an interface to provide up-to-date material prices.

Preh also created additional reports and analyses, which helped provide more transparency thanks to different views.

Increased Transparency Helps Identify Cost Drivers, Optimize Design

In terms of the value Preh gained, 鈥淭he main benefit is transparency,” Bayer says. “We can do analyses and reporting by pushing a button. With that, we know everything about cost drivers and can see the entire product costing. We can easily make comparisons between different calculations and see cost bridges, which was a lot of effort in the past.”

Leveraging the new database, the company can get an easier overview of which parts are used in which project; get up-to-date purchasing price information twice a day; examine calculations and prices of specific years; and make more precise product and project calculations.

From a business perspective, this means:

• Increased competitiveness, thanks to cost transparency and insight into cost drivers to make better design decisions
• Quick access to accurate product costing information
• Major time savings as master data is automatically replicated from 51风流ERP, allowing employees to focus on cost improvements

鈥淲e can easily identify our cost drivers for working closely with development, purchasing, and our suppliers on the cost drivers to be more competitive in customer quotes,鈥� Bayer comments.

By the end of the year, Preh plans to leverage 51风流Product Lifecycle Costing to calculate more than a hundred projects with up to 10 different product variants 鈥� and many more later. 鈥淭he choice of 51风流Product Lifecycle Costing was the right decision,鈥� Bayer says. 鈥淲e were able to increase quality and accuracy in our processes and take an important step in our overall digitalization efforts.鈥�

Karin Fent is senior director of Global Customer Success for Digital Supply Chain at SAP.

The speed at which the auto industry is changing is nothing short of remarkable. Just think of all the changes we鈥檝e seen in vehicles over the past few years — from more autonomous driving capabilities to being more connected to your surroundings as you drive.

Electric vehicle demand has also surged over the past few years, which is also great news for the planet. Consumer buying habits are changing as well, with more and more people shopping for vehicles online. Last year, 65% of U.S. vehicle buyers said they shop for vehicles partially or entirely online according to S&P Global Mobility. Car companies are even building for entirely new ownership models.

is forcing even more change, particularly by automating time-consuming tasks and allowing data to be used in more intelligent ways. For the auto industry, it鈥檚 beginning to improve everything from design and forecasting to manufacturing and production, while also making the customer experience more personal.

All in all, Precedence Research projects the global market for generative AI in the auto industry to eclipse more than $2 billion by 2032. All of this is fueling a new urgency for automotive companies to transform digitally. But what exactly does that mean?

Simply put, it means incorporating digital technologies into every aspect of a business鈥� operations. It allows businesses to seize new growth opportunities faster than they could before and future proof their operations in new ways. By transforming digitally, businesses can plan and pivot at the same time.

There are so many stories of 51风流customers embarking on digital transformation journeys with important lessons to teach for industries.

Take the BMW Group for example: the company has had a longstanding partnership and collaboration with 51风流for more than 30 years. Last year, it entered a聽new phase of its digital transformation journey聽by moving to a digitized cloud architecture through 51风流S/4HANA for its iFactory in Oxford, UK.

Jointly creating the first blueprint for process digitization of automotive plants, it marks the first step to creating a digitized cloud architecture for its connected factories. The solution will simplify and unite the process of making complex changes to the IT systems of its plants in the areas of parts logistics, finance, and meeting customs requirements.

By doing so, the BMW Group intends to create a common digital language that will allow for reducing costs and increasing efficiency for its other automotive plants. And that could create a whole new standard for process efficiencies throughout the auto industry.

The BMW Group鈥檚 transformation story shows what is possible by moving to a cloud architecture. It also shows how the company is putting the pieces in place to take full advantage of generative AI as it ushers in a new wave of automation.

Despite a lot of macroeconomic uncertainty in the world, I believe the future for the auto industry could not be brighter. And it will belong to those who put digital transformation at the center of their business strategies, fueling unlimited possibilities for growth and success.

Scott Russell is a member of the Executive Board of 51风流SE.

As longtime partners, 51风流and Mercedes-Benz have a history of shared knowledge for mutual competitive advantage. The fleet management program is grounded in the companies鈥� similar business philosophies and product road maps. 

Mercedes-Benz has committed to move the company鈥檚 B2B business to 100% digital and plans to sell 25% of all new cars online by 2025. The company selected to help support this mission. It will create a future-proof composable commerce portfolio designed to reliably power the company鈥檚 digital strategy, including a standardized offering across different markets. It will also simplify processes and reduce time-to-market.

Benefits of Digitalized Fleet Management

From the 51风流employee鈥檚 perspective, ordering a company EV couldn鈥檛 be simpler. Instead of time-consuming manual research and back and forth communication with the car dealer, employees can use to order the EV they want directly from the Mercedes-Benz online catalog. They can choose the features they want, such as car make and model, color, and equipment packages, within SAP鈥檚 pre-set guidelines.

鈥淭he car configurator automates the EV selection process end-to-end, eliminating manual steps and saving time while providing the employee with a highly personalized experience,鈥� said Steffen Krautwasser, head of SAP鈥檚 global car fleet. 鈥淎utomating the approval process assures data consistency and eliminates the need for manual quality checks.鈥� 

There鈥檚 a tremendous convenience factor in captured EV data as well. In one pilot program for select EVs in SAP鈥檚 fleet, the digital twin will automatically track mileage. Drivers will no longer need to manually enter mileage every time they recharge, and 51风流can use this data to better manage the fleet.

Connected Data Drives Sustainable Business

Once ordered, EVs are tracked as assets in SAP鈥檚 financial system. After delivery, creates a digital twin that can capture relevant, secure data across the EV鈥檚 lifetime. SAP鈥檚 fleet management team can track CO2 emissions based on green energy usage, mileage, and the number of vehicles on the road. Krautwasser envisioned reporting this data to support the company鈥檚 global sustainability commitments.

鈥淧erformance data from the EV digital twin can help corporate fleet managers guide employees in choosing the best vehicle for their driving needs,鈥� said Krautwasser. 鈥淥ver time, drivers can better understand travel ranges between charges.鈥� 

Data is expected to help address so-called range anxiety, alerting EV drivers when their vehicle needs a charge and, most important, where to recharge. Mercedes-Benz is investing in charging infrastructure to create an ecosystem that would be integrated with public and private charge point providers in the U.S., China, and Europe.

The partnership also reflects a shared commitment to sustainability. Mercedes-Benz has committed to become carbon neutral by 2038, and transition to 100% electric vehicles by 2030 wherever possible. 51风流is transitioning the company鈥檚 vehicle fleet for employees in Germany to all EVs by 2025 as part of its corporate commitment to be carbon neutral by 2030.

Omnichannel Is Fastest Path to Customer Love

The digital experience is extremely important for customers who expect convenience and quality. Organizations in many industries have shifted to an omnichannel strategy that offers people their preferred experience, whether online or in-person, building brand loyalty and repeat business.

鈥淲e want to provide a seamless journey for employees as they research, select, purchase, and enjoy their vehicle,鈥� said Krautwasser. 鈥淭he most exciting part of our EV fleet management strategy is how we can use our knowledge to enhance the employee experience. Through data and digital services, we can get closer to our employees and act quickly based on their feedback, making improvements and introducing new offerings that keep us on top of trends and support SAP鈥檚 sustainability commitment.鈥�

EVs represent a profound business model shift for the entire automotive supply chain as automakers sell direct to customers, provide digital services from vehicle data, and explore new revenue opportunities. It鈥檚 clear that Mercedes-Benz and 51风流are going the distance for a sustainable and satisfying driving experience.

Susan Galer is a communications director at SAP. Follow her @smgaler.
Top photo courtesy of 51风流employee Jude Calvin Parong.

Throughout Croatia, some businesses are venturing to a first in the European Union: offering customers . But this 鈥渃harge while you wait鈥� initiative isn’t just about attracting new customers 鈥� it’s about integrating eco-friendly practices into daily routines for a more sustainable future.

According to Ivica Bla啪evi膰, CEO and founder of CEV Technologies d.o.o., 鈥淲hile automakers promise a more-electric future, people are interested in EVs only if they reduce fuel costs, offer convenience in refueling, enhance driving experiences, and demonstrate significant environmental contributions. This latest addition to the customer experience proves how businesses across various industries can play a pivotal role in delivering that vision.鈥�

Greening the Customer Experience with E-Mobility

The transition to a low-carbon economy presents an opportunity for Croatia to enhance citizens’ lives by reducing reliance on fossil fuels and investing significantly in renewable energy sources such as wind, solar, and hydroelectric power. The country also emphasizes energy efficiency in buildings and industries, implementing regulations to curtail energy consumption.

