In December 2024, SAP Business Network—the world’s largest B2B platform, facilitating more than US$6.2 trillion in commerce annually in 190 countries—launched its first data center in the Kingdom of Saudi Arabia (KSA), representing a major step forward in the execution of SAP’s data federation strategy. SAP Business Network has now become a distributed, decentralized, and federated business network for SAP Business Network for Logistics and SAP Business Network Asset Collaboration across the EU, U.S., and KSA. With this milestone, SAP has delivered on a crucial promise made to a highly consequential set of customers.

But what exactly is data federation? And why does it hold so much promise for customers in Saudi Arabia and elsewhere?

To counter the ever-present threat to global supply chains posed by disruption—whether arising from geopolitical conflict, labor unrest, financial crisis, natural disaster, or other upheaval—businesses are turning increasingly to cloud-based solutions to extend visibility and instill resilience across their operations and those of their trading partners, particularly when managing supply chains, logistics, and dispersed capital equipment or other mission-critical assets. Yet just as businesses must assess risk on an international scale to stay competitive, they also must comply with a burgeoning set of regulations around the world requiring operational data to reside physically within a nation’s borders. By applying cloud-based solutions, businesses can transact commerce through global digital networks while adhering strictly to regional data residency requirements through an approach known as data federation.

Data federation permits operational information from disparate sources to be accessed and updated as though it resided in a single, unified location. Instead of moving or copying data from one system to another, federation provides users with real-time access unburdened by duplication.

Federation becomes crucial when an organization must unify its data across different storage platforms while ensuring the integrity and security of the underlying operational sources. This becomes particularly vital for companies with complex data architectures, whose data may reside in SAP systems, cloud data lakes, or third-party applications. Data federation brings multiple advantages, especially in hybrid or multi-cloud environments, including global access, cost efficiency, unified governance and security, and faster time to insights.

But the advantages extend still further. With the launch of our KSA data center, SAP Business Network core services have been deployed. This includes multilingual support, such as proficiency with languages read right-to-left like Arabic, and a Federated Trading Partner Index Service for routing transactions between different data centers. Saudi customers can thus adhere to local data privacy regulations while retaining the ability to collaborate and transact with trading partners around the world.

Why Is This Important?

With the deployment of SAP Business Network in the KSA data center, public sector or critical national infrastructure (CNI) customers and prospects in KSA can rest assured that regulations have been followed strictly, allowing these organizations to transact on SAP Business Network for Logistics and SAP Business Network Asset Collaboration. Data federation helps ensure that trading partners can find each other, regardless of where they may be registered.

What’s Next?

The deployment of SAP Business Network for Logistics and SAP Business Network Asset Collaboration for Saudi customers in the public and critical national infrastructure sectors, for whom data federation is crucial, marks only the initial step. Later this year, both products will become available for private-sector customers in KSA as well. SAP Business Network Commerce Automation and SAP Business Network Supply Chain Collaboration will also be deployed in the KSA data center in coming quarters. Meanwhile, SAP will continue to expand its data center footprint and data federation program across the globe, with the expansion of SAP Business Network capabilities throughout 2025 and beyond.

For information on SAP Business Network and how we are equipping enterprises with business AI and related capabilities needed to instill resilience, counter disruption, and foster collaboration, visit sap.com/businessnetwork and sap.com/ai.

Jörn Keller is chief product officer for SAP Business Network.

The 2025 World Economic Forum’s Annual Meeting, held under the theme “Collaboration for the Intelligent Age,” brought together approximately 3,000 attendees from over 130 countries. Among the participants were more than 50 heads of state and government, alongside hundreds of top governmental leaders, private sector voices, and civil society experts. 

As the world faces pressing challenges — ranging from geopolitical tensions and climate change to a global skilling crisis –the meeting in Davos provided a vital platform to foster dialogue and catalyze lasting solutions to shared problems. It also highlighted the importance of corporate responsibility, with social innovation taking center stage as an essential driver of progress. 

Social Innovation Takes Center Stage 

Social innovation is emerging as a foundation for addressing global inequalities and driving systemic change. This year, discussions around social innovation took on greater prominence, with Catalyst Now hosting the first-ever dedicated house for the topic. This space became a hub for thought leaders, practitioners, and policymakers to exchange ideas and spark action.

Social innovation and collaboration go hand in hand, and the synergy between global initiatives and localized action is pivotal in creating meaningful impact. As a key partner, SAP supports Catalyst Now and its Africa Forward initiative, which empowers social enterprises through digital skills training, pro-bono consulting, and policy advocacy. With more than 1,000 members across 28 African countries, Africa Forward continues to foster job creation, sustainable funding, and advocacy efforts. 

The Annual Meeting also served as a bridge between African social entrepreneurs and decision-makers, including South Africa’s Minister of Science, Technology, and Innovation Professor Blade Nzimande, opening pathways for new partnerships and support.

