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“We really need to have stable and standardized processes—that’s where the value is,” PowerCo CIO Andreas Eckle said.

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

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“PowerCo will develop and produce battery cells for the VW Group in best quality, in large numbers,” Andreas Eckle, CIO of PowerCo SE, told the audience during a live session at Hannover Messe trade fair. “The gigafactories are set up to a standard factory design.” 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

“Construction 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’s gigafactories,” 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—enough 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. “It is not manufacturing cars anymore; it is chemistry. We go all the way from mining to the complete cell and recycling,” 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’s sustainability standards. The company’s 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: “We 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.” Stephan Fester, Global Battery Best Practice lead at SAP, who was on stage with Eckle, agreed: “Without standards you will never have the performance you need to set up a factory at this scale in no time.” Fester described how 51ˇçÁ÷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: “The first initiative was to manage and spend money and recruit, employ, and manage people,” 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 51ˇçÁ÷SuccessFactors solutions. “Normally this takes 12 weeks,” Fester recalled. “The 51ˇçÁ÷team said it normally takes at least eight weeks, but PowerCo challenged us with a time frame of only five weeks!’” 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.

“Another very important factor for success was that we as 51ˇçÁ÷wrote the concept according to our understanding of the requirements. PowerCo carried out a review and confirmed it,” Fester explained. “We 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.”

Synchronize Business and IT Planning

In June 2023, the project team delivered the first version of logistics management. Fester explained the concept: “We 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.”

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

“We set up a cloud ERP system in less than six months, fully operational,” 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 51ˇçÁ÷S/4HANA implementation project is also shown by the 51ˇçÁ÷Quality Award PowerCo received in 2024. “We are proud of what we have achieved,” Eckle concluded, “but we still have a long way to go. The Salzgitter factory opening is the first major milestone, with two other openings following.”

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.

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

Mercedes-Benz has committed to move the company’s 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’s 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 51ˇçÁ÷employee’s perspective, ordering a company EV couldn’t 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’s pre-set guidelines.

“The 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,” said Steffen Krautwasser, head of SAP’s global car fleet. “Automating the approval process assures data consistency and eliminates the need for manual quality checks.” 

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

Connected Data Drives Sustainable Business

Once ordered, EVs are tracked as assets in SAP’s financial system. After delivery, creates a digital twin that can capture relevant, secure data across the EV’s lifetime. SAP’s 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’s global sustainability commitments.

“Performance data from the EV digital twin can help corporate fleet managers guide employees in choosing the best vehicle for their driving needs,” said Krautwasser. “Over time, drivers can better understand travel ranges between charges.” 

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. 51ˇçÁ÷is transitioning the company’s 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.

“We want to provide a seamless journey for employees as they research, select, purchase, and enjoy their vehicle,” said Krautwasser. “The 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’s sustainability commitment.”

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’s clear that Mercedes-Benz and 51ˇçÁ÷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 51ˇçÁ÷employee Jude Calvin Parong.

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

According to Ivica Blažević, CEO and founder of CEV Technologies d.o.o., “While 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.”

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’s 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.

51ˇçÁ÷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.

“In 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,” Blažević 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’s vision and CEV Technologies’ 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.

A decade ago, when electric vehicles were still a buzzword in the market, 51ˇçÁ÷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, 51ˇçÁ÷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. “The 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 51ˇçÁ÷Labs India entities,” said Sudhakar Reddy, head of Intelligent Operations at 51ˇçÁ÷Labs India.

Today, the 51ˇçÁ÷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. 51ˇçÁ÷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, 51ˇçÁ÷Labs India has partnered with , a micro-mobility solution that provides sustainable first- and last-mile connectivity for 51ˇçÁ÷employees who rely on public transportation. , a leading Indian electric vehicle manufacturer and 51ˇçÁ÷customer, provides additional discounts to employees of 51ˇçÁ÷Labs India. 51ˇçÁ÷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 51ˇçÁ÷employees about the use of electric vehicles. Ather will be conducting this drive across other 51ˇçÁ÷Labs India campuses as well.

In February, the Chancellor of Germany Olaf Scholz visited the 51ˇçÁ÷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.

51ˇçÁ÷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 51ˇçÁ÷Labs India, said, “We firmly believe that our solution plays a vital role in decarbonizing the transport sector and creating a cleaner and more sustainable future for everyone.”

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.

Whether it’s streaming services, cell phones, or robotic lawn mowers, today’s 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 – 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.

“Our assumption is that there will always be people who visit physical dealerships to “feel” a car and test-drive it,” explains Björn Schick, CXO and member of the executive board of smart Europe. “But it won’t be long before they become the minority and more people start configuring and ordering their cars online – in just a few quick steps.”

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.

“They’ll quite deliberately opt for a sportier model, maybe, or bright yellow paintwork,” says Schick. “That’s because the focus is not on the vehicle’s resale value when the contract ends, but on the customer’s preferences.”

Many of today’s market players – both established and new – 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 – 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.

“Our 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,” explains Schick.

Car dealerships play their part in this business model too. “We see them as a key element in our sales strategy,” says Schick. “Their role is changing, but it’s just as important as before. As a newly formed company, we’ve got the chance to reinvent and recalibrate our dealership model.” 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.

51ˇçÁ÷Commerce Cloud as the Process Backbone for smart Europe

The foundation for this innovative style of cooperation is smart’s 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’s e-commerce transactions will run, from product configuration to payment. “51ˇçÁ÷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,” explains Schick.