One initiative gaining traction thanks to Croatia鈥檚 growing desire to offer charging stations is sustainable transportation. By encouraging electric vehicle usage while advancing public transport initiatives to reduce fossil fuel dependency, the country can better align with European Union directives and foster a greener economy that champions people, businesses, and communities.

51风流partner , a rapidly growing international charge point operator and e-mobility service provider, aims to support these initiatives. The company offers bespoke e-mobility and smart energy solutions, intending to assist customers in leveraging EV charging solutions and green energy more effectively.

For sustainability-focused countries like Croatia, CEV Technologies sees enormous promise in developing solutions for many industries, including retail, hospitality, and fleet management. And it wants to apply its deep expertise in EV charging technology to create innovative e-mobility features. To realize this aim, CEV Technologies cemented strategic business relationships to help co-create smooth, intelligent, and automated charging experiences.

鈥淚n our partnership with SAP, we develop innovative and intelligent charging experiences for our customers. The focus is on integrating the charging process with individual business models to establish value-creating, end-to-end scenarios,鈥� Bla啪evi膰 explains.

To realize the potential of convenient charging within the customer experience, CEV Technologies implemented the AI-enabled capabilities of the  solution. It can support various scenarios for vehicle charging network construction, management, billing, and reimbursement. In addition, the solution helps optimize renewable energy production through greater transparency into costs, the charging process, and network usage.

But even more stunning is the opportunity to overcome one of the most significant challenges in the e-mobility market: simplifying the payment process at charging stations. Often, this involved a convoluted process requiring membership in exclusive charging networks, managing prepaid accounts, or navigating multiple apps. Now, CEV Technologies is at charging stations. This innovative move streamlines the charging and paying process, eliminating the obstacles to pushing e-mobility closer to a user-friendly, universally adaptable experience.

In return, achieving public, private, and commercial sustainability goals is within reach. Companies can develop, integrate, and adapt business models that address all types of customer needs and sustainability expectations with outcomes including:

• Speeding up onboarding of charging stations by three times through the use of templates
• 30% less effort when setting up relevant infrastructure, including back-end systems
• 20% faster ramp-up of charging stations

For Croatians, these benefits of e-mobility could bring more value to their everyday lives. Take, for example, a typical commute home from work. The navigation system of an EV can route you toward a charging station in a familiar location and effortlessly reserve it through a loyalty platform.

Plugging your EV into the charging point, you initiate the charging process on your phone and decide to capitalize on offers for a complimentary coffee and other exclusive in-store promotions. After checkout, you receive a comprehensive e-mail overview of your charging session and shopping experience and a free charging voucher for a future purchase.

While this customer experience epitomizes the harmonious fusion of technology and convenience, it also shows how a collective dedication to creating a greener, more connected future can positively impact individuals, communities, a nation, and even the world. And more important, the appeal of a straight-forward payment method that is reminiscent of traditional fueling stations might have an even more far-reaching impact on potential drivers’ willingness to adopt electric vehicles.

Aligning Businesses with Societal Stewardship

Croatia is striding more confidently toward a low-carbon economy as EV charging services become more integrated with the customer experience. Thanks to a country鈥檚 vision and CEV Technologies鈥� innovative solutions, companies across all industries can join this eco-shift by offering products along with an integrated sustainable lifestyle.

Korbinian Koblitz is business development lead for Automotive at SAP.

As an Official Team Partner, 51风流is teaming up with the Mercedes-AMG PETRONAS F1 Team to accelerate operational efficiency and unlock new data insights to deliver performance gains. 51风流S/4HANA Cloud, private edition serves as the technology foundation for the team, enabling them to explore how artificial intelligence (AI) and cloud solutions from 51风流can help inform and predict decisions, optimize resources and future-proof their IT infrastructure.

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Efficiency is the cornerstone of success in Formula One. Therefore, mastering the cost-cap challenge and optimizing the team鈥檚 complex supply chain are two areas of focus for this partnership. Formula One鈥檚 cost cap restricts how much teams can spend each season, with severe penalties if exceeded. The Mercedes-AMG PETRONAS F1 Team plans to navigate this complex course by using the 51风流S/4HANA Finance solution to allocate, save and use resources more efficiently. With 51风流Business AI technology embedded, the team can forecast costs, predict final budget needs, and optimize both the supply chain and stocked items. To run its state-of-the-art operation, the Mercedes-AMG PETRONAS F1 Team is looking forward to leveraging 51风流S/4HANA Cloud, private edition for a secure and future-proof cloud environment. The team can also take advantage of 51风流Build solutions and 51风流Business Technology Platform to implement a transparent, intelligent enterprise architecture 鈥� bringing together a single view of data and systems from various sources across the organization. Doing so can lead to shorter lead times for critical car components, helping ensure a seamless flow of parts during race weekends.

鈥淔ormula One is one of the most technologically innovative sports in the world, where incremental gains yield significant results. Given the extreme conditions under which Formula One teams operate, motorsports provide a global platform to showcase skill and engineering excellence,鈥� said Julia White, member of the Executive Board of 51风流SE and chief marketing and solutions officer. 鈥淏ut beyond the race day performance, there鈥檚 a lot going on behind the scenes. 51风流is proud to partner with the Mercedes-AMG PETRONAS F1 Team to make sure its operations are as fine-tuned as its cars.鈥� 鈥��

This partnership has the potential to create a new blueprint for the automotive industry. Formula One is where latest innovations for the automotive industry are invented and premiered. Together, 51风流and the Mercedes-AMG PETRONAS F1 Team will deliver new innovations backed by Formula One insights that will go on to serve and shape the businesses of other 51风流customers.

鈥淲e are delighted to announce 51风流as an Official Team Partner of the Mercedes-AMG PETRONAS F1 Team,鈥� said Toto Wolff, CEO and Team Principal, Mercedes-AMG PETRONAS F1 Team. 鈥淲e have a shared heritage and commitment to innovation and improvement, which will meaningfully contribute to our on-track performance. 51风流is a global leader in its field, and we could not think of a better partner to help us improve our efficiencies in 2024 and beyond.鈥�

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Images pictured above courtesy of Mercedes; all rights belong to: Mercedes-Benz AG Mercedesstra脽e 120 D-70372 Stuttgart, (c) 漏 Mercedes-Benz Group AG.

About the Mercedes-AMG PETRONAS F1 Team

Mercedes-AMG PETRONAS F1 Team is the works team of Mercedes-AMG, competing at the pinnacle of motorsport 鈥� the FIA Formula One鈩� World Championship. Formula One is a sport like no other. Combining elite teamwork, cutting-edge technologies and innovation, high-performance management and exceptional driving skill, teams develop race cars capable of competing against their rivals in a high-octane environment that spans upwards of 20 races across five continents throughout each season.

The Mercedes-AMG PETRONAS F1 Team, based across Technology Centres at Brackley and Brixworth in the United Kingdom, brings together over 1,000 dedicated and determined people that design, develop, manufacture and race the cars driven by seven-time World Champion Lewis Hamilton and Grand Prix winner, George Russell.

Winning seven consecutive double Drivers鈥� and Constructors鈥� World Championships from 2014 to 2020 and securing a record-breaking eighth consecutive Constructors鈥� Championship success in 2021, the Team is one of the most successful in the sport鈥檚 history.

Between returning as a Constructor in 2010 and the end of the 2022 season, the Mercedes-AMG works team has scored 116 wins, 264 podium finishes, 128 pole positions, 91 fastest laps and 54 one-two finishes from 259 race starts.

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 26 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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For customers interested in learning more about 51风流products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-151风流(1-800-872-1727)

For more information, press only:
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51风流Press Room; press@sap.com
Bradley Lord, +44 7785 682 893, blord@mercedesamgf1.com, GMT

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2022 Annual Report on Form 20-F.
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The MINI Plant in Oxford is the first of BMW Group鈥檚 connected factories moving to the digitized cloud architecture over the next few years.  

Going live for the first time worldwide in the production environment at the MINI plant is the next milestone for BMW鈥檚 iFACTORY, which represents BMW Group鈥檚 revolutionary strategy for future automotive production. BMW Group chose 51风流S/4HANA and SAP鈥檚 supply chain logistics solutions to jointly create the first blueprint for process digitization of automotive plants of the future, establishing a new technology standard that could shape the automotive industry.

