SAP Announces €2 Billion IoT Investment Plan

SAP has recently announced investment plans of €2 billion over five years to help business and government entities benefit from the proliferation of sensors, smart devices and Big Data that is transforming business with the Internet of Things (IoT), market, which is estimated to reach €250 billion by 2020.

Bill McDermott: “With billions of connected devices, we now have the potential to reshape society, the economy and the environment. SAP HANA is the data platform we knew would unlock the Internet of Things. Today SAP is making another bold investment to help our customers seize the benefits of live business. Only SAP empowers businesses to innovate from the core to the edges to the networks.”

The outlined strategy will focus on the following key areas:

• SAP IoT: From Information to Insights, Action and Live Business.
Use of Big Data for machine learning and integration with S/4HANA; connecting people, partners, things and the physical environment; real-time, live intelligence; more immediate customer and stakeholder value.

• Innovation in New Solutions: Industry 4.0 Solution Packages.
The jump-start package to monitor equipment effectiveness and provide insight into shop floor operations, as well as the accelerator package that adds an automated, paperless, manufacturing execution and control environment, performance analytics and advanced plant maintenance, are already available. Both packages are complemented by the SAP Distributed Manufacturing application for additive manufacturing 3D printing services. SAP plans to introduce the third Industry 4.0 solution package, the “advanced” package, to provide advanced manufacturing insight and controls, machine learning functionality and predictive analysis for quality and maintenance operations. SAP also plans IoT package solutions to address the unique digital operations of cities, agriculture and energy industries.

• Innovation in the IoT: PLAT.ONE, Fedem.
SAP has acquired PLAT.ONE, an enterprise-grade IoT provider that simplifies the process of creating, deploying and managing complex IoT solutions. PLAT.ONE provides expertise and technology to accelerate the availability of key IoT capabilities in SAP HANA Cloud Platform. SAP has also recently acquired Fedem Technology, specializing in advanced engineering analysis and building software for multibody dynamic simulation and lifetime calculation of structures and mechanical systems under the influence of complex loads. With this acquisition SAP plans to build an end-to-end IoT solution in which a digital avatar continuously represents the state of operating assets through feeds from sensors, replacing the need for physical inspection with a digital inspection.

• SAP IoT Labs: Enabling Global IoT Transformation Across the Globe.
SAP plans to establish locations around the world to collaborate on Industry 4.0 and the IoT with customers, partners and startups. SAP IoT labs are intended as lighthouse locations and primary access points for IoT research, development, proof-of-concept modeling and incubation, with IoT showcases, thought leadership, expertise and infrastructure for strategy and product co-innovation. Planned locations include Berlin, Johannesburg, Munich, Palo Alto, Săo Leopoldo and Shanghai. The labs are intended to provide customers with access to co-innovation resources including design thinking experts and workshops, and interactive demos of IoT-related technology including autonomous systems (such as drones and robotics), IoT security, machine learning and 3D printing.