SAP’s Approach to ERP AI and Automation

It’s an understatement to say that AI and automation are impacting how we do business as Gartner predicts that “The business value of AI will reach $5.1 billion by 2025”. However, they also warn against the hype of AI and encourage careful consideration of AI digital transformation projects. Erick Brethenoux, a Distinguished VP Analyst at Gartner, says “Not all artificial intelligence (AI) and machine learning strategies are created equal, but they are becoming critical for differentiation and sometimes survival.”

As a leader in the technological development of business processes with more than 75% of the world’s transaction revenue touching an SAP software system, SAP has an opportunity to help businesses leverage AI in a way that promotes its benefits and mitigates its risks. SAP is bypassing the hype to foster real business value by focusing on relevancy, reliability, and responsibility.

SAP’s 3Rs for AI and Intelligent Automation

As a leader in ERP providers due to their flagship product S/4HANA, SAP’s customers are eager to use new technology to further innovate and streamline their operations. With S/4HANA Cloud already operating as a “composable offer” consisting of whichever applications customers choose, adding AI, extensibility and automation capabilities is a natural extension for greater functionality.

SAP’s approach to intentionally leverage AI and automation capabilities is to develop relevant, reliable and responsible digital transformations. Relevant as in automation and insights keep business context in mind, reliable as in it is trained on industry and company data and supports daily processing, and responsible as in it follows leading ethics and data privacy standards and your organization maintains full governance and lifecycle management.

Ultimately, the purpose is to give organizations the tools to elevate their insights, processes and decision-making across all key components: finance, supply chain, HR, procurement, marketing and commerce, sales and services and IT. This will involve workflow management, process monitoring and analytics, automated document processing and pre-trained AI models.

So how will this be realized? We are already starting to see its introduction to the SAP ecosystem.

Embedded AI: Joule

Joule is SAP’s AI copilot that embeds AI capabilities using natural language across the SAP product suite including the cloud ERP, human capital management, spend management and business network, and customer relationship management. Its purpose is, to use natural language, to revolutionize the way businesses work by providing refined insights that speed up processes and produce improved outcomes. One of its main functions is to process and contextualize data from multiple systems so it can share relevant intelligence.

It’s impressively user-friendly considering its high-tech capabilities and thorough accuracy. Simple questions garner intelligent and reliable answers. It truly gets to know your business through all data available in SAP systems and connected third-party integrations. As the SAP product suite covers all core business processes and customers can develop applications for any of their processes that aren’t pre-designed, the answers it can provide are rich, in-depth, and consider the context. Joule is built to be a sidekick that responsibly supports customers as they use SAP products.

AI Foundation: SAP Business Technology Platform

At the forefront of SAP’s AI initiatives is the SAP Business Technology Platform (BTP). As a hub for technical exploration and innovation, BTP is pioneering the use of AI through predictive analytics and intelligent process automation. This platform is where data and analytics converge, where application development meets seamless integration, and where businesses can harness the potential of AI to its fullest. With functions like data generation, augmentation, and natural language processing, BTP is a testament to SAP’s commitment to a future where enterprise AI

isn’t just an add-on—it’s a core component of business strategy.

SAP Build Code

Building on this solid foundation, SAP has introduced Build Code, a platform where the promise of generative AI comes to life in the form of application development. This tool empowers businesses to innovate swiftly, integrating custom applications into the SAP S/4HANA framework with an unprecedented ease. It represents a leap forward in application lifecycle management, from ideation to final testing, offering pre-built integrations, APIs, connectors, and a suite of developer resources.

A Future-Focused Vision

With AI and intelligent automation becoming an inseparable aspect of technology strategy, SAP’s vision is to ensure these tools are not just ready-to-deploy but also ready-to-customize. The ultimate goal is an ecosystem where adjustments and enhancements are made with a few clicks, where flexibility meets functionality, and where businesses can continually adapt and evolve without missing a beat in their operational tempo.

SAP’s intelligent solutions are shaping a world where decision-making is swift, informed, and predictive. With Joule’s embedded AI and the capabilities of the SAP Business Technology Platform, businesses are equipped to anticipate market trends, adapt to new opportunities, and respond to challenges with agility and insight. The confluence of these technologies promises a business landscape that’s not only more resilient but also more responsive to the rapid pace of change.

Realizing the (R)evolution

Understanding the transformative potential of SAP’s ERP AI and automation is just the beginning. Realizing it requires a strategic partnership that marries SAP’s innovative platforms with NTT DATA’s deep industry knowledge and implementation prowess. It’s about harnessing the power of AI to redefine processes, enhance user experiences, and glean deeper business intelligence.

It’s about embracing a three-stage journey of preparation, transformation, and projection, with each step meticulously designed to align with overarching business goals and the inevitable evolution of the digital landscape.

Invitation to Engage

For organizations looking to pioneer in their fields, to make a leap in productivity, or to safeguard their future, SAP’s AI and intelligent automation are the catalysts for change. Coupled with NTT DATA’s expertise, the journey to S/4HANA becomes a strategic evolution—a step into a future where technology and business are inextricable, and where the next horizon of innovation is within reach.

We invite you to engage with our team of S/4HANA experts at NTT DATA, to explore how SAP’s ERP AI and automation can revolutionize your business processes, and to embark on a journey that is not just about adapting to change but about leading it.

Mario Dabán
SAP & Enterprise Solutions Advisor