SAP and IBM Engage in Strategic Collaboration with XCMG


XCMG Machinery has formed strategic partnerships with tech powerhouses SAP and IBM to bolster the company’s global competitiveness and facilitate its journey towards becoming a world-class enterprise.

In a groundbreaking step towards digitalization and intelligent transformation, XCMG Machinery has recently established long-term strategic alliances with IBM and SAP. This joint initiative promises to uplift the company’s competitive edge, fostering international business growth, and driving the construction of a globally recognized enterprise.

In a world where technological advancements drive economic progress, the power of intelligent and digital transformation is the cornerstone of the industrial revolution and business innovation. XCMG’s Chairman, Yang Dongsheng, emphasized this concept when expressing his company’s readiness to leverage the renowned digital transformation services of IBM and the operational optimization expertise of SAP. As both IBM and SAP bring their unique skill sets to the table, this collaboration is anticipated to propel XCMG towards achieving its goals of high-quality development.

This partnership will utilize IBM’s exclusive technologies and profound experience in spearheading intelligent digital transformations. The alliance will span across various management and governance scopes, such as R&D, supply chain logistics, marketing and service, financial management, human resources, and corporate governance.

Li Yujing, a senior partner at IBM Consulting Greater China, underlined the prestige of this partnership, stating that XCMG isn’t just a leading figure in China’s construction machinery industry, but also a benchmark for technological innovation and high-quality growth. He expressed the pride IBM feels in supporting XCMG’s strategic endeavors, combining their expertise in digital transformation and their knowledge of the construction machinery industry to accelerate XCMG’s growth.

Elevating XCMG’s Transformation Journey with SAP and IBM

Over the past 15 years, XCMG’s partnership with SAP has yielded significant results in the realm of information construction, thus enabling XCMG’s industrial transformation and high-quality growth. This longstanding collaboration has been epitomized by the signing of the “Industry 4.0” cooperation agreement in 2015, which solidified their shared commitment to technological advancement.

As XCMG and SAP renew their strategic collaboration, it is envisaged to turbocharge XCMG’s intelligent transformation agenda. SAP will deploy its advanced digital technologies and deep-rooted industry experience to optimize various areas of XCMG’s operations. This includes global marketing and services, supply chain management, intelligent manufacturing, finance, human resources, data governance, and sustainable, green development.

Dr. Huang Chenhong, SAP Global Executive Vice President and SAP Greater China President, shared his excitement about deepening this longstanding partnership. He assured that SAP would exhaust all its global resources, offering innovative solutions and mature practices to support XCMG’s transformation into a pilot Chinese enterprise that is data-centric, interconnected, and green.

By aligning with industry leaders IBM and SAP, XCMG Machinery sends a clear signal to the industry about its readiness to embrace the digital age, leverage technological breakthroughs, and retain its global leadership position. As XCMG navigates its way towards a “high-end, intelligent, green, service-oriented, and globalized” business model, these strategic partnerships stand as a testament to the company’s commitment to evolution, adaptation, and growth in the face of technological advancements.

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