Steering Away from Traffic Chaos

SAP Board member Gerd Oswald (left) speaking with Chinese Premier Li Keqiang (Foto: SAP).
SAP Board member Gerd Oswald (left) speaking with Chinese Premier Li Keqiang (Foto: SAP).

A quick glance at the figures shows just how highly SAP rates China as an economic powerhouse: SAP China currently employs some 4,000 professionals across 13 offices and serves around 6,000 customers, including 50% of China’s top 100 companies. As a reflection of the country’s immense potential, SAP announced a growth plan for China back in 2011, in which it envisaged investing approximately US$2 billion in the Chinese market by 2015.

Chinese Premier Li Keqiang speaks to SAP

The events of recent weeks are a clear sign that both the Chinese – and German – governments have sharpened their focus on SAP as a key strategic partner. Following a visit by an official delegation from the Chinese Ministry of Industry and Information Technology to SAP, Chinese Premier Li Keqiang met with a select group of high-ranking German business representatives during his visit to Germany at the end of May. SAP was one of the ten DAX companies represented: SAP Executive Board member Gerd Oswald agreed with Chinese Premier Li Keqiang on a strategic partnership and also met with representatives from Minmetals, a state-owned Chinese metals and mineral trading company.

The aim of the planned strategic cooperation is to develop intelligent transportation systems that will help manage traffic in China’s fast-growing urban areas more effectively in the decades to come. SAP and the Chinese High-Way Group will enter into broad collaboration for research on integrated solutions for transportation communications and the development of intelligent traffic management systems, applying advanced software solutions from SAP for mass data processing based on the SAP HANA platform, cloud computing, and mobile computing.

Next page: SAP systems to improve people’s lives

“Urbanization is one of the biggest challenges for China, with more than 400 million people expected to be added to China’s urban population by 2025,” says Gerd Oswald. He added: “The intelligent management of public transportation is critical for sustainable economic growth and long-term socio-economic development in China. We are delighted about this strategic collaboration with the Chinese government to improve people’s lives. We will conduct joint research into developing intelligent transportation systems that will help China manage its next phase of sustained growth with the help of SAP’s advanced technology for big data analysis and predictive analytics, mobile computing, and cloud-based solutions.”

SAP and Ministry of Transport combine expertise

China’s total investment in intelligent transportation systems has grown continuously to more than €500 million annually. The volume of data generated through the use of subways, buses, taxis, traffic cameras, and so on, is immense. However, the existing IT environment lacks the ability for predictive and advanced data analysis to proactively simulate different traffic and transportation scenarios so as to provide better services for China’s citizens and enable better urban planning in the future. SAP will collaborate closely with China’s Ministry of Transport to combine its own cutting-edge research and technology into intelligent transportation with the Ministry’s expertise in traffic, logistics, and transportation.

Admiration for SAP database and cloud solutions

Of special interest to members of the Chinese Ministry of Industry and Information Technology during a visit to SAP’s Berlin office were SAP’s database and cloud solutions.  Minister Liu Lihua and his delegation listened to product presentations given by Xiaoqun Clever, president of SAP Labs China, Rainer Zinow, senior vice president Cloud Unit, and Legal Department manager Mathias Cellarius. Bearing in mind that three quarters of the world´s transaction revenue touches an SAP system, Liu Lihua expressed his admiration for SAP and the importance of its solutions. He also addressed the topic of intellectual property and asked SAP for input on how to protect it. The meeting ended with both sides expressing a wish for further exchange and meetings.