Expectations can also be very diverse. End users want their jobs to be made easier and more productive. The typical CIO wants scalability, greater data protections, and a secure IT infrastructure that runs with lower total cost of ownership.

And we 鈥� the cloud software provider 鈥� also have a clear-cut expectation that customers should actually use the software. Otherwise, bold transformation objectives won鈥檛 be met and subscription contracts won鈥檛 be renewed.

Disappointment is often described as the gap between expectations and reality. When software adoption is low and expectations for digital transformation outcomes are high, disappointment is almost guaranteed.

That is why we are making the changes necessary at 优蜜传媒to increase customer adoption. Adoption is our main lever for increasing customer satisfaction by ensuring we deliver on the promise of large-scale transformation.

A New Ambition for Service Delivery

My goal leading our new Customer Services & Delivery Board area is to make it easier and faster for customers to adopt our solutions. We want to ensure that customers get all the benefits they are expecting out of their large-scale cloud transformation by reducing the hurdles and ensuring long-term value.

We are fully committed to ensuring that new digital opportunities are not only introduced, but also used to their full potential. Our focus is not on “lift-and-shift” to the cloud, but on holistically and actively supporting our customers in their transformation. And we act as customer advocates, trusted partners, and guardians of their interests.

My new Board area will therefore bundle services, including professional services, premium engagements, customer innovations, and customer support. In addition, it will include cloud infrastructure, cloud operations, cloud lifecycle management, and private cloud provision for 优蜜传媒customers worldwide.

Why Now?

Adoption has always been at the core of our efforts. What鈥檚 different now is that a truly transformative technology 鈥� artificial intelligence 鈥� has emerged and is enabling end users to interact in more natural human ways. This has powerful technological and societal implications.

It is also presenting software providers like us with unique opportunities to enhance adoption. Think how easy (and fun) AI interactions have become. AI innovation is a catalyst for us to enhance adoption, and we are seizing the moment with determined steps toward providing .

But for our valued customers to benefit from all the advantages of 优蜜传媒Business AI, we really need to be there for them throughout their cloud transformation journey, because AI innovation only happens in the cloud.

What鈥檚 Changing?

We know that cloud customers want flexible and innovative solutions that help them solve their biggest challenges and that can be deployed quickly and consumed easily. For the past 52 years, we have been vested in the success of our customers with the best team of experts in the industry to support them at every point of the customer value journey. That has not changed!

What has changed, however, is that we are putting the power of my new Board area behind the delivery of our solutions, providing governance and support to our delivery ecosystem, and continuously improving our cloud delivery and support methodologies. And we have created a unique opportunity to bring together cloud operations to streamline the entire customer experience.

Our overarching objective is customer satisfaction. We are committed to increasing it through comprehensive and innovative post-sales technical delivery services or partner-led implementations to drive our customers鈥� business transformation and deliver measurable value, which is “business speak” for absolutely delighting them! That鈥檚 how we will ensure organizations can fully realize their new digital opportunities.

Offering Transformation as a Service

We deliver the most complete business transformation suite in the industry. That has been our ambition since launching RISE with 优蜜传媒some years ago.听With the range of capabilities on offer today 鈥� including RISE with SAP, GROW with SAP, 优蜜传媒Signavio, cloud application lifecycle management, 优蜜传媒LeanIX, and, of course, 优蜜传媒Business Technology Platform 鈥� we are well on our way to enabling customers to accelerate transformation.

We are committed to optimizing our portfolio for delivery, and we are working on tooling and automation to speed up the process. That鈥檚 how we are reaffirming our promise to provide transformation as a service.听

Closing the Gap Between Expectations and Outcomes

Adoption of our portfolio opens new possibilities for business model innovation along with increased competitiveness, cost savings, and employee satisfaction, while realizing the benefits of new 优蜜传媒innovations more quickly: essentially all the outcomes organizations are expecting when they set out on the pathway to digital transformation.

So, you could say, we鈥檙e more dedicated than ever to closing the gap between expectations for cloud transformation and the corresponding outcomes.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, leading Customer Services & Delivery.

Business leaders might assume that more regulation in such a volatile environment would hinder the innovation they require most at this time. However, we will argue smart and balanced regulation can serve as a catalyst for transformation.

Recent regulatory initiatives like the German Supply Chain Due Diligence Act (LkSG), which mandates human rights and environmental impact due diligence, have positioned Germany at the forefront of ethical standards in supply chains. The draft EU Corporate Sustainability Due Diligence Directive (CSDDD) extends corporate responsibilities in sustainability, while the U.S. Uyghur Forced Labor Prevention Act (UFLPA) places the onus on companies to prove that their products are free of forced labor, shifting the burden of proof to importing entities.

Increased Transparency: Understanding Suppliers鈥� Suppliers

These and many other emerging regulations play a crucial role in enhancing supply chain resilience. Firstly, they help to increase transparency. Compliance necessitates extensive data collection, providing companies with a clear view of their supply chains, including supplier practices and potential risks. This has been practiced by the pharmaceutical industry for many years due to the potential for damage to human health and economic risk to the company from counterfeits or product quality issues.

Now, more industries are recognizing that transparency across the tiers of a supply chain creates this critical backbone of data and visibility.

Secondly, companies must reassess their sourcing strategies, encouraging diversification and regionalization. This in turn reduces dependency on single suppliers or regions, making supply chains more resilient against unexpected disruptions.

Although companies may have been operating in an interconnected web of global supply chains for decades, those that still do not have full visibility into their own suppliers — and those of their suppliers鈥� suppliers — are putting themselves at undue risk by not innovating. We call this tier-n visibility. This is an incredibly powerful tool for eventually reducing uncertainty across supply chains.

Enhanced Collaboration: Gaining a Competitive Advantage

Compliance, when well-executed, can lead to stronger relationships with suppliers. The engagement required fosters trust and accountability in the supply chain, resulting in more collaboration to overcome challenges. With diversified sourcing, companies can swiftly adapt their supply chains to ensure business continuity. That鈥檚 simply better preparedness.

Researchers at Cambridge University recently emphasized the need to form alliances to , advocating for more collaboration to improve resilience and sustainability. Collaborative approaches, supported by digital technologies, can lead to significant benefits, including reduced tax evasion and enhanced information sharing in the global supply network.

But let鈥檚 face it: This is an industry problem, not a technology issue. Industries need to change how they use supplier data. Instead of using it to push for better procurement terms through negotiation, they should focus on more collaborative processes.

Many industries are beginning to realize the benefits of such a collaborative approach. For instance, a car company using the open network can pinpoint faulty engine parts and trace issues back to the supplier’s supplier. Such a targeted approach minimizes recalls. Catena-X ensures interoperability through common standards, allowing data providers to maintain sovereignty over their data. With 170 international members, including major German car manufacturers, Catena-X is poised to become an industry standard.

In this dynamic environment, supply chain resilience becomes a competitive advantage. Companies that proactively embrace regulatory requirements gain the trust and loyalty of consumers, investors, and stakeholders.

Reduced Risk: Embedding Artificial Intelligence

Growing regulatory demands also require a paradigm shift in how businesses approach risk management within their supply chains. Here is where artificial intelligence (AI) plays a central role.

can provide proactive insights into the highly complex impacts of potential risks, allowing companies to anticipate and mitigate challenges before they escalate. This transforms the traditional risk assessment process, offering a more dynamic and real-time understanding. And that鈥檚 exactly what businesses need now to de-risk.

For example, understanding the impact of new trade sanctions (such as U.S. export controls on advanced computer chips), a container port blockade, or a steep increase on transportation cost for a given shipping lane offers a competitive advantage. Sensing disruptions, simulating them, understanding the impact, and then recommending and executing actions are core use cases that are optimized by AI and machine learning.

However, with powerful technology like AI also comes great responsibility. Ensuring ethical AI development and deployment requires transparency, accountability, and collaboration among businesses, governmental bodies, civil society, and the broader public. The draft EU AI Act would regulate AI systems based on risk levels, emphasizing the importance of adhering to ethical principles to ensure responsible AI use. Trust in AI solutions hinges on the responsible handling of AI technologies and adherence to human rights.

优蜜传媒recognized even before any AI regulation was available, that the speed of AI adoption increased . 优蜜传媒was the first European technology company to establish AI guiding principles in 2018 and then created an AI Ethics Policy. The company established an AI Ethics Steering Committee and AI Ethics Advisory Panel, which helps operationalize guiding principles, provides guidance for high-risk use cases. and will align with the upcoming EU AI Act.

Advanced Technologies: Turning Regulatory Burdens into the Foundation for Resilience

Necessity often drives innovation, leading companies to invest in advanced technologies such as supply chain control centers, n-tier visibility, digital twins, cloud solutions, and AI or machine learning. 优蜜传媒solutions, such as and , not only facilitate compliance but also enhance overall supply chain visibility and management.

The best examples of the dynamic application of supply chain technology are often found in the food and beverage sectors, where strict quality controls as well as traceability and safety regulations have long necessitated agile, transparent, and sustainable supply chains. Unilever’s commitment to traceability and transparency in its global palm oil supply chain demonstrates how compliance acts as a transformative force. Nestl茅’s embrace of technology illustrates how businesses can e with evolving standards. And Grupo Nutresa鈥檚 procurement transformation shows how it鈥檚 possible to while doubling down on sustainability with trading partners.

These examples show that compliance and innovation are not mutually exclusive and should be integrated, with sustainability serving as the bedrock of resilient supply chains.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.
Anahita Thoms is partner and global lead sustainability partner for Industrials, Manufacturing, and Transportation at Baker McKenzie.

• Firstly, technological progress, as improved AI architectures and available data have enabled models to perform impressively.
• Secondly, an economic effect as successful platforms of the past, such as the Internet and the cloud, experienced breakthroughs when marginal costs approached zero. That was the birth of platform innovation. In the case of the Internet, for example, the cost of distributing increasing amounts of content approached zero. When it comes to content creation, we are also seeing the same thing now with generative AI. Therefore, AI is not just hype, but an innovation platform.
• Thirdly, we are witnessing a growing social acceptance. Generative AI was brought into the consciousness of the general public as millions of users suddenly gained access, seemingly overnight, to language models like ChatGPT and tried them out for themselves.

AI is powerful, but not all-powerful. Artificial intelligence are big words. Smart neural networks and models excite us because they are designed to mimic human patterns as closely as possible. They can offer solutions for certain types of problems. What they can’t do is find a solution to a previously unsolved problem and compete with the inexhaustible creativity and empathy of humans.

Recently, I was asked to name an example when AI really 鈥榳owed鈥� me. For me, it was the moment I read that ChatGPT had passed the medical exam in the U.S. My wife is a doctor, so I’m somewhat familiar with medicine and everyday hospital life. Will AI replace humans here? No. Will technology like AI improve the lives of healthcare workers and thus patients? I believe so. AI creates space for professionals where they are most needed.

AI is changing everything. Are we just going along with this change or are we boldly leading the way? We are at a crucial point where generative AI will also significantly change business processes in companies. considers AI to be a productivity booster and predicts worldwide increases in the trillions. This is urgently needed if we look at demographic trends and the growing shortage of skilled workers. Provided that companies use AI consistently, this much is certain: AI will revolutionize the way we work and live.

AI will shape our country. The question is whether we see it as a threatening competitor or a helpful companion. It is up to us to decide whether these significant changes will provide a boost to innovation in Germany and Europe. Germany, and indeed each of us, must adapt to change in order to remain globally competitive. It is important to recognize and minimize the risks, but also to see the opportunities as chances.

So, what do we need to do in order to seize this opportunity for Germany? 

Use Strengths and Competitive Advantages

According to an , systems with generative AI capabilities can contribute to approximately 鈧�330 billion of future value creation in the German economy. We would be able to gain a competitive advantage if AI is value-oriented, transparent, and explainable. A suitable legal framework with high ethical standards promotes the ability to innovate; over-regulation would have the opposite effect. We should not categorically classify generative AI as high-risk, but rather leave room for innovation.

We are moving in the right direction with the EU AI Act鈥檚 risk-based approach. And when the various regulations on AI and data protection interact, we are on the right track. Because there can be no compromises in the use of AI when it comes to business-critical processes and decisions.

Therefore, at SAP, we see it as our duty to deliver responsible, reliable, and business-relevant AI results. That is why we are looking at how to best utilize the various models to provide value to customers. The models behave very differently. We see ourselves as a driving force in terms of enterprise AI. However, we do not rely solely on our own expertise, but collaborate with research institutions and leading providers of generative AI.

Our credo is: AI is a natural part of our software and intuitively integrated into processes and applications. Why? Because for us, it鈥檚 not about writing a poem with AI, but about using AI in a specific business context based on real-time data — and, when necessary, to support business-critical decisions.

To make this possible, we are working on our own foundation model, which is trained on the data of thousands of customers that have consented to the use of their data. AI models trained on publicly available data do not have this valuable context. Therefore, while they may pass a medical exam because the knowledge is available on the Internet, they will not be able to answer complex questions in the context of a company. Because AI is only as good as the data it relies on. This includes filtering out biased data or queries.

Promote a Climate of Innovation and Openness to Technology

Currently, are developed in the U.S. and 15% in China. This is also due to the willingness to invest. The fact that the German government will is a positive signal, but it is not enough. The private sector also needs to invest significantly more across all industries. Additionally, the “can do” mentality is more pronounced elsewhere. Of the 1,300 worldwide, only 36 are in Germany. Our AI research is among the best; however, the insights rarely lead to companies being created.

We do not lack knowledge in Germany, we lack the will to implement it. And according to the , there is also a lack of computing power and a supercomputing infrastructure for AI.

We should also strengthen small and midsize enterprises (SMEs). As the backbone of the German economy, SMEs must receive the necessary support — including from the public sector — to drive AI forward. According to a , 15% of all companies are already using AI. But this is not yet the urgently needed boost to AI innovation. At least 68% understand the importance of AI and consider AI to be the most important future technology, but too few are taking action.

This clearly shows that most people are looking into AI. But for many companies, AI is not yet an issue. This gap needs to be closed so that in the future not just a minority but a majority of companies use AI. We must act instead of hesitating!

Culturally Embedding a Readiness for Change and Lifelong Learning

听Innovation starts in the mind. Every company wants employees who think like entrepreneurs. Those who don’t want to wait for something coming from other corners of the world. But for that, we need to overcome our reservations towards new technologies. Fears are blocking our view of opportunities and companies have a duty to act now. Transparency is the most important means to alleviate employees’ concerns about automation and AI.

AI will not make humans redundant, but it will change our existing professions. Well-trained professionals are and will remain indispensable, and AI can help to counteract the shortage of skilled workers to some extent. Not only the technologies themselves, but above all the responsible handling of data must be an integral part of school education. Similarly, companies should integrate AI into their company’s further education.

But what is particularly important is that for most professionals, it is not about understanding AI in every detail. There are experts for that, just as there are experts who design complex manufacturing machines. It is about developing the skills of the future: critical thinking and the ability to assess information and above all, empathy. Putting oneself in other people’s position is the core competency of the future! These are skills that make humans unique.

Therefore, I do not see AI as an apocalypse, but rather as one of our best chances for renewal and progress. Because the interaction between humans and machines is not a duel, but a duet.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

As I look back on 2023, I recognize 鈥� with immense gratitude 鈥� that I had the privilege of experiencing one of those rare moments in the history of technology when a technology emerges with the potential to completely reshape the future. Typically, the end of the year is a time to reflect and look back, but personally I prefer to look forward and consider how we will adapt to the multitude of possibilities an AI future will bring.

Generative AI is disrupting every industry, just like the internet did back in the 1990s. Both disruptions have something in common: people are at the center. The internet took off because it was easy for non-technical users to adopt it. This is exactly what鈥檚 happening now with AI.

This signals the need for a skills shift. The World Economic Forum predicts that will change due to new technologies by the end of the decade. Up-skilling and re-skilling are therefore crucial. We can鈥檛 know exactly what the future holds, but we can equip people to adapt and thrive in a changing environment.

In today鈥檚 world, it鈥檚 not about job security but skills security: recognizing that job security is a by-product of skills security. By acquiring and adapting skills, individuals can position themselves even in the face of automation. Like a bird landing on a branch, it鈥檚 not afraid that the branch will break, because it knows it can fly.

Organizations must also understand their skills gaps so they can anticipate and quickly react to changes. At SAP, we鈥檝e established a globally aligned skills taxonomy and we have prioritized baseline skills for development organizations such as AI, DevOps, and security. These are the most sought-after skills in our industry, and we are making training available to upskill in each of these areas.

Increased skills transparency across 优蜜传媒enables us to spot emerging trends, identify where we may have gaps, and prioritize learning investment. We used this process last year to ramp up our investment in AI learning even before the launch of ChatGPT accelerated this need.