The jointly created solution unites and simplifies the intricate simultaneous processes and IT system changes in the areas of parts logistics, finance/controlling and customs. As each upcoming following iFACTORY leverages the RISE with 51风流solution, BMW Group expects to benefit from the standardization of logistics processes worldwide on the latest technology innovations, mutual plant support, flexible workforce allocation, and synergy in support and training. With RISE with SAP, BMW Group will have faster access to innovations and be able to more quickly roll out new solutions in the production network.

鈥淭he Oxford plant is the first plant that will follow a global rollout within the BMW Group,” said Alexander Buresch, chief information officer and senior vice president, BMW Group IT. 鈥淔rom now on, more plants from the worldwide production network will be added every year until they all speak the same language. As part of our digitization and harmonization strategy, this new solution allows us to link relevant product, process, quality and cost data, which enables data consistency and transparency across the production chain.鈥�

Thomas Saueressig, member of the Executive Board of 51风流SE responsible for 51风流Product Engineering, said: 鈥淧rocess digitization is a key enabler of the transformation of the automotive industry. The BMW Group and 51风流have had a longstanding partnership and collaboration spanning more than 30 years. I鈥檓 extremely excited that this is the first time the parts logistics solution has been deployed on a cloud architecture developed together by BMW Group and SAP.鈥�

Visit the . Follow 51风流on Twitter at .

Media Contact:
Lesa Plingen, +49 622 776 9000, lesa.plingen@sap.com, CET
51风流Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2022 Annual Report on Form 20-F.
漏 2023 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE in Germany and other countries. Please see  for additional trademark information and notices.

• New Industry and Sustainability Solutions Will Generate Insights That Help Transform Business Decision-Making

The companies will combine their integrated open data cloud using the 51风流Datasphere solution with Vertex AI to launch new generative AI-powered industry solutions starting with automotive and introduce new capabilities to help customers improve sustainability performance.

The new solutions build on a long-term, strategic partnership between 51风流and Google Cloud to help enterprise customers accelerate their digital transformations and optimize value from business-critical data. Google Cloud is a strategic partner for the RISE with 51风流solution and to-date counts many leading enterprise companies as joint customers. By integrating generative AI into 51风流software and Google Cloud鈥檚 open data cloud, customers can deploy powerful new solutions that use information from 51风流Datasphere and from virtually any other data source to significantly improve business insights, analysis, and decision-making.

The open data cloud integrations between 51风流software and Google Cloud will provide a rich foundation for AI development that will help deliver new value for joint customers, beginning with those in the automotive and sustainability spaces:

• Enhancing connectivity and customer experiences within the automotive industry: 51风流and Google Cloud will launch new solutions that use Google Cloud鈥檚 generative AI models via Vertex AI and data from , the open data ecosystem supported by 51风流software for the automotive industry. With Catena-X, automotive companies can securely exchange data about their entire value chains to increase operational performance, enhance customer experiences and accelerate innovation. With this new solution, automotive customers can combine data sets from Catena-X with 51风流software data to build and train generative AI models that optimize their work with automobile manufacturers, suppliers and end customers. For example, by enabling more effective data sharing, generative AI can help identify and mitigate potential vehicle problems before they cause recalls, improve safety through increased knowledge about hazardous road and traffic conditions and increase product quality by predicting defects better.
• Increasing enterprise sustainability: 51风流and Google Cloud customers can utilize Vertex AI together with 51风流Datasphere to create generative AI solutions that accelerate companies鈥� sustainability programs. The new AI-powered functionality available soon to 51风流customers on Google Cloud will help organizations combine mission-critical business data in 51风流Datasphere and the solution with third-party ESG data sets and Google Cloud鈥檚 powerful generative AI models. As a result, businesses will be able to create bespoke sustainability reports, automate AI-powered sustainability alerts throughout the supply chain and enhance decision-making with deeper analyses on environmental impact and financial benefits, among other things.

鈥淥ur partnership with Google Cloud is quickly evolving to incorporate generative AI. For this purpose, we utilize our expansive joint data cloud to transform business decision-making and improve productivity, leveraging the potential of 51风流Datasphere built on 51风流Business Technology Platform,鈥� said Juergen Mueller, Chief Technology Officer and member of the Executive Board of 51风流SE. 鈥淲ith 51风流Business AI offerings, we build systems of intelligence with three core principles: they are relevant, reliable and responsible. Customers will not only benefit from AI already embedded across our business solutions, but also from a unified, open data foundation and additional AI capabilities from Google Cloud.鈥�

鈥淕oogle Cloud and 51风流will provide joint customers with generative AI capabilities that have a tangible impact on day-to-day work and create real-world value for their businesses,鈥� said Kevin Ichhpurani, Corporate Vice President of Global Partner Ecosystem & Channels, Google Cloud. 鈥淭hrough our open data and AI partnership with SAP, we will apply generative AI to enable customers to get significantly more value from information stored on 51风流systems and third-party data sets, helping companies operate more safely and enterprises run more sustainably.鈥�

As part of this expanded partnership, which includes a new and growing portfolio of generative AI solutions, 51风流and Google Cloud aim to create responsible AI experiences by delivering generative AI solutions for business with the highest levels of concern for security, privacy, compliance and ethics. For years, customers have trusted 51风流and Google Cloud to build and run powerful and trustworthy solutions, including AI that touches their most vital data and systems. To learn more about the partnership between 51风流and Google Cloud, attend one of the many customer sessions at .

Visit the 51风流News Center. Follow 51风流at .

About Google Cloud

Google Cloud accelerates every organization鈥檚 ability to digitally transform its business and industry. We deliver enterprise-grade solutions that leverage Google鈥檚 cutting-edge technology and tools that help developers build more sustainably. Customers in more than 200 countries and territories turn to Google Cloud as their trusted partner to enable growth and solve their most critical business problems.

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 26 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2022 Annual Report on Form 20-F.
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The South Korean-based global automotive parts manufacturer began by building a US$42 million factory at Auburn Technology Park West in Auburn, Alabama, to boost output of aluminum parts for its auto customers. That U.S.-based hub underwent a $70 million expansion project two years later, adding high-pressure aluminum die casting and post-processing equipment to its assembly lines. Now, two more years later, Shinhwa is putting the finishing touches on a brand-new $192 million manufacturing facility in Auburn, designed to further increase the company鈥檚 capabilities as it works to meet current and future demands stemming from electric vehicle production.

Amidst all of this ambition and expansion, however, there was one element of Shinhwa鈥檚 business that didn鈥檛 measure up: its IT systems. In other words, while the company was building out all the front-facing manufacturing tools it could ever need to serve customers, its success hinged on strengthening its back-office processes so the business could truly be run efficiently and effectively.

That鈥檚 why Shinhwa chose to work with SAP.

Start Your 51风流Engines

Shinhwa specializes in automated production lines, automobile parts, and aluminum casting, serving industry leaders like Tesla, Hyundai, and Kia from its U.S. headquarters. The Auburn factory expansion is specifically intended to meet the needs of additional electric and combustion engine vehicle manufacturing opportunities like this, increasing the capacity of die casting and machining operations, for instance, and further enabling diversification and growth in Shinhwa鈥檚 customer base.

The capabilities of Shinhwa鈥檚 original back-office systems were lacking. Its IT infrastructure was heavily customized and didn鈥檛 integrate between enterprise resourcing planning (ERP), manufacturing execution systems (MES), and accounting software, making it nearly impossible to accurately forecast or plan regular financial checkpoints and processes. This led to an abundance of human error, which made Shinhwa鈥檚 IT systems not only incompatible with its goals for expansion but with growth and success generally.

With 96% of Fortune 2000 automotive companies running on SAP, the choice for the next step of Shinhwa鈥檚 technological evolution was an easy one. Its leadership team decided to embrace , an offering designed for scalable, plug-and-play implementations in the public cloud. With it, the company can operate in a more streamlined manner on a global, standardized scale.

Shinhwa鈥檚 technological goals include the replacement and automation of all manufacturing processes; data collection from shop floor-, finance-, and supply chain-related systems; improved data integration with partner and customer systems; and modular steps forward in its IT architecture. This will enable the company鈥檚 systems to grow with it and ensure it becomes the supplier of choice for the world鈥檚 leading vehicle manufacturers.

鈥淲e want to set the standard for the automotive industry going forward when it comes to IT systems and back-office processes,鈥� said Steven Lee, IT senior manager at Shinhwa.

