Positioning of SAP Business AI in Cloud Transformation

Objective

After completing this lesson, you will be able to examine how SAP Business AI accelerates the enterprise transformation journey.

SAP Business AI in Cloud Transformation

Unlock the full potential of your cloud transformation with SAP Business AI, seamlessly integrating AI into your enterprise applications and redefining user experience with our innovative solutions.

One of the most important components of SAP’s Business AI strategy is boosting the cloud transformation journey. When moving from an on-prem landscape to cloud ERP, there are several things that can be supported with AI and generative AI technologies and will substantially accelerate your transformation.

Looking at the SAP Cleancore principles, we consider all the processes, extensibility, data, and integration operations of the pillar and there are several tools in the SAP transformation suite that help in this journey like SAP Signavio, SAP LeanIX, SAP Cloud ALM, SAP BTP, and SAP’s generative AI use cases. These tools have the ability to accelerate your transformation up to 30% time to value when you leverage all of these offerings as part of this transformation.

And later in the stage, we will be introducing how these processes support transformations. On top of all of this, you can activate your Joule co-pilot in the entire customer landscape. This will help you bring a co-pilot experience into your business unifying the experience.

Embedded AI Use Cases

The image showcases SAP's embedded generative AI solutions across various business areas. It highlights 100+ use cases categorized into Business Transformation, Industry-specific, and Ecosystem solutions, all powered by their Cloud ERP and Business Technology Platform. Specific examples, like Intelligent Goods Receipt Analysis and Job Description Generation, are provided.

Let’s take a deeper look at what is available when it comes to embedded AI use cases and how many are available across the SAP cloud suite. There are more than 180 embedded generative AI use cases available now across Human Capital Management, Spend Management and Business Network, Supply Chain Management, Customer Relationship Management, and more.

But let's look at a specific example.

The infographic illustrates the financial benefits of AI for a $10B company. AI can increase gross profit by 1.4% and revenue by 3.5%. The main areas impacted are business transformation, supply chain management, and customer relationship management, all powered by a Cloud ERP platform.

When we look at the types of savings you can expect with SAP’s Business AI offerings holistically, there can be massive bottom-line benefits, an estimated 1.4% increase in gross profits, and a 3.5% increase in revenue overall. For a 10 billion euro business, customers could expect 141 million in annual bottom line benefit and an estimated 352 million revenue impact as an example. SAP is heavily investing in additional AI-driven capabilities so we can expect these numbers to increase substantially over time.

Custom AI Use Cases

The embedded use cases provide substantial value, but we also understand that customers may have custom scenarios based on their company goals, industry, and general needs.

A minimalist graphic with a blue and purple wave highlights the benefits of Custom AI. It emphasizes realizing value from data, differentiating through business process enhancement, and gaining a competitive edge through tailored innovations.

And here you can count on us to unlock the power of Custom AI, with Customer Innovation Services.

We ensure you realize value from Cloud, Data, and AI, with Custom AI Adoption (CAIA) and with differentiated innovations tailored for your unique business needs. We do this by re-imagining business processes with Functional, Industry, and generative AI experts from SAP. We deliver these differentiated innovations with secure software development and support methodologies as standard in SAP Software. Leveraging the power of the SAP BTP we can focus on a clean core approach, ensuring continuous innovation adoption. Next, let’s take a deeper look.

The infographic compares three approaches to developing custom AI solutions in SAP landscapes. Building on own infrastructure offers control but requires heavy lifting. Building on hyperscalers simplifies infrastructure but may lead to vendor lock-in. Building on SAP BTP offers pre-built integrations, faster value delivery, and lower risk.

Custom solutions in the AI space can have some risk and this is where SAP BTP comes in.

A critical element of SAP's AI strategy is the foundation it rests upon. Effective AI is built on a robust data foundation and seamless integration, particularly when it involves customized AI solutions on the SAP BTP.

When considering AI implementation, customers might initially opt for Large Language Models (LLMs) like openAI or an open-source model like Llama 3. That’s like starting on the first floor that has been built for you. You could potentially add three more stories, but this expansion might soon lead to financial concerns from your CFO due to the escalating investment required. This setup also places significant responsibilities on your team, including:

  • Needing to deal with all the GPU clusters
  • Taking care of capacity management
  • Managing cost controls
  • Providing security measures
  • Thinking hard about data privacy, and more.