But technical skills are only part of the equation. There鈥檚 a common misconception that we all need to develop highly technical or scientific skills to succeed, but I also see a growing need for people who are highly skilled in interacting with other people! That requires a resilient mindset, critical thinking, curiosity, adaptability, flexibility, not to mention creativity, collaboration, and interpersonal skills. Those are core human abilities that are more relevant than ever in the age of AI.

We need to start enabling children at an early age. This doesn’t mean teaching them how to use a device; they easily master that! But rather it is enabling them to unlock the potential of technology 鈥� while using data safely.

Watching my own children, I see how quickly and naturally they are able to navigate digital devices. But interacting with the data is not something that comes naturally. That must be taught. We need to teach children to interact with data discerningly to set the foundation for a future where they can use technology not just competently, but also responsibly, making informed decisions in a data-driven world. Instead of discouraging their exposure to technology, we should guide children toward a deeper understanding of how they can use it to create, learn, and explore. The goal is not just digital literacy but digital fluency 鈥� a profound understanding of technology that goes beyond the surface. Enabling children to be creators, rather than just consumers.

But we should not even stop there. I am a fan of : 鈥淲e cannot teach our kids to compete with machines that will be smarter. We must teach our kids something unique, so that a machine can never catch up with us: values, believing, independent thinking, teamwork, care for others 鈥� the soft skills, sports, music, painting, arts, to make sure humans are different from machines.鈥�

I believe a human-AI partnership provides the best of both worlds, creating more value than either can alone. It鈥檚 a duet and not a duel. So, companies need to invest in talent as much as technology. And parents, as well as educators, have a crucial role to play in guiding their children toward an AI future.

Next year will be about taking all people along on the AI transformation journey. Here鈥檚 to 2024: an uncertain but exciting future!

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

Top photo courtesy of 优蜜传媒employee Emanuela Corazziari.

Instead, they are recognizing the need to resolve supply chain disruptions in an integrated way, bridging the silos of various functions and going beyond dealing with supply chain disruptions as they occur. 

Taking a macro-view is also something governments have begun doing. Just think of the huge investments to “bring supply chains home”; for example, for semiconductors or for sustainable energy.鈥� At the same time, diversifying supply chains and complying with new regulations keeps increasing their complexity. 听

Companies take various approaches to these challenges, such as de-coupling their supply chains by building up costly inventories for critical components. Another option is听reshoring or nearshoring, which brings manufacturing and supplier relationships closer to core markets, ideally in countries with similar political and economic systems. But all of these strategies come with downsides, including the cost of operations in globally competitive markets.听

At SAP, our vision is to embrace interconnected supply chains and optimize material flows — sustainably — with digital technologies. We believe in intelligent strategies to reduce supply chain uncertainties for the long-term by helping industries redefine their operations and by creating value chains that are more intelligent, connected, and responsive.鈥�

Supply Chain Convergence Increases Agility 

Companies that resolve supply chain disruptions in an integrated manner bridge the silos of various functions such as procurement, logistics, or manufacturing. That鈥檚 how they can truly alleviate the impact to their organizations. Supply chain functions need to work in concert and extend into their ecosystem of suppliers. Even the most accurate supply chain plan is meaningless if material suppliers cannot commit to volumes and lead times. Through integrating supply chain planning, such as demand and supply plans with procurement collaboration, manufacturers have a much stronger strategic lever to avoid downstream shortages.听

At SAP, we call this approach design-to-operate. Our strategy is to deeply connect all relevant functions in a supply chain along end-to-end value chains and business processes. Going beyond the four walls of your own enterprise, into your ecosystem of suppliers and sub-suppliers — that鈥檚 the ultimate way to tackle supply chain challenges. In the case of supply shortages, for example, it is imperative to analyze the impact to the organization. 听

With 优蜜传媒Integrated Business Planning, . Impacted customer orders and revenue at risk are visible and informed actions can be taken to mitigate any shortages, for example, by changing production schedules. The 优蜜传媒Digital Manufacturing system knows immediately about the changed production plan for the next shifts and adjusts labor and resources accordingly. Logistics departments in 优蜜传媒Extended Warehouse Management orchestrate the new material flow, , and asset maintenance activities are re-scheduled to adhere to the new production priorities.听

As a result, supply chain leaders who follow a design-to-operate paradigm are highly agile and can take critical actions quickly to deal with supply chain disruptions.听

SAP鈥檚 Industry Business Networks: A New Paradigm鈥�&苍产蝉辫;

Entire industries are recognizing the benefits of going beyond the four walls of their own enterprise. Consider a car company investigating faulty engines coming from one of their production lines. Now imagine it can trace the failure not only to a particular batch of components from one supplier but then dig even deeper to identify faulty basic parts from the supplier鈥檚 supplier. Instead of having to recall thousands of vehicles, it needs to recall only a few.鈥�

Solving problems this way requires a mindset for radical collaboration as well as technology for efficient, cross-company data exchange. is an open network that enables just that. It guarantees interoperability by defining common standards. The network is not owned by a single business and data providers keep their data sovereignty. For instance, they define for how long and for which purpose their data can be used. On the other hand, consumers can trust that data comes from a reliable source.鈥�

优蜜传媒is one of the founding members of Catena-X, together with five other companies. Since 2020, the initiative has grown to IT companies. Among them are Germany鈥檚 biggest car companies as well as many small and medium enterprises. Catena-X may soon become the industry鈥檚 standard.鈥�

Naturally, the is ready for Catena-X. It readily connects Catena-X to SAP鈥檚 broad portfolio of automotive IT solutions to trace parts, measure carbon emissions and manage demand, capacity and quality.鈥疪ecently, 优蜜传媒announced business networks for more industries, including , with more to come.鈥�

Generative AI Adds New Types of Intelligence 

A key tool in solving supply chain complexity challenges is artificial intelligence (AI). Even before the recent groundbreaking advances in large language models (LLMs) and generative AI, our supply chain solutions have been infused with both 鈥渢raditional鈥� and 鈥渁dvanced鈥� AI.

For instance, creates demand forecasts based on historical demand patterns, but it also leverages advanced machine learning capabilities to improve forecast demand with point-of-sales data and improve planning quality using self-healing master data and lead time predictions. In the future, generative AI will enable completely new types of intelligent capabilities like these:

• Facilitating human-machine interaction: Users will soon be able to interact with their system much more naturally via our new embedded generative assistant Joule. For example, they will be able to ask which of customer X’s demands for product Y are still unfilled in Central America. Joule will give the answer, intelligently combining data from various systems and domains because it will be embedded throughout the 优蜜传媒cloud enterprise portfolio.
• Supporting creativity: Much like a sparring partner, generative AI can help designers, engineers, and product managers create new product ideas in an innovation cycle and iterate them with 优蜜传媒Enterprise Product Development.
• Transforming unstructured data: Consider a truck arriving at a warehouse with inbound cargo. The clerk knows what cargo to expect and this is saved in an 优蜜传媒system. However, what is really on the truck is written on a loading list, often in paper form. Making this data available digitally has been possible for quite a while and is known as optical character recognition (OCR). What鈥檚 new is that generative AI tools can now match the unstructured loading list to the structured data already in the system — in a split second.

Leveraging AI for companies to scale and sustain business operations will no longer be optional. Consider the increasing labor shortage facing manufacturing companies, among others. They will have a shortfall of up to 85 million employees by 2030 — roughly the population of Germany!

By automating mundane tasks with advanced AI capabilities, we will bridge the human resources gap and enable experts to focus on what really matters: making data-backed business decisions.

Human and artificial intelligence work hand in hand — it鈥檚 a duet, not a duel.

We already help our customers build risk-resilient supply chains and deeply connect enterprises to run productive, agile and automated operations. Now, by also leveraging the power of generative AI, we will ensure that supply chain resilience doesn鈥檛 have to be something that keeps CEOs up at night.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.

But one type of technology 鈥� machine-generated text, images, and media that mimic human creativity 鈥� is introducing an entirely new era of transformation. Known as generative artificial intelligence (AI), this technology has set off a wave of innovation that will dramatically change how businesses run. And at SAP, we are perfectly positioned to pioneer this business AI revolution.

What Sets 优蜜传媒Apart?

Our access to business data, our understanding of the context of complex business processes, as well as our deep domain and industry expertise: these are incredible differentiators at this moment in time.

优蜜传媒Business AI is deeply embedded into applications and process flows that rely on a veritable treasure trove of decades of relevant business data curated from huge customer data sets. We have agreements with more than 25,000 customers to use their data to train our own models. Using this data to contextualize generative AI models results in very task-specific outcomes for business users.

Without this customer data, generative AI users get results that are more like dinner-table conversation than business-altering insights and responses. The data we use for context for our tenants are protected and used only for that tenant 鈥� they are not reused elsewhere.

For more than 50 years, customers have trusted us with their most mission-critical business processes and now that trust is crucial as we deliver business AI with the highest levels of concern for security, privacy, compliance, and ethics, which our customers have come to expect.

优蜜传媒Foundation Models: Our Differentiator

It is clear that the emergence of generative AI has completely changed the game. General-purpose foundation models can be adapted to many different tasks in a short time. Users can have simple interactions with models in their natural language, so they don鈥檛 need any technical knowledge to use AI. Additionally, large language models (LLMs) have gotten bigger and more accurate, with new versions being released all the time.

These changes have opened up huge opportunities for us to build even better AI for business, especially when we adapt LLMs to the 优蜜传媒business context and create our own models using our structural data and business process knowledge.

That is why we are investing in building our own foundation models and combining them with our deep understanding of business processes and 优蜜传媒data. Using our own foundation models, we can create powerful, context-specific outcomes for our customers. Our foundation models, which will also allow for fine-tuning for different scenarios, will further unlock and strengthen our leading position in embedded AI. Customers will benefit from high-performance models trained on rich 优蜜传媒data, achieving better predictive results.

But customers don鈥檛 have to wait for these 优蜜传媒foundation models to be ready before they can leverage context from business data because we are also using retrieval-augmented generation (RAG) to provide business data context and give customers better results right away.

With these foundation models in place, we will embed business capabilities powered by AI in every solution to enable new business models.

SAP鈥檚 Generative AI Assistant: Joule

The vision of 优蜜传媒Business AI is to deliver the first true system of intelligence to fundamentally change the way companies operate, helping them create even more value, faster. Essentially, embedded AI will become the norm for powering business processes.

That鈥檚 why we announced that we will embed our new generative AI assistant Joule throughout the 优蜜传媒cloud enterprise portfolio. Joule will help our customers achieve business results faster by enabling them to access insights that are relevant for their business through natural conversation.

By simply asking a question in plain language, our customers can get smart answers tapped from a pool of data from across the 优蜜传媒portfolio and third-party sources. Joule will continuously deliver new insights that get even more intelligent over time. Imagine for example, asking Joule to prioritize suppliers based on their average margins and carbon footprint. Joule will handle some tasks completely, like writing job descriptions that are unbiased and compliant, or help to develop relevant interview questions and more.

Applying AI to Solve Specific Business Problems

The true value of business AI comes from knowing how to apply AI to solve specific business problems. Here are some more examples.

Decision-makers need intelligent recommendations based on connecting, understanding, and processing relevant information. Generative AI can produce those intelligent recommendations in seconds, if it is trained on relevant data in a manner equivalent to the ways humans would consider that data.

An HR manager can use generative AI to create a job description or interview questions and do this at scale. Generative AI can create thousands of responses in the time it takes a human to manually create one.

Or take financial reports: they typically require data to be extracted from complex systems. Generative AI can automate this time-consuming process and produce accurate reports quickly and simply.

When booking a trip, employees can receive offerings that are in line with company policies just by describing their travel requirements, such as destination and dates.

But the potential of generative AI extends far beyond content generation. Consider warehouses, where delivery notes need to be matched with orders. Generative AI can automate this process or provide detailed assistance to warehouse workers, reducing manual labor.

AI-optimized business processes can also help companies continuously optimize and improve efficiency. Instead of going through each time-consuming step to analyze, monitor, modify, and automate their processes, process owners can simply describe the type of improvements they want in natural language, removing any need to write code or understand a domain-specific language, and get immediate and ready-to-configure results.

The ultimate vision is to translate all recommended process changes into actual configuration modifications within the source systems, thereby facilitating self-optimizing processes. This ambitious vision is already being realized by incorporating generative AI into 优蜜传媒Signavio Process Transformation Suite.

Creating an Open Enterprise AI Ecosystem

Creating this evolution in enterprise software requires us to focus on direct investments and undertake a significant increase in research and development as well as third-party partnerships. Most recently, we announced significant partnerships with Aleph Alpha GmbH, Anthropic PBC, and Cohere. These are all generative AI market leaders with unique potential to transform entire industries working with SAP.

These partnerships complement announcements we made in May 2023 about our AI partnerships with Microsoft, Google Cloud, and IBM. We are collaborating with these leaders in the AI market to leverage state-of-the-art technology where it does not make sense for us to build it on our own. That way, we can focus on improving business insight in areas we know best. At the same time, we are doubling down on investing in areas where we have a competitive advantage and can build differentiating capabilities into our products.

At SAP, we are already riding the AI wave. Today, more than 24,000 customers have implemented over 130 AI use cases and there are more than 360 partner apps infused with AI available on the 优蜜传媒Store.

The moment for organizations to redefine how they work is now. With 优蜜传媒Business AI, we help our customers benefit from the power of AI by tailoring it to their unique business needs.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

Our customers have also been clear with us: they need greater agility in their business processes while also reducing the costs of integrating a patchwork of solutions from multiple vendors. From finance to supply chain to commerce, the user and customer experiences need to be seamless. This requires the underlying applications to service the user and customer journeys in real time.

优蜜传媒has the rare combination of unmatched industry depth as well as the breadth of business process solutions to meet this moment. While our ERP has always had deep industry capabilities, we have now aligned the (CX) portfolio to an industry-first approach to accelerate value to customers by enabling end-to-end, integrated business processes.

Some voices across the market are recasting SAP鈥檚 commitment to an industry-first strategy to suggest that 优蜜传媒is no longer committed to key needs of our customers, starting with our CX portfolio. Let us be clear: 优蜜传媒will continue to deliver customer experience (CX/CRM) solutions. Now we鈥檒l focus on adding an industry lens, delivering industry-tailored CX solutions and bringing the front office together with the back office to provide the unmatched value customers expect from 优蜜传媒solutions.

Together with our global ecosystem, we can solve the most relevant challenges of customers in all industries. In fact, today, 80% of industry solutions are ecosystem-led. With this approach, customers will get solutions that natively connect the cloud ERP through to the last mile of a customer鈥檚 experiences spanning e-commerce, sales, service, and marketing — all with the industry-specific best practices they rely on from 优蜜传媒and our ecosystem.

Here are just a few examples of where industry-first CX has bridged gaps often seen between business process-led ERP and experience delivery:

• Retail: Maintaining optimal inventory levels in stores and distribution centers is crucial to ensure customers get the products they want. Predictive replenishment uses artificial intelligence (AI) to help retailers automate the restocking process, drawing on the deep retail expertise built into our customer experience product and our cloud ERP. Retailers benefit by reducing their environmental footprint while avoiding both overstock and out-of-stock situations and delivering personalized customer service if things go wrong.
• Consumer Products: By automating 80% of the trade claims process and enhancing cash flow by about a month, consumer product companies free up billions of dollars tied up in settlement processes as well as hours of time for key account managers. 优蜜传媒uniquely sits at the intersection of accounts receivables (finance, ERP) and revenue growth management (sales, service, and marketing), which allows us to provide not only native integrations but also faster time to value and lower TCO in this space than any other vendor.
• Automotive: 优蜜传媒improves production planning and forecasting based on real-time demand; we boost logistics optimization thanks to end-to-end integration from dealership sales and service to group production and logistics processes. Dealers can also optimize sales strategy and marketing spend as well as improving upsell, retention, and overall customer lifetime value thanks to data aggregated from the front and back office into SAP鈥檚 customer data platform. This enables dealers to strategically upsell subscription services or entertainment system software updates while updating customers on production progress, delivery, warranty, and service notifications.

优蜜传媒CX customers including Pizza Hut, Carhartt, and smart Europe are among those already benefiting from our unique industry depth. We are excited about the additional value we can deliver to our customers with our industry-focused approach to delivering holistic, integrated business process solutions together with our ecosystem. Examples include the retail solutions , from customer engagement to inventory fulfillment to sustainable manufacturing. We will demonstrate this same industry value for manufacturing at the Hannover Messe in April.

Stay tuned for more exciting updates in the coming months.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.
Julia White is chief marketing and solutions officer and a member of the Executive Board of 优蜜传媒SE.

