International Business Machines Corporation (IBM - Free Report) announced that it has been selected by Cenovus Energy — a Canada-based integrated Oil and Gas company — for digital transformation and operational modernization.
IBM plans to implement a new SAP platform, which is likely to aid Cenovus in streamlining processes and thereby achieve greater efficiency.
Notably, Cenovus has its oil and natural gas assets spread across Alberta and British Columbia. It also holds a 50% stake in two U.S. refineries and has purchased a majority of ConocoPhillips' Western Canadian operations. The company seeks to update its Enterprise Resource Planning (ERP) platform with the help of IBM’s advanced digital offerings and capabilities.
About the IBM – Cenovus Deal
IBM Services will work with Cenovus for the implementation of SAP S/4HANA, SAP Ariba, SAP BW/4HANA, SAP Business Panning and Consolidation 11, and SAP Fieldglass software.
The implementation of SAP S/4HANA is likely to simplify, standardize, automate and centralize Cenovus's operations. Moreover, the technology is likely to aid innovation, achieve growth in areas like AI, and attain the required flexibility for new operational integrations.
IBM Services will make use of its leading technological capabilities, including pre-configured IBM Industry Impact Solutions, for the implementation of SAP applications at Cenovus. Additionally, the company will provide the required resource support, including talent, for suitably meeting the needs of the transformation process.
Digital Transformation to Drive Growth
IBM has long been a pioneer in the process of reinventing business operations of its clients with intelligent technologies such as SAP Value Assurance service packages and SAP Model Company services, and overall coordination of joint service offerings.
In fact, the company has implemented SAP S/4HANA for several global companies such as Cleco, Toyota Indus Motor Company and Logoplaste, to name a few.
To conclude, we expect IBM to consistently help companies adopt digital change. This recognition is likely to help maintain its well-proclaimed footing in analytics and cloud computing, which in turn, is likely to boost revenue opportunities.
Zacks Rank & Stocks to Consider
IBM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Cirrus Logic, Inc. (CRUS - Free Report) , Qorvo, Inc. (QRVO - Free Report) and CommVault Systems, Inc. (CVLT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Cirrus, Qorvo and CommVault are currently pegged at 15%, 10.1% and 10%, respectively.
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