Unit 1: What Is Intelligent ERP in The Cloud?

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Week 1: The Future Is Here: Intelligent ERP

Unit 1: What Is Intelligent ERP in the Cloud?


What Is Intelligent ERP in the Cloud?
What is iERP?

Today's systems of record have been overtaken by new systems of intelligence, which deliver
automation, contextual collaboration, and AI. IDC calls this enhanced ERP portfolio “intelligent
ERP” or “iERP”, and it is the backbone of digital transformation.
▪ New digital business models enable enhanced user experiences and innovation, unlocking the value of
information.
▪ The best-performing companies are ahead of their peers as they digitally transform.
▪ Decades old systems of record – built in a pre-digital era – are brittle, cobbled together, and hard to retrofit to
meet today’s needs.
▪ The time is long overdue to replace them with new systems of intelligence, layering in new autonomic and
predictive intelligence assets.
▪ This enhanced ERP portfolio – iERP – will run tomorrow's businesses in an increasingly digital world.

Source: IDC (International Data Corporation) – https://www.sap.com/cmp/dg/crm-xm17-gtm-s4c-idc

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What Is Intelligent ERP in the Cloud?
Intelligent ERP: Machine Learning seamlessly integrated with SAP S/4HANA

“The No. 1 key R&D [research and development] initiative is


whatever you do on innovation has to integrate seamlessly
into SAP S/4HANA.
It’s an essential element in everything we do.”
Bill McDermott – SAP CEO (March, 2017)

Source: ASUG (Americas' SAP Users' Group) – https://www.asug.com/news/sap-ceo-bill-mcdermott-s-4hana-integration-is-top-r-d-priority

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What Is Intelligent ERP in the Cloud?
Cloud delivers multiple business benefits

Lowest TCO Scalability


and elasticity

On-premise Innovation, always


up-to-date systems
Best practices and
fit-to-standard Automation & AI
processes

▪ Accelerate go-live & adoption ▪ Get latest innovations & best practices
▪ Flexibly scale to new needs ▪ Keep up with regulatory changes
▪ Shift from capital to operational expenditure ▪ Easy to configure & extend
▪ No infrastructure investment needed ▪ Complete data security & protection
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
What Is Intelligent ERP in the Cloud?
Intelligent enterprise suite: enabling next-generation business processes

Intelligent
core
SAP C/4HANA

SAP S/4HANA Cloud SDK


SAP Analytics Cloud

SAP Cloud Platform (PaaS)


for extension scenarios

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What Is Intelligent ERP in the Cloud?
SAP S/4HANA Cloud: a leader in cloud ERP
Capabilities

Capabilities
Strategies Strategies
Source: IDC MarketScape Worldwide SaaS and Source: IDC MarketScape Worldwide SaaS and
Cloud-Enabled Midmarket ERP Applications Cloud-Enabled Large Enterprise ERP
Vendor Assessment (2017) Applications Vendor Assessment (2017)
Click here for full report Click here for full report
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What Is Intelligent ERP in the Cloud?
Artificial intelligence and digital technologies everywhere

Rule-Based Reasoning

Machine Learning

Deep Learning

Natural Language Interaction (NLI)

Translation Machine Vision

Speech-to-Text Artificial
Intelligence
Speech
(AI)
Text-to-Speech
Robotics

Autonomics Vehicles

Source: CMI Leonardo, Al Hilwa (2018)


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What Is Intelligent ERP in the Cloud?
Artificial intelligence and digital technologies everywhere

Rule-Based Reasoning Digital Technologies are Here to Stay

Machine Learning

Deep Learning
Mobile Hyper- In-Memory
Natural Language Interaction (NLI) connectivity Computing
Translation Machine Vision

Speech-to-Text Artificial
Intelligence Internet Big Data Machine
Speech
(AI) of Things Learning
Text-to-Speech
Robotics

Autonomics Vehicles
Social Cloud
Source: CMI Leonardo, Al Hilwa (2018)
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
What Is Intelligent ERP in the Cloud?
Intelligence in SAP S/4HANA Cloud and in this openSAP course

It drives you to make better


decisions by using SAP CoPilot

It gives you business insights


by using Predictive Analytics

It helps you automate processes


by using Machine Learning

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9


What Is Intelligent ERP in the Cloud?
Intelligence in SAP S/4HANA Cloud and in this openSAP course

