-Targeting the Chinese ERP market growing 17% annually based on experience in ERP implementation for Korean railroad/public sector

-Promised to develop new business models such as GRC (governance, risk and compliance) through technical cooperation

Samsung SDS (CEO: In Kim, www.sds.samsung.co.kr) and SAP APJ (CEO: Geraldine McBride, www.sap.com/asia) in charge of SAP business in Asia Pacific and Japan formed a comprehensive partnership aimed at jointly developing market opportunities and launching business in Korea, China and Southeast Asia.

At this meeting held in Shilla Hotel on March 19th, 11:30 am, Samsung SDS CEO In Kim and SAP APJ CEO Geraldine McBride pledged to take this opportunity to strengthen their business partnership. This partnership was formed as SAP felt the need for a stronger bilateral relationship with its core global partner and SDS desired to expand its ERP business.

The two companies also agreed on the significance of the Chinese market and the need for new growth engines. Samsung SDS was the first company to sign a strategic alliance with SAP APJ not only in Korea but also in broader Asia-Pacific. In this partnership, the two firms pledged not to confine themselves to the Korean market but look for wider markets in Asia-Pacific. They also promised to jointly carry out sales and marketing necessary for business in the region, share latest technologies and even support each other’s training. To be more specific, Samsung SDS and SAP APJ agreed to collaborate for GRC, or a new system that manages governance, risk and compliance, and to cooperate in the Korean and Chinese markets for extended ERP solutions such as CRM and BI/BW on top of their ERP relationship that has built up since the mid 1990s.

To maintain its leadership in ERP business in Korea, Samsung SDS will use this partnership to adopt SAP’s latest SOA technologies and experience, gain competitive edge by turning existing ERP project assets into SOA, and focus on ERP projects for the public sector based on its successful project implementation in Korea Railroad and Korea Midland Power Corporation. The two companies, in particular, agreed to capitalize on SDS’ leadership in ERP business in the public/logistics/manufacturing/railroad sectors to take a more aggressive stance in the Chinese ERP market which has been growing 17% per year.

With an aim of strengthening ERP business in China, Samsung SDS will expand sales/consulting /development staffs in its subsidiary in China, and include ERP in GDC (Global Delivery Center) which will be built within this year to facilitate ERP development both in Korea and in China. SAP APJ will also support ecosystem focused on expanding SAP resources through sharing of business opportunity and sales networks and discovering of partner companies. The two firms have a shared goal of becoming a leader in ERP business further in Southeast Asia. Apart from collaboration in ERP, they also agreed to launch joint efforts in GRC business to secure a new growth engine. Currently, Samsung SDS is in the process of staff appointment for GRC and sales activities targeting Korean public and private companies while SAP APJ is on the way to support latest solution update information and relevant training. The two companies are also planning to collaborate in joint marketing and license policy establishment.

Sources from Samsung SDS said, “The comprehensive partnership between the two companies will serve as a good opportunity to expand their presence in the Korean market growing 10% every year and in the rapidly growing Chinese market.” They also added that “the alliance will help us make a successful entry into China which will be a new source of income for us.”

SAP APJ CEO Geraldine McBride said, “An MOU between Samsung SDS, a company with rich experience in ERP implementation based on process innovation, and SAP, a leader in business application, will lay a firm foundation for establishment of their role as a core hub of system implementation in the Asia-Pacific region.” He also added, “This MOU will serve as an important factor for ultimately enhancing clients’ competitiveness through efficient system implementation and specialized consulting activities.”

- Samsung SDS PR Team -