Coupled with 51ˇçÁ÷Customer Data Cloud, 51ˇçÁ÷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 “information seeker.”

Accurate and Secure Consent Management Built In

51ˇçÁ÷Customer Data Cloud and 51ˇçÁ÷Commerce Cloud form the backbone for authenticating and verifying customers and for managing customer consent. The 51ˇçÁ÷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 – most importantly – in compliance with GDPR (the EU General Data Protection Regulation).

The major advantage of 51ˇçÁ÷Customer Data Cloud is that it records all customer data centrally, including conventional data like the personal “smart ID” 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.

“This shows that the new platform is much more than a marketing and sales tool,” says Schick. “It is practically part of the product.”

Enhanced 360-Degree View Supports New Business Models

More product data comes from the 51ˇçÁ÷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 – each of which allows a panoramic view of their object – 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.

“Having opportunities like this on the horizon makes working with 51ˇçÁ÷particularly compelling,” says Schick. “We’re on an innovation journey, interacting closely with 51ˇçÁ÷on what else the solutions might be able to do in the future.” smart Europe’s aim is to deliver on its vision of becoming an urban companion for its target market – for all of their vehicle-related service needs.

“Our motto is ‘try, learn, adjust, repeat!’” says Schick. “With that in mind, we’ll keep moving steadily along the road to our destination – but always be ready to change lanes if we need to.”

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 users 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. What’s more, many cars are connected with the ability to send and receive all types of users’ data.

To realize this new reality, change will happen quickly, and regulations will only accelerate this transition. In Europe, a package of legislative proposals, “,” 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 – of global car buyers are looking for an EV – and it’s 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.

51ˇçÁ÷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, adding safety features, better performance, and greater efficiency.

Fully autonomous driving, currently in its infancy, continues to learn and will soon become 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 51ˇçÁ÷to build its fully autonomous, purpose-built vehicle fleet.

3. Considering Mobility-as-a-Service

An uptick in technology-powered smart cities – spurred by our response to the effects of climate change – 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. In 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 

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 51ˇçÁ÷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.

51ˇçÁ÷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 51ˇçÁ÷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 – as front-runner for the automotive industry – 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 “cradle to grave.” 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 , 51ˇçÁ÷can provide software and network services to Catena-X and the automotive industry at large.

Learn how you can ĚýˇÉłóžąąôąđ 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.

California faced one of its worst ever September heat waves, burdening its electric system as demand for air conditioning skyrocketed. Government officials asked residents to reduce their use of anything electric — from mixers to televisions — to avoid another of the state’s infamous rolling blackouts.

Attention turned to electric vehicles (EVs) and their use of power as a major energy-sucking culprit. Some argued that was incorrect, as EVs account for less than one percent of the state’s electricity demand. Additionally, electric cars can give back power to the grid.

SAP’s Take

“From a power perspective, you can consider an EV as a large battery, which can input, store and output energy,” said Matthew Sell, 51ˇçÁ÷chief analyst, competitive and market intelligence. “The output could also include power back to the grid. So, in that sense, they can give back power.”

The overriding benefit of EVs for the power is using them as a tool to smooth out power consumption throughout the day.

For example, during non-peak periods, an EV battery can be charged, and in peak periods the battery can send energy to the grid. This benefit to the power utility can be passed onto the consumer and the EV owner.

“The biggest constraint for adoption of EVs is infrastructure, namely the charging points,” Sell said. “Making these more accessible for all parking locations will help with adoption and ease range anxiety’ issues,” he said, referring to the fear that an electric car won’t make it to the next charging station.

But that could soon be drastically mitigated. On Wednesday, President Joe Biden announced the approval of $900 million to build electric vehicle charging stations in 35 states.

Congress has set aside about $5 billion to be given out to states over the next five years for an EV charging network across the country. Biden’s goal is to make up to 50% of all vehicles sold in the U.S. electric by 2030.

“But electric vehicles are only a part of a larger technological revolution going on in the electric power industry,” said Amar Sindhwad, 51ˇçÁ÷market research analyst.

“Over time, with infusion of IT technologies — Big Data, AI, etcetera — electric grids can become intelligent,” he said. “Through the cloud, we can preempt such a scenario. We can bring in multiple domains of data — weather patterns data, consumption of power, etcetera — from business and personal life to build scenarios of what might be and then what needs to be done for each scenario.”

There currently is technology even closer at hand that will allow EV owners to trade the power they generate. For example, there are some use cases that allow people to swap power right through Apple Pay, making power as digitized as cash. Aan individual needing 20 units of power can use an iPhone to locate another EV user with 20 to spare.

“The grid is becoming intelligent,” Sindhwad said. “From my car I can give you 20 units of power that you can consume right through a localized grid.”

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

“When people are thinking about buying an electric vehicle, they usually start by asking two questions,” says 51ˇçÁ÷E-Mobility Specialist . “The first is, ‘Are there enough charging stations near my home and on my route to work?’ And the second is, ‘How many other EV drivers will I be competing with for charging capacity?’”

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.

“The infrastructure we have right now is not nearly equal to meeting future demand,” says Wagner. “At 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.”

“Customers 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,” says , managing director of coneva GmbH. “They’re looking for a simple, affordable solution they can implement quickly to manage their charging capacity across multiple locations.”

