Siemens, SAP expand partnership with focus on production and supply chains

The companies plan to develop new cloud services that aim to close the loop between IT and OT systems through a model-based digital thread.
Written by Natalie Gagliordi, Contributor

Siemens is expanding its longstanding partnership with SAP with plans to co-sell existing digital products focused on production and supply chains. The companies also plan to create a new industrial cloud-based service that aims to close the loop between IT and OT systems through a model-based digital thread. 

The expanded co-selling efforts are designed to leverage elements of Siemens' Xcelerator portfolio of software and services, including Teamcenter, MindSphere, and Mendix, together with SAP's Intelligent Asset Management, Enterprise Portfolio and Project Management cloud applications.

With an initial focus on discrete manufacturing, Siemens plans to offer SAP's Asset Intelligence Network, Asset Strategy and Performance Management application, and the SAP Enterprise Portfolio and Project Management package. In turn, SAP will offer Siemens' Teamcenter software service lifecycle management (SLM) portfolio.

Both companies are focused on services that are capable of sharing design content with operations and back to product design as part of a closed-loop digital twin. The digital twin can be used to plan and execute service operations for plants, fleets, equipment and factories through a close collaboration among network partners.

The companies said they plan to develop a new cloud service meant to help industrial equipment manufacturers increase asset operational efficiency, avoid unplanned downtime and shorten design cycles in asset engineering projects. 

Also: Siemens partners with Google to offer industrial AI tools

"Through this partnership we are enabling a true digital thread that integrates real time operations-based data with virtual product and asset models using components from both Siemens and SAP to provide operational insights," said Cedrik Neike, member of the Managing Board of Siemens AG and CEO Siemens Digital Industries. "This can accelerate digital transformation for industrial equipment owners, operators and manufacturers who can offer new business models including performance and usage-based cost, and to more efficiently use assets." 

Spurred by the boom in IoT sensors, edge computing, and wireless technologies, the concept of digital twin technology had grown increasingly relevant, particularly in the areas of data collection and analysis. Digital twin technology is the concept surrounding the creation of a digital "twin" or replica of a physical asset. One asset may not seem important, but given the opportunity to create a digital version of a business' full set of assets and equipment, digital twins can provide valuable, actionable insight into operations and supply chains.


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