If you have a moment, grab a cup of coffee and read about eight industry trends I expect to be here to stay.

Everything-as-a-Service

Making and selling products has been the predominant business model in multiple industries for many decades. In contrast, delivering services used to only be associated with a few sectors, such as telecommunications. Those days are gone. From sports equipment and streaming services in B2C to machines and software in B2B, there is hardly a product or service that customers do not expect to get on a subscription basis. In short, the way products and services are consumed, ordered, and paid for has changed, and I鈥檓 sure this trend will continue to transform revenue streams, product design, and customer engagements across industries.

Integrated Mobility

Trends are connected, and so is everything-as-service and the future of mobility. Urban infrastructures used to be built for cars moving between suburbia and city centers. With more and more people moving to cities, this is no longer feasible. I have no doubt, however, that new concepts and digital technologies will ensure convenient, safe, and sustainable mobility in the future. We can already see a transition toward integrated mobility solutions starting with an individual mobility element, such as a car or bike, and integrating with mass mobility solutions — ones that people pay for on a usage base.

New Customer Pathways

When it comes to customer experience, industry lines are blurring and business models are blending. Both consumers and business customers expect a cohesive experience across any brand interaction they may have. Customers also demand personalized experiences that are available anywhere, at any time. Sustainability is another driving force. Customer expectations will continue to rise, and I鈥檓 excited to see businesses deliver one experience that goes beyond the sales process and keeps customers coming back.

Lifelong Health

Being healthy is essential. Considerable medical progress has been made over the past decades, with technology contributing significantly to this. Beyond the healthcare space, digital devices that collect and compile health and habit-related data are used increasingly in lifestyle areas. Devices such as smart watches, intelligent scales, and sensor-studded workout machines create a massive set of health and activity data. While this trend generates new possibilities for healthcare and life sciences to advance diagnostics and treatment, I also see implications for the consumer products, retail, and insurance industries.

The Future of Capital and Risk

Governed by national and international regulations, banks and insurers play the key role in operating the world鈥檚 financial system. In the last few years, fintech and insurtech innovators have changed the way capital is raised and allocated, risks are transferred, and payments are handled in our global economy. Today, products and services in banking and insurance can be 100% digital, which is why I expect this market to continue to be subject of rapid change.

Sustainable Energy

Stopping climate change and its effects on our planet is one of the biggest challenges of the 21st century and the transition to a sustainable economy is one of the fundamental needs of our time. Emission-free energy is one of the pillars of sustainability. Many solutions for an energy transition are already here. What matters now is to implement them at scale — and I think every industry will be affected. Reinventing the global energy system is a massive undertaking that will involve all nations, all industries, and all people.

Circular Economy

Another crucial pillar of sustainability is circular economy. For too long, our global economy has been linear and single use: companies take resources, produce things, and users throw them away. As a result, humans not only consume more resources than our planet can regenerate, but we鈥檙e also piling up waste.听 The transition to a circular economy both protects our environment and opens new business opportunities. I鈥檓 convinced that the reward of circular business models will far outweigh the investments companies need to make today.

Resilient Supply Networks

In today鈥檚 globally connected economy, supply chain disruptions can have profound consequences. This includes shortages and delays of materials and products leading to empty shelves and higher prices. To build resilience, companies need transparency into their supply chains to enable intelligent planning. This requires close collaboration and data exchange between trading partners in an open, yet secure, digital network. Creating this real-time transparency across today鈥檚 complex supply chains is a huge effort. But I think it鈥檚 the best — if not the only — way to enable companies to respond to and anticipate supply and demand disruptions.

These are the trends that I see shaping the world of business, the world around us, and the 优蜜传媒product portfolio — and continuing to do so across industries in 2023 and beyond.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

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The 鈥溾�� and 鈥溾�� are more than buzz words; they are the reality we live in today, and that鈥檚 what leaders need to open their eyes to. These developments require organizations to become more agile and resilient than ever. At the same time, businesses of every industry, every size, and every geography are part of a race for talent.

On the employee side, people are seeking alignment between personal and company values, allowing them to find purpose in their jobs. They are insistent on a culture that allows them to learn new skills, take on different projects, and bring their whole self to the workplace.

People want the ability to self-steer their careers based on their interests and strengths, and to truly make a difference. They want the freedom to choose where, when, and how to work, and they rightly expect support for their mental and physical health.

That鈥檚 exactly the balance leaders and organizations need to find today. They need to create an inclusive environment where people feel they belong. This also includes finding the right balance between remote and office work, between autonomy and team collaboration, and between responsibility and recognition.

Keeping Up with Rapid Change

While technology is key to overcoming today鈥檚 most pressing challenges, new skills are needed as well.

, by 2025 technological developments will displace 85 million existing jobs while creating 97 million new roles. Companies are increasingly competing for data scientists, cybersecurity experts, system specialists, and the like. Digital skills alone, however, are not enough. Problem-solving, self-management, and interpersonal skills . We need to go beyond upskilling and reskilling, and look at humans as a whole, combining IQ and EQ. It鈥檚 with creativity that we can solve complex problems, it鈥檚 active learning that allows us to adapt to changing environments, and it鈥檚 collaboration that brings complementary skills together.

The more complex the world鈥檚 problems are, the more complementary skill sets are needed to solve them. And that鈥檚 why it鈥檚 so important to strengthen the diversity of teams and drive innovation together.

Putting People at the Center

How can businesses handle changing employee expectations on the one hand, and employers鈥� need for highly skilled people on the other hand?

Both developments have one thing in common: they require a kind of organization that puts people — with their unique and changing work styles, capabilities, and interests — in the center. They require companies to move from human capital management to human experience management (HXM).

When companies stop viewing their people as resources, assets, or capital and start to embrace them for their unique experiences, interests, and abilities, they will not only be able to retain but to grow the best talent.

That鈥檚 exactly what our HXM solutions from 优蜜传媒SuccessFactors do for our customers. Our innovative cloud solutions provide organizations with the tools they need to unlock the full potential of their people and to create a resilient and sustainable workforce. These solutions make the talent system for a future-ready workforce, covering the entire talent lifecycle. It鈥檚 no longer about hire-to-retire but hire-to-grow.

Changing Work for Good: SuccessConnect

This week at , our annual conference for 优蜜传媒SuccessFactors customers, we introduced an exciting new way for organizations to rethink their talent development strategies. These advancements to our products bring together data, machine learning, and artificial intelligence (AI), providing organizations with a better understanding of their people鈥檚 skills and preferences. Here are the key highlights:

• Skills ontology uses machine learning and automation to continuously identify an employee鈥檚 skills based on their role, responsibilities, experiences, and accomplishments.
• Growth portfolio is a dynamic library of employee attributes, including skills, strengths, works tyles, passions, and aspirations — bringing the whole self model to life.
• Dynamic teams is a new capability that enables organizations to create, track, measure, and optimize the outcomes of teams that exist beyond traditional hierarchies.
• Employee users of 优蜜传媒SuccessFactors solutions can now select their chosen name and personal pronouns so they can be identified and recognized as their true self.

Work is changing, jobs are changing, and people are changing. Altogether, these innovations support a future of work that is focused on skills and people rather than organizations, hierarchies, and roles.

People Sustainability: Driving Sustainability Inside and Out

We won鈥檛 stop with technology and solutions. For us at SAP, people sustainability is a key part of our overall sustainability approach. People sustainability expands beyond a company鈥檚 own workforce. It means that businesses also treat the people within their supply chains and the communities they operate in an ethical and fair manner. That鈥檚 why we offer solutions to identify and prevent any negative impact on human rights connected to their business.

We enable businesses not only to achieve zero emissions and zero waste, but also zero inequalities across their value chains. This is SAP鈥檚 holistic sustainability approach 鈥� and this is what motivates us at 优蜜传媒every day.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

This collective action must take many forms. While the UN Security Council is discussing lifting export restrictions, financing, bolstering agricultural production, and investing in resilient food systems, business also has a role to play. The private sector鈥檚 role may be less immediate than that of governments and global councils, but it still has the potential for important long-term sustainability impacts. That role lies in reducing food waste and enabling circularity.

Currently, . If we transform our global economy to one where waste and pollution are mostly eliminated and products and materials are reused, we can . Reducing the consumption of animal products and cutting food waste are key drivers here. And a number of 优蜜传媒customers are leading the way.

is an international cooperative headquartered in Denmark that is owned by almost 13,000 farmers in seven countries. The company set its sights on reducing waste with a solution to optimize its supply chain planning by better sensing and reacting to changes in demand. Arla implemented the 优蜜传媒Integrated Business Planning for Supply Chain solution and its demand sensing component. That helped improve short-term planning based on daily forecasts that are aligned with real demand patterns.

, a large Norwegian company distributing bakery, ice cream ingredients, and plant-based products, needed a cross-company planning platform to scale operations and meet future needs. That鈥檚 why the company chose 优蜜传媒Integrated Business Planning for Supply Chain and 优蜜传媒Supply Chain Control Tower. By combining supply chain solutions in the cross-company planning platform, Orkla was able to increase automation across business functions. The company achieved 14% greater forecasting accuracy and 27% less waste related to expired products on shelves. That adds up to a lot less food waste!

, one of the world鈥檚 leading crop protection companies, helps farmers feed a growing global population. The company needed a solution to better predict how things like weather, conflict, and other variables will impact millions of growers worldwide. 优蜜传媒Integrated Business Planning helps Syngenta ensure that the right amount of product — for example, seeds and fertilizer — gets to where farmers need it. With 优蜜传媒solutions, the company was able to improve demand planning, forecast future demand, and manufacture the right amount of product.

LIVEKINDLY was founded in 2020 as a collective with the mission to make plant-based living the new norm. The collective includes various brands that each needed to implement collective-wide business processes, get real-time data, and enable continued growth. That鈥檚 why it recently decided to migrate all of LIVEKINDLY鈥檚 brands to 优蜜传媒S/4HANA Cloud. It was a key step in the vision to transform the entire food supply chain — from seeding to feeding — and lead the way in a new global food economy.

Finally, one of the world鈥檚 largest food and beverage companies is working with us to make 100% of its packaging recyclable or reusable by 2025. Using our latest circularity solution, 优蜜传媒Responsible Design and Production, this business is able to intelligently manage its packaging obligations. 优蜜传媒Responsible Design and Production helps the business accurately calculate its extended producer responsibility (EPR) fees and plastic taxes worldwide in real time to enable smart environmental and economic decisions. This is significant, given the fact that . So, while this doesn鈥檛 have a direct impact on food insecurity, it does have the potential to significantly reduce the greenhouse gas emissions associated with food packaging.

优蜜传媒and its vast network of customers in the food and beverage industry may not have the most immediate role to play in today鈥檚 dramatic food insecurity challenges. But let鈥檚 not underestimate the impacts businesses can have.

I am proud to be part of an engineering team that is building products to help the world鈥檚 innovators accelerate solutions to less food waste and greater circularity.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.

What has become clear over the past two years is that exceptions are no longer the exception, they have become the norm. One crisis followed by yet another has forced business leaders to give up the wish to 鈥渞eturn to normal鈥� and instead design business processes with resilience at the core to deal with the next inevitable crisis.

Intelligent, Networked, Sustainable Enterprises Are More Resilient

Reacting and rebounding in the midst of a crisis requires resilience. To help our customers thrive despite uncertainty, 优蜜传媒enables them to transform into intelligent, networked, and sustainable enterprises. Intelligence enables businesses to explore multiple scenarios, contingency plans, new business opportunities, models, and strategies based on data 鈥� not merely assumptions. Tapping into of partners and strategic alliances in a rich ecosystem provides agility and the opportunity to experiment with new collaboration models, source new suppliers, discover new resources, and ultimately build more resilient supply chains. And more than ever, businesses are driven by an irreversible evolution toward more and the will to integrate environmental, social, and governance (ESG) impacts.

Our Five Engineering Priorities

Achieving our ambitious vision to transform businesses into intelligent, networked, and sustainable enterprises means we cannot lose sight of the operational steps we ourselves must take to ensure we are adapting to the new normal of constant crisis management. That鈥檚 why, in continuous exchange with our customers to understand their needs, we are investing in five priorities for SAP鈥檚 engineering teams.

Autonomous and Intelligent Business: The Future of ERP Is Autonomous

in everyday technologies like Spotify, Netflix, and Google Maps. They are improving our leisure and personal time, so it鈥檚 easy to see the great potential of AI and machine learning to automate business processes and thereby help end users concentrate more on high-value tasks. We are committed to continuing the strong progress we have made on embedding AI across our solutions. Because the true power of AI to analyze large amounts of data and combine it in meaningful ways for decision-makers is unleashed when it is used across our integrated portfolio. Better data insights translate into better business choices.

Overall, we released more than 120 AI scenarios across our products, and this is just the beginning. With such a powerful technology, however, also comes great responsibility. At SAP, we first defined guidelines for using AI in 2018 and the听优蜜传媒Global AI Ethics Policy, which applies to all employees, came into effect in January 2022.

Integration: The Whole Is Greater Than the Sum of Its Parts

Integration is a key strategic priority for customers that are aiming for digital experiences across omnichannel engagements 鈥� connecting people, businesses, and devices in their business networks and ecosystems. . We know this and it is why we have worked hard here and will continue to do so. In 2021 alone, we delivered approximately 450 new integration innovations and our is loaded. Our modular cloud ERP works together across front-end and back-end systems, and we cover crucial business processes end to end: from recruit-to-retire, lead-to-cash, source-to-pay, and design-to-operate. Organizations have options to turn away from executing siloed, one-off application and data integrations by exploring comprehensive integration options like ours.

优蜜传媒Business Technology Platform (优蜜传媒BTP) is a key part of our integration strategy and brings together data and analytics, AI, application development, and automation in one, unified environment. It is an open platform for the entire 优蜜传媒ecosystem, integrating and extending SAP鈥檚 intelligent suite, and it is central to the industry cloud as well as partner applications. With the help of 优蜜传媒HANA Cloud, 优蜜传媒BTP customers benefit from reduced TCO across integration landscapes, increased project speed, and reduced implementation costs. We continue to keep our eye on the ball here.

Operational Excellence: Customer Trust Is Our Foundation

Our customers trust us with their most mission-critical business processes and data. So it goes without saying that our software availability, security, quality, and compliance remain top priorities. Cloud operational excellence underpins everything we do.

User Experience: The Best Experience Wins

While today鈥檚 business challenges may be complex, the user experience (UX) must be quite the opposite. We continue to prioritize UX to make using our applications effortless and intuitive. To that end, we introduced Horizon, our visual design theme based on five design principles drawn from SAP’s own research into how people want to work in the intelligent enterprise. Creating the best UX is not just about aesthetics; it鈥檚 about great usability, accessibility, performance, and aesthetics across the entire portfolio.

With Horizon, . Customers were asked to provide feedback to a preview, directly in the system through a built-in Qualtrics survey. We continue to iterate on our design, in cooperation with our users, proving that we stand by our mission 鈥� to test, learn, and continuously improve our design. Granted, we have a long road ahead of us, but we are putting one foot in front of the other on the path to setting new standards for enterprise software.

Localization: Empowering Every Customer to Succeed Locally and Globally

More than ever, customers face challenges responding to evolving local, regional, and global regulatory requirements. is a key factor in achieving resilience and a key differentiator for us at SAP. Our enterprise leadership is recognized for enabling digital business scenarios across countries because we have a proven track record in enabling companies to grow globally and succeed locally. We have more than 560 local versions in total across our entire portfolio. For 优蜜传媒SuccessFactors Employee Central alone, we offer 102 local versions. In 2021, we delivered more than 1,200 legal changes across 优蜜传媒solutions helping to ensure customers comply with the laws of each country in which they operate. Using localized 优蜜传媒solutions, customers can rapidly enter new markets, harvest first-mover advantages, and achieve a competitive edge.

Our five priorities ensure that while we stay focused on our vision, we execute on our mission 鈥� in deeply destabilizing times.

Despite the challenges that crises present, they can be an opportunity to take a step back, reflect, and look at the way we design our business processes. They can be invitations to surpass the challenges we face today and will undoubtedly face tomorrow. The digital transformation we offer for our customers is a secure approach for setting up business to respond with resilience when the next inevitable crisis hits.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, leading 优蜜传媒Product Engineering.

How can businesses take climate action? How can they turn linear processes into circular resources and product flows? How can they ensure socially responsible value chains? And ultimately, how can they integrate economic, environmental, and social performance into strategic decision-making?

These questions are top of mind for executives. In 2021, sustainability .

At SAP, we deliver answers to these questions through our products. Our customers can benefit from solutions that help them achieve zero emissions, zero waste, zero inequality, as well as holistic steering and reporting of their sustainability efforts.