The integration of 51ˇçÁ÷E-Mobility with coneva’s 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 51ˇçÁ÷E-Mobility

“Our 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,” 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’s core photovoltaic system business. coneva’s 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.

“Clients who use our dynamic load management system not only save money and energy,” explains Schneider. “They can also control and manage the power they consume from the grid.”

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

SAP’s 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.

“We noticed this ourselves at 51ˇçÁ÷Portugal, for example, where employees have embraced electric vehicles in a big way,” says , vice president and chief product manager, 51ˇçÁ÷E-Mobility. “When 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.”

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

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

“Looking further ahead, 51ˇçÁ÷plans to offer an end-to-end process platform built around 51ˇçÁ÷E-Mobility and other 51ˇçÁ÷solutions to enable public charging as well,” says Scholl. “We are currently integrating the main roaming providers,” he adds. Here, the focus is on automated B2B billing between charge point operators (CPOs) and EV charging network providers. “That’s where most of the manual effort on the provider side still is right now, and it’s also traditionally one of SAP’s strengths.”

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

The approach of dovetailing different industry cloud solutions from 51ˇçÁ÷has proven especially beneficial for customers that wish to move to the cloud. “In this particular case, it enables us to deliver added value that goes way beyond meeting a customer’s charging requirements, and it expands our addressable market,” says Scholl.

SAP’s partner ecosystem is a major plus point too, he says. Built up over decades, it helps 51ˇçÁ÷refine its products and offerings for customers and continually adapt them to the latest requirements. “Traditionally, 51ˇçÁ÷has always worked with a wide range of different partners – 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.”

“SMA is a long-standing 51ˇçÁ÷customer,” says Jochen Schneider. “And we at coneva see our collaboration with 51ˇçÁ÷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.”

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 – from photovoltaic systems, for example – into the grid.

“Our vision is to offer SaaS services that will strengthen local energy markets in particular,” says Schneider. “We 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.”

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.

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

Scholl and his team at 51ˇçÁ÷are currently also involved in a research project in which they are working with partners including , Europe’s largest center for innovation and business creation, on a solution scenario that provides insights into the mix of energy used to charge vehicles. “This will enable consumers to charge their vehicles at times of the day when the maximum proportion of renewable energy is available – 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,” says Scholl. “Consumers will demand this level of transparency in the future.”

In this country, the is expected to fund significant spend on electric vehicle charging stations. Manufacturers worldwide, especially startups, are full speed ahead, bolstered by recent investments totaling US$72 billion in the United States and $50 billion in Asia according to .

EVs Shake Up Supply Chain Status Quo

EVs are much more than a sustainable fuel alternative. They’re steering the entire automotive ecosystem towards an innovative, technology-driven business model. EV startups are jumping on advanced technologies that circumvent traditional models to reinvent internal and external supply chains. One example is , a North American EV manufacturer that’s digitalizing operations from finance through services to drive the company’s aggressive growth plans. You may have heard about the company’s flagship vehicle, the single-seat EV called the . Designed for a single occupant, it offers a unique driving experience for the environmentally conscious consumer. I caught up with Jim Gwynn, director of Information Systems at ElectraMeccanica, when he spoke at the event about how this three-wheeled vehicle will revolutionize the urban driving experience including commuting, delivery, and shared mobility.

“The unique two-door, single-passenger design offers drivers agility and safety, as they can enter and exit from either door, making it ideal for activities like pizza deliveries, security, and parking enforcement,” said Gwynn. “To meet current strong demand for our SOLO vehicles, and manage our rapid growth for years to come, we needed an enterprise-class ERP system that connects information company-wide for a digital-first experience that’s highly scalable, functional, and regulatory compliant.”

Digital Unites Global Operations to Meet Market Demand

No one is more thrilled with ElectraMeccanica’s transformation from startup to fully operational OEM than the company’s retail and fleet customers now taking EV deliveries. Digitalization has been central to this important transition. Headquartered in Vancouver, British Columbia, with international production, assembly, and testing facilities, ElectraMeccanica selected RISE with 51ˇçÁ÷to build its . The vision is to connect everything from product design, supply chain planning, and production, to sales and after-market care.

“We needed an ERP system that would grow with our business,” said Gwynn. “We selected 51ˇçÁ÷because it’s a complete solution that will allow customers to reserve and procure vehicles online and help us directly connect market demand with strategic planning, bringing that into the ERP system with and . The vehicle management system means we will have full traceability of our EVs and the components inside throughout the product life cycle. Equally important, 51ˇçÁ÷solutions have broad acceptance in the automotive OEM market.”

Business Results from Intelligent Data Sharing

ElectraMeccanica is building an assembly and engineering center in the U.S., and Gwynn expected further cloud-based digitalization like warehouse management that will include vehicle inspection facilities at the new plant and beyond. As far as he’s concerned, there’s no time to lose.

“Speed is critical in bringing these innovations across our business so that we can anticipate and respond to what our customers want,” said Gwynn. “Having digital representation for all our core business processes allows us to share valuable data between sales and operations, making us more informed for stronger decision-making and business resilience.”

Digital-first operations have already generated business results. Automating mundane processes has eliminated repetitive work, allowing employees to spend more time on value-add activities such as order intake and vehicle allocation. With a simplified employee experience, people can collaborate more easily across the company’s expanding geographical locations for increased productivity.