It drives you to make better Week 1: The Future is Here: Intelligent ERP
decisions by using SAP CoPilot ▪ Intelligent ERP definition
▪ Machine learning architecture
▪ Automation and SAP CoPilot user experience

It gives you business insights Week 2: Use Cases in Finance and Procurement
by using Predictive Analytics ▪ Use case examples
▪ System demonstrations
▪ Predictive analytics configuration

It helps you automate processes Week 3: Use Cases in Sales and Manufacturing
by using Machine Learning ▪ More examples and demonstrations
▪ Implementation steps for SAP S/4HANA Cloud
▪ Future outlook on machine learning
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What Is Intelligent ERP in the Cloud?
SAP S/4HANA deployment options
Cloud ERP

SAP S/4HANA Cloud SAP S/4HANA Cloud SAP S/4HANA, SAP S/4HANA,
Multi-tenant Single-tenant private managed cloud on-premise
Managed by SAP Managed by customers
▪ Configurable standardized processes ▪ Configurable and customizable
and best practices for finance, HR, processes for finance, HR, ▪ On-premise functional scope ▪ On-premise functional scope
procurement and sales procurement, sales, and other LoBs ▪ All industries supported ▪ All industries supported
▪ Defined extensibility options and ▪ SAP S/4HANA extensibility ▪ Customize, modify, and extend ▪ Customize, modify, and extend
extensions via SCP framework and extensions via SCP
▪ Annual release-cycle, speed of adoption ▪ Annual release-cycle, speed of
▪ In-depth support for professional ▪ All industries supported on customers’ schedule adoption on customers’ schedule
services and component ▪ Half-year release- cycle, customers ▪ Best-in-class deployment/upgrade ▪ Best-in-class deployment/upgrade
manufacturing; more industries on choose upgrade window within 12 efforts for on-premise ERP efforts for on-premise ERP
roadmap months
▪ BYOL or subscription ▪ Perpetual licensing
▪ Quarterly release cycle ▪ Low TCO and fast time-to-value
▪ Customer-specific system landscape ▪ Runs on customer preferred
▪ Lowest TCO and fastest time-to-value ▪ Subscription licensing
▪ Runs on SAP HANA Enterprise Cloud infrastructure
▪ Subscription licensing ▪ Dedicated system landscape on
▪ SAP-managed services on private cloud
▪ Public cloud infrastructure cloud infrastructure
infrastructure (SAP, AWS, or Microsoft
Azure)
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What Is Intelligent ERP in the Cloud?
More information

Discover SAP S/4HANA Trial Join the Community


SAP S/4HANA Cloud

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Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: The Future Is Here: Intelligent ERP
Unit 2: Why, and Why Now?
Why, and Why Now?
The new rules of the digital economy require different capabilities

An example: serving a “segment of one”

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Why, and Why Now?
The new rules of the digital economy require different capabilities

An example: serving a “segment of one”

NIKEiD

Commercial feasibility depends on degree of automation

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Why, and Why Now?
The automation of repetitive tasks allows humans to be more productive and focus on higher value tasks
HUMANS – HIGH VALUE

AUGMENTED BY AI
HUMANS –
TASKS

Human high-value
complex tasks and
knowledge work
REPETITIVE TASKS
HUMANS –

Human repetitive tasks

ENTERPRISE
Augmented by AI in

SYSTEM
the enterprise system
to assist in core
activities

Transactional Digital Intelligent


Enterprise Enterprise Enterprise

Source: SAP CSG analysis, McKinsey Quarterly Report July 2016, Google PR, Microsoft PR, SAP Market Model
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Why, and Why Now?
Intelligent ERP: core ingredients

The Intelligent ERP Difference


Intelligent Legacy
ERP ERP ▪ Hands-free UX, digital assistance, and
instant insights deliver value-adding
1 Digital age UX experiences
▪ Artificial intelligence and predictive
2 Automation analytics for increased automation and
efficiency
Next-generation
3 processes ▪ Reinvent and redefine processes with
applied best practices built on the latest
technology innovations

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Why, and Why Now?
Intelligent ERP is here to reinvent businesses

Smart Assistants
across the ERP Suite

User experience

Conversational UX

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Why, and Why Now?
Intelligent ERP is here to reinvent businesses

