SAP Sapphire Orlando 2025: How to Steer Through Uncertainty with the AI-Powered Flywheel
The news SAP just held its annual Sapphire event in Orlando, FL. It is totally under the theme of uncertainty and how technology, in particular SAP’s technology, can help businesses steer through poorly charted waters, to use a nautical metaphor. Uncertainty is caused by evolving regulatory situations, tariffs and shipping delays with their impact on the supply chain, waning consumer confidence in the light of all of this, and of course, the big gorilla in the room: AI. SAP’s response to this is the “SAP Flywheel”, which consists of three components Applications, of which SAP commands the broadest portfolio amongst all business applications vendors Data, which all these applications create, which in turn gives SAP extensive access to semantically rich business data AI, which analyses all this data, makes it actionable and, in turn feeds it back to the applications, closing the loop to establish the flywheel. SAP demonstrated how this works in a scenario that showed how a C-suite consisting of a CFO, CRO, COO and CHRO use the integrated SAP suite with embedded AI to rapidly respond to new tariffs, managing compliance, assessing financial impact, developing strategies, adjusting supply chain plans, and aligning people strategy, all based on unified data. Key announcements are based on the concept that AI is changing how businesses, and therefore its business applications, operate. Supporting this, is the purpose of SAP’s business AI, which has its foundation in SAP’s Business Technology Platform, BTP. A centerpiece of this change in how businesses – and users – operate is Joule, which is embedded (or will be soon) in all SAP applications and being expanded...
SAP belittles its CX chops – and why this is dangerous
Cloud Wars’ Bob Evans recently did an excellent and very interesting interview with SAP CEO Christian Klein about SAP’s priorities, which include integrating generative AI with SAP Business AI “to address complex business challenges an drive holistic transformation by optimizing processes like quote to cash”. Klein repeatedly referred to end-to-end (E2E) and SAP’s great library of E2E processes that gives the essence of or at least a standardized framework for the value streams within a business. Not surprisingly, and correctly so, Klein also repeatedly emphasized the value of AI and, in particular, generative AI, to create customer value. This happens via Joule’s ability to orchestrate different agents across the value chain, i.e., different E2E processes. Joule is SAP’s Ai assistant. He also emphasized on the value of the suite and on the importance to “in the core business” not run with “agents of 100s of different tech companies”. This is where “the suite is winning”. Evans writes that SAP had “significant growth in applications, outpacing competitors. Klein attributes this to SAP’s suite approach, which provides a comprehensive solution for core business processes. He talks about the importance of integration and extensibility, allowing customers to choose the best solutions for their needs.” This is technically a correct statement. I am fairly sure that SAP will report another outstanding year on January 28, 2025. In the first three quarters of FY 2024 SAP certainly outpaced the cloud business applications competition, including Salesforce. However, there is a caveat to it. This growth is largely attributable to S/4HANA cloud. Don’t get me wrong, doing this is no mean feat. SAP profitably grows while...
Relevance, reliability, responsibility are key for AI – the SAP way
The News A lot is going on in the SAPverse during October and the early days of November 2023. First, SAP conducted its CXLive event with CX-related announcements, then the company reported good Q3/2023 figures, a new version of its CX software that includes new generative AI capabilities got released and lastly, it executed its SAP TechEd event with a good number of AI-, BTP-, and ERP related announcements. As this is quite a lot, I covered the CX world in a previous post and will cover the TechEd related news in this post. So, what is new at SAP TechEd? For one, it is enough to fill a 17-page pre-event news guide that SAP sent out. SAP certainly is able to stack up the news for major events. I took the liberty to ask ChatGPT for a summary of the document, which I slightly edited afterwards. Here we are: AI and Development Environments: SAP introduces SAP Build Code with generative AI, improving application development and testing, while new AI capabilities are integrated across SAP’s ecosystem to drive automation. Business Technology Platform (BTP): BTP is augmented with new guides for application deployment and makes the SAP Cloud SDK for Java open source. A new vector capability for managing unstructured data via high-dimensional vectors is announced as part of SAP HANA, enhancing developer productivity, and allowing for Retrieval Augmented Generation (RAG) that combines large language models with business data. SAP Graph is generally available, and now extends API management to offer a unified API for streamlined access to enterprise data, boosting productivity and integration efforts. Cloud ERP: SAP introduces new...