The panel featured two 2025 Schwab Foundation Awardees: Christina Mawuse Gyisun, co-founder of Sommalife, who shared her work empowering women shea nut farmers in West Africa, and Muzalema Mwanza, founder of Safe Motherhood Alliance, who highlighted her mission to ensure safe childbirth for millions of women in sub-Saharan Africa. This dialogue underscored the critical role of social entrepreneurship and what role Africa Froward can play in driving sustainable development across the continent. This is essential, as over 60 percent of Africa’s population is under 25 years old and projected to account for 42 percent of the global youth demographic by 2030.

While tech investment remains concentrated in Nigeria, Egypt, Kenya, and South Africa, the continent’s potential in emerging green and digital economies is immense.   

Global Partnerships to Scale Innovation 

Addressing challenges at scale requires collaboration across sectors and geographies. The Global Alliance for Social Entrepreneurship, the largest coalition of its kind, exemplifies this collective effort. Hosted by the Schwab Foundation in collaboration with the World Economic Forum, the alliance brings together more than 110 organizations, including corporations, investors, philanthropists, and governments, to amplify the impact of social innovation. 

During the World Economic Forum Annual Meeting 2024, the Global Alliance launched the Rise Ahead Pledge. Twenty-five companies have signed the pledge since and committed themselves to increasing investments in social innovation. In 2025, they are reporting on their spending for the first time mobilized $277 million to drive meaningful change. These resources were channeled into key areas: 

• $95 million to support social enterprises through social procurement
• $86 million in non-financial resources like pro-bono services and technology access
• $47 million to provide direct financial support to social innovators
• $29 million for internal innovation, focusing on developing impact-driven products
• $21 million to strengthen the social innovation ecosystem

We are an active partner in these efforts, demonstrating a commitment to creating sustainable pathways for social enterprises to thrive. 

Supporting Research to Shape the Future 

Research and data are critical to driving informed decisions and shaping the social innovation agenda. Several pivotal publications were launched during the meeting to provide actionable insights: 

• Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions: This report highlights the pivotal role of the social economy, including social enterprises and cooperatives, in advancing equity during transitions. Supporting 200 million jobs and generating over $2 trillion in global turnover, the social economy drives inclusive innovation by enhancing affordability, accessibility, job creation, and empowerment for marginalized communities. 
• State of Social Procurement 2025: This report leverages the expertise of numerous organizations to uncover new insights, present fresh data, and highlight diverse country profiles on social procurement.
• Beyond Compliance: Embedding Impact through Innovative Finance: The report reveals how this emerging practice is already driving $185 billion by tying financial incentives to measurable social outcomes. It provides businesses with a powerful avenue to tackle societal challenges while staying competitive. 

A New Model for Procurement 

Procurement is increasingly recognized as a lever for social equity and sustainability. To accelerate this shift, SAP Executive Board Member Thomas Saueressig and Deloitte Global Chair Anna Marks announced the launch of the Social Procurement Innovation Accelerator, a joint initiative designed to reshape procurement practices and amplify social impact. 

This program combines cutting-edge supply chain technology with deep expertise in sustainability and transformation to provide organizations with a practical road map for impactful procurement strategies. It focuses on inclusive sourcing, ethical labor practices, and robust social impact measurement, enabling businesses to align procurement with broader equity and sustainability goals. 

By transforming procurement into a driver of systemic change, organizations can deliver lasting value for people, communities, and the planet. 

Empowering Tomorrow’s Changemakers  

It is essential to maintain this momentum now and into the future by empowering young social innovators, fostering connections, and encouraging intergenerational understanding. This is particularly important because major decisions made at conferences often concern youth, yet they rarely have a seat at the decision-making table.  

To address this, we supported the youth delegations of We Are Family Foundation, ChangemakerXchange, and the WEF Global Shapers, supporting them to participate in hundreds of meaningful interactions such as panel discussions, 1:1 meetings or roundtables.

Gina Vargiu-Breuer, chief people officer, labor director, and member of the Executive Board of SAP SE, hosted a roundtable on empowering young changemakers. The session brought together corporate leaders, young social entrepreneurs, and partners like UNICEF Generation Unlimited and Junior Achievement to engage directly with youth. It focused on the unique needs of the next generation, identifying key areas for collaboration and showcasing the transformative power of youth-led solutions to tackle global challenges. 

Looking Ahead 

The 2025 World Economic Forum’s Annual Meeting demonstrated the transformative potential of collaboration in accelerating social innovation. By bringing together diverse voices and perspectives, it reinforced the importance of partnerships in addressing the world’s most pressing challenges. 

For the SAP Corporate Social Responsibility team, it also served as a valuable opportunity to strengthen relationships within its ecosystem, fostering new collaborations that will help drive long-term impact. As global challenges persist, platforms like Davos provide the momentum needed to create a more equitable, sustainable future for all.

Alexandra van der Ploeg is head of Corporate Social Responsibility at SAP.