Last year, we launched three new solutions: , , and . All are embedded 优蜜传媒S/4HANA cloud-native applications that are delivered in a modular way and built on top of 优蜜传媒Business Technology Platform.

What is more, we are embedding sustainability across SAP’s entire solution portfolio. A recent example is the inclusion of product footprints in 优蜜传媒Integrated Business Planning, so customers can monitor the greenhouse gas emissions from their production plants. Another example is the integration of 优蜜传媒Sustainability Control Tower with 优蜜传媒SuccessFactors solutions, enabling customers to obtain insights into how their organization is faring on crucial aspects such as diversity and inclusion.

Sustainable Business Strategies, Sustainable Enterprises

For the last 50 years, our innovative solutions have helped our customers transform their business processes and stay ahead in rapidly changing business environments. And we will continue to take and enable organizations of any size and in any industry to take a transformative approach to sustainability as well.

Quick fixes that do not get to the root cause of problems won鈥檛 make businesses more sustainable in the long run. Fragmented sustainability strategies won鈥檛 help. Sustainable business strategies will. That is why we support companies in integrating sustainability into the heart of their business processes.

Our approach pays off. Today, the most sustainable companies run our software. According to our analysis of S&P Trucost Limited data and , 优蜜传媒customers with high digital maturity — those adopting SAP鈥檚 latest technologies — on average have 75% better environmental, social, and governance (ESG) scores compared to their industry peers. They also produce 24% less CO2 emissions than the market average.

To further facilitate the sustainability transformation for our customers, we recently launched a new offering. 优蜜传媒Cloud for Sustainable Enterprises is a flexible bundle of sustainability-specific applications. It allows businesses to adopt our solutions based on the current stage of their sustainability transformation. Depending on where they stand, they can implement holistic management or start with specific areas of sustainability performance.

Chasing Zero, Together

The past year has been all about delivering the tools that help businesses transition into sustainable enterprises. So, what鈥檚 next? 2022 will be the year to implement these tools globally in close collaboration with our customers and partners.

Ultimately, the transition to a more sustainable global economy is not something one company can achieve on its own. In today鈥檚 interconnected world, we must rely on our ecosystem to ensure sustainability across the entire value chain. Let鈥檚 make 2022 the year we transition toward a more sustainable world, together.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE leading 优蜜传媒Product Engineering.

Stakeholders are coming to the same conclusions that we have long been convinced of. Even before announcing our Climate 21 initiative two years ago, we have been seen as front-runners in providing environmental transparency. We have long understood the importance of measuring sustainability progress holistically and connecting financial and pre-financial data. We鈥檝e been doing that since 2012. That鈥檚 when we merged our sustainability and annual reports into an integrated report.

We know that the days of fragmented reporting must end. And now, many more businesses are seeing how fundamental the issues of transparency on environmental, social, and governance (ESG) impacts are. But many businesses still struggle with a multitude of reporting frameworks and lack of appropriate data. This is what stands in the way of consistent investor-focused disclosures. Our planet cannot afford this. Increasingly, consumers want to know the provenance of their products. They want to be assured that they are making choices based on data they can trust.

The sustainability issues we face today are different from all other previous threats and opportunities — in scope, scale, and ultimately in the consequences. Measuring, reporting, and achieving the sustainable business goals we set is imperative to a .

Businesses Want to Make Sustainable Decisions; They Need the Right Intelligence to Do It

The vast majority of business leaders I connect with want to lead their businesses sustainably. They care about planetary and societal impacts; in fact, their customers, investors, and employees demand it. At SAP, our aspiration goes far beyond enabling businesses to achieve efficiency. We work with customers to reinvent their business processes to achieve sustainable growth. That means enabling businesses to use data in agile ways, across all sustainability dimensions. We provide early alerts that allow companies to be responsive and we give customers the full picture they need to move proactively on their ESG issues.

Sustainability data is “pre-financial,” not “non-financial.” That means the search for sustainability levers must go beyond the financials to bring together all sustainability data dimensions, including emissions, material flows, and social impacts. We know this and it is why we have made this possible today. For example, with , companies get visibility into their carbon footprint data throughout a product鈥檚 value chain, including for material sourcing and production. And that鈥檚 the insight businesses need to make proactive, sustainable supply chain decisions.

Scale Data Across Business Networks to Mitigate Planetary Impacts

Individual businesses can only do so much. Emissions do not recognize company boundaries and therefore we must help companies reach beyond their own four walls. We know we must connect our customers into a network of intelligent, sustainable enterprises.

Intelligent cross-enterprise scenarios that enable data sharing across value chains will create impact at scale. Business networks enable companies to continuously re-evaluate and re-engage with each other, creating additional value for their customers and our planet.

From Voluntary to Mandatory, ESG Standards Are Evolving

ESG reporting is maturing; there is no doubt about that. Climate-related disclosures are evolving from voluntary to mandatory. Around 100 countries have explicitly expressed support for starting negotiations for a global agreement on plastics in 2022. The European Union is already developing a social taxonomy based on global social and human rights norms. 优蜜传媒also recently released an asking the European Union to act on ESG disclosure standards. We want to encourage a global baseline set of standards. We fully support corporate transparency that meets the needs of all stakeholders and improves connectivity between sustainability and financial reporting.

And, once again, we at 优蜜传媒have stepped up to provide the solutions that companies need to execute on these evolving standards and connect their environmental, social, and financial values, holistically. Today, I鈥檓 proud to say that we just released , a solution that enables customers to go further on their ESG integration and data transparency journey. Our solution enables non-financial — or, as I prefer to call them, “pre-financial” — disclosures focused on four aspects: people, planet, prosperity, and principles of governance. This includes measurements around greenhouse gas emissions, pay equality, and board diversity. It enables comparisons between companies, regardless of industry or region.

Our two previously released sustainability products, and , feed precisely those new data dimensions, which businesses have so far been lacking, into 优蜜传媒Sustainability Control Tower.

Our new solution has the World Economic Forum鈥檚 Stakeholder Capitalism Metrics as its foundation. These metrics are based on existing standards to make ESG disclosures more comparable and consistent. They were developed within the International Business Council, a community of over 120 global CEOs who seek to improve the ways companies measure and demonstrate their contributions toward creating a more sustainable relationship with our planet.

And of course, our partners are integral here. Deloitte, EY, and PwC are a few examples of the partners that bring immense knowledge, not only about the framework, but also about the ESG transformations of our customers. Strategic partners like BCG enable our customers to take a holistic perspective toward establishing ESG and climate compliance.

Time Is of the Essence

Businesses that set out a 10-year agenda for dealing with their sustainability challenges are moving much too slowly. We all need to move quickly to enable the shift to new business models. Time is of the essence.

At SAP, we know how important it is that corporate sustainability efforts be measured, reported, steered, and communicated effectively. And I am personally very proud of the leadership we continue to demonstrate here.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE leading 优蜜传媒Product Engineering.

鈥淭he world is on fire,鈥� according to and a recent with astronauts from the International Space Station. While many parts of the world deal with extreme heat, others struggle with extreme flooding. The says nations are 鈥渘owhere close鈥� to the level of action needed to fight global warming and the effects of extreme weather caused by climate change. The need for climate action is undeniable and opportunities for green house gas (GHG) reductions are within our grasp. Action to date has been slow, but it’s accelerating.

I see a surge in companies seeking to reduce GHG emissions coming. November鈥檚 upcoming , the 26th UN Climate Change Conference of the Parties, is set to ensure that action around science-based target setting will accelerate. And I鈥檓 hearing from industry and government leaders that we will see unprecedented corporate climate action, driven by regulation and good business, that aligns with the .

Pressure from governments and consumers is mounting as climate change is unfolding before our eyes — faster even than scientists predicted. I鈥檓 watching the upcoming COP26 where the International Financial Reporting Standards (IFRS) Foundation鈥檚 International Sustainability Standard Board (ISSB) will be launched in November. This robust, will adopt a climate-first approach and have a big impact on our customers.

Our customers are asking us to help them make the necessary change at scale. And we are ready to help them meet the requirements. But many businesses have moved forward without reassessing their business models or focusing on the underlying process, data, and governance changes that they must make to accurately measure, manage, and reduce their carbon emissions. Why? Because it鈥檚 complex!

Calculating environmental and social impacts across a company鈥檚 products and services and across the entirety of their life cycles is simply complicated. Yet supply chain emissions are on average . So merely focusing on individual operational emissions is no longer enough. Actually, it was always just a first step.

Understanding complex business challenges and optimizing existing business processes has always been SAP鈥檚 strength. The breadth and depth of our industry expertise, spanning 50 years, enables us to help businesses today to not just optimize, but reinvent their business processes, like no other company can. That鈥檚 what today鈥檚 challenges call for.

As we near our 50-year company anniversary, we build on that legacy today by enabling business to meet new challenges. We know that dashboarding is not enough. When we embed emissions data into underlying business processes, leaders can drive real change by making conscious decisions across the entire value chain. That鈥檚 what scales the transition to low carbon pathways, and 优蜜传媒is uniquely positioned to drive this change across collaborative, intelligent, and sustainable business networks.

These activities are interconnected and must be done together to achieve maximum impact. Our business software applications bring together materials, energy, and financial flows to steer businesses in a holistic way. These are not add-ons. We have found significant value from the interconnectedness of these factors over our decade of integrated reporting and steering, and are working closely with our customers through organizations such as the to accelerate this approach for all sectors.

We not only enable individual intelligent enterprises, we connect them to each other. We support the move from intelligent sustainable enterprises to a network of intelligent sustainable enterprises. This is the key to achieving real change for the planet. Just as GHG emissions go beyond the four walls of a company, efforts to reduce those emissions must also extend beyond individual companies, into the network of companies.

While every company can start by focusing on their own individual supply chains, those further down the path to sustainability can use the network as a pathway to scale. *, 鈥淐onsolidating data into a unified network means better access, streamlined analysis and the opportunity to more effectively turn insights into action.鈥� Systemic industry change needs the network effect, and it needs a spark.

The customer base that we currently serve covers 94% of the world鈥檚 500 largest companies which represents an immense capacity for real change at scale. Partnerships also help accelerate our product innovation. 优蜜传媒is , dedicated to enhancing transparency in corporate carbon emissions with the objective to ultimately decarbonize supply chains.

We emphasize the role of technology for the green transition and EU taxonomy as a founding member of . In addition to working with these established partners and others, 优蜜传媒is supporting sustainability innovation from startups around the world. For example, through our program, startups play a pivotal role in catalyzing innovations on sustainability across the globe.

We facilitated systemic industry change 50 years ago with our enterprise software based on our founders鈥� vision. Now we are doing it again in order to tackle the climate crisis. The business model innovation we drive helps improve energy efficiency across both conventional and renewable energy value chains, it supports decarbonizing through electricity generation and transmission such as green hydrogen, and it helps our customers to decarbonize their products and services, for example, by adopting circularity.

We have not slowed down on our promise to innovate in this product space throughout the pandemic. Just recently, we made our 优蜜传媒Product Footprint Management solution generally available to our customers to support them in monitoring, analyzing, and reducing emissions to deliver on their climate commitments.

We are building for the future. And I believe that future is coming faster than anyone even thought.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.

*IDC InfoBrief, Sponsored by SAP, Global B2B Collaboration Networks: Critical Enablers of Business Resiliency, IDC Doc. #US47857121, August 2021.

This trend challenges traditional ways of doing business as it focuses on keeping customers for life by establishing longer term recurring revenue streams. Business models like these allow products and services to be offered in a completely new way instead of adapting or optimizing existing business processes.

How can your company or line of business achieve this? To remain successful, businesses across industries continuously re-evaluate how to create additional value for their customers. At SAP, we are working with our customers to reimagine business processes that increase productivity and unveil growth opportunities. This includes, among other things, how new offerings are sold to customers in order to increase customer loyalty at the end of the day.

From Selling Products and Services to Providing Bundled Solutions

While traditional business models are about selling physical goods and services, solution business models are built around the customers鈥� needs. Companies embracing these modern business models offer a combination of physical goods, services, and subscriptions to serve their customers鈥� needs holistically. And customers benefit from a one-stop-shop solution.

Whether offering products or services, these new models expand the responsibility of companies beyond the initial sale to include all elements of a solution along the entire life cycle; for example, the delivery of a machine, its installation, and corresponding maintenance services. The technical and the business processes must support the customer on this journey and minimize the business risk for the solution provider. Delivering this kind of solution-based value maximizes customer satisfaction and drives margin growth by selling higher value services.

This requires an that recognizes all the components of the order and has the ability to administer each step in the process — from capture to fulfillment, service, billing, and managing the profitability of the bundled solution.

The enables businesses to sell bundled solutions, including subscriptions, and leverage innovative capabilities for intelligent quote-to-cash. Let me highlight three impressive key capabilities.

Combining Products, Services, Projects, and Subscriptions in a Single Order

As a first step, 优蜜传媒S/4HANA Cloud makes it possible to quickly design and sell holistic offerings, integrated into the order-to-cash process.听 Take, for example, our customer AAF Lufttechnik GmbH, a company that manufactures air filter systems, which have been in increased demand over the last couple of months. With 优蜜传媒S/4HANA Cloud and solution order management, AAF Lufttechnik GmbH plans to combine the sales of the air filter systems together with the corresponding installation and maintenance services as a one-stop-shop solution.

Monetizing Services With 鈥淧ay-As-You Go鈥� Subscription Models

With 优蜜传媒S/4HANA Cloud, customers can facilitate new business models by offering a variety of different pricing models. These include subscriptions for one-time, recurring, and pay-per-use offerings. 优蜜传媒Subscription Billing enables the design of flexible price plans, rating, and charging of metered usage data from technical systems, such as sensors from the Internet of Things (IoT). Subscriptions are now part of the end-to-end quote-to-cash process, built into 优蜜传媒S/4HANA Cloud. All subscriptions can be managed end-to-end.

Rethinking Flexible Billing, Measuring Solution Profitability, and Automating Revenue Recognition

With the help of 优蜜传媒S/4HANA Cloud, billing data from different sources can be flexibly integrated — from one-time orders, long-running contracts, deliveries, and external data — into a single invoice, which is consistent with the order. Because companies also need to carefully guard the profitability of solutions, 优蜜传媒S/4HANA Cloud provides margin analysis for orders, including all elements of the bundle. It also automates revenue recognition for sales products, service contracts, recurring subscriptions, and projects, and supports a simplified period-end closing.

Today, solution and subscription models are top of mind for businesses across industries. Solution order management illustrates that significant added value comes from business process innovation. By integrating order-to-cash processes using the latest technology innovations, customers can unlock new opportunities for growth. That is why to enable end-to-end processes and deliver business value to our customers.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.
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While the complexity involved certainly differs, both these businesses are after the same goal: flexibility to deal with unrelenting change.

But it鈥檚 not just flexibility! Today鈥檚 businesses must demonstrate high ethical and environmental standards. And they must verify that their suppliers鈥� operations — and even those of their suppliers鈥� suppliers — apply the same high standards. Flexibility must now also be sustainable, all along the value chain.

SAP鈥檚 intelligent enterprise strategy is the foundation for that. However, our aspiration goes beyond achieving efficiency for the Intelligent Enterprise. We鈥檇 like to take enterprise software to the next level and move toward a sustainable future for individuals and businesses. And that leads us to business networks. Because what鈥檚 a sales order for one company is a purchase order for another — business today is global and hyperconnected. Achieving sustainable business practices means embedding sustainable practices across processes, end-to-end, and touching on all dimensions of the environmental, social, and governance (ESG) criteria.

Unprecedented demands from shareholders, employees, consumers, and investors are driving this push toward sustainable business practices and growing green economy jobs. According to the , the green economy is among the fastest-growing sectors, as measured by job growth, with a projected increase of 35% yearly worldwide.

So what is going to enable businesses that urgently need sustainable flexibility? Business networks offer the visibility, collaboration, and intelligence across the supply chain that are essential to attain green growth. Siloed, one-to-one connections between individual trading partners limit interaction and reduce collaboration between companies and processes. Cooperation across companies and various dimensions of the value chain is precisely what is required for designing, manufacturing, delivering, and maintaining products in ways that minimize carbon footprints, decrease waste, and help ensure social equity. Value chains then become value networks that together can achieve sustainability goals much better than any company on its own.

听is the world鈥檚 largest network of its kind, combining ,听, 补苍诲听. By enabling customers to connect with their business partners and manage multi-enterprise commerce flow, we bring value to our 5.5 million trading partners in the network and move them closer to their sustainability goals.