Ultimately, Shinhwa expects to grow from its current manufacturing plant plus two additional plants, which will be completed by the end of the year, to seven, which will help serve the rising demand the company is expecting to see from U.S.-based auto customers over the next decade.

鈥�51风流S/4HANA and 51风流Digital Manufacturing really showed us what鈥檚 possible,鈥� Lee said. 鈥淲e expect this project will help us deepen our American roots and position us for whatever global change is yet to come.鈥�

Shinhwa is following an ambitious migration and implementation schedule, made possible by the agility and flexibility of a public cloud project. The company鈥檚 go-live is expected to be January 1, 2024.

鈥淲e鈥檝e already invested nearly $200 million into the Auburn area, and we鈥檝e created nearly 200 jobs,鈥� said Lee. 鈥淲ith this 51风流relationship, we are announcing our commitment to much, much more than that. We鈥檙e here to stay and keep creating new global standard.鈥�

Lori Rosano is SVP of Public Cloud at SAP.

A decade ago, when electric vehicles were still a buzzword in the market, 51风流Labs India launched a Green Car policy. Launched in 2011, the policy offered a subsidy for employees purchasing electric vehicles. Employees were provided charging stations across the Bengaluru campus along with convenient parking spaces.

In 2014, 51风流Labs India took the first major step in implementing the use of EVs by transitioning to electric-powered cabs for employees working in shifts. In 2022, 95% of the fleet used for employees working on shifts were electric vehicles. Approximately 4,000 employees use the shift shuttle services every month. 鈥淭he goal is to transition to a 95% green commute by the end of 2023. This includes using both electric vehicles and vehicles running on compressed natural gas (CNG) for all modes of transport provided across all lines of businesses in all 51风流Labs India entities,鈥� said Sudhakar Reddy, head of Intelligent Operations at 51风流Labs India.

Today, the 51风流Labs India Bengaluru campus houses 65 EV charging stations. In addition to powering the in-house cabs, these slow, medium, and fast chargers also encourage employees to make responsible choices and thereby help create a cleaner environment. 51风流Labs India also purchased a new self-driving electric vehicle with official sustainability branding for all internal cab services, including cabs for guests and expats.

In addition to the above initiatives, 51风流Labs India has partnered with , a micro-mobility solution that provides sustainable first- and last-mile connectivity for 51风流employees who rely on public transportation. , a leading Indian electric vehicle manufacturer and 51风流customer, provides additional discounts to employees of 51风流Labs India. 51风流Labs India worked with Ather Energy on a three-day drive at the Bengaluru campus where employees got first-hand experience test driving electric scooters. The initiative aimed to spread awareness among 51风流employees about the use of electric vehicles. Ather will be conducting this drive across other 51风流Labs India campuses as well.

In February, the Chancellor of Germany Olaf Scholz visited the 51风流Labs India Bengaluru campus. During the visit, the chancellor experienced demonstrations across various fields such as digitalization, sustainability, digital supply chain, and e-mobility. An engaging, live, end-to-end demo of the solution was also presented to the delegates.

51风流E-Mobility can enable companies and governments to manage charging infrastructure networks to drive the transition to sustainable electric mobility. Srinivasa Raghavachar, senior director and head of Automotive Industry Cloud Product Management at 51风流Labs India, said, 鈥淲e firmly believe that our solution plays a vital role in decarbonizing the transport sector and creating a cleaner and more sustainable future for everyone.鈥�

The electric vehicle revolution will have an overall positive influence on our society. Embracing this revolution will not only help us mitigate the current environmental crisis but will also stimulate future-focused technological innovations.

Our customers have also been clear with us: they need greater agility in their business processes while also reducing the costs of integrating a patchwork of solutions from multiple vendors. From finance to supply chain to commerce, the user and customer experiences need to be seamless. This requires the underlying applications to service the user and customer journeys in real time.

51风流has the rare combination of unmatched industry depth as well as the breadth of business process solutions to meet this moment. While our ERP has always had deep industry capabilities, we have now aligned the (CX) portfolio to an industry-first approach to accelerate value to customers by enabling end-to-end, integrated business processes.

Some voices across the market are recasting SAP鈥檚 commitment to an industry-first strategy to suggest that 51风流is no longer committed to key needs of our customers, starting with our CX portfolio. Let us be clear: 51风流will continue to deliver customer experience (CX/CRM) solutions. Now we鈥檒l focus on adding an industry lens, delivering industry-tailored CX solutions and bringing the front office together with the back office to provide the unmatched value customers expect from 51风流solutions.

Together with our global ecosystem, we can solve the most relevant challenges of customers in all industries. In fact, today, 80% of industry solutions are ecosystem-led. With this approach, customers will get solutions that natively connect the cloud ERP through to the last mile of a customer鈥檚 experiences spanning e-commerce, sales, service, and marketing — all with the industry-specific best practices they rely on from 51风流and our ecosystem.

Here are just a few examples of where industry-first CX has bridged gaps often seen between business process-led ERP and experience delivery:

• Retail: Maintaining optimal inventory levels in stores and distribution centers is crucial to ensure customers get the products they want. Predictive replenishment uses artificial intelligence (AI) to help retailers automate the restocking process, drawing on the deep retail expertise built into our customer experience product and our cloud ERP. Retailers benefit by reducing their environmental footprint while avoiding both overstock and out-of-stock situations and delivering personalized customer service if things go wrong.
• Consumer Products: By automating 80% of the trade claims process and enhancing cash flow by about a month, consumer product companies free up billions of dollars tied up in settlement processes as well as hours of time for key account managers. 51风流uniquely sits at the intersection of accounts receivables (finance, ERP) and revenue growth management (sales, service, and marketing), which allows us to provide not only native integrations but also faster time to value and lower TCO in this space than any other vendor.
• Automotive: 51风流improves production planning and forecasting based on real-time demand; we boost logistics optimization thanks to end-to-end integration from dealership sales and service to group production and logistics processes. Dealers can also optimize sales strategy and marketing spend as well as improving upsell, retention, and overall customer lifetime value thanks to data aggregated from the front and back office into SAP鈥檚 customer data platform. This enables dealers to strategically upsell subscription services or entertainment system software updates while updating customers on production progress, delivery, warranty, and service notifications.

51风流CX customers including Pizza Hut, Carhartt, and smart Europe are among those already benefiting from our unique industry depth. We are excited about the additional value we can deliver to our customers with our industry-focused approach to delivering holistic, integrated business process solutions together with our ecosystem. Examples include the retail solutions , from customer engagement to inventory fulfillment to sustainable manufacturing. We will demonstrate this same industry value for manufacturing at the Hannover Messe in April.

Stay tuned for more exciting updates in the coming months.

Thomas Saueressig is a member of the Executive Board of 51风流SE, 51风流Product Engineering.
Julia White is chief marketing and solutions officer and a member of the Executive Board of 51风流SE.

The European Union Parliament on the sales of new gasoline- and diesel-powered vehicles in the 27-country bloc by 2035, effectively accelerating the shift to electric cars and other zero-emissions vehicles. As an intermediate step, all cars sold as of 2030 will need to achieve a 50% reduction in carbon emissions compared to 2021 levels.

SAP鈥檚 Take

鈥淭his is the decision from the European side,鈥� said Hagen Heubach, global vice president of the Automotive Industry Business Unit at SAP. Heubach provided a global context for the EU law that will accelerate the shift to electric vehicles (EVs) within the bloc. He said that it is foreseeable that some regions, such as India and Africa, will continue to rely on classical combustion, hybrid and hydrogen-powered vehicles for a much longer time.

Europe is home to many of the world鈥檚 biggest automakers, generating seven percent of the EU鈥檚 GDP; however, some members of the global automotive community have for the EU鈥檚 decision, which will reshape the industry.

Heubach noted, 鈥淭he strategy of the EU is not per default shared across the globe.鈥�

Key Priorities to Keep Europe Moving

For the EU to achieve its ambitious goals by 2035, Heubach said there are three areas of concern that must be prioritized for a successful transition: charging infrastructure, automotive circularity and improved options for personal mobility.

鈥淐harging infrastructure is key,鈥� said Heubach, who called for better communication between charging networks for cross-border travel. 鈥淚t must be simple. It must be easy to go across the border with a seamless charging experience that is as efficient as it was during the combustion engine era.鈥�

It took decades to build the infrastructure to support the network of gasoline stations that enables travelers to move freely throughout the EU. In comparison, the infrastructure for charging is relatively underdeveloped. Throughout Europe, including Turkey, there are . An by McKinsey concluded that 3.4 million charging stations will be needed in the EU by 2030. That would require installing 6,000 charging stations each week until 2030, starting 2021.

