Leveraging Artificial Intelligence-Solutions for Enhancing SAP S/4HANA Utilities

Objective

After completing this lesson, you will be able to assess the implementation of AI-driven solutions in SAP S/4HANA Utilities to optimize business processes and enhance customer satisfaction.

Artificial Intelligence-Solutions SAP S/4HANA Utilities

Customer: Person using a smartphone with virtual icons representing various services. Meter-to-Cash: Close-up of an electric meter. Assets & Service: Worker inspecting wind turbines. Analytics: People reviewing data on large screens.

Improve every aspect of your business with AI-powered insights, recommendations, and automation. Take advantage of AI services embedded in your business applications and benefit quickly from intelligent technologies. Significantly reduce manual effort, increase efficiency, and reduce errors. Improve the user experience and increase customer satisfaction.

Customer

Planed Gen AI powered Service Agent Assistance in Dispute Management (Dispute Management, SAP Enterprise Service Management) and digital Agent for Customer Self Service (SAP S/4HANA Utilities)

  • Reduce cost of customer service

  • Reduce service response time.

SAP Business AI for Complex and Configurable Products Recommendations

Challenge

Companies selling complex and configurable products find it challenging to:

  • Focus on the end-customers needs as much time needed to prepare technical product specifications
  • Shorten the quotation process time
  • Train and onboard their new sales workforce
  • Scale business globally and open new markets due to the lack of local sales engineers
  • Provide their end-customers with the truly e-commerce buying experience

Solution

Recommend optimal product and configuration based on end-customer needs without requiring a deep technical product ad market knowledge.

Enable decision support by predicting commercial attributes to ensure the recommended solution meets customer's business objectives.

Purpose built AI/ML framework with full lifecycle support: just load data, train model and publish, no need for a data scientist.

Generative AI capabilities to perform AI-assisted customer requirements processing.

Benefits

  • Reduce time, effort & technical expertise required to generate a quote or a shopping cart
  • Provide true e-commerce self-service by customer without the need for sales assistance
  • Strengthen customer loyalty by recommending the best fitting solutions to the end-customer's needs
  • Unleash the time of customer's sales experts to focus more on complex and high value opportunities
  • Decrease time required for training sales reps and channel partners
Flowchart illustrating SAP Intelligent Product Recommendation (SAP IPR) leading to a sales quote document.

Business Value and Impact Overview Across Industries

Business ValueBusiness Impact ReferenceApplicable Industries
  • Increase revenue by streamlining the quotation process
  • Expand margins by insights from the recommendations
  • Reimagine the customer experience by offering a 24x7 digital self-service assistants
  • Reduce manual effort for sales quote completion by 30-60**
  • Reduce time to prepare a sales quote by 25-75**
All industries dealing with complex and configurable products (Industrial Manufacturing, Mil industries, Life Science, Automotive, Wholesale, others)
**estimated value

Customer need-based Product Recommendations (SAP Intelligent Product Recommendations)

  • Reduce quote generative effort.

  • Reduce dependence on sales reps.

Meter-to-Cash

Validation of implausible meter reading results (SAP S/4HANA Utilities)

  • Better and faster resolution of implausible meter readings

  • Higher cash flow

Automatically Resolve Implausible Meter Readings Using AI

Challenge

  • The Metering Expert has to assure the quality of the metering data before they can be used for further processes.
  • There is a significant effort for clarifying the implausible meter reading scenarios before they can be released or further action is required.

Solution

  • Based on historical and empiric data the Machine Learning for Utilities Metering supports in calculating a release confidence.
  • This figure helps the Metering Expert to focus on the most relevant cases only as the application of machine learning enables to understand agents' past behavior.
  • AI either automatically releases or suggests a release of all noncritical exceptions, for efficient reduction of manual work.

Benefits

  • Reduce manual work
  • Improve efficiency and service quality
  • Free resource capacity to focus on more strategic tasks

Automatically Resolve Implausible Meter Readings Using AI

Challenge

  • The Metering Expert has to assure the quality of the metering data before they can be used for further processes.
  • There is a significant effort for clarifying the implausible meter reading scenarios before they can be released or further action is required.