Supplier Collaboration for Responsible Sourcing and Purchasing

Today鈥檚 sustainable enterprises want deeper insights into their supply chains, including the sustainability values of their trading partners. They want to align those of their own and their consumers. 优蜜传媒Business Network, along with our ecosystem of partner applications, creates the transparency needed to make decisions based on a range of criteria. And when the performance of existing trading partners doesn鈥檛 align with a business鈥� sustainability goals, shifting to new trading partners has never been easier. With 优蜜传媒Business Network, businesses can听听across industries and geographies.

Take, for example, a business that wants to increase the amount of sustainable packaging it uses. Our network helps it to search and discover packaging trading partners that aligned to commodity types, delivery locations, and quality certifications, as well as diversity and sustainability objectives and much more. Imagine accessing the sustainability profile听of suppliers. Newly planned capabilities will make this part of the purchase requisition process, so procurement managers have supplier sustainability profiles at their fingertips.

Logistics Coordination for Accountability

The provenance of products and the circular journey of their component parts is something consumers care about deeply. The provides that transparency for more accountability. Where does the product come from? What does it contain? When was it packaged and where? How long was it on the road or in a shipping container? The material traceability option reinforces sustainability throughout the supply chain to create a trust network across material flows.

Asset Intelligence for Energy Waste Reduction

Reducing energy-intensive activity has long been the go-to approach for sustainable business operations. But 优蜜传媒Business Network enables next-level asset intelligence where savings are measurable. Suppose a community operates electrical vehicle charging stations across multiple cities, spanning hundreds of kilometers. These assets require maintenance periodically. They may even break down unexpectedly. Businesses can connect these assets with sensors, thus reducing the need and frequency for technicians to travel to remote locations. Digital twins make maintenance more predictable, adding up to real savings when assets are geographically spread out.

What鈥檚 Good for One Is Good for All

But even beyond our own digital commercial network examples, industries are embracing the network economy as a means for finding solutions to some of the most complex challenges of our time.

罢丑别听Catena-X Automotive Network, of which 优蜜传媒is a founding member, is creating a uniform standard for information and data-sharing throughout the network, which reflects the entire automotive value chain. Catena-X is an open, scalable ecosystem in which automotive manufacturers, suppliers, dealer associations, equipment suppliers, and application providers can all participate. The companies involved aim to increase the automotive industry鈥檚 competitiveness and sustainability, improve efficiency, and accelerate company processes through standardization and access to data.

A unified business network enables all trading partners to access combined intelligence in near-real time and apply it to complex problems together. When a network reaches across functions, across industries, across the world, companies have the power and flexibility to solve some of today鈥檚 toughest social, economic, and environmental issues.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE leading 优蜜传媒Product Engineering.
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By continuously evolving our enterprise resource planning (ERP) solutions, we are helping our customers modernize business processes and helping them adjust to a new IT reality at the same time. As I鈥檝e said before, this reality combines flexibility, agility, and choice for our customers: Flexibility through a modular yet integrated approach to enterprise software, agility through business processes that can be adapted as needed, and choice for customers to operate their systems on the infrastructure of their choice. And we can certainly add the need for collaborative, networked, and sustainable solutions here.

One of my favorite examples of how 优蜜传媒is helping customers adapt and modernize their business processes comes from the retail sector and relates to the impact of the COVID-19 pandemic. E-commerce has surged during the pandemic as consumers faced lockdowns and sought the relative safety of online shopping. This surge in e-commerce has had dramatic implications for traditional retailers that have had to pivot quickly from primarily in-store sales to online platforms but have also had to deal with much higher levels of returns.

Consumers are more likely to return something when bought online compared to offline purchases. This is particularly true in fashion retail because there is a much higher probability that a particular size doesn鈥檛 fit or the color is not quite what the consumer was expecting. Online customers also often bracket-purchase — ordering several similar items or sizes to ensure that one is the right fit and return the others.

This represents a significant problem for traditional retailers that were not used to dealing with such high levels of returns and that, in the past, often outsourced the handling of returns. Returns — or reverse logistics, as the process is sometimes called — is a costly and time-consuming part of the daily life of the supply chain.

Companies need to make decisions on where to return the stock, how to handle the stock when returned, and whether the customer will receive a refund or a replacement. Typically, these operations were optimized for time in order to keep customers happy, even if this meant destroying returned goods.

Retailers know that the return experience can break or build customer loyalty and trust, and that鈥檚 why they aim to process returns and provide refunds to customers as quickly as possible. But destroying — and even storing — returned items is potentially bad for the environment and represents a monetary loss. According to UK鈥檚 online retail association, .

Recognizing these problems, 优蜜传媒has developed an innovative solution that we call 优蜜传媒Intelligent Returns Management, a returns optimization solution that guides products from customers鈥� hands to the final dispositioning steps, maximizing both the customer experience and company margins. It uses routing and dispositioning decisions driven by artificial intelligence (AI) to maximize our customers鈥� sales and profits.

优蜜传媒Intelligent Returns Management benefits consumers, retailers, and other stakeholders — and it helps customers operate more sustainably. Consumers benefit because we help our customers make the returns process easy, and that delivers the intended consumer experience. Our retail customers know that brand loyalty is fragile and can be lost quickly if a returns process is anything but straightforward and smooth. They need to optimize their return process to be efficient and ensure a great customer experience. When goods arrive at their return centers, retailers want to be able to make fast decisions about what to do with them: Should they dispose of the goods? Should they do a quality check and re-certify them for sale, or send them to an agent such as outlet or reseller?

Our solution intelligently recommends return options for consumers optimizing for both the customer experience and the retailer and recommends disposition decisions for warehouse teams to limit value leakage. But it also provides business leaders with newfound visibility into the end-to-end returns process, enabling them to make data-based decisions.

Particularly, retailers can use the embedded analytics to understand what is selling and what is not. Does a particular item always come back听because it does not meet expectations in terms of size or look?听Is a particular color not selling or is a style out of fashion? Whatever the reason, they can听inform the design听team and stem a problem at the source by not offering听products that do not meet expectations, 补苍诲听thereby be more听sustainable.

优蜜传媒has offered a returns solution in the past, but it was a back-end, logistics solution. Now, with 优蜜传媒Intelligent Returns Management sitting at the intersection of cloud ERP and SAP鈥檚 industry cloud, we have closed the gap between front office and back office. That鈥檚 the biggest advantage our solutions bring to fashion retailers and the like.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE for 优蜜传媒Product Engineering.
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Like many business leaders today, I鈥檓 seeing supply chain pressures moving from being behind-the-scenes issues to becoming front and center — discussed in board rooms and living rooms.

Resilient and sustainable digital supply chains have become the crucial differentiator for business. And with that, businesses are realizing they need to optimize end-to-end business processes along their entire value chain. They are recognizing that the customer experience doesn鈥檛 stop with the purchasing experience; in fact, the supply chain has become a significant driver of the customer experience. Companies can 听when they run highly resilient supply chains.

So, today鈥檚 businesses are striving for four key capabilities when it comes to their digital supply chains.

Agility Through Synchronized Planning

Now more than ever, businesses need visibility into events as they are happening to be able to sense, predict, and respond to inevitable disruptions. This is all about anticipating and mitigating events before they impact operations. That鈥檚 agility!

Synchronized planning is the key ingredient for agility. At SAP, we envision planning as a continuum across the supply and demand network — from production to logistics planning. Getting a complete view of their supply chains and evaluating the impact of one stage on another is what our customers are after. It鈥檚 what they need to mitigate risks.

Synchronized planning leads to synchronized execution. That鈥檚 the ability to execute smoothly from order to final delivery that every business is after. Our solutions combine scenario-based planning with synchronized execution, because without synchronized planning, agility remains elusive for businesses. And that鈥檚 what 优蜜传媒is uniquely positioned to cover end to end.

Productivity Through Intelligent and Predictive Technologies

Businesses also achieve more when their plant and factory processes become smarter, more connected, and more autonomous, and when their people are empowered to employ those processes intelligently. The core of our mandate is enabling factory and plant transformation听at enterprise scale.

Reinventing production, intra-logistics, quality, maintenance, and service processes is key here. We employ 优蜜传媒HANA natively to deliver new scenarios, which were previously difficult to achieve, while also simplifying the application and data model. Intelligent and predictive technologies combined with edge computing and cloud capabilities can boost productivity.

We are helping thousands of companies reinvent production. And we are doing it by creating a single digital thread for products and assets — from the design in an engineering department to production on the shop floor and finally maintenance and service operations — and all along the way until an asset is sunset.

Partnership across our ecosystem is key to making that happen. We are proud to be partnering with leaders like Microsoft and Siemens. With听 to make 优蜜传媒solutions available on Microsoft Azure Stack Edge, starting with 优蜜传媒Digital Manufacturing Cloud. That鈥檚 how we combine edge computing on the shop floor with intelligent factory and plant processes in the cloud. That enables businesses to run even their mission-critical processes with high availability. That鈥檚 an innovation leap for all manufacturing industries.

Also, by teaming up with Siemens, we鈥檙e putting our customer on a faster path to creating an end-to-end digital thread. Last year, we听added Siemens鈥� Teamcenter to our product lifecycle management (PLM) portfolio. Now, we鈥檙e taking the next step and complementing the Siemens solution portfolio with 优蜜传媒Asset Intelligence Network, 优蜜传媒Asset Strategy and Performance Management, and 优蜜传媒Enterprise Portfolio and Project Management.

Networked Collaboration Through the World鈥檚 Most Intelligent B2B Network

Creating smarter inter-company visibility and collaboration is just a start. Extending that beyond a single enterprise is where the real magic happens. But many companies are hindered by enterprise-centric systems that are not designed for cross-company transparency and collaboration. That blunts their ability to drive change fast. That鈥檚 why we see the need to move beyond organization-centric and toward network-based approaches. Our solutions transform fragmented supply chains into agile, collaborative networks for supply, logistics, asset management, and service. They provide visibility and intelligence across networks for digital threads of assets, materials, and finished goods.

On our path to delivering 优蜜传媒Business Network,听we recently听.听Buyers and suppliers can collaborate using shared data and workflows and leverage network-wide intelligence to make decisions. Because when all networks become one network, collaboration becomes synchronous.

Sustainability Through Circularity and Climate Action

End-to-end processes extend beyond a company’s own four walls, and so do the CO2 emissions they generate. Businesses face demands from all stakeholders to minimize waste, emissions, and energy consumption, and to reduce their carbon footprint by running sustainable business operations. With our new product, , we鈥檙e enabling customers to evaluate and assess their carbon footprints across their end-to-end business processes and even across companies and industries.

However, the link between resource reuse and CO2 emissions is only becoming clearer:听听by transforming the way goods are made and used. So, the path to a low-carbon future is circular,听as I recently wrote. To achieve circularity, we must connect linear, fragmented supply chains into unified, collaborative, and intelligent business networks. One company鈥檚 waste can be a valuable resource for another. With our profound knowledge of business process software, and second new sustainability product,听, we can identify those opportunities.

Collaborating with business partners has never been more important 鈥� and perhaps more fraught. So, in this time of intense disruption, I鈥檓 proud to be able to talk to business leaders concretely about how our solutions help build resilient supply chains and how our scale enables sustainable transformation in a networked economy.

These are just some of the听key innovations we have introduced at SAPPHIRE NOW in 2021听and we have many more to come. Check out the听听for more.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.
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At the same time, the听听is compounding our planet鈥檚 resource crisis, with 2020 being one of the听听on record. But 2020 was also the year we saw a听听in humanity鈥檚 resource consumption. The year brought us the COVID-19 pandemic, and that changed consumer behavior almost overnight. In so doing, it also offered a unique opportunity to rethink the role businesses play in the environment, society, and economics.

Now is the time to turn strategies for climate action and circular economy principles into action. Companies must anticipate the carbon footprint of any business decision they make, as well as its impact on society. Merely measuring the carbon footprint as a function of production doesn鈥檛 go nearly far enough, given that emissions created by supply chains can be more than five-times greater than those created by enterprises directly. Measuring, monitoring, and reducing carbon emissions听across the entire value chain means inventing entirely new value chains. And these will no longer be linear.

At SAP, we have started down this听, pioneering approaches that support responsible design, sourcing, production, consumption, recovery, and reuse. These are the “responsible” actions that challenge linear value chains. And consumers want them; they want to know that the metals in the batteries they throw out are being recovered and reused, that the shampoo packaging they buy has been designed and produced using pollution-reducing methods and sourced from residual plastic waste, and that the clothes they wear have not been manufactured using child labor.

That goes well beyond just checking labels for ingredients.听, 73% of consumers said traceability of products is important to them. Of those, 71% would even pay a premium for it. Consumers want details about sourcing, how products are made or processed, how they are delivered, as well as assurances that brands take actions demonstrating social responsibility.

But can today鈥檚 supply chains deliver? In many cases, supply chains are not only linear, they are also fragmented. Businesses that insist on maintaining enterprise-centric systems are restricting their own network visibility and collaboration. Companies that still rely on one-to-one connections and paper-based processes to connect with customers, suppliers, manufacturers, and distributors are losing any advantages their products might offer.

Now, more than ever, to achieve circularity, we must connect these linear, fragmented supply chains into听.

Jump-starting these efforts requires that 优蜜传媒engage in alliances and partnerships that accelerate marketplaces for waste materials, enable more responsible production methods and ensure better consumer experiences. To name one of a number of such alliances,听优蜜传媒is a member of the Ellen MacArthur Foundation,听helping companies enhance their resource productivity and realize a circular economy.

We aspire to lead by example. 罢丑别听recent announcement of our intention to become carbon-neutral in our own operations by the end of 2023 — two years earlier than previously planned — is a strong statement of our commitment to sustainable business operations. The impact of technology and digital solutions extends beyond the boundaries of companies and industries. They can be multipliers for change. For example, by 2030, new digital technologies could reduce global carbon emissions by 20%.

优蜜传媒is uniquely positioned to help build a low-carbon future and create the foundation for a听. But such a fundamental shift cannot be accomplished by one single entity.听It is the responsibility of businesses, governments, and regulators to scale up efforts. With nearly 50 years of听听补苍诲听听expertise, we at 优蜜传媒are ready to support, enabling a rich ecosystem of听sustainability startups 补苍诲听.

I couldn鈥檛 be more committed to SAP鈥檚 contribution, and I look forward to inspiring our customers to scale with us!

To learn more about sustainability innovations across disciplines and sectors from 优蜜传媒and our ecosystem, please register for the virtual .

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.
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Additionally, the pandemic has hit companies, forcing them to respond to, cope with, and look beyond the crisis. Together with our customers and partners, we can shape the next normal.

At SAP, we understand that in these extraordinarily difficult times, we have an opportunity and duty to demonstrate the power of our corporate purpose to help the world run better and improve people鈥檚 lives.

The Pandemic Runs in Waves, So Does Business

The COVID-19 pandemic has gone through phases, each of which is characterized by a different set of needs and requirements that have impacted our employees, partners, and customers. While we can put 2020 under the theme 鈥渘ew normal,鈥� we are now in a transition phase toward the 鈥渘ext normal.鈥� We learn as we go and can build on this experience to be prepared for future disruptions.

Wave 1: Responding to the Crisis and Human Impact

The first phase, corresponding to the new challenges, involved reacting to the most urgent needs. Last year in June, I how we set 优蜜传媒up to help our customers grapple with the immediate impact of the pandemic and meet the changing demands of their employees and customers — for example, with 80 top priority legal changes within less than 50 days. Uncertain times require agility and flexibility. 优蜜传媒CEO Christian Klein just explained that resilience starts with people.

Among 优蜜传媒customers, the first to be affected by the pandemic were businesses whose supply chains depended on components manufactured in COVID-19 hotspots, and those that experienced sudden swings in demand or supply. Examples include providers of personal protective equipment (PPE), certain consumer product makers, and manufacturers of office equipment. Additionally, , such as facial masks, to cover the听increased听demand.

That is why last year, 优蜜传媒opened access to software, including 补苍诲听, for 90 days and free to anyone. These products help to make procurement processes more transparent, predict demand shifts, and deal with the dynamics caused through supply chain disruptions and the domino effects they have. Customers with agile supply chains, including those facilitated by , were able to switch suppliers quickly and keep critical production lines running. Here are some examples:

• , which recycles and repurposes fibers for packaging and tissue products, used to better predict shifts in demand, increase flexibility by moving from weekly to daily planning, and improve response times by prioritizing essential packaging products during the pandemic.
• Similarly, one of the examples where 优蜜传媒helped and that makes me most proud is how 优蜜传媒Ariba Discovery for a temporary hospital when the COVID-19 infections reached a high point in New York City last year.