As EVs disrupt the entire automotive industry, new market entrants like ElectraMeccanica are front and center, creating a historic opportunity to reinvent mobility. Digitalization helps connect information between ecosystem participants – government regulators, manufacturers, consumers, and others – to deliver on the promise of a more sustainable world. SOLO is an apt name for ElectraMeccanica’s innovative EV, but the truth is, we’re all in this together.

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researchers predicted shipments of electric vehicles, battery electric and plug-in hybrid, will increase at a CAGR of 26% to reach 36 million units by 2030, up from 3 million in 2020. However, to make good on the automotive industry’s commitment to , the entire supply chain – from battery manufacturing through infrastructure and recycling – needs to rethink just about everything.

“EVs are transforming the concept of mobility in society,” said Thomas Pohl, senior director of Marketing at SAP. “Automotive suppliers are committed to sustainable business models through the entire product lifecycle, including batteries. As carbon-free operations become table stakes, leaders will stand out by applying their deep industry expertise and advanced technologies to champion sustainable, ethical practices as a new business model for many industries.”

Automotive Networks Redefined

EVs are literally energizing the competitive automotive supplier landscape that’s expanding beyond traditional to , as well as other consumer electronics players, eager for a piece of this promising future. As suppliers toe the “green line,” new ecosystems have emerged to sustainably build and manage the battery lifecycle of EVs.

One example is , an open community of automakers, suppliers, and other partners creating common data standards to track environmental, social, and governance (ESG) progress across automotive industry production chains. The idea is to collaborate, often in near or real time, sharing information across the network.

Tracking and exchanging data throughout each EV’s lifecycle provides intelligence to guide transparent decision-making from initial battery manufacturing and delivery, through certified disassembly and potential reuse. Members are also exploring use cases for traceability, which would help companies track battery components to meet CO2 footprint reduction commitments and ethical sourcing regulations while becoming more self-sufficient in manufacturing operations through recycling battery components. What’s more, with complete information across the value chain, automakers and suppliers can quickly find members with the capacity to address fast-changing demands, sourcing new suppliers, adjusting production schedules and other operations, before major threats like shortages materialize.

Circular Economy Redraws Automotive Supply Chains

Electric vehicles are blurring traditional industry boundaries across the automotive supply chain in new ways because they capture so much data. Securely connecting charging network information, from consumer-facing data through accounting and finance software systems, opens up tremendous sustainable business opportunities. Retailers can offer discounts to shoppers as they charge their car onsite. EVs can operate as virtual power plants using solar power from photovoltaics as a renewable alternative. To gain insights across the lifecycle of an electric car’s battery, some organizations are building digital twins.

“Connected data from digital twins helps OEMs and suppliers calculate the health and residual value of the battery,” said Johannes Weber, solution manager for 51ˇçÁ÷E-Mobility. “For example, charging histories reveal how much stress a battery has experienced, including trips and stationary use. 51ˇçÁ÷E-Mobility is a cloud-based solution that captures charging totals by location, date, duration, and EV. This is the kind of data that can be incorporated into digital twins, supporting sustainable in-life, second-life, and end-of-life decisions.”

EVs are among the seismic events shocking the automotive supply chain to its core. Sustainability begins with the batteries powering the car, but certainly doesn’t end there.

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Last week the EU announced a partial ban on oil imports from Russia as part of its sixth sanctions package against Moscow for its invasion of Ukraine. The EU embargo will affect about 75% of Russian oil imports immediately and 90% by the end of the year.

SAP’s Take

Russia’s war against Ukraine has both short- and long-term consequences for energy policy, the global economy and the existential battle against climate change.

The EU gets about a quarter of its oil from Russia, according to International Energy Agency (IEA) data, and news of the partial ban pushed already high oil prices even higher — bad news for consumer prices and the global economy.

But in the longer term it could mark the beginning of significant reduction in Europe’s dependence on Russian oil and gas and a further boost for alternative (non-carbon) energy development and electric vehicle (EV) sales.

In the U.S., the war in Ukraine has also bolstered the case for energy independence and fueled a surge in demand for EVs. At the same time, higher gasoline prices have contributed to a spike in inflation, with profound implications for both consumers and businesses.

“The shift from internal combustion-powered cars to hybrid and fully electric is one of the factors accelerating the sustainable energy transition from hydrocarbons to more renewable energy sources,” said Brent Potts, senior director of Global Marketing for the Oil, Gas, and Energy industry at SAP.

Even before this year’s stark rise in gas prices, consumers had begun buying more electric and hybrid vehicles. Together they accounted for 6.2% of all new vehicle purchases in the U.S. last year, up from 4.2% in 2020, according to auto industry research firm Edmunds.

Higher gasoline prices have supercharged this trend. In the first three months of 2022, EV registrations in the U.S. shot up an astonishing 60% even as auto sales overall declined 18%.

Global electric car sales in March 2022 — the month after Russia invaded Ukraine — were also rose 60% year-over-year, reaching a 15% share. The fastest-growing region was China, up 118%. Sales of EVs in China shot up 118% year-over-year to 26% share, while European sales were up 10% to 22%.

As Brent notes, this accelerated shift, “is requiring companies to rethink how they run their businesses.”

Contact:
Ilaina Jonas, Senior Director of Global Media Relations, SAP
+1 (646) 923-2834, ilaina.jonas@sap.com
51ˇçÁ÷Press Room

“Sparse modeling AI is a surprising revelation for our clients that need to innovate faster while meeting high-quality standards, whether it’s electric vehicles, luxury watches, or drug discovery,” said Kenshin Fujiwara, CEO and founder of Hacarus. “They’re amazed at how we’re tackling traditional AI’s dirty secret, reducing the high energy costs of data collection and training, which saves time and our planet’s resources.”