Solution

  • Based on historical and empiric data the Machine Learning for Utilities Metering supports in calculating a release confidence.
  • This figure helps the Metering Expert to focus on the most relevant cases only as the application of machine learning enables to understand agents' past behavior.
  • AI either automatically releases or suggests a release of all noncritical exceptions, for efficient reduction of manual work.

Benefits

  • Reduce manual work
  • Improve efficiency and service quality
  • Free resource capacity to focus on more strategic tasks

Automatically Resolve Implausible Meter Readings Using AI

Challenge

  • The Metering Expert has to assure the quality of the metering data before they can be used for further processes.
  • There is a significant effort for clarifying the implausible meter reading scenarios before they can be released or further action is required.

Solution

  • Based on historical and empiric data the Machine Learning for Utilities Metering supports in calculating a release confidence.
  • This figure helps the Metering Expert to focus on the most relevant cases only as the application of machine learning enables to understand agents' past behavior.
  • AI either automatically releases or suggests a release of all noncritical exceptions, for efficient reduction of manual work.

Benefits

  • Reduce manual work
  • Improve efficiency and service quality
  • Free resource capacity to focus on more strategic tasks
Flowchart showing an ML Solution for Meter Reading leading to generating release confidence and releasing automatically.

Business Value and Impact Overview Across Industries

Business ValueBusiness Impact ReferenceApplicable Industries

Increase operational efficiency by reduction of manual effort for validating unplausible meter readings by 90-95%.

With 5% of unplausible meter readings, a Utility supplying 1 million customers, can save up to 1.500 person days and approx. 900 k EUR personal costs per billing cycle.

Leveraging SAP Utilities’ embedded machine learning, capabilities, Enedis (France) customized and trained a model on their historical data. This resulted in a highly accurate prediction of the meter reading plausibility, significantly reducing manual verification time and boosting efficiency for Enedis.

Integrated Utilities, Distribution System Operators and Meter Data Service Providers.

Solution information:

  • Predictive scenario UTI_MR_IMPLAUSIBLE to use machine learning capabilities to process implausible meter reading results.

  • Report REML_FILL_EABLCONSHIST calculates the required consumption characteristics and stores them in table TEML_EABLCONSHST

  • This report is a prerequisite for training a predictive model.

  • Based on the entries saved in the table, a release confidence value is determined for specific meter reading documents.

  • Report REML_MR_IMPLSBL_RELPRED, which provides consumption characteristics for forecasting, and contains the algorithm, training dataset, and target variable that you can use to train the user-specific predictive model.

  • Forecast scenario and report are linked to the IS-U application.

  • Customizing Table TEML_IMPLMRPARAM

  • The results of report REML_MR_IMPLSBL_RELPRED (document number, release recommendation, and an indicator that specifies whether the documents were released automatically) are stored in table TEML_MR_IMPLSBL.

  • However, the report REML_MR_IMPLSBL_RELPRED only takes into account data records with a corresponding entry in the table TEML_EABLCONSHST.

  • A release confidence is calculated for these data records.

  • If The Release Automatically option is selected and a value is entered in the Release Threshold field, records whose release confidence is above or equal to this threshold can be released immediately.

  • If this is not the case, the release confidence is only saved in the table TEML_MR_IMPLSBL.

  • Implausible meter readings that cannot be released because, for example, B. The data record is locked are released in a subsequent run.

  • Note that there must be sufficient historical data to calculate the consumption characteristics.

  • If the table TEML_EABLCONSHST does not contain any entries, the calculation cannot be performed.

  • To access the predictive scenario and model, ISLM (Intelligent Scenario Lifecycle Management) is used.

  • SAP Fiori app Correction of Implausible Meter Reading Results (same as transaction EL27)

For further developments and the current status, see SAP Road Map Explorer.

To define which training data is relevant, you must define a time period. For example, a business requirement could be to train the model on receipts that are less than two years old. The same applies to the offset between the release of a document and possible follow-up actions for which the document must be processed further. This can be, for example, B. the expected period between the release of the document and a possible reversal at a later point in time.