As your AI deployment progresses, considering a transition to a hyperscaler becomes an increasingly practical choice. Hyperscalers effectively mitigate many of the initial challenges, allowing you to begin at an advanced stage—the 5th floor—and continue to expand up to three additional stories before financial constraints become a concern again. You might get an 8-story building in the same amount of time as before. But still, you must deal with many complexities, such as:

  • What if I have chosen the wrong model?
  • How does that integrate into my SAP landscape?
  • Do I need to replicate all the data?
  • How do I deal with all the business authorization so that there are no data leaks?
  • How will I integrate that with my identity management?
  • And way more.

That’s where the value of SAP BTP comes in: SAP has solved all these challenges for you already, because we build our own applications this way, and our amazing suite qualities and integration are a fantastic foundation as well! With SAP BTP, we elevate your capabilities to the 20th floor, enabling the development of a 23-story application within the same timeframe as before.

You might ask how is that possible? Because SAP BTP has everything you need. SAP BTP has a great identity management and authorization integration, full master data integration, one domain model, stable APIs for lifecycle management, access to all the metadata and data. And of course, enterprise security and privacy are built in as well. At the core of SAP BTP’s offerings, you also find the generative AI Hub, enhancing our platform's capabilities further.

The image illustrates how Generative AI can boost Cloud ERP transformation in four stages: discover & prepare, explore & plan, move & deploy, and run & innovate. Various AI-powered tools are listed under each stage, showcasing their capabilities in process analysis, automation, and enterprise architecture. The image also highlights future innovation areas like embedded AI use cases and Gen AI Apps.

So how can you leverage AI as part of your transformation, and will it help make the transformation more efficient and effective? You can leverage AI to assist you in your transformation journey and we have a transformation suite with SAP Signavio, SAP LeanIX, and SAP BTP to help. This combination jointly helps us with maintaining the five clean core principles that ensure clean processes, extensibility, and data integration operations. Let's see how it works. Let's first start with the overall Joule story.

Joule Story

You already heard that SAP is putting a lot of attention on Joule.

A digital slide with a vibrant purple gradient background advertises New capabilities for Joule ... and now embedded in Rise packages. The main subject, Joule, is prominently displayed in large white letters. No actions or specific settings are depicted.

Besides the embedded capabilities, and our options for custom solutions, there’s only one copilot that truly understands your business - its name is Joule, and it’s here to revolutionize our entire user experience. This is a tremendous opportunity for RISE with SAP customers moving through their transformation journey.

A plain white slide with a purple border presents the statement Supporting 80% of the most used tasks in bold text. A small purple icon of a shining diamond sits above the text. A button labeled by end of 2024 suggests a target timeframe.

SAP aims to support 80% of the most used interactions with Joule. This means that you can get started right away by gaining access to navigational, informational, transactional, and analytical support from the copilot that understands your business. All together there is a now a more holistic view of the possibilities with embedded AI, custom AI with SAP BTP, and with Joule across the landscape.

The image shows a slide titled SAP Consulting Capability for Joule. It features a Head of IT headshot and a screenshot of SAP software with data visualizations. The text highlights that Joule users gain access to various SAP resources. A value calculation demonstrates AI can reduce time spent by SAP consultants by 25%, saving $1,840,300 yearly.

SAP is delivering Joule for Consulting capabilities as well as the ABAP developer capabilities. Both solutions will help in our transformation journey. With Joule for Consulting we provide a lot of information for consultants with a quick access, and ABAP developers will provide enhanced coding capabilities for developers.

Let’s use an example, imagining you are the Head of IT, most of the time it's hard to get information about all of the SAP content available. SAP Community data, SAP Help, SAP Learning content, and developer tools are all available resources. Joule for SAP Consulting empowers SAP consultants with direct access to this content for fast detailed learning about systems design and updates, exceeding traditional certification methods.

Joule can also assist ABAP developers. Using Joule with ABAP development we can generate ABAP business objects, complete and explain code, and create unit tests – this all can transform your development process substantially. SAP Build will include access to ABAP development tools and ABAP development environments for SAP S/4HANA Cloud on SAP BTP. Leveraging Joule with ABAP can lead to 30% increase in speed. And all of this in combination brings tremendous value to the transformation story.

But what about process efficiencies? We will see in the next unit this is where SAP LeanIX and SAP Signavio come in.

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