SAP SE (NYSE:SAP) and E.ON SE announced a new partnership to build a platform based on the SAP S/4HANA Utilities solution. The platform will make processes for billing and exchanging information with energy market participants fit for the future.
SAP and energy supplier E.ON plan to build a new process and technology platform for E.ON’s network operations. Together, the two strong partners intend to set a new standard in Germany’s power grid business. E.ON aims to use cloud solutions from SAP (SAP S/4HANA) to make core processes around billing and information exchange more efficient and consistent across its corporate group. That way, E.ON Group’s energy suppliers, grid operators and metering point operators will be able to share information faster, more accurately and more easily. Processes will be standardized, with the various energy billing and data exchange systems at E.ON’s regional units moving to the new platform. Having consistent data will enable the company to deploy standard solutions, follow best practices and reduce the cost of developing custom software. E.ON’s network customers stand to benefit as well. Leaner, standardized processes will enable the company to respond even faster and more efficiently to customer requests.
The decision for the new technology was triggered by the integration of energy company Innogy SE into the E.ON Group. E.ON’s grid business plan is to establish standard billing processes and IT systems across its entities. The first benefits from the project – more efficient processes – are expected as early as mid-2022. Implementing innovative cloud solutions should save the group more than 40 percent in costs long term.
With grid operations as part of its business, E.ON has to meet regulations set by Germany’s Federal Network Agency, the Bundesnetzagentur. The partnership with SAP and the capabilities offered by the new, open, modular, stable platform will ease compliance with new regulatory requirements, such as standard data exchange formats. In addition, business processes running on SAP Cloud Platform can be extended easily. Because the platform can continually evolve, it offers scope for innovation as well.
“Partnering with SAP enables us to redesign processes and structures, especially following our acquisition of Innogy,” says Thomas König, board member in charge of energy networks, E.ON SE. “This project will set a new standard in the market. Having maximum automation and standardization on the new platform will make our processes much more efficient.”
“The close partnership with E.ON is not only a powerful example of how technology can simplify business decision-making, bring about new business models and generate sustainable value,” says Christian Klein, CEO, SAP SE. “Today’s decision is also a strong commitment to industry cloud solutions from SAP and demonstrates that, when it comes to digital transformation, we are our customers’ partner of choice.”
E.ON SE is an international investor-owned energy company, which focuses on energy networks and customer solutions. As one of Europe’s largest energy companies, E.ON plays a leading role in shaping a clean, digital, decentralized world of energy. To this end, more than 75,000 employees develop and sell products and solutions for private, commercial and industrial customers. Around 50 million customers purchase electricity, gas, digital products or solutions for electric mobility, energy efficiency and climate protection from E.ON. E.ON is headquartered in Essen, Germany. For more information, please visit www.eon.com.
SAP’s strategy is to help every business run as an intelligent enterprise. As the market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.