The machine learning period for implausible meter readings is defined in customizing table TEML_IMPLMRPARAM. (Adjustment using transaction SM30)

Processing of out sorted billing documents (SAP S/4HANA Utilities).

  • Better and faster resolution of out sorted billing documents

  • Higher cash flow

Automatically Release Outsorted Utilities Billing Documents

Challenge

  • The utilities billing process is highly automated, nevertheless a major manual part is the processing of outsorted billing documents.
  • With every periodic billing run, ~2-3% of the resulting do not pass simple checks, for example, check for maximum bill amount. These billing documents must be processed manually by agents.

Solution

  • Machine Learning for Utilities Billing utilizes previous decisions from the agent, where outsorted billing documents were resolved or reversed, including subsequent actions on the documents (such as reversal after release).
  • A prediction or release confidence is provided to the user and can be used as additional information to release or reverse an outsorted billing document.
  • Furthermore it is applied in combination with a selected threshold to automatically release an outsorted billing document without any further user interaction.

Benefits

  • Improve cash flow by increasing speed in resolving exceptions and in subsequent bill creation
  • Increase quality in exception resolution
  • Increase operational efficiency through the reduction of manual work for the Billing Specialist (Utilities)
Flowchart depicting the process of handling 30,000 billing documents outsourced. Machine learning is applied, releasing 20,000 documents with 10,000 remaining. Manual processing by agents resolves all outstanding documents.

Business Value and Impact Overview Across Industries

Business ValueBusiness Impact ReferenceApplicable Industries

Reduce manual effort for the resolution of outsorted billing documents by ~ 60%.

No current reference. A utility creating 10 Million bills per year with 250.000 outsorted documents could save more than 1,5 Million EUR personal costs p.a.

Utilities industry in regulated in liberalized markets

Machine learning uses previous user decisions to release outsorted IS-U billing documents.

Solution information:

  • Predictive scenario UTI_BI_OUTSORTED to be able to use the machine learning functions for processing outsorted IS-U billing documents.

  • The report REML_BILLING_OUTSRTD_RELPRED calculates the required release confidence values and provides the optional automatic release of outsorted billing documents based on the release confidence for a defined threshold.

  • Storage of Results in Table TEML_BILLG_OUTSD

  • Outsorted accounts that cannot be released because, for example, B. The data record is locked are released in a subsequent run.

  • Note that there must be enough historical data to create the forecast.

  • If the table TEML_OUTBILPARAM does not contain any suitable entries, the calculation cannot be performed.

  • To access the predictive scenario and model, ISLM (Intelligent Scenario Lifecycle Management) is used.

  • SAP Fiori app Correction of Outsorted IS-U Billing Documents (like transaction EA05)

For further developments and the current status, see SAP Road Map Explorer.

To define which training data is relevant, you must define a period. For example, a business requirement could be to train the model on receipts that are less than two years old. The same applies to the offset between the release of a document and possible follow-up actions for which the document must be processed further. This can be, for example, B. the expected period between the release of the document and a possible reversal at a later point in time.

The machine learning period for implausible meter readings is defined in the Customizing table TEML_OUTBILPARAM. (Adjustment using transaction SM30)

Matching of incoming payments (SAP Cash Application, add-on for contract accounting)

  • Less manual work

  • Less days sales outstanding

Predicting Likelihood of Late Payment

Challenge

  • Many organizations have high rates of uncollected revenue and write-offs
  • Organizations spend highly on the collection processes to collect late payments and debts
  • Collections departments have limited visibility into the history, behavior, and risks of their customers, making it difficult to personalize services and optimize collections

Solution

SAP S/4HANA for behavioral insights:

  • Provides standard intelligent scenarios and catalog content for the payment collection use case
  • Provides explanations of contributing risk factors
  • Provides 360-degree graphical timeline of all interactions with the customer
  • Integrates directly to FI-CA Intelligent Collections

Benefits

  • Increased effectiveness of debt management and collection
  • Better understanding of customer situation and more customers service approach
  • Track and fine-tune collections success metrics
Flowchart detailing the process: invoicing, billing, and collections processes, aggregating and transforming data in SAP S/4HANA, applying a Behavioral Insights ML Model, visualizing customer journey and analyzing risk scores and reasons, and integrating into FICA Intelligent Collection to tailor collection strategies and steps.

