SAP Asia Pacific Japan (APJ) and Samsung SDS Monday signed a strategic Memorandum of Understanding (MOU) in a bid to enhance business cooperation to jointly explore markets and business opportunities in Korea, China, and Southeast Asia.
The comprehensive partnership envisaged in the MOU has been engineered to strengthen the relationship between Samsung and SAP by reinforcing their Enterprise Resource Planning (ERP) business, facilitating new business growth together in the Chinese market, and exploring other new growth opportunities across the South-East Asia region. The entire focus of this strategic alliance is joint market exploration beyond Korea, to encompass development of opportunities across the Asia Pacific region, by enhancing support for sales and marketing, sharing of state-of-the-art technologies, and human resources empowerment.
“Our customers in the region remain motivated to grow their businesses and need to derive real value from the systems they implement,” said Geraldine McBride, President & CEO of SAP Asia Pacific Japan.
“This strategic MOU further strengthens the foundation of our already strong relationship with Samsung and widens the scope of our activities together across the APJ region.”
In particular, the two companies have agreed to focus on Governance, Risk, and Compliance (GRC) to lead the emerging enterprise regulatory and risk management systems market, as well as expand their solution collaboration scope to cover Customer Relationship Management (CRM) and Business Intelligence/Business Warehouse (BI/BW).
To further support the intent behind the MOU, Samsung SDS is also assigning dedicated GRC experts and beefing up its sales force, targeting public and private companies in Korea.
Samsung SDS aims to sustain its competitive advantage in ERP technology by converting existing ERP assets into a service-oriented architecture (SOA) offering. The company said it is looking to grow the sales, consulting and development functions within its Chinese subsidiary and is aggressively seeking to make inroads into the Chinese ERP market, currently growing at around 17% per annum. To promote more efficient ERP business development in Korea and China, Samsung SDS will include ERP in the scope of the Global Delivery Center (GDC) that it plans to establish this year.
The MOU aims to increase cooperation between Samsung and SAP in targeted market segments such as China high-tech markets and China rail and heavy industry markets. The MOU helps SAP APJ expand its ecosystem by sharing business opportunities, creating sales networks and continuing to acquire additional outsourcing partners.
“The mutual and comprehensive partnership with SAP will help us sustain 10% annual growth in the domestic ERP market and lays a solid foundation for our role in the rapidly expanding Chinese ERP market,” said In Kim, President & CEO of Samsung SDS.
“Thanks to the strategic alliance with SAP, we expect continued progress towards the creation of new sales revenue growth engines both inside and outside Korea.” |
