Increasingly Maturing Market For EHS Regulatory Content Signalled By Recent Commercial Shifts
The EHS and product stewardship regulatory content market has evolved over the past five years to establish a partnership-based and ecosystem-based model. Witness software vendor Enablon partnering with UL’s ChemAdvisor, Bloomberg BNA, Enhesa, RegScan, SiteHawk and Verisk 3E, as well as Cority partnering with SiteHawk to deliver industrial hygiene solutions for Toyota Manufacturing. In addition, various other vendors also remain active in this market segment including iPoint-systems, Red-on-line and thinkstep. Among EHS software vendors, a select few maintain notable in-house expertise specific to product compliance—for example, Enviance acquired Actio to gain SDS database management capabilities, Sphera’s chemical compliance customers include BASF and Dow, and VelocityEHS’s MSDSonline solution is accessed by more than 13,000 users globally. Numerous services firms also work in this area—for example, Arcadis, ERM and Jacobs offer SDS authoring, inventory reconciliation and REACH compliance services.
Recent commercial shifts and acquisitions signal the ongoing maturation of the market for EHS regulatory content. One of the most important such changes was announced on February 25, 2019, when Verisk 3E acquired SAP’s Environmental Health and Safety Regulatory Content (ERC) and Environmental Health and Safety Regulatory Documentation (ERD) teams and data assets. While the financial details of the acquisition were not disclosed, the firms will also partner to enable SAP users to access Verisk 3E content and services for the foreseeable future. This partnership is a strong benefit to SAP end users since Verisk 3E content covers more than 2,000 global chemical regulations for 500,000-plus substances, significantly exceeding SAP’s previous coverage. Likewise, Verisk 3E is a multinational firm, headquartered in North America, that will benefit from access to SAP’s large, global customer footprint that exists predominantly in other regions.
For SAP, this announcement reflects a natural progression of its EHS information management business. Since the early 1990s, SAP has been invested in constructing substances and materials management solutions in response to customer demand. To date, the firm’s coverage has expanded to include an assortment of product stewardship solutions such as survey-based supplier assessments as well as health and safety modules covering incident, risk and management of change. Through our Green Quadrant EHS Software studies, Verdantix has found that SAP’s priorities remain focused on consistent application architecture across user experience technology (Fiori), database technology (S/4HANA) and code base (ABAP and HTM5). To ensure a lean EHS software business, SAP made the strategic decision to move away from resource-intensive, service-based activities such as EHS regulatory content management.
Verdantix believes that maturity of the EHS market will be evidenced by software vendors deriving significant revenues from software-as-a-service (SaaS) contracts and consultants delivering services in software selection, implementation, customization, safety data sheet (SDS) authoring, on-site chemical inventory reconciliation and related activities. The Verisk 3E-SAP partnership is an early indication of the gradual maturation of the EHS information management market, specifically associated with large customers that are seeking firm-wide solutions. To learn more about the on-going evolution of EHS market dynamics, please join our upcoming webinar titled “Maximizing Growth In The EHS Software Market" on March 21, 2019.