Wave 2: Coping with the Impact on Businesses and Enabling Solutions

The focus then extended to help customers manage the pandemic鈥檚 impact on their businesses. 优蜜传媒applications and services helped our customers — existing and new — manage their way through the pandemic. With many companies seeking to maintain lean operations in order to protect revenue and preserve cash flow, we worked with them to accelerate the adoption of cloud-based technology.

Our product portfolio is geared to enable our over 400,000 customers operating in more than 180 countries across the globe to act quickly and pivot operations and processes in response to changing market conditions and demand shifts. The 优蜜传媒Globalization Services organization, for example, implemented 290 COVID-19 emergency changes across 47 countries. 优蜜传媒is proud to call every medical equipment and supply provider in the Forbes Global 2000 and 18 of the world鈥檚 20 largest pharmaceutical companies a customer.

• Among them, German biotech company CureVac听has focused on developing and producing vaccines, while relying on听 for its business 补苍诲听operations. The company鈥檚 COVID-19 vaccine is currently in the testing phase. Similarly, U.S. pharma company Moderna runs enterprise resource planning (ERP) and digital supply chain solutions from SAP. Additionally, Moderna uses to comply with legislation and prevent consumers from counterfeit medication and relies on to collaborate with partners along the value chain.
• Our new packaged offering, a vaccination collaboration hub, helps make collaboration among component suppliers, pharmaceutical manufacturers, distributors, government, and life science organizations easy. The offering which is based on 优蜜传媒Information Collaboration Hub for Life Sciences, brings together critical capabilities from vaccine manufacturing to distribution 鈥� allowing supply chain planning and providing supply chain visibility and post-vaccination monitoring.

Wave 3: Looking Beyond and Coming out of the Crisis Stronger, More Resilient, and Transformed

Business models have been reshaped literally overnight and we have had to get used to a new way of working. Now we find ourselves facing the next normal. Online commerce has been accelerated, collaborative working is required more than ever before, and leaders recognize that companies are more resilient and business operations can be more sustainable when operating in networks.

As a revealed, companies have accelerated the digitalization of their customer and supply chain interactions and their internal operations by three or four years. Once 鈥渘ice to have,鈥� digital capabilities are now a 鈥渕ust have鈥� in order to build resilience for a sustainable future ahead.

We deliver innovation to give customers the ability to reassess their processes and reallocate resources as needed. That鈥檚 the post-pandemic opportunity for enterprises; those that are able to adapt to the changed environment and shape the next normal will be the most successful.

I see three major trends for our work, life, and the planet:

• We already see a shift in how we work, collaborate, and learn 鈥� from a mix of remote and in-person work to collaborative working using technology, and to learning supported by bite-sized offerings, continuous engagement, and lifelong curiosity. The work environment will be more agile, flexible, and inclusive, also for the contingent workforce, helping companies be resilient to changing demands.
• The way we consume goods is changing too. During the pandemic, online commerce has increased significantly, . Consumers require an end-to-end experience that is founded on deeply integrated processes, including one consistent view on the customer, personalized experience, commerce via various channels, and excellent service. There is also a need to rethink existing processes, such as making the returns management more intelligent, sustainable, and circular. Using 优蜜传媒Commerce Cloud, INDEX-Werke, a supplier in the automotive industry, . This helped INDEX-Werke keep its customers’ production running throughout the pandemic.
• This is leading right away to sustainable and fair value chains 鈥� from production to delivery to return and recycling. Beyond that, let鈥檚 explore more efficient and profitable ways of procuring, manufacturing, supplying, and serving end consumers. I strongly believe business networks will scale the positive effects.

Even when this pandemic is over, we will not return to the way things were before. We know that we must learn to live with the virus and its impact on people, business, and society. And we want to do our part by helping companies bring employees back to their workplaces, provide travel recommendations, and identify potential risks for employees. Let me give two examples: First, as part of our new back to work offering, and where legislation and local data protection rules permit, companies will be able to add new health and vaccination status fields to the People Profile in the 优蜜传媒SuccessFactors Employee Central solution, allowing employees to enter employee vaccine information. Second, 优蜜传媒offers the 优蜜传媒Fiori app “” for . Customers can predefine local capacity thresholds and allow employees to simply book their workspace and return to work safely.

Perhaps most important is long-term adaptability and resilience. We will undoubtedly face new challenges caused by geopolitical events, climate change, health crises, and the like. Companies must be able to actively manage continuous change and adapt to new circumstances 鈥� here 优蜜传媒can and will always help our customers to cope with the next normal.

Stay safe!

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.
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In the industrial sector, IIoT has emerged as a significant value driver in the manufacturing industry. It has changed the way goods are produced and delivered by connecting all phases of the design-to-operate product life cycle, including ideation and conceptualizing, manufacturing, delivery, and operations.

A Need That Is Here to Stay: Building Resilience Beyond the Crisis

The strong uptake of IIoT reflects an increasing need for business resilience. Even before the pandemic, manufacturing companies operated in an increasingly volatile environment, requiring them to adapt quickly to shifting priorities. COVID-19 accelerated this trend. As consumer demands changed dramatically and manufacturing capacities were constrained, supply chains broke, forcing businesses to cope with the disruption of their daily operations.

While the world will hopefully overcome COVID-19 at some point, new health, societal, geopolitical, or economic crises are likely to occur. That is why an increased need for business and supply chain resilience is here to stay — and IIoT and will help take us there.

When we look at which companies were able to overcome these challenges, it is clear that it was highly digitalized businesses capable of taking informed decisions based on real-time data. IIoT technologies played a major role in helping them to repurpose production, provide help where needed, and find alternative routes to maintain .

Take INDEX-Werke as an example: the traditional supplier for the automotive industry kept its own business and that of its customers running throughout the crisis. Based on 优蜜传媒Commerce Cloud, .

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The opportunities are enormous, but many companies that I speak with are wondering where and when to start. Given the disruption we see among our customers in almost every industry, I believe that companies can start small, but should start now.

Introducing New Business Models: From Product to Outcome

IIoT enables new business models and the shift from selling products to delivering services and solutions. The underlying idea of outcome-based models is that customers pay for what they get out of a product rather than for the product itself. In addition, IIoT opens the door to a fully personalized customer experience. Data exchange between a customer and a smart factory makes it possible to produce a highly customized product within just a few days — from receiving an order to shipping the goods.

For example, when , a leading manufacturer of electronic motors, was looking for a way to differentiate its products, the company identified a growing demand for remote monitoring. Together with SAP, the company created a custom app with monitoring and alerting capabilities. VEM鈥檚 sensor-equipped motors not only reduced operational downtime and extended product lifetime, they also helped achieve a 25% revenue increase. Most importantly, the company was able to reinvent its business model completely.

Operating in Industry Networks: If the Ecosystem Wins, Everyone Wins

Just recently, I , CEO Digital Industries at Siemens, about the importance of partnerships to accelerate the industrial transformation. We spoke about moving from enterprise resource planning (ERP) to network resource planning, and from 鈥渆go-systems鈥� to ecosystems where the players strive for added value together.

At SAP, we envision that enterprises will exchange data via an industry network of suppliers, machine manufacturers, and customers. We are addressing this with and thereby enabling a shift from a seller/buyer paradigm to collaborative models. When, for example, data from production quality records is shared between suppliers and manufacturers, they can collaboratively resolve warranty claims and recalls.

优蜜传媒actively uses and contributes to various industry standards that build the foundation for industry networks. 优蜜传媒helped incubate the in 2019, with the goal of creating guidelines for compatible and interoperable IIoT solutions and services. Joint standards between the systems of different players in our ecosystem help drive digitalization in factories, plants, and warehouses in a collaborative manner.

Sharing data beyond a company鈥檚 borders adds even more value for all the players, from original equipment manufacturers (OEMs) to suppliers and consumers. Strong networks rely on cooperation among companies within and across industries. 优蜜传媒is a founding partner of the Automotive Alliance, , which aims to create a unified business network for the automotive industry. The alliance鈥檚 goal is to create a consistent information exchange through the entire automotive value chain.

From Concept to Execution

Today, we have all the technology and applications at hand to connect devices, people, and processes. Making use of data across the entire product and service life cycle is the foundation of managing business processes end to end.

To sustain long-term success, it is imperative for companies to move from concept to execution. This also requires a shift in our mindset. We need to rethink how data is used and set common standards. We need to rethink how businesses run and be open to new business models. And we need to rethink how markets work and move from the buyer/supplier relational paradigm to a collaborative model.

If we see IIoT and Industry 4.0 as both an urgent need and an opportunity, we will not only achieve continuous optimization but we will also generate added value — both for the ecosystem we operate in and for our customers.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, 优蜜传媒Product Engineering.
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Customers often look to us for insights since we have been privileged to help run the world鈥檚 most critical business processes for almost 50 years 鈥� seamlessly and end-to-end. This is no different in today鈥檚 cloud world. To remain competitive, customers require access to live data to make informed decisions in real time. They benefit most when functions and processes are fully aligned.

According to a recent , 88% of integration leaders were able to increase transparency into their operations and 94% improved their profit margins.

Last year, we embarked on the mission to reimagine integrated end-to-end business processes and experiences along the entire value chain 鈥� including SAP, partner, and third-party solutions. We laid out our cloud integration strategy and road map with delivery timelines covering 2020 and 2021.

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Integration 鈥� along with the value it brings for our customers 鈥� will continue to be one of our key priorities in 2021. In our , we share more details of the business benefits our scenarios will bring.

Integrated Business Processes, Unmatched Customer Value

In 2020, we made great strides in integrating our four core end-to-end processes that touch every business across all industries: Lead to Cash, Design to Operate, Source to Pay, and Recruit to Retire.

Customers like Orica have undergone a significant transformation over the past few years to redefine their business processes. With its 4S program, Orica consolidated its systems on 优蜜传媒S/4HANA complemented by other 优蜜传媒cloud solutions and extensions. A prerequisite when rethinking the company鈥檚 business processes was to avoid customization of the solutions. This way Orica could benefit from faster innovation delivery and a new level of transparency and efficiency across the enterprise.

In 2020, we delivered close to 350 integrations, representing more than 160% growth year-over-year. This year, we already have over 200 additional integrated business scenarios planned 鈥� and this number is growing as we speak.

But it鈥檚 not only about the number of integrations. We are particularly proud of the specific value these integrations deliver to our customers. Let鈥檚 look at some concrete examples of business outcomes. Already, customers today can:

• Handle multiple product types from physical products to services to subscription through the integration of and .
• Reduce time-to-hire by proactively collaborating on talent decisions thanks to the integration of , 优蜜传媒S/4HANA Cloud, and .
• Embed experience management at every step of the design phase to create products that customers love by integrating and Qualtrics.
• Conduct strategic sourcing by using contract management capabilities in and centralized contracts in 优蜜传媒S/4HANA to identify opportunities and improve the efficiency of negotiating their contracts.

We are also making great progress with delivering on the underlying suite qualities that serve as a strong foundation for all our integration efforts. They include elements such as:

• End-to-end process blueprints to reduce the planning effort for implementation projects and support architecture decisions
• Harmonization of domain models via to simplify the exchange of business objects and improve data consistency across applications
• Embedded analytics with 优蜜传媒Analytics Cloud, as well as customer-managed cross-product analytics using to make quick and confident decisions by relying on comprehensive analytical insights

With (优蜜传媒BTP) as the foundation for our intelligent suite applications and industry cloud, SAP has the unique ability to integrate core processes end to end. At the same time, customers can choose the integration strategy that best fits their landscape, including cloud-to-cloud and hybrid integration options. The 优蜜传媒Integration Suite offers more than to third-party cloud applications.

Intelligent Enterprise: It鈥檚 Integration and Innovation

We will continue our journey to seamlessly integrate all our solutions based on 优蜜传媒BTP; to deliver on our promise of making the Intelligent Enterprise a reality. We want to meet our customers where they are. Our customers set the pace for their own transformation.

We have heard the requests for more hybrid scenarios from customers and user groups loud and clear. We will therefore extend our efforts to hybrid integration scenarios, including existing and new developments. Quite a big portion has been delivered already — for example in — and there is much more to come in 2021.

Not only do we focus on integration as such, but also on delivering highly integrated and innovative best-in-class cloud solutions to our customers. Based on the innovation delivered over the past years, we plan to even accelerate our innovation efforts in helping customers analyze and redesign business processes and make those more intelligent. This will include process innovations around artificial intelligence (AI) using machine learning and robotic process automation to improve data-to-value.

Customers no longer need to decide between integration and innovation. With SAP, it鈥檚 not one or the other. It鈥檚 both.

Juergen Mueller is chief technology officer and member of the Executive Board of 优蜜传媒SE.
Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.

SAP鈥檚 product portfolio addresses this need for agility. We deliver software that enables businesses to integrate and optimize their end-to-end processes, and ultimately to run as .

How to Get There?

Today, we launched RISE with SAP. With this new Business Transformation as a Service offering, we offer one bundle of products and services that help our customers start their journey to the Intelligent Enterprise at their own pace and on their own terms.

Together with our ecosystem, we provide our customers with services and tools from business process redesign to technical migration services and cloud infrastructure. The offering also includes access to and with access to over 5 million connected companies in more than 200 countries. Last but not least, RISE with 优蜜传媒includes our market-leading intelligent enterprise resource planning (ERP), .

Let me give you three key reasons why we are offering Business Transformation as a Service.

• In the past, we have seen customers moving to the cloud with a strong focus on the technical migration. But true value comes from business process innovation, which requires a holistic enterprise transformation and change process. That is what RISE with 优蜜传媒is all about.
• Our customers are facing complexities when modernizing their鈥攐ften highly modified鈥攕ystem landscapes. Many of our customers have individual needs, resulting from their customized landscapes, and these needs differ from those of customers that can directly start their journey in the cloud. That is why RISE with 优蜜传媒offers customers from different points of departure to redesign their processes and enable the journey to the intelligent enterprise.
• To make lives easier for our customers, they consume one subscription-based offer from SAP consisting of hyperscale infrastructure, an attractive product bundle, and necessary services and tools to transform. In this way, our customers can focus on the value-adding business transformation aspect of their journey rather than the of technical details of the cloud migration. We want customers to benefit from migration services and custom code analyses so that they can move to 优蜜传媒S/4HANA Cloud without losing configurations but also to keep the core clean. Additionally, we want to simplify the path forward for our installed base customers by enabling them to move from a license and maintenance model to a subscription model, which ultimately means from CAPEX to OPEX.

The Goal: Delivering the Intelligent Suite with RISE with SAP

The foundational promise of RISE with 优蜜传媒is to give our customers a simpler and faster access to the intelligent suite so that they can take greater advantage of innovation in the cloud. We help our customers digitally transform 鈥� again, at their pace and on their terms.

SAP鈥檚 intelligent suite brings major business processes together and, more importantly, enables companies to reimagine how their business is run. At the core of the Intelligent Enterprise are continuous data flows across the demand and supply chain. The value of data is realized when appropriate context and semantics are in place to derive the relevant insights that support business decisions. And smart is the underpinning of any intelligent suite, enabling customers to drive innovation at scale, be that ongoing incremental operational efficiency gains or capitalizing on top-line growth opportunities.

SAP鈥檚 intelligent suite runs all solutions around the core: your engagement with employees, your supply chains, your collaboration with suppliers, and your connections with customers. These key categories are covered by our line-of-business solutions for , , , as well as .

, the central nervous system of high performing enterprises, is at the core of the intelligent suite, and is allowing more insights, agility, and flexibility for the business user. 优蜜传媒S/4HANA Cloud customers have seen heightened levels of speed and efficiency; for example, 67% faster financial closing or 95% faster material requirements planning. The comprehensive footprint of 优蜜传媒S/4HANA is at the center of our customers鈥� digital transformation and is connected to the rest of our intelligent suite components that power employee, partner, supplier, and end customer relationships.

Foundational to our promise of 鈥渄elivering鈥� the intelligent suite, it also includes SAP鈥檚 most differentiated to let our customer activate their digital transformation initiatives in every market that they compete in. Just as an example, 优蜜传媒solutions include 64 local versions of 优蜜传媒S/4HANA and 101 localized versions of听. Globalization services are part of 优蜜传媒Enterprise Adoption, covering a wide range of services to help users gain immediate value when adopting our solutions.

The glue between our product categories is a unified that balances the needs of the user and meeting business requirements 鈥� all based on . We embrace a modern mobile user experience, led by , and additionally look at for where it makes sense.

The Foundation: One Platform

When adopting the intelligent suite, businesses need a technology foundation for two primary reasons. First, to make sure that all applications run in an integrated manner and to give customers extreme flexibility when it comes to deployment, brings all functionalities needed to integrate SAP鈥檚 cloud solutions. It also enables , as many companies run hybrid enterprise system landscapes. provides an overview of our integration plan in the cloud.