Delivered*
Process Automation Cash application, line item matching

Payment advice extractor

Goods receipt/invoice receipt monitor

Payment block/cash discount at risk

Propose material group

Lockbox

SAP Tax Compliance smart automation

Integrated digital content processing

Defect code proposal

Payables line item matching

Dangerous goods detection and classification

*Based on SAP S/4HANA Cloud 1808 Release


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Why, and Why Now?
Intelligent ERP is here to reinvent businesses Delivered*
Contract consumption
Stock in transit
Next generation business processes Quotation conversion probability rate
Optimized purchase requisition processing:
Propose creation of RFQs
Smart alerts for profit & loss analysis
Sales forecast
Project cost forecasting
Propose creation of new catalog item
Business integrity screening
Detect abnormal liquidity items
Sales performance prediction
Delivery performance
Demand-driven replenishment
Proposal of options for materials without
purchase contract
SAP RealSpend cost center analysis
Object recognition in building photographs/videos
*Based on SAP S/4HANA Cloud 1808 Release
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Why, and Why Now?
SAP S/4HANA Cloud is evolving at cloud speed

▪ 4 quarterly innovative releases Today…more to come with each release


per year
Release 1611 1702 1705 1708 1711 1802 1805 1808
▪ Finance-centric administrative
ERP built to deliver value to all
customers
33
40
▪ Strong 2-tier ERP capabilities
25
▪ Selected industry-specific 9 1842 1842
functionality 5 1742
1570
4 1307
360 360
3 682 273 316
2 521 244
432 206
158
132
98 33 33 36
23 25 29
14 18

Intelligence API Operations Scope Items Countries


(business functions)
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Why, and Why Now?
Intelligent ERP is here to reinvent businesses

Process Automation Next-gen UX


60% Full automation of business processes, User experience based on voice,
of human tasks will be from HR to payments processing to vision, and messaging will replicate
automated by 2025 workflow approvals for purchase orders how people interact in real life and
and sales execution increase business productivity
97% Dynamic Analytics
image recognition accuracy today
Proactive analysis of new data types
(better than human rate 95%)
and discovery of unfamiliar patterns
95% that provide a new level of insights

speech recognition accuracy today


(better than human rate 94.1%)

$18B
enterprise machine learning
market by 2020

94%
of companies see ML as critical
for competitive advantage!
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Source: SAP CSG analysis, McKinsey Quarterly Report July 2016, Google PR, Microsoft PR, SAP Market Model 10
Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: The Future Is Here: Intelligent ERP
Unit 3: Machine Learning Introduction
Machine Learning Introduction
What is artificial intelligence (AI)?

“AI is the new electricity!“


Andrew NG, founder of Coursera

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Machine Learning Introduction
Amazing adoption of AI spreads in all areas

Machines driving and flying Diese Autos fahren bereits selbst und so funktioniert es Auto Bild
Dubai tests drone taxi service BBC News
Boeing invests in company building autonomous aircraft TechCrunch
Machines outperforming humans Google’s AlphaGo Zero destroys humans all on its own Cnet
in playing games AI learns to re-create Super Mario Bros. by watching someone else play it
The Verge
Robots walking and working like Atlas the next generation Boston Dynamics on Youtube
humans
Machines outperforming medical Dermatologist-level classification of skin cancer with deep neural networks
experts Nature
Machine Learning Alogitm Outperforms cardiologists Reading EKGs
HealthIT ANalytics

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Machine Learning Introduction
Definition

What is machine learning?

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Machine Learning Introduction
Machine learning is the reality behind artificial intelligence

What is machine learning?


✓ Computers learn from data without being
explicitly programmed.
✓ Machines can see, read, listen, understand, and
interact.

Why now?
✓ Big Data (for example, business networks, cloud
applications, the Internet of Things, and SAP
S/4HANA)
✓ Massive improvements in hardware
(graphics processing unit [GPU] and multicore)
✓ Deep learning algorithms

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Machine Learning Introduction
What is machine learning?

