Generative AI: Transforming Businesses for Unprecedented Innovation
"Generative AI is not just a technological advancement; it is a revolution that empowers businesses to transform data into actionable insights, driving unprecedented innovation and efficiency," stated Yaad Oren, Managing Director of SAP Labs U.S. and Global Head of SAP BTP Innovation, during his keynote at VB Transform 2024.
Oren’s presentation outlined SAP Labs' vital role in integrating generative AI across the enterprise software ecosystem. He highlighted successful implementations of AI at Gibson, the renowned guitar manufacturer, and Team Liquid, a leading e-sports organization known for its competitive excellence.
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Oren emphasized that insights from one customer's AI adoption can be quickly transferred to others, speeding up scaling and adoption. He compared the complex application landscape of Team Liquid to the challenges of improving supply chain performance, illustrating how solving intricate problems enhances AI and machine learning (ML) model development.
With over 24,000 customers leveraging SAP’s AI solutions, the company has integrated AI into more than 10,000 published and 5,000 scenario-based interfaces using SAP Integration Advisor, catering to diverse enterprise needs.
Founded in 1972, SAP’s enterprise resource planning (ERP) systems are utilized by businesses worldwide. Their comprehensive shift toward AI-based applications is delivering tangible results for long-term customers who began with ERP systems. For instance, SAP’s AI in Concur Invoice Management processed 40 million invoices in 2022, resulting in a combined savings of €440 million ($484 million). AI in SAP SuccessFactors provides personalized learning recommendations to an average of 4.2 million users monthly.
Oren also provided an overview of the SAP AI framework focused on scaling embedded AI capabilities across various enterprise functions, including finance, supply chain, HR, procurement, marketing and commerce, sales and services, and IT. SAP’s copilot, Joule, enables access to these embedded AI features.
Four Ways Generative AI Enhances Business Operations at SAP
Oren shared four key ways generative AI is benefiting SAP customers:
1. Enhancing E-Sports Game Analysis
SAP analyzes over 320 million data points to help Team Liquid optimize competitive strategies. Oren compared this to solving sourcing and logistics challenges, essential for scaling generative AI across SAP's global customer base. Team Liquid’s SAP platform retains 2.5 million hours of competition data and saved over 300 hours of match preparation in a year.
2. Optimizing Marketing Campaigns
At Gibson, SAP’s automated campaign tools analyze customer behavior and preferences to create personalized marketing strategies. This approach resulted in a 50% increase in email revenue and a 10% overall revenue increase within a year.
3. Improving Supply Chain and Logistics
Oren highlighted SAP’s commitment to quickly learning from supply chain use cases. By addressing the complexities faced by customers, generative AI models can learn and adapt more efficiently. "In today’s fast-paced business environment, anticipating supply chain issues is crucial," Oren remarked. "Our AI solutions equip businesses with the insights necessary to stay ahead.”
4. Enhancing Customer Engagement
Gibson employs generative AI tools to gain real-time insights that shape their marketing strategies to resonate with their diverse audience, from novice players to professionals. Leveraging AI, Gibson crafts an engaging experience, providing relevant news and recommendations to its loyal customer base.
Conclusion
Oren’s keynote illustrated SAP's evolution from ERP dominance to an AI-driven future. His presentation at VB Transform highlighted SAP's vision of prioritizing AI as it transitions its extensive customer base beyond traditional enterprise applications. By mastering large data sets, SAP is committed to making AI accessible across its comprehensive application portfolio.
"The future belongs to those who can harness the power of data, and at SAP, we are dedicated to helping our customers achieve that future," Oren concluded.
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