SAP Reveals Plans To Foray Into China With SAP Ariba

German software solutions corporation, SAP SE (DE:SAPG) (NYSE:SAP) recently announced its plans to venture into the Chinese market by making its well-reputed business-to-business (B2B) network, Ariba, available in the country by the end of 2016.

Ariba’s cloud-based procurement applications will help Chinese enterprises create a comprehensive digital marketplace that would enable them to connect and collaborate seamlessly with trading partners, thereby simplifying business commerce.

Ariba to Improve China’s e-Commerce Prospects

Considered as a marketplace for digital enterprises, SAP Ariba has assisted millions of traders by facilitating simple and intelligent exchanges online. It comprises a host of cloud-based applications that can revolutionize “source-to-settle process” of business owners. By deploying Ariba, buyers can manage supply chain effectively, while sellers benefit from hassle-free management of sales cycle and cash flow.

This implies that business organizations in China can manage their entire work – ranging from contracts to payments – effortlessly. Simplified commerce will aid business owners drive innovation and growth, gaining significant competitive edge in the global digital marketplace.

SAP believes that China – a major e-commerce hub in Asia – is in the midst of a digital transformation. Rising demand for efficient business solutions has necessitated business enterprises to put digital processes at the core, thus providing SAP Ariba with lucrative prospects to expand its presence in the country.

SAP Ariba Growth Drive Shows Promise

As a matter of fact, SAP Ariba has proved to be a key growth driver for the company. With a client base of more than 2 million companies, this B2B business network is steadily emerging as an indispensible part of digital business around the globe. Moreover, it consistently introduces new offerings to fortify its hold. For instance, during second-quarter 2016, Ariba launched a new application for “guided buying experience” for source-to-pay customers, updated supplier management capabilities and launched the Direct Materials Sourcing capability.

We believe that strategic geographic expansions, along with prompt product launches, will act as vital growth catalysts for SAP Ariba.

SAP currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Aspen Technology, Inc. (NASDAQ:AZPN) , Callidus Software Inc. (NASDAQ:CALD) and DST Systems Inc. (NYSE:DST) . All three stocks carry a Zacks Rank #2 (Buy).