TechniData Capabilities Will Fuel SAP’s On-Demand Sustainability Strategy
Posted by Alexander Peters, Ph.D. on September 3, 2010
As announced in April, SAP told us this week that it formally completed the acquisition of its longtime partner TechniData — a 500-employee company headquartered in Germany with a presence in both Asia and the United States. TechniData provides sustainability solutions in three areas: 1) health and safety; 2) product safety; and 3) environmental compliance — for example, process consulting, software services, information on regulatory content, and managed services for EU’s REACH regulation.
Forrester Senior Analyst Holger Kisker and I had the opportunity to talk recently with Jürgen Schwab, the former chairman and CEO of TechniData; Marty Etzel, SAP’s VP of Sustainability Solutions; and Dieter Hässlein, SAP’s VP of Solutions Management for Environmental Health & Safety (EH&S). They told us that SAP has created a sustainability consulting hub accommodating more than 100 consultants, including the former TechniData staff, to support SAP’s sustainability strategy. They also explained the reasons for the acquisition: 1) focusing on content as an integral part of SAP’s sustainability strategy; 2) expanding and refining SAP’s expertise and customer base both beyond the chemicals industry and geographically, as well, in particular in Asia; and 3) improving the capabilities of SAP’s current preconfigured sustainability-related solutions.
At first glance, none of this sounds like breaking news. The two companies have already partnered tightly for several years, with TechniData co-developing and building SAP’s EH&S application. However, what I find interesting is SAP’s investment in elevating its solutions to directly fit the needs of business process professionals through preconfigured processes and — most importantly — through up-to-date regulatory content available on-demand and fueled through a dedicated sustainability consulting hub. SAP’s test bed for solutions like this seems to be the SAP Sustainability Library, which already hosts another on-demand regulatory solution, the Carbon Impact, stemming from the 2009 acquisition of Clear Standards. Is SAP disintermediating another piece of its traditional value chain?