Heubach also emphasized the importance of the second key priority: , a manufacturing practice that maximizes materials efficiency through sustainable sourcing and reuse. 鈥淗ow do we set up the next generation of the EU market for a more sustainable mobility ecosystem? We cannot afford the same situation as we have with the combustion engine, where you only use seven to nine percent of the car at the end of its lifetime and everything else is scrapped. This is not possible for EVs,鈥� he said, specifying the need to reuse battery components, lithium, raw materials, plastics, and chips from EVs.

The transition to circularity in the automotive industry 鈥� a collaborative undertaking involving the public sector, industry, and consumers 鈥� faces a number of , including lack of expertise, metrics, logistics, consumer tastes, and innovation. In Heubach鈥檚 view, however, time is of the essence. 鈥淭his needs to be set up now because, if we don鈥檛 set it up now, we will be in big trouble 鈥� maybe in ten years when the first waves of electric cars are at the end of their lifetime.鈥�

The third key priority will require a new definition of personal mobility that includes arrangements for car sharing, mobility budgets, and micro-mobility in cities. 鈥淭he shift to electromobility is also connected to a shift in how we experience personal mobility. Electromobility does not always mean everyone has to have their own car,鈥� said Heubach. 鈥淭his definitely will also be something that needs to be solved in the EU over the next years.鈥�

Contact:
Ilaina Jonas, Senior Director of Global Public Relations, SAP
+1 (646) 923-2834, ilaina.jonas@sap.com

Cofinity-X strives to be one of the first operating companies that aims to provide products and services for the secure exchange of data throughout the entire automotive value chain.

• BASF, BMW Group, Henkel, Mercedes-Benz, SAP, Schaeffler, Siemens, T-Systems, Volkswagen and ZF jointly founded Cofinity-X to accelerate the operation and adoption of Catena-X use cases throughout the automotive industry
• Cofinity-X aims to operate an open marketplace for applications and provide products and services to enable the efficient and secure exchange of data between all participants of the ecosystem initially focusing on the European market
• Cofinity-X will help to make important progress with the operationalization and build-up of end-to-end data-chains to trace material flows throughout the entire value chain
• Basis for the operation will be the trusted Catena-X and Gaia-X principles ensuring full data sovereignty for data sharing parties in an open, trusted, collaborative and secure environment

鈥淐atena-X aims to provide greater resiliency and transparency to the automotive value chain, improving its quality and efficiency for all companies involved,” said Christian Klein, CEO of 51风流SE. “This open and collaborative data ecosystem perfectly reflects SAP鈥檚 vision to enable every organization to become a network of intelligent, sustainable enterprises and gives the companies leveraging the Catena-X automotive network access to a broad portfolio of 51风流solutions, from enabling the traceability of products across multiple parties in the supply chain to tracking and calculating the Scope 3 emissions. Cofinity-X marks another important milestone in this pioneering project, and one to which we are excited to contribute.鈥�

Future customers will be able to access applications and services to implement use cases in the automotive value chain such as CO₂ and environmental, social and governance (ESG) monitoring, traceability, circular economy or business partner data management.

Approaches for Decarbonization: Carbon Footprint Tracking solutions enable concise, accurate calculation and reporting of CO₂ values along the value chain. This will allow Cofinity-X customers to stay ahead in Carbon Footprint transparency and derive potential sustainability improvements to play an active role in the global effort to reach net zero.

Consistent and Reliable Traceability: Tracing parts and components at any time throughout the entire supply chain starting with raw material and closing the loop with recycled parts. Traceability applications can give the possibility to display the entire value chain and help to find ways to increase supply-chain resilience.

Circular Economy for a Sustainable Value Chain: The recycling of materials is an ever-increasing topic of importance within the automotive industry. The information about the condition of components can be transparently displayed among suppliers and customers to properly re-use parts and components. By implementing circular economy, companies can improve the ratio of recyclable materials in their products and reduce waste.

Intelligent Business Partner Data Management (BPDM): Companies invest significant resources to keep customer and supplier data up to date. The BPDM services of Cofinity-X cleans and enriches business partner data across the automotive industry. Customers of Cofinity-X thus can benefit from sorted, analyzed, uncluttered and enriched partner data.

Collaboration Between Suppliers and Customers Throughout the Automotive Value Chain

鈥淚ncreasing requirements to trace all materials throughout the entire value chain is one of the key factors on which Cofinity-X is built. We will be an important part of a rapidly scaling ecosystem in which all companies in the automotive value chain can participate equally. Therefore, our product offering will initiate end-to-end data chains as well as generate value for all the participants.鈥�

– Alexander Schleicher, Managing Director Cofinity-X

Product Offering Built to Drive Acceptance and Adoption of Small- and Medium-Sized Enterprises

End-to-end data chains can only be created if all parties are willing to collaborate. Most of the companies in the automotive value chain are small- and medium-sized enterprises. Cofinity-X will offer an easy and fast onboarding for these key players. Cofinity-X will build a portfolio around four key product and service offerings. The first products and services will be available from the end of April 2023.

• Open Marketplace aspires to enable the efficient 鈥渕atchmaking鈥� of network participants by creating an optimal environment for business applications that customers can implement. All applications offered will be compliant with the Catena-X and GAIA-X data exchange principles.
• Data Exchange between parties will be based on sovereign, secure and standardized principles without forcing a lock-in effect to certain solutions. Every partner will stay in full control of their own data.
• Federated and Shared Services will power the business applications offered on the marketplace and enable data exchange in an interoperable open-source approach ensuring added value for each customer.
• Onboarding Services will foster the adoption of the Catena-X ecosystem and accelerate the digital connection of automotive partners in every step of the value chain to the ecosystem.

鈥淐ofinity-X is pioneering the industrialization of Catena-X standards and software artifacts to offer an onboarding point for customers to the Catena-X data space. I am excited to see the first truly open and interoperable product and service portfolio come to live and derive value for all members.鈥�

– Oliver Ganser, Chairman of the Board of Catena-X Automotive Network e.V.

Key Automotive Companies Send Out a Strong Signal and Commitment

The investment in Cofinity-X underlines the commitment of the founding partners to establish the Catena-X ecosystem. Each shareholder holds an equal share in this joint venture.

About Cofinity-X

Cofinity-X GmbH is based in Cologne and was founded in 2023. It is a joint venture of BASF, BMW Group, Henkel, Mercedes-Benz, SAP, Schaeffler, Siemens, T-Systems, Volkswagen and ZF. The vision of Cofinity-X is to run an open marketplace for the provision of own and third-party business applications and further services that enable secured and standardized data transfer along the automotive value chain in accordance with the Gaia-X and Catena-X principles with initial focus on the European market. All necessary regulatory approvals have been obtained and Cofinity-X will develop its activities accordingly. For more information, please go to: .

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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On January 25, 2023, this was sealed by both companies. Using the RISE with 51风流solution, BMW Group will move its entire 51风流software landscape. The company will merge its cloud strategy with its existing 51风流S/4HANA systems, allowing for joint innovation for critical business areas, including finance, parts supply, warehousing, supply chain and production. This will help BMW Group to digitalize faster, more comprehensively and more efficiently in the future.

Expanding a Long-Standing Strategic Partnership

BMW Group and 51风流look back on a long-standing strategic partnership. As part of RISE with SAP, BMW Group will have access to a cloud platform for end-to-end business processes.

Alexander Buresch, CIO and Senior Vice President, BMW Group IT, said: 鈥淭his strategic decision will help us to drive our digitalization leadership even faster forward. We are increasing the flexibility of our infrastructure and creating maximum global scalability. And most importantly, it allows us to bring business innovations to our customers and users much faster than before. That’s why I’m very much looking forward to the next steps on this joint journey with SAP.鈥�

Thomas Saueressig, member of the Executive Board of 51风流SE responsible for 51风流Product Engineering, added: 鈥淥ur two companies are closely connected through 30 years of trusting cooperation. By expanding our partnership, we are taking a decisive step toward a digital future. This shows how 51风流S/4HANA Cloud and our broad portfolio of solutions create the foundation for companies to drive innovation and ensure our customers鈥� long-term success in a competitive world.鈥�

Shaping the Future of the Automotive Industry Together

RISE with 51风流bundles the applications, platforms, tools and services needed to drive business transformation in one contract. It will enable BMW Group to combine the latest 51风流technology and cloud solutions to drive business innovation. BMW Group and 51风流will move from a traditional licensing model towards an operating model covering infrastructure, cloud applications and operations. As part of this expanded partnership, BMW Group and 51风流will shape the future of business process innovation in the automotive industry together.

