$60 Billion Investment in Canadian Infrastructure Must Include Long-Term ‘Smart City’ Strategy, Advises SAP

TORONTO – 11 February 2016 – A recent IDC Canada survey of senior technology decision makers revealed that only 10% of Canadian public sector organizations have a digital technology plan integrated into their long-term strategies. The survey, commissioned by SAP Canada Inc., a subsidiary of SAP SE (NYSE: SAP), sought insight into how leaders in Canada perceive digital technology affecting their organizations. The full report, due for release in March 2016, will highlight where Canadian organizations are investing in digital technology, where the gaps lie and how this could affect Canada’s economic growth.

John Graham, Managing Director, SAP Canada, says: “The government has committed a $60 billion investment in Canada’s infrastructure, which could be spent in many areas before a long term digital strategy is in place. Cities everywhere are under pressure to do more with less. Looking at new, digital, ways to deliver services is imperative, as well as empowering officials and employees to work more efficiently using digital technology.”

IDC’s report revealed four key insights:

  • 65% of government technology decision makers in Canada believe that embracing the digital economy presents a bigger organizational risk than not embracing it;
  • 75% of respondents said they did not expect that making digital investments would provide a significant return on investment for their organisation.
  • 25% of the public sector respondents believe the leaders of Canada’s governmental organisations are suitably aware of the implications of the digital economy.
  • Only 40% of public sector respondents are aware of the term “digital economy”, compared to 60% on average for technology decision makers

Susan Cook, Head of Public Sector at SAP Canada, says: “There is a global smart cities movement happening, which represents the largest urban shift our world has ever seen. Digitally-empowered cities are using real-time data to empower communities and increase liveability by improving infrastructure, urban environment, and the quality of public services. As an example, applying sensors to buses and trains would provide cities with real time information on their performance. Canadian cities are starting to make headway in transforming to become digital which will ultimately lead to better-informed decisions and greater innovation.”

Tony Olvet, Group Vice President, IDC Canada says: “The survey highlights the disconnect between business’s perceived benefits of the digital economy and their lack of an immediate plan to embrace digital transformation into their strategy. The public sector, like many Canadian organisations, is typically risk averse when it comes to technology adoption. However, to compete globally as a progressive developing country, we need to embrace innovation and drive the optimal use of finance, human, technological and physical resources.”

SAP Canada hosted public sector leaders and academics in an exchange of ideas and shared digital transformation experiences at the Smart Cities Forum at MaRS Discovery District in Toronto on February 10. Alongside the global VP of SAP’s Future Cities program, Sean O’Brien, a panel including leaders from the City of Toronto, the City of Mississauga, and the Toronto Transit Commission, as well as former Deputy Mayor of New York and Mayor of Indianapolis Stephen Goldsmith, discussed how they are embracing digital transformation.

John Graham adds: “Hearing from leaders of Canada’s public sector at the Smart Cities Forum gave me great hope that the most innovative government bodies are genuinely looking at digital as a major part of their long term mission. The percentages from the IDC survey may look bleak right now, but if we did it again in 4 or 5 years I would expect a significant shift, based on the forward-thinking attitudes of the speakers.”

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 300,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

© 2016 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Carole Wagner, carole.wagner@sap.com, +1 403 389 7451
SAP News Center press room; press@sap.com