A Green, Explainable AI Alternative

According to some , training a single AI model using traditional machine learning can equal the carbon emissions of five cars across their entire life cycles. That’s because machine learning algorithms attempt to “understand” every detail gleaned from huge amounts of data from scratch. In contrast, sparse modeling doesn’t require training from tens of thousands of images to yield a strong model for prediction. Because it starts with built-in assumptions, restrictions, and hypotheses, sparse modeling saves time by ignoring what’s already known. This reduces computational time and energy consumption.

On the factory floor, manufacturers need far fewer samples of both good and bad product parts to train the AI model, speeding up visual product inspections to detect defects and anomalies without sacrificing sustainability. Inside research labs, sparse modeling yields more explainable AI. For example, scientists exploring new drug treatments can more easily distinguish chemical compound reactions. In one pilot project with a pharmaceutical company in Japan, Hacarus’ solution performed 56 times faster than a deep learning algorithm.

“Sparse modeling is ideal for any precision engineering equipment or research company developing advanced products with less data,” said Fujiwara. “Electric vehicle parts are a great example because it’s a brand-new sector. Automakers and suppliers can create a reliable, AI-based model with as little as 20 images. It delivers the equivalent results of deep learning in a fraction of the time and energy.”

In addition to electric and combustion-fueled vehicle manufacturers, Hacarus’ customers in Japan and Europe span numerous industries, including luxury goods, chemicals, and life sciences. A global pharmaceutical company shortened drug discovery computational times by 99% while gaining insights into correlational changes, bringing crucial explainability into the field. One chemicals and life science products manufacturer combined Hacarus’ AI technology with sensors to speed up carboxymethyl cellulose sodium (CMC) quality inspections by 600%. CMC is an environmentally friendly plant-derived material used in many products such as lithium-ion batteries and high-grade fish feed. The company expected to reduce inspection labor and training costs by about 50% over the next two to three years.

Using AI for Sustainable Business Innovation

Hacarus is Fujiwara’s fourth startup, and the company’s history reflects the entrepreneur’s gold standard of fail fast until you make it with phenomenal success. The startup began as an Internet of Things (IoT)-based kitchen scale, followed by a fitness app – all the while focusing on small data analysis – before arriving at sparse modeling to help industrial and researchers achieve more with less.

“Hacarus means ‘to measure’ in Japanese, and I’ve always been focused on getting results from small data,” he said. “We realized that sparse modeling would help companies gain the benefits of AI where gathering large data sets was not possible or economical.”

SAP.iO Partnership for Shared Sustainable Vision

Fujiwara participated in the energy and natural resources cohort of SAP.iO Foundry Singapore, the company’s global B2B accelerator. Along with expert advice and introductions to 51ˇçÁ÷customers, he valued the opportunity to be integrated with and made available on .

“51ˇçÁ÷is a global leader in our mutual priority industries, and it helped us understand what customers were looking for,” said Fujiwara. “Integrating inspection data from our sparse modeling AI capabilities with 51ˇçÁ÷solutions helps organizations continue digitalization for Industry 4.0. This reflects SAP’s vision for companies to become intelligent, sustainable, networked enterprises.”

While most of Hacarus’ customers are currently in Japan, international expansion plans are underway with projects in Europe and growing opportunities in North America. Widely used in academia – it was the technology used to create the first ever image of a black hole – sparse modeling is now lighting the way to more sustainable AI.

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But the world is changing, and keeping one foot on the gas pedal for higher visibility projects while pumping the brakes with the other foot for back-office changes is not enough to keep up. Businesses must rapidly move both aspects of their digital strategies in unison to drive significant progress so that competitors are challenged to keep pace.

With , organizations can achieve this balance.

Modernizing Industries to Meet Unique Expectations

51ˇçÁ÷makes industry cloud solutions easier to discover, subscribe to, and use, offering customers access to unified user experiences, familiar design paradigms, and plug-and-play integrations to reinvent themselves and their markets simultaneously. Organizations from every industry can then deploy specialized solutions to optimize, extend, and transform their core business processes by digitalizing and automating operations across their business.

For example, utilities companies are shifting operations to provide more in response to growing demand for decarbonization and decentralization. Industry cloud solutions can be used to combine Big Data-enabled energy data management for millions of end devices on a cloud-based, open platform with smart, industry-specific analytics and integration to support energy-related core processes.

Meanwhile, logistics service providers can collect various types of information from their vehicle fleets with a enabled by an asset network. By consolidating multiple data sources into a single network-based cloud platform, they can rapidly ramp up new business models, monetize vehicle information across customer channels, and enable collaboration and innovation with third-party participants.

Consumer products companies also have access to an intelligent virtual assistant that streamlines the process and eliminates the need for manual matching and auditing. The solution leverages embedded machine learning to automate steps, reduce errors, and help avoid disputes. Organizations can then aggregate and enrich market activity in real time, accelerate balance sheet reconciliation with greater accuracy, lower the cost per claim, and enhance workflow productivity — all while establishing stronger customer relationships.