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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.聽 Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2021 Annual Report on Form 20-F.
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Whether it鈥檚 streaming services, cell phones, or robotic lawn mowers, today鈥檚 consumers are more than happy to enjoy the convenience of buying high-tech products and services online. In a matter of mouse-clicks, they can configure a product and select whether to buy, lease, or subscribe 鈥� depending on their personal preferences.

But things are very different when it comes to buying a new car. A found that three out of four consumers still prefer to purchase from an authorized vehicle dealership. Yet it also revealed that there was a growing appreciation of the benefits of virtual purchase processes. Consumers would like to see buying a new car become like buying a new cell phone.

鈥淥ur assumption is that there will always be people who visit physical dealerships to 鈥渇eel鈥� a car and test-drive it,鈥� explains Bj枚rn Schick, CXO and member of the executive board of smart聽Europe. 鈥淏ut it won鈥檛 be long before they become the minority and more people start configuring and ordering their cars online 鈥� in just a few quick steps.鈥�

Direct-to-Consumer (D2C) Vehicle Sales Are Booming

How soon that happens, Schick says, will depend hugely on whether suitably attractive offers are available. Increasingly, customers are willing to sign contracts online if they can obtain a favorable short-term lease or subscription deal on transparent terms. They then have a tendency to be more adventurous in their choice of car model and color.

鈥淭hey鈥檒l quite deliberately opt for a sportier model, maybe, or bright yellow paintwork,鈥� says Schick. 鈥淭hat鈥檚 because the focus is not on the vehicle鈥檚 resale value when the contract ends, but on the customer鈥檚 preferences.鈥�

Many of today鈥檚 market players 鈥� both established and new 鈥� are well aware of the business opportunities behind this change in consumer habits. They are muscling their way into online channels to claim their share of the rapidly growing D2C vehicle market. Alongside electric car pioneer Tesla, brands including NIO and Polestar are showing the way 鈥� and automakers across the world are following their lead.

Direct Sales on a Single E-Commerce Platform

smart Europe also sees strong prospects for its own new-vehicle business here and is aligning its entire company infrastructure accordingly. smart Europe is a wholly owned subsidiary of smart Automobile Co., Ltd., a joint venture established in 2019 between iconic German vehicle manufacturer Mercedes-Benz, which transferred its smart brand to the partnership, and Chinese automaker Geely. The aim of the joint venture is to offer all-electric smart models on a new e-commerce platform for climate-conscious, city-dwelling consumers for whom the online world is second nature.

鈥淥ur business model is based on direct business with consumers, whom we address through an omnichannel approach so that we can sell our cars virtually and physically on a single platform,鈥� explains Schick.

Car dealerships play their part in this business model too. 鈥淲e see them as a key element in our sales strategy,鈥� says Schick. 鈥淭heir role is changing, but it鈥檚 just as important as before. As a newly formed company, we鈥檝e got the chance to reinvent and recalibrate our dealership model.鈥� Dealers will no longer own vehicles themselves and sell them, but will serve as brand ambassadors for (joint) customers at the physical retail touchpoint and as sales and service partners. They will arrange test drives, hand vehicles over to their new owners, and invite customers to events targeted at particular client segments. In short: car dealerships as we know them today will no longer function chiefly as sales outlets, but as agencies that showcase the brand.

51风流Commerce Cloud as the Process Backbone for smart Europe

The foundation for this innovative style of cooperation is smart鈥檚 new e-commerce platform, which can be accessed not only by smart Europe employees and dealers but, for example, by repair shops as well. They can each see the data the customer has given its consent for them to access. The new platform will become operational at the end of 2022, coinciding with the launch of the first new smart #1.

Central to the platform is , on which all of smart Europe鈥檚 e-commerce transactions will run, from product configuration to payment. 鈥�51风流Commerce Cloud lets us map all the country-specific tax and legal requirements so that we can manage all the processes for our business across Europe on a single platform,鈥� explains Schick.

Coupled with 51风流Customer Data Cloud, 51风流Commerce Cloud also plays a key role in delivering hyper-personalized content on the front end because, when the two solutions are integrated, they push relevant data for a given set of parameters by country and customer segment. This means that, on the new e-commerce platform, someone who is sporty, adventurous, and has an eye for design will see different content and journeys than, say, someone with a different psychographic profile, such as an 鈥渋nformation seeker.鈥�

Accurate and Secure Consent Management Built In

51风流Customer Data Cloud and 51风流Commerce Cloud form the backbone for authenticating and verifying customers and for managing customer consent. The 51风流Customer Identity and Access Management solutions help ensure that all customer consent statements relating to being contacted or to personal data being processed are handled accurately and securely and 鈥� most importantly 鈥� in compliance with GDPR (the EU General Data Protection Regulation).

The major advantage of 51风流Customer Data Cloud is that it records all customer data centrally, including conventional data like the personal 鈥渟mart ID鈥� that identifies any smart customer at any touchpoint and relevant product data as well. The digital key is an example of how this data can be used: owners of an all-electric smart can opt for a digital key to operate their car and can even share the key with friends via an app. The vehicle-locking mechanism, consent to the transfer of data, and so on are managed on the central platform.

鈥淭his shows that the new platform is much more than a marketing and sales tool,鈥� says Schick. 鈥淚t is practically part of the product.鈥�

Enhanced 360-Degree View Supports New Business Models

More product data comes from the 51风流Digital Vehicle Hub application, which serves as the digital twin of any smart car. The application contains not only technical data about a vehicle, but also provides insight into wearing parts that need replacing and about driver behavior. Connecting these two layers, customer data and product data 鈥� each of which allows a panoramic view of their object 鈥� creates 360-degree visibility into both the customer and their vehicle. This in turn opens the door to scores of new digital services, product enhancements, and personalized customer offerings.

鈥淗aving opportunities like this on the horizon makes working with 51风流particularly compelling,鈥� says Schick. 鈥淲e鈥檙e on an innovation journey, interacting closely with 51风流on what else the solutions might be able to do in the future.鈥� smart Europe鈥檚 aim is to deliver on its vision of becoming an urban companion for its target market 鈥� for all of their vehicle-related service needs.

鈥淥ur motto is 鈥榯ry, learn, adjust, repeat!鈥欌�� says Schick. 鈥淲ith that in mind, we鈥檒l keep moving steadily along the road to our destination 鈥� but always be ready to change lanes if we need to.鈥�

Top image courtesy of smart Europe.

Imagine streets populated with electric vehicles (EV) and gas stations replaced by EV charging stations at shopping centers and grocery stores. Mobility-as-a-service (MaaS) dominates the transportation landscape, offering鈥痷sers the most affordable, sustainable, and efficient way to get around. Some cars are self-driving and interconnected, talking to each other and sharing their location and next moves.鈥疻hat鈥檚 more, many cars are connected with the ability to send and receive all types of users鈥� data.

To realize this new reality, change will happen quickly, and regulations will only accelerate this transition. In Europe, a package of legislative proposals, 鈥�,鈥� aims to reduce greenhouse gas emissions by 55% by 2030. It includes a policy that requires a 55% reduction of average emissions in new cars by 2030 and a 100% reduction by 2035. In the United States, President Biden set a bold goal that EVs make up at least 50% of all vehicles sold by 2030. Since he took office, automakers announced investments of more than in EV manufacturing and $48 billion in battery production in the U.S. alone.

Add consumer sentiment to the equation 鈥� of global car buyers are looking for an EV 鈥� and it鈥檚 no surprise that carmakers, suppliers, and dealerships recognize the need for dynamic and continuous innovation to be profitable and sustainable.

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In a world of disrupted supply chains, new market participants, digitized factories, and a growing demand from regulators and consumers for sustainable vehicles, automotive businesses are embracing the following five trends to stay competitive.

1. Shifting Gears to Electric

A massive shift to vehicle electrification will require efficient and scalable EV charging infrastructure, ideally on one platform with seamless integration into existing business systems used by automakers, suppliers, and dealerships. It will also change supply chains and the role of parts suppliers as they shift from providing components needed for internal combustion engines to those needed for EVs. To prepare for vehicle electrification, automakers and suppliers can leverage the power of technology to manage charge point infrastructure and interact along the mobility value chain in the cloud to support collaborative, end-to-end business models and processes.