Business Value and Impact Overview Across Industries

Business ValueBusiness Impact ReferenceApplicable Industries

Enhance collections strategies. Resulting in improved revenue collection.

Improve customer experience and engagement and ability to treat them with more empathy.

  • 2-5% increased Identification of late payers
  • 2-10% reduction in total outstanding debt
  • 3-5% increased Revenue Recovery from Debtors
"It is critical to use technology to make the entire compliance process far more efficient – simply scaling up what the US Internal Revenue Service does today will not produce the desired results"

Testimony of Charles O. Rossotti, Former IRS Commissioner (1997-2002) before the Senate Committee on Finance Subcommittee on Taxation and IRS Oversight May 11, 2021

Subscription billing (BRIM) in Q2 2024

Tax agencies (TRM)

Public sector (PSCD)

Solution information:

  • See SAP Notes: 2929951 - Important Notes for SAP Cash Application for 1809 Releases

  • Add-on in FI-CA

  • Clearing control must be configured for payment allocation.

  • In some cases, not everything can be stored in rules and then manual processing must be carried out (transaction FPCPL).

  • App for Data Exchange with Cash Application - Training of Machine Learning Model

    This app schedules a job that is used to train the model.

    Job: Mass Activity ML01 Training, Transaction FPML_CASHAPP_TRAIN

  • App for Data Exchange with Cash Application - Inference of Clarification Proposal

    Mass Activity ML02 Inference

    Transaction FPML_CASHAPP_INF

    Tables DFKKZML_INF_EXTR and DFKKZML_INF_PROP

  • Mass Activity ML03 Training Master Data

    Transaction FPML_CASHAPP_MASTER

    Table DFKKZML_MD_EXTR

  • Central settings, such as the machine learning period, are made in table TFK006ML.

Create sales orders from unstructured data (SAP S/4HANA Sales, document information extraction)

  • Less manual work

  • Less order fulfilment delays.

Predicting Likelihood of Late Payment

Challenge

Understanding customers’ needs & wants is key to proactively delivering relevant & personalized customer experiences, resulting in increased overall customer satisfaction and brand loyalty.

Solution

  • Suggest next-best action/service based on Utilities data and customer behavior for example, based on the recent consumption trend, suggest to reduce consumption to avoid bill shock or suggest an energy audit to rate the energy/heat efficiency of the house to avoid a high heating bill in winter.
  • Suggest best possible energy products/services/bundles based on Utilities data (for example consumption, billing history, meter type) and customer behavior such past participation in energy efficiency and demand response programs.

Benefits

  • Reduce churn
  • Avoid or reduce collections/dunning overhead
  • Sell energy related products and services
SAP S/4HANA Utilities, Utilities business, technical master data, and transactional data, Customer Data Platform AI Workbench, Next Best Action and Offers, Sales, Service, Marketing.

Business Value and Applicable Industries for SAP Solutions

Business ValueApplicable Industries

Reduced churn, increased customer satisfaction and brand loyalty

Additional revenue by selling related products and services

Utilities

(Energy Suppliers, Integrated Utilities)

Solution information:

With this app, you as an internal sales representative can create sales orders from purchase order files in PDF or image format (unstructured data). After a file is uploaded, the system automatically extracts the file information into a sales order request and proposes values for the sales order request fields (for example: Determination of sold-to party based on extracted data). You can later convert the sales order request into a sales order.

Asset & Service

Optimization of maintenance by asset failure prediction (SAP Asset Performance Management)

  • higher utilization

  • less unplanned downtime

Condition-based maintenance using AI enabled visual inspection (SAP Asset Performance Management)

  • higher utilization

  • less unplanned downtime

Remark: Object part can be any spare/part of equipment where you identify the damage. If you record object part in notification then that can be help to analyze in future, for example, in a breakdown analysis.