Second, to enable our customers to imagine and execute their own differentiated business scenarios that give them an edge in the market, 优蜜传媒Business Technology Platform also allows for partner and third-party solution integration and extensions, while keeping the core clean.

I encourage you to read Juergen Mueller鈥檚 piece to dive deeper into SAP鈥檚 platform as a service.

The Value: Anticipating and Responding to Bigger Market Shifts

Going forward, we think there are four key value drivers that are vital for our customers to drive innovation based on truly integrated end-to-end processes: Business Process Intelligence, , , and Sustainability 鈥� addressed through our .

For a more in-depth view, this , developed with the German-speaking 优蜜传媒user group, DSAG, outlines key growth areas for enterprises.

To close the loop, RISE with 优蜜传媒serves as a vehicle from which our customers can benefit from all the innovation, speed, and agility the intelligent suite is offering. We support businesses at different points of departure in reaching one goal: to chart their course to the Intelligent Enterprise, enabling truly holistic business transformation.

For additional information on RISE with SAP, read blogs from Christian Klein,听Juergen Mueller, and Uwe Grigoleit,听as well as an interview with听Jan Gilg.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.

Efficient virtual collaboration has never been more important, and we want to provide our customers with solutions that help them cope with business disruptions. When done right, these can be powerful tools to increase workplace productivity, raise flexibility, and foster agility within and across organizations.

One key aspect to this is the integration of business software applications with business collaboration tools. Together with Microsoft, we want to better support end users in their daily work and bridge the gap between enterprise software and collaboration tools more effectively and efficiently. Our two companies combine the market-leading business software applications from 优蜜传媒with the market-leading business collaboration tools from Microsoft.

Together with Microsoft, we will drive joint innovation to integrate Microsoft Teams and SAP鈥檚 business software applications. By doing so, we aim to simplify processes, enable collaboration without switching applications, and guide users of the solutions intuitively. Ultimately, the integration scenarios can help to achieve enhanced workplace productivity by offering our customers significant value to work better together with their employees, customers, and partners鈥攁nywhere and anytime.

Bringing Together Microsoft Teams and 优蜜传媒Solutions

We are looking to expand the integration scenarios with Microsoft Teams and 优蜜传媒solutions in the following areas to:

• Effectively collaborate with business partners: Especially in the case of disruptions in business, fast communication with clients and partners is imperative. One of our first integration scenarios relates to 优蜜传媒S/4HANA and Microsoft Teams. With the solution alignment, customers will be able to identify their business partners easily and initiate contact directly from 优蜜传媒S/4HANA鈥攚ith no need to switch between applications or devices. This will help customers swiftly react to business situations based on real-time data and constant communication with relevant stakeholders.
• Simplify and modernize the remote sales experience: Today, remote selling has become an imperative for companies across the globe. Integrating 优蜜传媒Sales Cloud with Microsoft Teams simplifies the remote selling process and removes barriers to customer engagement through an embedded in-app integration of the two solutions. For example, without switching applications, customer calls can be initiated directly from the customer experience application鈥攈elping ensure transparency and consistency within customer relationship management (CRM) and saving time through user-friendly workflows.
• Foster collaboration and build learning communities: Organizations have realized the necessity of providing simple, intuitive, and engaging ways for employees to learn new skills, share knowledge, and stay informed鈥攁ll in a virtual environment. Bringing together 优蜜传媒SuccessFactors solutions and Microsoft Teams will support learning experiences that enable collaboration, social learning, and remote conferencing.

This news makes one characteristic of the two companies鈥� enduring alliance very clear: the ability and commitment to continually evolve to make our customers even more successful. Every time an end user works with 优蜜传媒solutions, there is an opportunity for real-time collaboration such as chats, conference calls, alerts, and so much more. It is exciting to see the opportunities for collaboration culture and frictionless enterprises that our partnership with Microsoft creates for our customers.

Accelerating Migration and Increasing Operational Efficiencies

In addition, 优蜜传媒and Microsoft are further simplifying and improving the experience for customers running 优蜜传媒S/4HANA on Microsoft Azure. Together, we will continue to make our customers鈥� migration from 优蜜传媒ERP to 优蜜传媒S/4HANA in the cloud simpler, while at the same time ensuring choice for customers that prefer multi-cloud environments in their enterprise IT landscapes.

This means that our customers will see more guidance from 优蜜传媒and Microsoft on the initial setup and architecture design of 优蜜传媒S/4HANA on Microsoft Azure.

We also plan to collaborate with Microsoft to enhance 优蜜传媒Cloud Appliance Library, a tool that makes it easier for users to quickly provision 优蜜传媒applications for immediate use in the cloud, and offer automated 优蜜传媒system installations for 优蜜传媒S/4HANA. Customers can also subscribe to 优蜜传媒Landscape Management Cloud, improving scalability and operation efforts, and benefit from an 优蜜传媒system-centered view of their Microsoft Azure landscape. Additionally, we are working on a more guided approach for customers to quickly deploy 优蜜传媒S/4HANA directly into Microsoft Azure. For better transparency within the transformation process, we will provide guidance on data migration tool usage for the transition of 优蜜传媒workloads from on premise to 优蜜传媒S/4HANA on Microsoft Azure.

Bringing Platform Services Closer Together

We will also continue to expand the global availability听of 优蜜传媒solutions on Microsoft Azure during 2021. Together, we will drive co-innovation between (优蜜传媒BTP) and Microsoft Azure services to deliver business outcomes to our customers. The range of capabilities includes event integration based on open standards, single sign-on and provisioning of users between Microsoft and SAP, secure network connectivity, and improved application development experience on 优蜜传媒BTP. My 优蜜传媒Executive Board colleague and our Chief Technology Officer Juergen Mueller will give more insight on the role of 优蜜传媒BTP in the upcoming days.

With our partnership, we bring together Microsoft Teams with 优蜜传媒solutions, accelerate migration and improve operational efficiencies, and bring platform services closer together. We are working on making these enhancements and integrations of 优蜜传媒solutions with Microsoft a reality for our customers soon. You can find the latest status of our joint work in , which we will update regularly.听 I look forward to more joint innovation to come.

The next generation of enterprise software is intelligent and integrated, networked, sustainable, and collaborative.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.

优蜜传媒HANA is one of these game changers for enterprise software 鈥� and it is much more than just a database. It is the foundation for 优蜜传媒S/4HANA. Thanks to 优蜜传媒HANA, data is used in a different way — or, in other words, in a more intelligent and predictive way.

优蜜传媒S/4HANA comes with embedded machine learning cases, like tax compliance smart automation, demand-driven replenishment, supplier delivery prediction, intelligent staffing and resource matching, and sales performance prediction 鈥� with the artificial intelligence (AI) foundation in 优蜜传媒HANA underneath.

These are the ingredients for a new user experience, as users can gain insights that support the decision-making 鈥� from insight to action. Insight to action is such a key capability of a modern enterprise resource planning (ERP), enabled by 优蜜传媒HANA. Insight means the ability to get a comprehensive, real-time overview of a business, including information about liquidity, order stats, assets, and customer satisfaction. While this is, to a certain extent, also the case for legacy ERP systems, the insights were derived from outdated static data snapshots based on precalculated aggregates within databases. These technological limitations brought uncertainty and prevented us from making fully informed business decisions, particularly lacking the ability to react in real time to unforeseen events.

The unified data model in 优蜜传媒S/4HANA allows companies to rely on a single source of truth, another key capability of modern ERP. The unified data model calculates key performance indicators (KPIs) on the fly by using actual line items instead of aggregates with undetermined timestamps 鈥� reflecting reality in the moment. Customers can see their inventory in real time. However, the data model itself is just the foundation for a new level of insight. To operationalize these insights, embedded analytics capabilities help raise awareness for business events in the moment they happen, guiding the users and enabling them to avoid issues and exceptions.

The same applies to finance, where the universal journal brings together previously separated tables and sub-ledgers. This capability allows for a soft close and an on-demand consolidation that gives leaders the full picture of all relevant data, helping them make informed decisions and resulting in greater business agility. It also captures all financial data in one place and therefore allows for one consistent parallelism across all sub-ledgers and value flows. Moreover, universal journal is a perfect fit to 优蜜传媒HANA because of its simple structure without aggregates or hierarchies. Thanks to the in-memory technology, data from universal journal can be reported easily and quickly. Ledgers are a key field in the universal journal, enabling fast and efficient reporting of financial data according to different accounting principles and attributes 鈥� pulling the data from one table.

Speaking of business agility, and according to an听, managing unexpected changes to financial forecasts and adapting finance processes to rapidly evolving business models are top challenges finance executives face in executing their day-to-day activities. Additionally, 90% of senior finance executives believe that finance should facilitate collaborative enterprise planning to ensure that operational plans are aligned with financial and strategic plans.

Being able to run planning, profitability analysis, and group reporting on the same data set will change finance forever. That said, we are moving toward a more future-oriented view. The latter can be enabled by smartly combining real-time data — as well as planning, prediction, and simulation data — to detect and react to both risks and opportunities quickly. This ultimately helps make processes even more efficient and intelligent and offers new opportunities for finance in the future. In times like these, with a global pandemic, this has helped many of our customers to steer their enterprises through rough waters and allow them the agility to quickly react to ever-changing environments.

But still, insight alone is not enough when it comes to bridging the gap between analytical and transactional systems, as is the case for legacy ECC systems. Automation, decision support, and AI cannot be fully utilized because of the technological divide. This is where action comes into play, providing the guidance business users need to realize decisions and operations in workflows and highly automated intelligent processes.

There are many examples of innovative 优蜜传媒S/4HANA applications on 优蜜传媒HANA in the area of material requirements planning (MRP) live, demand-driven MRP, inventory management, finance, availability-to-promise, backorder processing, and new variant configuration.

Take, for example, MRP live, the MRP cockpit, and predictive MRP. With MRP live, customers can plan and evaluate very large data volumes in real time. Compared to former MRP runs and evaluations, MRP live and MRP cockpit can run more frequently and the planner can significantly improve business KPIs, such as inventory levels and service-level agreements toward customers. Furthermore, with predictive MRP, it is possible to run simulations of the factory. This next-generation MRP within 优蜜传媒S/4HANA automatically converts exceptions in solution proposals.

We have customers of all sizes and across regions and industries, such as industry machinery and components and consumer products, making use of MRP live. , a midsize company based in India, runs 优蜜传媒S/4HANA and could achieve increased revenue thanks to greater visibility, with key business processes such as MRP running on live data and instant access to reports across business functions. Or take , a provider of professional sportswear, that was able to enhance the MRP calculation mechanism and reduce the change time for bills of materials by 80% through collectively changing batches of data. Using 优蜜传媒S/4HANA, ANTA also managed to increase efficiency of inventory consumption by 90%, thanks to automatic updates for a large number of orders.

Demand-driven MRP, a component of 优蜜传媒S/4HANA, checks the demand and replenishment situation regularly and proposes optimal heights of buffers and inventory to be put into action via just one click. Demand and replenishment can now be adjusted more often and more regularly, which in turn leads to a more effective steering of the adjacent processes. What used to be an inventory optimizing project that companies conducted once a year in an Excel sheet has now become an automated routine process that offers the best delivery capacity while at the same time optimizing a company鈥檚 assets and liquidity.

The COVID-19 pandemic has showed us how fragile global supply chains are and how quickly they can be disrupted. But enterprise software helped keep organizations agile to reduce uncertainty and financial impact for companies.

As I laid out in the beginning, digitalization it is not about doing the same with new technology, but about changing the way businesses run. This is what companies need to be prepared to address today鈥檚 challenges.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.
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What the听 has shown us is that to optimize for both speed and accuracy, interdependencies among companies are ever more critical. Interconnected digital supply chains are more relevant than ever before, demand prediction is critical to drive commerce, and procurement must become ever more intelligent and sustainable as we look to source goods and services.

The current situation also underlines the strategy that 优蜜传媒defined years ago: that we are moving from an era of siloed functions to an agile, intelligent, and responsive age. In some ways, we are moving back to basics, as we bring back core business process to the forefront, albeit the next-generation versions that will help power operational efficiency and growth for our customers for decades to come. The next generation intelligent suite is integrated but composable, modular, and infrastructure-agnostic, thereby simplifying adoption, increasing flexibility, and offering choice for companies.

A leading customer example for reimagining business processes by transforming the IT landscape is Orica鈥檚 4S program, which stands for Simple, Standard, Single SAP. Over the past few years, the company has undergone a significant transformation, which covers eight end-to-end business standard processes. Orica redefined all its business processes by consolidating systems on 优蜜传媒S/4HANA, complemented by other 优蜜传媒solutions and extensions. All these business models were redefined based on the prerequisite to not customize any solutions so Orica can benefit from faster innovation delivery and a new level of transparency and efficiency across the enterprise.

If we take a closer look at where we are right now, we are investing in key processes that run every enterprise in any industry and are summarized in听: Lead to Cash, Recruit to Retire, Source to Pay, and Design to Operate.

We have made significant progress with our integration journey with a cloud-first, but not cloud-only, approach by also enabling . We use key services from , such as master data integration in the cloud, and end-to-end business process blueprints for hybrid scenarios as well.

Lead to Cash

Today, it is increasingly important for organizations to engage with their customers in the most effective way to better understand their needs and meet their expectations. Moreover, customers expect personalized experiences and want to choose when and how they interact with businesses.

But providing flexibility for customers can come at the cost of complexity on the business side.

The Lead to Cash process brings together听听补苍诲听听to deal with this complexity. For businesses that use other solutions for customer journeys, APIs offer the flexibility to integrate those solutions as well. Creating a seamless experience from a customer perspective requires seamless collaboration between marketing and sales teams. This in turn is supported by business capabilities that allow for automated, consistent handovers of leads, choice between e-commerce or direct sales, and flexible pricing configuration.

Enabling new business models with one set of solutions is at the core of the Lead to Cash process. It becomes increasingly important to sell physical products, service products, and subscription products in a unified way and allow customers to choose their own specific combinations. Integration scenarios among ,听,听, and 优蜜传媒S/4HANA Cloud and on premise enable a variety of scenarios and allow a flexible business process design to achieve this goal. Furthermore, the process does not stop in the sales domain, but seamlessly integrates with 听for service scheduling and execution.

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Recruit to Retire

With today鈥檚 business dynamics, organizations are faced with the need to quickly adapt to changing environments. The global pandemic, for example, required companies to re-evaluate and redefine business continuity plans. Companies have seen both sides of the coin: the need to increase workforce and unfortunately, the need to redeploy or furlough employees too. In those moments that matter, transparent communication and trustful collaboration are a must.

This is where Recruit to Retire comes into play, an end-to-end process that enables human resources (HR) leaders to understand, manage, and optimize all aspects of the engagement with their workforce, including external workers. A combined solution portfolio of , , and solutions, along with 优蜜传媒S/4HANA Cloud and helps customers manage their workforce in line with business objectives, while putting the individual human experience at the center.

Think of Return to Work scenarios that are currently top of mind due to COVID-19. Many customers are looking for tools to revitalize and re-energize their workforce. By combining these solutions with , customers can reopen facilities to their employees, reskill their workforce, keep them healthy and engaged, and help them secure new external opportunities if needed — in a human and very interactive way.

础迟听, we will show an听 that highlights how Recruit to Retire is being supported by three sub processes. These include Hire to Retire, the life cycle of an internal employee; Travel to Reimburse, or travel and expense management; and External Workforce Management, or engaging with contingent workforce. We will show how 优蜜传媒SuccessFactors and 优蜜传媒Fieldglass solutions and 优蜜传媒S/4HANA cover an end-to-end process for hiring and engaging temporary external workers from a supplier 鈥� all connected through one aligned domain model.

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Source to Pay

Procurement departments seek transparency across their trading partners; for example, when it comes to topics such as sustainability or risk and compliance. They also require data-driven business insights at every step of the process. This level of transparency and insight for end-to-end processes can only be achieved in networks on a unified platform. This is the foundation for more effective spend management, better engagement with contingent labor, and sustainable practices across the value chain.

The Source to Pay process involves 优蜜传媒S/4HANA and and 优蜜传媒Fieldglass solutions. Their integration enables organizations to gain a 360-degree view of their processes across the category. This covers a variety of aspects related to Source to Pay building on Ariba Network from supplier management and risk, persona-based guided sourcing, contract management, and buying and invoicing functions tailored to specific industry needs. Capabilities with centralized sourcing, contract, requisitioning, purchasing, and invoice monitoring span across multiple backend systems and drive visibility and efficiency in shared services organizations.