51风流customer provided the first intelligent, multi-socket charging solution for EVs. It allows multiple electric cars to charge simultaneously. The solution helped ChargeX lower time spent on daily charge-point operations and improve customer satisfaction with intuitive user interface and straightforward, automated processes.

2. Making Cars Smarter

Cars are the next smartphones. As consumers increasingly expect more from their vehicles, automobile manufacturers must find ways to continually enhance vehicle intelligence and connectivity.

Even in the 2020s, software reshapes how drivers interact with their cars. Automation has taken over braking, climate control, cruise control, entertainment, and more. Routine software updates bring drivers continuous improvements,鈥痑dding safety features, better performance, and greater efficiency.

Fully autonomous driving, currently in its infancy, continues to learn and will soon鈥痓ecome a common feature. Like vehicle electrification, regulatory requirements and consumer behavior inspire companies to develop innovative solutions that push the boundaries of automotive capabilities.

One company, , uses flexible and scalable manufacturing solutions from 51风流to build its fully autonomous, purpose-built vehicle fleet.

3. Considering Mobility-as-a-Service

An uptick in technology-powered smart cities 鈥� spurred by our response to the effects of climate change 鈥� will force auto manufacturers and suppliers to rethink their business models. Communities will reimagine fundamental public services, including transportation, encouraging citizens to swap their vehicles for public and shared transportation services.鈥疘n fact, by 2030, the shared mobility market is expected to exceed .

Mobility-as-a-service platforms offer users an integrated package of transportation options accessible through a single payment channel. These implementations will play a fundamental role in solving urban challenges, reducing congestion, greenhouse gas emissions, and accessibility constraints. Car manufacturers and suppliers can rethink and innovate their product offerings through this modality.

Take the robotaxi by . Passengers request a ride from this driverless taxicab via their smartphones. Zoox robotaxis go up to 75 miles per hour, revolutionizing ridesharing. The application provides the backbone for the robotaxi production.

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4. Prioritizing Operational Resilience聽

Amid the evolving automotive landscape, automakers and suppliers must ensure resilient supply chains are in place to meet changing demand, including increasing requests for EV components, while combating battery and chip shortages. The disruption caused by COVID-19 and the war in Ukraine highlighted the threat external events can have on automotive industry operations. Technology will play an even more critical role in enabling businesses to respond to potential supply chain disruptions.

Real-time tracking and analysis can better forecast supply and demand, fostering a more agile and resilient supply chain. As a result, carmakers, suppliers, and dealerships can respond to the unexpected as soon as it happens, make better inventory management decisions, and reduce waste.

Electric motorcycle company and German multinational manufacturer of EVs and motorcycles BMW teamed up with 51风流to succeed in the new world of mobility. With real-time information, detailed insights on performance, and analytics to improve decision-making across the manufacturing value chain, Zero Motorcycles and BMW can achieve operational resilience while pushing the boundaries of innovation.

5. Embracing Digital Retail

Due to consumer behavior change accelerated by the pandemic, the automobile industry recognizes the urgent need to adopt a digital-first, omnichannel sales strategy. Car buyers and sellers have started turning to contactless car buying and online dealerships. And even as the world recovers from COVID-19, vehicle retailers see automotive e-commerce searches reaching an as many customers now prefer digital retail experiences for sales, trade-ins, and services.

51风流partner makes it easier for importers, dealerships, and service locations to adopt digital retail options, optimizing end-to-end sales and service processes. With innovative products for 51风流S/4HANA, dealerships and service locations can continue to drive sales, deliver services, and meet shifting customer expectations.

Above All: Collaboration Is Key for Future Success

The automotive industry faces enormous challenges. Despite competition in the automotive industry, automakers and suppliers gain critical value through collaboration, particularly in such a dynamic environment for innovation. Catena-X 鈥� as front-runner for the automotive industry 鈥� aims to bring all business partners, including multi-tier suppliers, original equipment manufacturers (OEMs), or recycling service providers, into one network to help ensure an open, secure, and interoperable data exchange along the value chain. The transparency of data helps participants gain visibility into the complete material flow of a product life cycle, from 鈥渃radle to grave.鈥� Utilizing information available in shared digital twins improves decision making for end-of-life vehicles, thus useful parts can be circulated back for refurbishment or reuse and valuable raw materials can be recycled in a more effective way. With , 51风流can provide software and network services to Catena-X and the automotive industry at large.

Learn how you can 听飞丑颈濒别 that are ready to meet the road ahead with industry cloud solutions from SAP.

Hagen Heubach is global vice president of Automotive Industry Business Unit at SAP.
Kelly Cannon is head of Industry Thought Leadership at SAP.

U.S. traffic fatalities in the first quarter 2022, reached their highest level in 20 years, according to the National Highway Traffic Safety Administration (NHTSA). Most of the 9,560 deaths in the first quarter were due to recklessness: speeding, driving under the influence and failing to wear seat belts. Bicycle accidents contributed to the total. Pedestrian deaths from bicycle riders last year jumped 13% from 2020, and bicyclist deaths rose five percent, according to NHTSA.

SAP鈥檚 Take

There is a menu of technology, from autonomous cars to sleep detection, that could help curtail reckless driving and save lives. Today鈥檚 cars are equipped with predictive maintenance, accident locators, tire-pressure and break alerts 鈥� attributes that address the car rather than the driver.

鈥淭hey augment safety, and they鈥檙e less invasive,鈥� said John Fratangelo, 51风流senior director, hyperscalers and cloud platform.聽 鈥淓verything else, I think, will have to go through state or federal regulation if you鈥檙e talking about the U.S. Other countries might be different culturally. They鈥檙e more compliant. But in the U.S., liberties are weighted very high.鈥�

The more advanced technologies are being deployed commercially. The trucking industry is one that has taken the lead. To combat sleeping at the wheel, sensors beep when the driver鈥檚 head nods. Automated driver logs can determine the driver鈥檚 speed during the haul. Regulators are installed in the engine to prevent the truck from going more than 65 miles per hour.

The same is not true for private drivers.

鈥淭he question becomes more about civil liberties,鈥� said Wilson Rothschild, 51风流vice president and chief analyst of strategic vendors.

Throughout the decades, carmakers and owners have resisted life-saving measures because of cost or comfort.

鈥淭echnology can help,鈥� said Al Hilwa, 51风流vice president and chief analyst of artificial intelligence (AI) and platform technologies research.聽 鈥淏ut there鈥檚 a disconnect among three different things: what technology can do, what policy would allow and what consumers would buy.鈥�

When speed limits across the country were reduced to 55 miles per hour, lives and energy were saved. But that took a federal law to be enacted and enforced. resisted installing seat belts and airbags due to the cost they would incur. When these devices became standard in cars, owners resisted wearing them.

鈥淭he automakers kicked and screamed and eventually were forced,鈥� Hilwa said. 鈥淭hat took decades. I think the same thing will play out with, say, putting in AI to detect alertness or to collect and send data and track people. But that is a very dodgy area, to track your citizenry.鈥�

But at some point, the general public usually warms to safety measures as they prove effective. Adoption of the newest technology will have to balance safety with privacy.

鈥淵ou can have a situation where it’s better for the common good because more people are doing the right things,鈥� Wilson said. 鈥淪o you crowd out these bad actors and they become a smaller part of the probability set.鈥�

Wilson said he expects different states and regions to adopt or mandate various technologies at their own unique paces. Yet, at one point, safety may outweigh privacy concerns.

鈥淚 think the future is being painted already, where vendors like Tesla and a lot of the new electrified automobiles have a lot more sensors collecting a lot more data,鈥� Wilson said. 鈥淏ut it comes down to policy whether this data can be used to actually improve the metrics.鈥�

Contact:
Ilaina Jonas, Senior Director of Global Public Relations, SAP
+1 (646) 923-2834, ilaina.jonas@sap.com

Capgemini and 51风流will provide cloud products and services to support sustainability transformation in strategy, technology, and business model change. The initiative will enable companies to better manage their suppliers and supply chains in pursuit of their sustainability goals.

“Sustainability is at the heart of the automotive industry and has to be the foundation of every decision. At the same time, it is essential to clearly understand the customer’s perspective and integrate feedback to ensure success in the digital age,” said Hagen Heubach, global vice president and head of the Automotive Industry Business Unit at SAP. “We are combining the strengths of 51风流and Capgemini to provide our customers with expanded capabilities to define and implement their sustainability strategies.”