For further developments and the current status, see SAP Road Map Explorer.

Dispatching and planning optimization of field service technicians (SAP Field Service Management)

  • higher billable hours

  • less cost field service

Introduction to Auto-Scheduling in SAP Field Service Management - SAP Media Share

AI assisted creation and planning of maintenance orders (SAP Asset Performance Management)

  • less manual effort

  • less unplanned downtime

Satellite/drone-based management and asset defect identification (SAP Asset Performance Management)

  • less identification effort

  • less asset breakdowns

Example: LiveEO GmbH: Satellite-based infrastructure monitoring

Example: Capgemini India: Drone based inspection solution (powerline insulator)

Analytics

Faster insights into your data using natural language (SAP Analytic Cloud)

  • higher trustworthy retrieval

  • less effort to gain insights

For further developments and the current status, see SAP Road Map Explorer.

Further Development

Enhancements are always published in roadmap viewer.

SAP Road Map ExplorerA laptop displaying the SAP Road Map Explorer interface, which lists future releases and planned features for various SAP products. The roadmap is divided into columns by quarter: Q1 2024, Q2 2024, Q3 2024, Q4 2024, and Q1 2025. Each column contains categorized items such as Time Sheet Management, Travel and Expense Compliance Validation, and Talent Marketplace Management, detailing specific updates and tools like SAP S/4HANA Cloud, SAP Field Service Management, and SAP SuccessFactors. The interface includes filters for Products, Processes, Industries, Focus Topics, and Suite Qualities, with options to save and view the latest updates.

Planned Future AI/GenAI Offerings

Next Generation customer interaction with Conversation-driven Self Service Agent for Utilities

Simplify customer service and reduce processing time with Next Best Action/Offer for Utilities Customers

Predict likelihood of late payments for utilities services based on behavioral insights

AI-enabled visual inspection for asset condition monitoring

Prediction of assignment duration – using AI to estimate the expected real duration of activities based on time efforts logged by technician

SAP Joule-based explanation of complex market communication documents

Conceptual illustration of SAP Business AI. On the left side, the profile of a human face with neural network patterns and the text SAP Business AI. On the right side, four different tiers of AI offerings from top to bottom: Premium AI (RISE Premium Plus and AI Unit Add-on), Basic AI (Included in SAP Cloud Applications), BTP AI Services (BTP Cloud Platform Enterprise Agreement), and Ecosystem AI (SAP Store).

SAP provides new premium AI capabilities, most of which use generative AI technology.

These features are available to customers moving to the cloud using RISE Premium +, or for customers who procure stand-alone AI units (conditions apply, but may be detailed later).

All customers continue to benefit from our "Basic AI" as part of the cloud application subscription.

The customer can also benefit from our BTP AI services to build a custom solution today with their SAP BTP CPEA.

Base AI vs. Premium AI Capabilities

Base AI
Functionality is included at no additional cost in licensed SAP Customer Experience solutions.
Premium AI

Capabilities will incur an incremental cost that will be paid for through the purchase and consumption of SAP AI Units.

Examples of AI Capabilities In SAP Customer Experience Solutions*

 Base AIPremium AI
AI Segmentation & Send Time Optimization in Marketing 
Case Categorization 
Product Recommendations 

Deal Intelligence

 

Joule messages (up to annual allocation)

 

Joule messages (exceeding annual allocation)

 

All generative AI use cases Including:

  • CX AI Toolkit
  • Sales Cloud v2 and Service Cloud v2 GenAI capabilities
  • Additional use cases planned in 2024 and beyond
 

* Functionality and use cases planned and are subject to change. Please see Roadmap Explorerfor latest updates.

Check out these extra links if you want to learn more or deepen your understanding. They're packed with further information to enrich your knowledge.

Note

Please note that the video does not have an audio track and only displays a screen recording of the system. The audio will be added in the next iteration.

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