With an industry cloud solution, retailers can improve their processes through embedded machine learning models and an analytics engine that accelerate and ease profitable decision-making. The solution turns the challenges of product returns into opportunities that improve customer retention and brand connection with a fluid returns experience for consumers, while increasing productivity and lowering processing costs across sales channels.

Retailers can also benefit from an developed to centralize the monitoring, analysis, and management of their omnichannel order processes. By optimizing nodes in their network — such as distribution centers, stores, dark stores, and third-party drop shipping — they can reduce costs, improve agility, and increase brand satisfaction by meeting their customer promises as expected.

Industry cloud solutions can even enable emerging industries, such as automotive original equipment manufacturers (OEMs) installing and operating residential and commercial charging stations for electric vehicles. An solution integrates end-to-end billing processes with one platform to lower energy costs and avoid expensive grid-connection expenditure through connections to energy service providers. And for their customers, the cost of improving their carbon footprint and impact on the planet becomes more affordable.

Competing as an Ecosystem Forged by Innovation

Business transformation begins with an idea – whether fixing a problem or discovering and creating new value. But eventually, companies translate ideas differently to address their industry’s unique market dynamics, customer demands, public expectations, and regulatory pressures.

For 51ˇçÁ÷customers, the answer to turning their ideas into meaningful technologies, products, services, business models, or people experiences is an industry cloud solution designed to meet their unique reality. Doing so offers the scale, access, and support they need to adapt to emerging dynamics continuously and rapidly, without sacrificing process efficiency or disrupting their other innovation efforts.

Visit the site to explore and access the latest industry cloud solutions from SAP.

Joe Pacor is senior director of Industries Marketing at SAP.

Enabling climate action through technology is top of mind for customers in industries around the globe, but the topic was particularly remarkable to the gathering of North American utility organizations at the annual conference in San Diego on October 17-19. These are organizations that not only face the emergency environmental situations intensified by climate change, like hurricanes and fires, but are also daily witnesses to energy consumption and, increasingly, adoption of more sustainable energy sources.

It’s no surprise then that sustainability was a key track at the conference, addressing head-on the challenges that North American utilities face as they grow and innovate against the looming presence of climate change. With keynotes from world-renowned experts and boots-on-the-ground insight – 90% of the track sessions were led by customers – here are the top takeaways on how sustainability is shaping the utilities industry.

Technology Is the Most Critical Tool to Combat Climate Challenges

While utilities have been responding to the impact of climate challenges for decades, the last few years have made the challenge acute: more intense natural disasters, the swift adoption of electric vehicles, and even the overnight shift to remote work. All of these have a significant impact on the energy grid – and when coupled with an escalation of regulation around sustainability, utilities are working under incredible market complexity.

The response, from industry experts and utility managers alike, was clear: to manage these challenges, companies need to gather, track, and understand their data. And the only way to do that is through and smart software.

“The most important thing is the ability to measure: to know where you started and where you’re going to, where the journey ends,” said Brian Roach, managing director of Regulated Industries at SAP. “What we’re seeing now is a lot of investment in the understanding of, say, your carbon footprint and having a predictable and consistent means of measuring that.”

The Singular Impact of the Electric Vehicle

For the past century, the energy industry has looked more or less the same. But factors are colluding to upend that stasis, and none more so than the electric vehicle. Elon Musk recently went on record in order to power the transition to electric vehicles. That is a tall order for utilities. It’s also an amazing opportunity to define new approaches in the ecosystem and create new business, particularly when it comes to taking advantage of off-cycle electrical demand.

“This is where smart technology must be applied: determining when you charge, what the right time of day is, what the rates are, the priorities of what gets charged first,” said Tony Posawatz, president and CEO of Invictus iCAR LLC, in the opening keynote. “This is where some of the horsepower that exists in the industry will come to bear.”

The Opportunity Is Now to Transform the Industry

Despite the clear external pressures – regulations, customer expectations and demand, the fast-evolving climate crisis – the tone was one of optimism and excitement. This is a turning point for the industry, and organizations are eager to rise to the challenge.

“I’ve been in this industry for decades, and for the first 10 years or so it was pretty stable; there wasn’t a lot of significant change. But right now, we are in a transformative state. I see it as a huge opportunity for us to be the ones who formulate what the future of utilities looks like,” said Michael O’Donnell, regional vice president of Utilities for SAP, in the opening keynote. “For me, it couldn’t be a more exciting time. You call it disruption; I call it opportunity for us to shape this and change the future.”

Mallory Kuno works within Communications at SAP.

Electric vehicles (EVs) are becoming increasingly popular. New EV registrations globally rose by 168% during the first half of 2021 compared to 2020. In total, 2.65 million EVs were purchased and have been hitting the streets. According to EV Volume analysts, electric vehicles are trending toward 6.4 million units by the end of 2021.

Charging stations are often a challenge to more rapid EV growth as public stations total 28,000 in the U.S. and 20,000 across Europe. This is reason enough to use the standardized cloud-based 51ˇçÁ÷E-Mobility solution, planned for availability September 24, 2021, to address not only public but also non-public and semi-public charging points.

As a first step, 51ˇçÁ÷is addressing company car fleets with charging points at the site or branch as well as at a driver’s home. Since the number of public charging stations is increasing more slowly than their demand, it is particularly relevant to increase the utilization of semi-public charging points and make the best possible use of them. It is also a relief when employees charge company vehicles at the private charging station at home. Complex billing processes, which can be easily and neatly covered, play a decisive role in all scenarios.