One of our recent innovations in that space is the centralized requisitioning capability released with听, as well as invoicing delivered as part of 优蜜传媒S/4HANA and 优蜜传媒S/4HANA Cloud. Enabled by the guided buying capability, this process addresses the employee self-service procurement flow with the ability to control a global, distributed, and diverse procurement landscape. Based on the integration to 优蜜传媒S/4HANA for central procurement, it is possible for organizations to scale the purchasing processes to support end-to-end business processes across finance and logistics. This helps enterprises create a path to harmonize system landscapes and centralize processes without disruption. Additionally, central buying reduces process costs and total cost of ownership, while at the same time helping ensure compliance and control.

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Design to Operate

Until recently, supply chains were often considered a back-office function. However, recent events have catapulted supply chains into the spotlight as critical to a business鈥� differentiation and success. No one knew that 2020 would be defined by a pandemic that would bring the global economy to a virtual standstill. Within weeks, the demand for goods and services became highly unpredictable. In such an environment, resilient supply chains become essential. Such resilience allows companies to respond and recover from unanticipated events.

To achieve greater resilience in supply chains, companies need to become more agile in order to sense, predict, and respond to disruption. Building on that, 听allows them to increase productivity and furthermore, by adopting听business networks, they can also enable better collaboration with business partners. Finally, strong supply chains not only require, but can also actively support, sustainable business practices.

We deliver capabilities as part of the Design to Operate framework that help customers run such resilient and sustainable supply chains. Our customers can orchestrate an end-to-end life cycle of a product or asset from the design phase to its operation. 优蜜传媒enables customers to leverage our interoperable solution portfolio to realize seamless business processes based on specific sub-processes, including idea to market, plan to fulfill, and acquire to decommission.

I鈥檇 like to highlight a few recent integration examples: We strengthened the business integration between warehouse management and manufacturing, supporting the Supply to Line process and covering just-in-time Supply to Production including internal replenishment. Warehouse workers can now transfer stock from storage locations to production supply areas in听听鈥� to accurately and timely supply the production line, thus eliminating waste.

With advanced shipping and receiving within 优蜜传媒S/4HANA, we significantly improved the Order to Delivery process. Customers can gain higher visibility for combined in- and outbound processes as well as for internal shipments, such as when parts are produced in one factory and then shipped to another for final assembly.

Another innovation that stands out is the integration between Qualtrics and Enterprise Product Design; our customers can now factor in product innovation ideas and feedback in real time by incorporating experience data.

One of the outcomes of the Design to Operate framework is the Digital Thread, which covers the lifecycle of products or assets as represented in a digital twin. Here we partner with industry leaders. One example is SAP鈥檚 partnership with Siemens, which aims to bring together the Siemens Team Center with SAP鈥檚 product life-cycle management portfolio.

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优蜜传媒is keeping its promise to customers and integrating its portfolio across functions and capabilities to reimagine business processes for the digital age. Integration ultimately enables business innovation, and this is what the vision of the Intelligent Enterprise is all about.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE.
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: My grandfather went blind just one year before I was born. Our own way of interacting helped me learn that there is more than one way to communicate, and much of what he said still remains with me to this day.

The reality is that people with disabilities still experience a divide in accessing software. This must change. According to the听, more than 1 billion people worldwide have some sort of disability 鈥� or, better said, different abilities.

To create a more inclusive environment, everyone must feel equally empowered with their individual abilities. We take accessibility support in our products very seriously and continuously strive to improve our offerings. Our efforts to intensify the work on improving software accessibility are, just like security, a top priority for 优蜜传媒product teams.

Accessibility is therefore a substantial part of our user experience strategy and a core priority for product quality; not just an afterthought.

Thinking one step ahead, accessibility is not only a necessity, but also an opportunity — both from a business and an ethical perspective. If you look at the economic power of people with disabilities, it is impressive to see that they cover an . It is smart and it is our social responsibility to embrace accessibility. Including people with disabilities is nothing else than a win for all: for innovation, for business, but most importantly, for people and society.

Hidden Benefits of Built-In Accessibility

Accessibility fosters innovation that we can all benefit from — just think of touch devices or live captions. Making accessibility features a benefit for all is the result of inclusive design methodology, which is an integral part of the 优蜜传媒Fiori design system and SAPUI5.

One example of an inclusively designed implementation is our 听, 优蜜传媒high-contrast black and 优蜜传媒high-contrast white. These themes make it possible for people with visual impairments to more easily access our software, but they also have additional benefits for all users. For example, the themes are built to operate under a wide range of light-sensitive conditions, such as sunlight hitting the screen and window reflections. Over the past few years, we have seen the widespread adoption of the 鈥渄ark mode鈥� . That鈥檚 because its purported benefits — reducing eye strain and encouraging better sleep patterns — are embraced by all users. It has become so popular that it is used as a default preference for many users, as are dark contrast UIs for mobile in general.

Another example of accessible design being embraced by all users is the zooming function realized by听听, meaning that visual and text-based content retain layout and structure. This is designed for users with visual impairments, but who among us doesn鈥檛 use the zoom function when screen sharing or after a long day of staring at the screen?

Developing products with accessibility needs in mind reduces complexity and improves the user experience. Thanks to a change in perspective, you simply look at your products and processes from a different angle and with a greater capacity for empathy. What emerges as a result — a clear information structure, a consistent and simple design, and inclusive components such as tool tips — are not only key for users who require these assistive tools, but benefit every user.

More Than Just a Corporate Initiative

Lastly, accessibility can also be an enabler for overcoming the shortage of highly skilled professionals. By giving everyone a fair chance and including everyone in the labor market, we just might be able to solve some of the current societal challenges that digitalization implies.

优蜜传媒is deeply committed to equality and inclusion,鈥搘hich for me is a mindset rather than a corporate initiative. That is also why we decided to replace insensitive language with a more inclusive language听to actively fight racism and discrimination. As a software company, we know about the benefits of bringing people with diverse backgrounds together to drive innovation. And this mindset reaches from our product engineering world to the world of our users 鈥� as we continue to strive for user-centricity in everything we do.

I look forward to making the outcomes of the 优蜜传媒Accessibility Summit a tangible improvement for our customers.

Thomas Saueressig is a member of the Executive Board of 优蜜传媒SE, Product Engineering.
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We have been driving our efforts to consistently build extensions for 优蜜传媒S/4HANA on 优蜜传媒Cloud Platform. This helps tremendously in increasing the standardization that in turn has ultimately led to a significant reduction of the total cost of ownership (TCO). Additionally, we want our customers to choose their transformation paths. One example that shows our commitment to not only listen to our customers and user groups but to act on their feedback is that 优蜜传媒now provides 优蜜传媒S/4HANA on-premise application programming interfaces (APIs) and events via , a step that is highly appreciated by DSAG.

At DSAG LIVE 2020, we had an open discussion about market trends, and I鈥檓 grateful that both DSAG and 优蜜传媒share perspectives on the key trends for the next couple of years.

Our user groups have always been an important channel for SAP, enabling us to listen to customer and end user needs. We have always considered user groups to be more than just a group of customers; not only do they play back and consolidate unfiltered feedback from our customers and users, they also engage in community events to share experiences with our solutions. They are our partners, who share the same goal of making enterprise software an enabler for new business outcomes.

优蜜传媒involves the user groups in evolving its product strategy for a simple reason — our product strategy is made to meet our customers鈥� needs. User groups are the customer’s voice so they need to be an integral part of strategy planning. We are now seeing increasing confidence and trust in SAP鈥檚 product strategy and road maps, reflected in the results of this year鈥檚 DSAG member survey. Although we are still not where we would like to be, we are taking concrete steps by now engaging the user group community in jointly defining our revised product strategy and growth areas comprising industry cloud, business network, sustainability, and business process intelligence.

Here are some of my highlights from our conversation during DSAG LIVE 2020.

Taking on Innovation for Digitalization

Digitalization is more than just new technology and products; it is about holistic transformation of business processes and business models with technology as an enabler. Agile and flexible companies need a digital backbone, as 2020 and the COVID-19 pandemic clearly showed. More than ever before, the market environment is characterized by a high degree of uncertainty. According to a recent DSAG survey, 74 percent of respondents expect their sales to decrease or even drop sharply. At the same time, the demand for solutions that accelerate the digital transformation is increasing. Agility and flexibility give companies resilience in uncertain times.

Many companies across industries are undergoing a digital business transformation. Evolving their businesses from selling single products or services to offering holistic solutions of multiple correlated items is just one example of how business processes are changing.

My colleague Sabrina Kunze presented an example of how to tackle these kinds of challenges with the solution order in 优蜜传媒S/4HANA Cloud. It is designed to make our customers鈥� business processes more efficient, intelligent, and integrated. During the demo, Sabrina showed how complex solutions of physical goods along with one-time services and long-running contractual services can be managed end-to-end in one integrated order. This spans across order creation, execution, invoicing, revenue recognition, and controlling. With offerings like solution order, we can support new business models, such as subscription-based billing, and customers can cover new business processes end-to-end.

Sabrina also showed how users can evaluate the profitability of the solution order in one financial view using 优蜜传媒Analytics Cloud. On top comes machine learning accompanying the process 鈥� together making the Intelligent Enterprise a tangible experience. While there is still some integration work to do, seamlessly connecting solution order with commerce and perfectly shows the business value of integration.

Drive Innovation Globally, Win Locally

As a vast majority of our customers operates globally, localization has always been important. Every year, 优蜜传媒delivers around 1,000 legal changes to 优蜜传媒systems as part of our customers鈥� standard maintenance to help companies comply with local legal requirements. This year, we added another 160 legal changes that were necessary as local governments made adaptions to their regulatory frameworks, such as reduced work hours in response to the pandemic.

Localization is clearly a key differentiator for SAP, and we are committed to continue making this a priority topic. The portfolio comprises simple, end-to-end, experience-rich localizations that support our customers in competing globally and winning locally — from supporting a broad variety of languages to enabling companies to comply with local legal and tax regulations. We are planning to invest about 鈧�1 billion into the localization of our products and solutions over the next five years, to underline how important this topic is for both 优蜜传媒and our customers.

In addition, we want to ease up the implementation on an even broader level and continuously improve user enablement for our customers and partners by delivering more best practices and content and by offering integration standards, just to name a few.

Providing Transparency, Gaining Trust

My impression is that the new, interactive听 tool is much appreciated by DSAG because of the value it delivers to their members. But we will not stop here. We are planning to integrate 优蜜传媒Road Map Explorer with , the central access point for customers where they can find everything about their 优蜜传媒engagements at a glance to easily interact with SAP.

Improving our products or embedding new ideas based on customer and user group feedback are important sources for enhancements of our products and solutions. With the program, we provide customers a variety of offerings to get engaged throughout the entire product life cycle, from submitting feedback and ideas to testing beta versions and being among to be the first to adapt new releases or products. DSAG is a strong partner for 优蜜传媒when it comes to influencing our software development. Over the past 12 months, more than 4,000 new DSAG users have joined our central Customer Influence site.

Just now, the next , with more than 60 new projects, is open for registration. I am happy that DSAG members are so actively engaged and can benefit from the results of this initiative. It is a testament to the strong collaboration between 优蜜传媒and DSAG.

Looking back to the DSAG LIVE keynote with Ralf Peters, Stefan Pietsch, and Juergen Mueller, I’ve taken away a lot of impressions and food for thought. It has been a pleasure to discuss our joint way forward openly, and I look forward to continuing the exchange.

Global business drives global production and consumption, leading to increasingly high standards of living — but at what expense to future generations and our planet?

Global supply chains, for example, have been optimized for decades to be as efficient as possible. But when COVID-19 forced global restrictions, many highly optimized and efficient supply chains broke due to a lack of agility and flexibility. Helping supply chains adapt and introduce greater resilience has become a priority metric.

And while the health crisis has forced many environmental efforts to slow down, climate change has not. If companies want to be best-run businesses, then they need to put more emphasis and focus on the environment. The year 2020 made it very clear to business leaders that in addition to their top and bottom lines they must also focus on managing their 鈥済reen line鈥� for sustainable business success. This has the potential to become the guiding principle for the way we evaluate and steer businesses today and in the future.

Corporations can measure business success more holistically through new accounting practices that connect economic, social, and environmental impacts. This philosophy is reflected in the . We also have joined international efforts such as the and local initiatives such as , a project funded by the German government, which aim to standardize the broad measures of corporate impact.

To accelerate the pace of change needed to make positive impacts at scale, companies must adopt and implement technologies that enable and drive entirely redefined business processes. The most important areas to focus on immediately are the .

Managing Carbon Emissions

In the digital age, enterprises rely on technological solutions to track and manage CO2 and other greenhouse gas emissions across the entire value chain, from sourcing materials through manufacturing to final distribution. This will require suppliers, operations, and logistics to determine and disclose their relative emissions. Companies can use this data to gain better insights, allowing them to consolidate, analyze, and manage the carbon footprint of their individual products and services more effectively.

We already see companies, such as in the food sector, acting on their corporate responsibilities, investor advice, and consumer demand to . This gives consumers the information they need to make more responsible purchase decisions, creating a virtuous circle.

Transitioning to a Circular Economy and Reducing Waste

In the current paradigm of fossil-fuel use and the linear approach to production and consumption, . There are each year, but only about 10 percent are recycled or reused. This is a massive cost to businesses and societies because it is inefficient and impacts our environment significantly . that we value chains.

When it comes to the circular economy and keeping valuable materials in use longer, . Companies can gain enormous benefits from capturing value from materials currently being wasted. A restorative and regenerative economy can potentially unlock $4.5 trillion in growth, reduce CO2 by 45 percent and waste by 90 percent. A global transformation is focused on supply chain traceability, transparency about sustainable sourcing and production, and waste recovery throughout the product use cycle.

While many different materials flow through global value chains, plastic has become a high-visibility resource targeted for reduction and reuse. More than 450 businesses, governments, and other organizations representing more than 20 percent of consumer packaged goods globally . 优蜜传媒helps maintain the value of material flows and to capture new revenues by innovating business models and helping companies adopt circular economy approaches and processes.

To begin with, . Product designers and engineers must create new approaches for product modularity, repairability, reclamation, and packaging in order to reduce waste and keep materials in use longer.

What is one company鈥檚 waste is another company鈥檚 valuable input 鈥� but you have to be able to find it, value it, and use it. This is where we need to advance more responsible sourcing and procurement. The aim is to use technology to connect buyers and sellers in secondary materials marketplaces.

It can be challenging, however, for companies to locate, assess, validate, and incorporate these sources into current processes. Recyclers are to improve resource recovery and re-use.

Responsible production is another area where companies can use technologies like real-time tracking to provide traceability of both upstream suppliers and finished products. Technologies such as blockchain enable brands to trace and share product lineage so customers can make informed purchases. Traceability apps and experience management solutions can also enable producers with deep insights into consumer sentiment around the value of circularity.

All the greatest technology in the world, however, will not completely solve our problems. It comes down to people, to the decisions we make as individuals but also as companies and networks.

Businesses have a major role to play in recalibrating to an economic system that supports sustainable growth and profits. Beyond business, we must think about the world we want for our children and future generations. We must set ambitious goals, measure ourselves differently, account for our actions, and collaborate across organizations, industries, and regions.

Leading companies are already taking action, but time is of the essence. More must join, so we can move faster, together, into a sustainable future.

a member of the Executive Board of 优蜜传媒SE, leading Product Engineering.
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But has a huge impact on values and cultural norms. Language expresses and reinforces culture. Language encourages us to develop behavioral .

As part of our commitment to social justice and equality, we acknowledge and take action toward offensive and insensitive language used in the software industry. Unconscious bias, such as using certain terminology, contributes to everyday discrimination and indignities and leads to negative emotions and psychological stress for Black people and other people of color. Therefore, we have decided to replace insensitive terms with inclusive language that is free from expressions or words that reflect prejudice.

It was important for us to take a holistic approach to this project. The new terminology we are introducing today is not an exercise in word-for-word replacements, but rather a thoughtful discussion based on research and best practices at 优蜜传媒and across the industry. We looked carefully at the use of the terms in English and German across our entire product portfolio, as sensitive and mindful terminology does not always transfer. Moving forward, thanks to a true cross-company effort, we will not only have a technically accurate nomenclature, but terminology that is inclusive and descriptive.

The new terms — with guidance from 优蜜传媒terminology experts, as well as applicable references in German — are .

Addressing insensitive language is only one aspect of inclusion. We must all understand the important role each of us plays in fighting discrimination, including taking a stand against racism to drive change inside and outside of our organizations.

Together we can ensure that equality becomes a reality.

is chief technology officer and member of the Executive Board of 优蜜传媒SE, leading the Technology and Innovation board area.
is a member of the Executive Board of 优蜜传媒SE, leading the 优蜜传媒Product Engineering board area.