‟A computer program is said to learn from experience E


with respect to some class of tasks T and performance
measure P if its performance at tasks in T, as measured by P,
improves with experience E.”
Mitchell, T. (1997). Machine Learning, McGraw Hill

Machine learning (more generally, data science) is an empirical science


▪ That means we build hypotheses (models) and test them on data
▪ Think physics or biology, not computer science or mathematics

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Machine Learning Introduction
Basic ML workflow
Training

Training Data Learning


Model
𝑥, 𝑦 Testing Algorithm

Accuracy
Testing Data Model Estimate
𝑥, 𝑦
Deployment

New Input Prediction


𝑥 Model 𝑦

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Machine Learning Introduction
Classification of ML based on INPUT

𝑥2

Supervised Training inputs and desired outputs


Learning (called “labels”) given by a “teacher”
Machine Learning

𝑥1

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Machine Learning Introduction
Example: line item extraction

Extract line items


from invoices
(PDFs transmitted
electronically or
scanned)

It’s supervised
because we used
annotated examples
to learn – rows and
columns are marked
by bounding boxes

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Machine Learning Introduction
Classification of ML based on INPUT

Supervised 𝑥2
Learning
Machine Learning

No labels are given to the learning


Unsupervised
Learning algorithm, leaving it on its own to
find structure in its input.

𝑥1

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Machine Learning Introduction
Example: customer segmentation

Given historical data of customer behavior


(e.g., purchases), segment customers into groups with
similar behavior

Actions, e.g., marketing decisions, can then be taken


based on the insights for each segment

It’s unsupervised because we don’t have customers


labeled by segment – the task is to discover useful
segments

Unsupervised learning is much harder than supervised


learning

Nevertheless, it’s often used when labeled training data


is unavailable or the structure of the desired answer isn’t
known

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Machine Learning Introduction
Classification of ML based on INPUT

Effects / Reward

Supervised
Learning
Machine Learning

Unsupervised Action
Learning Environment

Semi-supervised
Learning
Observation/Learning
Reinforcement
Learning A computer program interacts with a dynamic environment in which it must
perform a certain goal (such as getting the cheese out of a labyrinth),
without a teacher explicitly telling it whether it has come close to its goal.
Another example is learning to play a game by playing against an opponent.
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Machine Learning Introduction
Classification of ML based on OUTPUT

𝑥2

Inputs are divided into two or more classes,


and the learner must produce a model that Classification
assigns unseen inputs to one or more of

Machine Learning
these classes (supervised learning).

𝑥1

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Machine Learning Introduction
Example: matching external hierarchies

EANUPC Object ID Cat Prod Sub Brand Sub Variant Description


Cat Cat Brand
000003700 0000000000 45 124 745 4914 23465 34641285 MANUAL SEM.MARCA NA NORMAL
376702306 000154242 JUN SUAVE 1 SFABR 3700376702306
000008714 0000000000 86 653 124 3674 17646 14648640 SANEX SANEX
789790114 0008145354 DERMO_PROTECTOR 1 X 750ML
BASE BAIN N2IN1

Third-party data providers collect sales data for consumer product manufacturers to track their
market share.

The manufacturer’s hierarchy differs from the data provider’s. Given the free-text description of the
product, we attempt to classify it into the manufacturer’s six-level product hierarchy (bold fields
above).

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Machine Learning Introduction
Classification of ML based on OUTPUT

𝑥2
Classification

Machine Learning
The outputs are continuous rather Regression
than discrete (supervised learning).

𝑥1

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Machine Learning Introduction
Example: interpretable time-series forecasting

Time-series forecasting is well known, but many customers, such as retailers, need to be able to
interpret the forecasts.

For example, they’d like to know how much of their sales are due to uplift from a promotion,
seasonal effects, cannibalization from similar products, etc.

The model automatically learns this decomposition, as long as the relevant data (e.g., whether a
promotion was active) is provided in the historical data.
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Machine Learning Introduction
Classification of ML based on OUTPUT

Classification

Machine Learning
Regression

Clustering

Density Estimation

Mapping from higher dimensional Dimensionality


feature space to lower dimensions Reduction

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Machine Learning Introduction
Machine learning means…

Learning: finding the best


function, representing the
Classification
Supervised relationship between input x
Learning and output y from empirical
Machine Learning

Machine Learning
data. Regression
Unsupervised
Learning
Function
Clustering
Semi-supervised
Learning
y = h(X) Density Estimation
Reinforcement
Learning Dimensionality
Reduction
Output vector Input matrix
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Machine Learning Introduction
A recipe

From business problem to machine


learning problem: a recipe

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Machine Learning Introduction
From business problem to machine learning problem: a recipe – The “cheat sheet”

Yes No No
Do you need Can you write the Can you Refine your
Start
automation? rules? formulate your problem
No Yes problem
clearly?