However, the solution offers much more; it is the basis for controlling and managing all business processes pertaining to the charging point. Complex processes that were previously prevalent along the value chain — from delivery point operators to companies to electric vehicle owners — are considerably simplified.

Greater Flexibility for Fleet Managers with 51ˇçÁ÷E-Mobility

Fleet managers also benefit. For example, the solution provides necessary charging data — charging total, location, date, duration, vehicle — to the connected accounting and finance software in order to perform cost center allocations or to initiate a corresponding reimbursement of private electricity costs of the vehicle owner. This happens in an automated manner via standard financial processes, such as travel expense reports.

On the facility manager’s side, 51ˇçÁ÷E-Mobility means more than just simplified billing. Via a dashboard, the status of all charging stations can be seen at any time, and defective stations can be swiftly repaired. This means facility managers always have an up-to-date overview of the available charging columns, which is also the case on the part of the charging column operators and thus enables comprehensive user and location management.

The results are overall faster workflows and higher charging point availability, supporting a better user experience as well as a positive total cost of ownership (TCO), which helps to further increase the acceptance of electric cars.

In addition, the solution simplifies the deployment of new charging infrastructure and is hardware independent. Operators can easily integrate new charging stations into the network as well as monitor and bill them via standard communication protocols. 51ˇçÁ÷uses the Open Charge Point Protocol 1.6 standard for this purpose. For charging point operators and businesses, the new solution thus offers maximum flexibility with very little effort.

Extensive Partner Ecosystem Enables Complete Solution

To be able to offer companies a comprehensive solution consisting of hardware, software, services, and support, 51ˇçÁ÷relies on a network of certified e-mobility partners.

51ˇçÁ÷E-Mobility is an important part of this, offering all stakeholders — charging station operators as well as companies and drivers — significantly simpler processes than the market is currently offering. Due to such solutions, not only is the necessary infrastructure expanded more quickly and flexibly, but companies also receive standardized e-mobility processes that support them in achieving their CO2 targets, and at the same time promote the broader use of electric vehicles. One example: partners such as energy service providers implement application scenarios such as “charging from self-generated photovoltaic electricity” or “vehicle to grid” and thus support the production of sustainable energy while simultaneously using the vehicle as a storage location.

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Hagen Heubach is global vice president and head of the Automotive industry business unit at SAP.

Having sufficient charging stations is just the tip of the iceberg. The transportation network is facing a major reboot, forcing automobile original equipment manufacturer (OEMs), utilities, corporations, regulators, and retailers to collaborate for innovation as never before.

Networks Power E-Mobility Innovation

Compared to gas-powered cars, EVs and the services around them are far more interconnected. This demands a new kind of collaboration across the e-mobility value chain from corporate fleets, regulators, and smart cities to service providers and consumers.

“The e-mobility network consists of multiple players from different industries and sectors with intertwined supply chains,” said Ulrich Scholl, vice president of E-Mobility at SAP. “To operate with flexibility and cost-efficiency they need to collaborate across stable, cloud-based that foster sustainable innovation around standardized processes, including invoicing and billing, as well as overall e-mobility management among partners.”

EVs Spark New Business Models

As sustainability mandates and promises grow, one central question is how to make EV battery recharging as easy and convenient as refilling a gas tank. Utilities are drawn to bi-directional charging that simultaneously recharges EVs while adding the battery’s stored energy back into the electrical power grid. This turns drivers into energy producers and cars into mobile power storage. Retailers are starting to monetize their solar panel energy, offering consumers free car charging while they shop, increasing customer loyalty. Meantime, corporate fleet managers are taking action by increasing EV and charging infrastructure investments that support company sustainability commitments.

For example, Hanno Klausmeier, managing director of 51ˇçÁ÷Labs France, received a award for leading the electrification of the company’s fleet of cars for hundreds of employees located across three sites.

Converting to EVs has been a seven-year journey at SAP, grounded in the company’s global commitment to sustainability, as well as the initial battery limitations of early EVs. After eliminating gas-fueled vehicles as a choice for employees several years ago, over 90% of the cars in the company’s fleet in 51ˇçÁ÷Labs France are now EVs. Convenient access to charging stations along with new fleet management operations were critical to the successful roll-out.

“We knew that employees would need more stations to charge their cars so we installed super-fast charging stations conveniently located across our facilities,” Klausmeier said. “We revamped fleet management to make sure we could supervise and optimize charging stations for uninterrupted operations. Connecting the e-mobility ecosystem on one transparent platform is the only way for organizations to keep pace with the rapidly-changing industry.”

Indeed, 51ˇçÁ÷Labs France developed new software to remotely manage the status of its charging stations, installing it on-site and at employee’s homes. Now available publicly, the solution helps corporate car fleet operations manage relationships with fleet management service companies, OEMs, and other suppliers that are involved with charging stations. Managers have real-time visibility into e-fleet charging station status and can quickly solve problems remotely for an easier experience.

Market Fragmentation Gives Way to Network Convergence

Entirely new competitors are emerging with EVs, including “roaming” providers, which help consumers locate reliable charging stations and pay for the electricity as validated users. This is likely a temporary stop gap because it is unnecessarily complex and more costly for drivers.

“We need to shorten the e-mobility value chain for cost efficiencies to charge point operators and an improved experience for customers,” said Scholl. “There’s no need to have another layer between energy providers and customers. With an open mobility platform, the whole ecosystem has the ability to build relationships for service convenience and affordable innovation, especially incorporating the use of renewable energy that’s produced locally and stored in EVs.”

