Threat of Blockchain Prompts New Strategy for Germany’s SAP

Nearly 400 miles from its German headquarters, in the computer-science hotbed of Potsdam, SAP SE’s engineers are trying to head off the latest challenge to its software empire: the blockchain.
The World Economic Forum has identified blockchain technology, which underpins the virtual currency bitcoin, as one of six computing ‘mega-trends’ shaping society in the coming decade. In a paper issued last year, the WEF estimated 10 percent of global GDP could be stored in blockchains by 2027.
Companies including Deloitte LLP, JPMorgan Chase & Co. and Toyota Motor Corp. are looking into using, or experimenting with the de-centralized blockchain system, which threatens to supplant some enterprise planning software created by market-leader SAP and others.
‘The potential for disruption is huge,’ said Juergen Mueller, SAP’s chief innovation officer, who joined the Walldorf-based company three years ago. ‘If we would not move, this would be a huge threat.’

This post was published at Bloomberg on Olga Kharif.