Manual work Rule-based Yes

No
Yes Do you have Yes Do you have Yes Can you Yes
Do you have Machine
a regular meaningful measure
data? learning
pattern features? success
No No No

Collect data Enhance data / look for different data sources

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Machine Learning Introduction
Additional ML-specific openSAP courses

https://open.sap.com/courses/ml1-1 – Enterprise Machine Learning in a Nutshell (Repeat)

https://open.sap.com/courses/ml2 – Enterprise Deep Learning with TensorFlow

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: The Future Is Here: Intelligent ERP
Unit 4: Machine Learning Architecture
Machine Learning Architecture
Digitization

Connected Data Collaboration


Business Process
Integration Mobile Big Data Innovation

Intelligently connecting People, Things and Businesses

Machine Natural IoT Networks


Learning Language Microservices
APIs
Real-Time
Analytics

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Machine Learning Architecture
Today, new technologies allow for next-generation intelligent processes

Machine Intelligent Predictive Context-aware decisions


learning assistants analytics derived from data and
computing power
available in the cloud

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Machine Learning Architecture
How enterprise data is transformed into business value

Data Training Inference

Train
model Applications
(such as cash application)
Text Video

Prepare Apply
Speech data model
Image
…and more
… and more Services
Capture (such as invoice processing,
feedback profile matching)

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Machine Learning Architecture
SAP Leonardo digital innovation system

Solution Ideation Rapid Integration Business Case Open


Design-Led Innovation
& Vision Prototyping Blueprint Development

SAP Leonardo
Technologies Data Intelligence Analytics

Blockchain Internet of Things


Rich
Machine Learning Big Data ▪ Security ▪ Analytics
▪ Mobile ▪ Business Services
▪ Integration ▪ UX & Collaboration

SAP Cloud Platform


Ecosystem
Microservices | Open APIs | Flexible Runtimes | Integration
AWS S3
SWIFT
Data Management SAP HANA | SAP Data Hub | SAP Vora | Other SAP | Open Source Storages | Hadoop

Amazon Web
Multi-Cloud Infrastructure SAP Google Cloud Platform Microsoft Azure
Services
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Machine Learning Architecture
SAP Leonardo ready-to-use services

Tabular Image & Video Text Speech & Audio Business Services

General ▪ Time series change ▪ Image classification ▪ Topic detection ▪ Ticket Intelligence –
availability point detection ▪ Customizable image Classification
▪ Similarity scoring classification ▪ Ticket Intelligence –
▪ Image feature extraction Recommendation
Alpha ▪ Multi-dimensional time ▪ Product image classification ▪ Machine translation
series forecasting ▪ OCR ▪ Language detection
▪ Univariate time series ▪ Product text
forecasting classification
▪ Text feature
extraction
Roadmap ▪ Customizable ▪ Customizable image object ▪ Customizable text ▪ Speech-to-text ▪ CV Matching
recommender detection classification ▪ Text-to-speech ▪ Customer Retention
▪ Multi-dimensional data ▪ Customizable image ▪ Sentiment analysis ▪ Brand Impact
clustering segmentation ▪ Named entity ▪ Intelligent Financing API
▪ Generic classification ▪ Face detection recognition ▪ Accounts Payable
▪ Generic CSV record ▪ Face similarity ▪ Sequence to mask
matcher ▪ Human detection (S2M)
▪ Table extraction and analysis
▪ Visual document language
classifier
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Machine Learning Architecture
SAP Leonardo engagement approach

Design
Explore Discover + Deliver
Prototype

High
8 11
15 5 12
17

14
Value to Company

2
16

13

4 6

10

3
7
9

Low Value to Finance Division High

Identify top 1-2 use cases Onsite user Hands-on workshop, Create clickable design prototype in Develop proof of concept of customer use
fit / gap analysis to Leonardo research show-as-is process, SAP Build case
offerings to collect deep create personas, Use SAP Fiori UX where applicable. Validated proof of concept with demo data
insights from end storyboard, create Validate prototype iteratively with by end users + involved participants
users end users via SAP Build (e.g. designers) – approx. 1 hour remote.
Ideas for to be
process, feedback in Value assessment
SAP Build, create
information architecture
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Machine Learning Architecture
Example: SAP Design AppHaus and machine learning for demand forecasting with SAP Leonardo