Transforming the Transportation Sector

Just like the iPhone disrupted the cellphone industry, e-mobility redefines the purpose of a vehicle. Already some manufacturers tout EVs as self-powered RVs. Even bigger are the implications for large-scale innovations, such as vehicles that are able to provide uninterrupted power for tools at remote construction sites.

Similarly, transformations could be in store for energy retailers if OEMs bypass them to become energy providers themselves. On the corporate side, shared EVs could be part of an organization’s mobility budget for employees to spend as they see fit.

EVs’ star is rising as sustainability nears the top of many consumer, corporate, and government priority lists. Over 80% of automobile manufacturers have committed to their lineup in the near future, and some plan to go all electric within the decade. Modernizing the transportation industry means rethinking mobility as concept to make sure EVs pay off on the sustainable promise.

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Unfortunately, there is still a significant fleet of carbon-based locomotives and an entire fleet of trucks, buses, and utility vehicles utilizing carbon-based fuel and contributing to climate change across the globe. Meanwhile, in an adjacent industry, automotive manufacturers have almost unanimously promised to go electric in the coming years.

Where does that leave travel and transportation operators?

51ˇçÁ÷recently hosted an industry forum about the with leading mobility operators and industry value chain actors. Featured speakers included:

• Bruno Flinois, chief executive Officer of Clem
• Neele Marie Hinck, sales manager of EWE GO GMBH
• Erwin Guizouarn, chief executive officer of Evolution Energy
• Joerg Ferchow, chief solution expert at SAP
• Ulrich Scholl, global vice president New Mobility of SAP

Based upon the virtual event, we have compiled key takeaways and experiences on the use of the end-to-end energy ecosystem, as well as how leading practitioners are using technology to achieve strategic goals in the journey to fleet electrification.

The Evolving Value Chain of the Energy Ecosystem

The way corporations and citizens perceive the energy ecosystem is changing. More than ever, corporations like 51ˇçÁ÷are aiming to achieve carbon-neutrality, with electrified mobility playing a strong role to support these efforts. Neele Marie Hinck shares that in partnership with EWE GO GMBH, 51ˇçÁ÷has built more than 500 charging stations in Germany to support its corporate fleet of hybrid or electric vehicles. This trend will only continue as other forward-thinking companies aspire to reduce greenhouse gas emissions on the journey to carbon neutrality.

Outside of SAP, Clem Founder and CEO Bruno Flinois provides a global perspective about the ambitions of local authorities and large cities to de-carbonize their fleets. Clem is responsible for developing clean mobility to support public transport, offering subscription services and consultation of electric car-sharing and smart charging practices. The company started in 2010 by supporting one city with three charging stations, up to its current 600 charging points and 400 electric vehicles in more than 200 cities.

During a live event poll, 50% of the respondents said their organizations are early adopters of e-mobility with a single-digit of e-fleets, while the remaining responders did not yet have any operationalized e-fleets.

Tremendous growth in e-mobility offerings and adoption from both the public and private sector over the last decade demonstrates a promising future for the environment and the travel and transportation industry.

“New Downstream” Considerations and Impact

As e-mobility picks up momentum across the world, citizens and corporations alike have been asking themselves: Who should be responsible for developing the charging infrastructure and supporting other vital downstream considerations to support the end operators and/or drivers?

In Europe, a third-party approach similar to that of EWE GO is gaining traction, where an outsourcing vendor is responsible for simplifying the end-to-end mobility practices and operator support. This turnkey approach provides bundled mobility offerings related to knowledge, products, and services in order to increase the ease in which mobility is brought to life.

From a corporate fleet point of view, 51ˇçÁ÷Executive Ulrich Scholl advises that we must look beyond the boundaries of e-mobility today: “E-mobility is an important building block of mobility in the future.  The need for mobility programs is driven by the demand of employees and should be made easy for all to take part in — including the unique needs of urban employees.”

To increase the adoption of e-mobility offerings, a simple end-user experience is vital, where end-to-end services are provided and integrated into the way organizations operate and define success. It is not just about charging vehicles; there is much more to consider to support the downstream needs of e-mobility today.

Technology’s Role to Support the Electrification of Mobility

Authorities and organizations have varied ambitions for sustainability and carbon neutrality endeavors. Some ambitions are driven by new legislation that mandates a shift in energy consumption, while others are being driven by factors such as cost, consumer demand, risk mitigation, and/or brand reputation.

To prepare for a new normal in mobility, Evolution Energie’s Erwin Guizouarn shares that most customers’ first question surrounds cost. While cost savings is not typically the primary reason why organizations leap to e-mobility, it is a vital consideration that should be thoughtfully approached to help ensure alignment with corporate strategy.

Guizouarn shares that the top four client questions about the adoption of emobility include: How much will we pay? When should we charge the cars – day or night? How can we hedge costs? And how can we minimize risk?

Software solutions can help manage end-to-end operations for charging, procurement, and contracts to effectively manage complexity, including monitoring energy consumption and mitigating risk. Flinois adds that “Everything with e-mobility requires technology, specifically software to manage information including visibility, authority, energy use, and more.”

For firsthand experience and recommendations for an integrated e-mobility approach, .

Senta Belay is industry solution manager for Travel and Transportation at SAP.