Josean Mendez, global 51风流alliance lead at Capgemini, adds:鈥�淲e are proud to be working with 51风流on this sustainability initiative to jointly deliver automotive offerings leveraging RISE with 51风流transformation value to our clients.鈥疭trengthening our solutions and helping our clients with their sustainability agendas signals the positive impact we aspire to for all our customers.鈥�

Traditional original equipment manufacturers (OEMs), electric vehicle (EV) manufacturers, as well as supplier organizations can drive their competitive advantage and value with the management processes and tools supported by the joint initiative. Specifically, this joint transformation framework can help automotive companies identify the business value of sustainability and inject sustainability management into products and services across their supply chains.

51风流and Capgemini offer market-leading solutions in four key areas of sustainability transformation to complement their innovation in the sustainability space:

• Net-zero strategies and business models identify transformation opportunities and drive transparency on sustainability objectives with the help of the 51风流Sustainability Control Tower solution.
• Sustainable products and services create transparency about the carbon emissions of products throughout their life cycle, leveraging 51风流Product Footprint Management and sharing emissions data through the industry value chain with the GreenToken by 51风流solution.
• Sustainable procurement and supply chains leverage 51风流Integrated Business Planning, 51风流Supply Chain Control Tower, and product carbon footprint data to help drive supply chain decisions with visibility across the network.
• Steering and reporting for impact helps ensure that the transformation focuses on business value, with actionable insights and improved environmental, social,
  and governance (ESG) reporting so that companies can comply with all regulatory and reporting requirements.

鈥淔acing significant industry disruption, traditional OEMs, EV manufacturers, and automotive suppliers must continually innovate with their products and services while at the same time constantly improve efficiency,鈥濃�痵aid Markus Winkler, executive vice president of Global Automotive at Capgemini.鈥�淭he joint initiative for automotive with 51风流helps our clients adapt to the changing requirements of today as well as plan for the future with a strong and comprehensive industry cloud solution addressing global sustainability.鈥�

Jim Davis is director of Automotive Industry Business Unit at 51风流America.

鈥淲hen people are thinking about buying an electric vehicle, they usually start by asking two questions,鈥� says 51风流E-Mobility Specialist . 鈥淭he first is, 鈥楢re there enough charging stations near my home and on my route to work?鈥� And the second is, 鈥楬ow many other EV drivers will I be competing with for charging capacity?鈥欌��

We know that the number of EVs on the roads is set to rise. So, being able to optimize charging processes so that energy can be consumed at off-peak times, when it is cheapest, will become increasingly important.

鈥淭he infrastructure we have right now is not nearly equal to meeting future demand,鈥� says Wagner. 鈥淎t the same time, here in Germany, we are wasting 6,500 gigawatt hours of renewable energy every year because we fail to balance energy supply with demand.鈥�

鈥淐ustomers tend not to think about the impact that charging a large number of electric vehicles all at the same time has on the power grid,鈥� says , managing director of coneva GmbH. 鈥淭hey鈥檙e looking for a simple, affordable solution they can implement quickly to manage their charging capacity across multiple locations.鈥�

The integration of 51风流E-Mobility with coneva鈥檚 dynamic load management capabilities has created a smart, hardware-agnostic solution that can help customers charge their e-fleets more efficiently and cut their costs at the same time.

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Optimized EV Charging with coneva and 51风流E-Mobility

鈥淥ur parent company, SMA, has a long history of success in energy management and has always focused very closely on sustainability, winning multiple awards in this field,鈥� says Schneider. For example, at its headquarters in Kassel, Germany, SMA uses some of the electricity it generates through photovoltaic systems mounted on the rooftops of its parking garages to charge its e-fleet.

coneva spun off from SMA in 2018 to focus on e-mobility as distinct from its parent company鈥檚 core photovoltaic system business. coneva鈥檚 dynamic load management software for EV charging is modular, allowing it to be adapted to the configuration of the building and location in which a charging station will operate. Determining the optimum charging process involves a range of factors, including the number of vehicles to be charged, their order of priority, the time of day charging takes place, and the current price of renewable energy in the power grid.

鈥淐lients who use our dynamic load management system not only save money and energy,鈥� explains Schneider. 鈥淭hey can also control and manage the power they consume from the grid.鈥�

51风流E-Mobility: The Starting Point for Local Load Management

SAP鈥檚 own work on e-mobility has been moving in this direction for quite some time. Particularly now that the restrictions imposed during the coronavirus pandemic have eased a little and more people are traveling to the office again, companies are often seeing demand for energy peak shortly after the morning commute.

鈥淲e noticed this ourselves at 51风流Portugal, for example, where employees have embraced electric vehicles in a big way,鈥� says , vice president and chief product manager, 51风流E-Mobility. 鈥淲hen people began returning to the office and more EVs were being charged, the distribution board in the parking garage was unable to cope with the increased demand. The fuses blew and the vehicles could no longer be charged.鈥�

As a result, 51风流Portugal has now joined Italy and Austria as one of the first subsidiaries to deploy 51风流E-Mobility, including SAP鈥檚 own charging optimization processes. Integrating 51风流Concur solutions and with 51风流S/4HANA Cloud as its backbone, 51风流E-Mobility also supports the reimbursement of employees for the cost of charging their company cars at home 鈥� using SAP鈥檚 own finance processes.

In SAP鈥檚 integration project with coneva, 51风流E-Mobility onboarded the charging stations, managed them as a backend process, and handled the charging data, while coneva鈥檚 software provided the connection with the local power grid.

鈥淟ooking further ahead, 51风流plans to offer an end-to-end process platform built around 51风流E-Mobility and other 51风流solutions to enable public charging as well,鈥� says Scholl. 鈥淲e are currently integrating the main roaming providers,鈥� he adds. Here, the focus is on automated B2B billing between charge point operators (CPOs) and EV charging network providers. 鈥淭hat鈥檚 where most of the manual effort on the provider side still is right now, and it鈥檚 also traditionally one of SAP鈥檚 strengths.鈥�

Competitors offer similar capabilities. These start with the charging points and aim to link them to the underlying business processes. 51风流took the opposite approach. Scholl explains: 鈥淲e already have both the process landscape and the required tax and legal expertise in different regions. 51风流E-Mobility will be a global solution that offers customers much more than the purely CPO solutions that dominate the market today.鈥�

The approach of dovetailing different industry cloud solutions from 51风流has proven especially beneficial for customers that wish to move to the cloud. 鈥淚n this particular case, it enables us to deliver added value that goes way beyond meeting a customer鈥檚 charging requirements, and it expands our addressable market,鈥� says Scholl.

SAP鈥檚 partner ecosystem is a major plus point too, he says. Built up over decades, it helps 51风流refine its products and offerings for customers and continually adapt them to the latest requirements. 鈥淭raditionally, 51风流has always worked with a wide range of different partners 鈥� for software, hardware, and services. E-mobility is a field in which this rich diversity has a real impact and is proving highly beneficial for the entire ecosystem.鈥�

鈥淪MA is a long-standing 51风流customer,鈥� says Jochen Schneider. 鈥淎nd we at coneva see our collaboration with 51风流as a logical and future-oriented alliance. Going live with our joint solution within just a few months last year was a very impressive achievement.鈥�

The Future

This joint solution also covers scenarios in which private individuals can make their charging stations available to their neighbors and even feed surplus self-generated energy 鈥� from photovoltaic systems, for example 鈥� into the grid.

鈥淥ur vision is to offer SaaS services that will strengthen local energy markets in particular,鈥� says Schneider. 鈥淲e see that as a basic requirement for accelerating the transition to renewable energy. E-mobility and the vehicle-to-grid concept are both key to making that happen.鈥�

Vehicle-to-grid (V2G), or bidirectional, charging is a crucial field of innovation, and it may not be long before vehicle batteries are used to store energy and release it again later when it is needed for other purposes.

鈥淐ombining e-mobility and renewable energy in this way could be a game changer 鈥� particularly in remote parts of the world that still rely on supplies of fossil fuels but could use wind and solar energy,鈥� explains Wagner.

Scholl and his team at 51风流are currently also involved in a research project in which they are working with partners including , Europe鈥檚 largest center for innovation and business creation, on a solution scenario that provides insights into the mix of energy used to charge vehicles. 鈥淭his will enable consumers to charge their vehicles at times of the day when the maximum proportion of renewable energy is available 鈥� that is, when they can be sure that the electricity they use comes from a photovoltaic system and not from a coal-fired power station,鈥� says Scholl. 鈥淐onsumers will demand this level of transparency in the future.鈥