Input Output
Train
model
Sales data
Predict
Promotions future
Prepare Apply
Weather data model
sales
Sports events

Capture
feedback
Training & Testing Data

Machine
Data Science
Learning
Analysis
Models
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Machine Learning Architecture
Demo

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9


Machine Learning Architecture
SAP Leonardo Machine Learning Foundation
Machine Learning
Applications
▪ SAP Cash Application
SAP Leonardo Machine Learning Foundation
▪ SAP Brand Impact
▪ SAP Service Ticketing
Ready-to-Use Services ▪ SAP Fraud Management
Inference ▪ SAP Customer Retention
Bring Your Own Model
Conversational UI
▪ Conversation AI Framework
Applications ▪ SAP CoPilot
Customize Model Ready to Use Services
Training
▪ Document Feature Extraction
Create Training
▪ Image Feature Extraction
▪ Time Series Change Point
Detection
SAP Cloud Platform ▪ Time Series Forecast Translation
▪ Image Classification

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10


Machine Learning Architecture
Learn more

Website  sap.com/ML

 Enterprise ML in a Nutshell
https://open.sap.com/courses/ml1

 Enterprise Deep Learning with TensorFlow


Online
https://open.sap.com/courses/ml2
Courses
 SAP Leonardo – Enabling the Intelligent
Enterprise
https://open.sap.com/courses/leo1

Social Media  @SAPLeonardo on Twitter

Co-innovate  ml@sap.com

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: The Future Is Here: Intelligent ERP
Unit 5: Process Automation
Process Automation
What is robotic process automation (RPA)?

RPA automates repetitive tasks done by humans without modifying business systems

Log in to 15 SAP instances, collect purchase


Extract invoice data from PDFs requisitions, and distribute to SSC teams
and enter in a finance system

Check ticket inbox in a shared


service center and route to bots

Download various reports, collate


and save on shared drive Search invoices by reference
number in various ERP instances

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Process Automation
RPA thrives in complex landscapes

Robotic Process Automation (RPA) Toolsets 1 Automate via UI Technology

Bots emulate human user behavior by


parsing user interface elements and
applying keystroke and mouse commands

Automated via
1 Automated via UI Technology 2 Connectors 2 Automate via Connectors
RPA toolsets also have the ability to use
Legacy ERP LoB Applications 3rd Party dedicated connectors beyond UI parsing,
Business e.g.
Typically multiple ▪ Database queries/SQL/stored procedures
Application
instances across MS File
(Cloud/OP) ▪ Active Directory commands
business units or Office System
locations ▪ E-mail services
▪ MS Office APIs
▪ Windows file commands, Unix shell
E-mail PDF ▪ FTP
▪ PDF extractors and OCR
▪ SOAP and REST access to Web services
Data- Web ▪ Web browser APIs
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC base Services 3
Process Automation
Typical customer issues

▪ WYSIWYG promise only partially fulfilled –


need consultants/upskilling a bottleneck
▪ On-premise RPA difficult to scale
▪ Upgrades break bots
▪ Little to no understanding of semantics
▪ Typically no learnings from data and
process flow
▪ RPA opportunities rarely identified in a
data-driven way

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Process Automation
Key components

Requirements Features
▪ Ease of design and implementation Robot ▪ Automation methods:
▪ Integration flexibility Designer  API interfaces
▪ Built-in ML capabilities  OCR/NLP
 Visual, UI capture
▪ Process mining & discovery
▪ Robot templates

Machine Learning ML powered RPA


ML services,
“Think” computer vision for “Act”
robot robustness

Exception handling
RPA to ML

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Process Automation
Key considerations

Requirements Features
▪ Support large-scale digital workforce Platform ▪ Security, credential management
deployment from the cloud platform ▪ Provisioning ▪ Logging and reporting
▪ Ensure stability during cloud system ▪ Orchestration ▪ Predefined robot templates
update (bot lifecycle management) ▪ Integration for business processes

Area Example
SAP Intelligent ERP ▪ Invoice posting
Core Finance
Powered by SAP HANA and RPA automation ▪ Revenue recognition
component on SAP Cloud Platform ▪ Cost review
▪ Accountancy
▪ Operational matching
▪ Financial matching
Automation Scenarios Procure-to-Pay ▪ Purchasing
Best Practices Content ▪ Business partner profile/credential matching
for SAP S/4HANA Cloud ▪ Item routing
Core Finance ▪ Payment processing
Streamlined Procure-to-Pay ▪ Quoting
Accelerated Plan-to-Product Quote-to-Cash
▪ Order entry/posting
Optimized Order-to-Cash
Project and Managed Services ▪ Pricing
Enhanced Request to Service ▪ Billing
SAP S/4HANA CLOUD System Migration ▪ Data collection
▪ Data extraction
▪ System testing
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
▪ Transaction loading 6
Process Automation
Key considerations II

Requirements Features
▪ Attended or unattended mode Runtime ▪ Robot self-learning and via
▪ Handle exception exception handling and feedback
▪ Provide supervised learning opportunities ▪ Understand intent
▪ Interact with users in real time
Collaborate
Attended

with user
Robot

Design

Retire Develop

Execute
Upgrade Maintain
Unattended
Robot

Auto-triggered
workflows
Run Test
Robot at Runtime

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


Process Automation
IPA to build the intelligent enterprise

Intelligent core for IPA: ready to deploy Make it customer-specific with SAP
▪ Enable high degree of automation Leonardo Services
combining RPA+ML+conversational AI ▪ Automate repeatable services/
▪ Stable robots with a combination of applications
APIs and UI automation ▪ SAP Leonardo Services embedded in
▪ SAP S/4HANA as core, orchestrate Self-learning IPA offering
heterogeneous systems
enterprise ▪ AI-driven self-healing robots for
systems uninterrupted process execution

Enable the intelligent Services & apps for


cloud ERP customers’ individual
automation challenges

intelligent enterprise
powered by SAP
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: The Future Is Here: Intelligent ERP
Unit 6: User Experience
User Experience
What makes a system appear intelligent to an end user?

The system is proactive, i.e. it looks at the data and suggests or automates what to do next, and
can explain why it is making each recommendation, or why it is making a given prediction, i.e.
▪ Automates routine work
▪ Makes suggestions for the user

The user can have a conversation with it using natural language, as if talking to a colleague,
and it understands what the user wants, provides answers to questions, offers suggestions for
further relevant actions, and carries out the user’s requests.

Thus helping users


achieve more Automated System-supported Human-unique
with less effort

Amount achieved

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


User Experience
Approaches for providing proactive and intelligent user experience (1)

Approach Week/Unit to look at examples


Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


User Experience
Approaches for providing proactive and intelligent user experience (2)

Approach Week/Unit to look at examples


Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions
Proposals, e.g.
▪ Proposed matches 2.2 Goods Receipt and Invoice Receipt
▪ Proposed values 3.4 Inventory and Quality Management

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


User Experience
Approaches for providing proactive and intelligent user experience (3)

Approach Week/Unit to look at examples


Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions
Proposals, e.g.
▪ Proposed matches 2.2 Goods Receipt and Invoice Receipt
▪ Proposed values 3.4 Inventory and Quality Management
Ranking (of proposals) 2.4 Procure-to-Pay

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


User Experience
Approaches for providing proactive and intelligent user experience (4)

Approach Week/Unit to look at examples


Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions
Proposals, e.g.
▪ Proposed matches 2.2 Goods Receipt and Invoice Receipt
▪ Proposed values 3.4 Inventory and Quality Management
Ranking (of proposals) 2.4 Procure-to-Pay
2.4 Procure-to-Pay
Predictions & Forecasts 2.5 Enterprise Portfolio and Project Management
2.6 Managing Predictive Scenarios with SAP Predictive Analytics
Integrator
3.1 Sales Order Processing
3.2 Sales Planning
3.3 Inventory Management

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


User Experience
Approaches for providing proactive and intelligent user experience (5)

Approach Week/Unit to look at examples


Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions
Proposals, e.g.
▪ Proposed matches 2.2 Goods Receipt and Invoice Receipt
▪ Proposed values 3.4 Inventory and Quality Management
Ranking (of proposals) 2.4 Procure-to-Pay
Predictions & Forecasts 2.4 Procure-to-Pay
2.5 Enterprise Portfolio and Project Management
2.6 Managing Predictive Scenarios with SAP Predictive Analytics
Integrator
3.1 Sales Order Processing
3.2 Sales Planning
3.3 Inventory Management
Situations 2.4 Procure-to-Pay

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


User Experience
Situations: a powerful way of providing intelligence

A “situation” captures a current business situation, its circumstances, and possible actions

Using rules and/or


Trigger: machine learning

Situation

Related
Situation Condition Actions
Information
Handling

Notification Explanation Proposals


User Alert in app Ranking
Experience
Explanation

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


User Experience
Approaches for providing proactive and intelligent user experience (6)
Approach Week/Unit to look at examples
Notifications and Alerts 2.3 Anomaly Detection and Business Exceptions
Proposals, e.g.
▪ Proposed matches 2.2 Goods Receipt and Invoice Receipt
▪ Proposed values 3.4 Inventory and Quality Management
Ranking (of proposals) 2.4 Procure-to-Pay
Predictions & Forecasts 2.4 Procure-to-Pay
2.5 Project Cost Forecast
2.6 Managing Predictive Scenarios with SAP Predictive Analytics
Integrator
3.1 Sales Order Processing
3.2 Sales Planning
3.3 Inventory Management
Situations 2.4 Procure-to-Pay
Conversational UI Covered in this unit +
Digital Assistant with 2.1 Accounts Receivable
Natural Language Interaction 2.2 Goods Receipt and Invoice Receipt
2.4 Procure-to-Pay
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9
User Experience
Meet SAP CoPilot – Product description1

Talking to SAP CoPilot is simple and intuitive. SAP CoPilot is where the user is, the first true digital assistant and
bot integration hub for the enterprise. SAP CoPilot empowers you to get things done easier, quicker, and more delightfully.

Conversational user experience (UX) enabling


natural language interaction

Business context awareness understanding the


business situation and pro-actively suggesting
solutions

Self-learning system using machine learning


functionality to gain knowledge based on historic data
and experience

Cross-applications with one personality and one


memory across all SAP

Open and extensible for integration into SAP and


non-SAP solutions, enabling customers and partners
to extend SAP CoPilot functionality via SAP CoPilot 1 Thisis the current state of planning and may be changed by SAP at any time
skills without notice.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10
User Experience
SAP CoPilot 1808 – Product description

Key capabilities

▪ Conversational user experience: Interact with your SAP systems


using natural language.
▪ Multi-channel: Use SAP CoPilot functionality in SAP systems,
mobile (iOS), and in channels like Slack (Beta).
▪ Built-in collaboration: Chat with colleagues, share notes and
screenshots, and create whole business objects on-the-fly with pre- iOS app Digital Assistant
populated content based on your conversations.
▪ Skill Builder: Create new skills with the Skill Builder, a code-free
development tool to quickly enable conversational interfaces for
enterprise applications based on OData services.
▪ Bot Integration Hub: code-free integration of bot functionality built
with SAP Conversational AI, formerly Recast.AI (with limited
authorization capabilities)
▪ Out-of-the-box skills for SAP S/4HANA Cloud, SAP S/4HANA,
and SAP SuccessFactors (Beta) Skill Builder

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11


User Experience
SAP CoPilot 1808 – Product description

▪ Conversational user experience: Interact with your SAP systems Demos in this course
using natural language.
▪ Multi-channel: Use SAP CoPilot functionality in SAP systems, Right now…
mobile (iOS), and in channels like Slack (Beta).
▪ Built-in collaboration: Chat with colleagues, share notes and Unit 2.2 Goods Receipt and Invoice
screenshots, and create whole business objects on-the-fly with pre- Receipt shows some of these
populated content based on your conversations. collaboration features
▪ Skill Builder: Create new skills with the Skill Builder, a code-free
development tool to quickly enable conversational interfaces for
enterprise applications based on OData services.
▪ Bot Integration Hub: code-free integration of bot functionality built
with SAP Conversational AI, formerly Recast.AI (with limited
authorization capabilities)
▪ Out-of-the-box skills for SAP S/4HANA Cloud, SAP S/4HANA,
and SAP SuccessFactors (Beta)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12


User Experience
Demos

SAP CoPilot Demos


SAP S/4HANA Procurement
SAP S/4HANA Sales

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13


User Experience
Where to go for more information

SAP CoPilot product page SAP CoPilot road map SAP CoPilot in SAP Help Portal

Situations in SAP Help Portal Situations introduction video in SAP Help Portal

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14


Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

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