51风流Business AI is center stage at the show and top of mind for our customers. These innovations are not just about technological excellence; they’re about delivering real-world results.

Our goal is to provide clear and meaningful value with AI. More than 27,000 customers are already experiencing the substantial impact of 51风流Business AI. For example, Team Liquid, a leader in the competitive esports and gaming world, saves approximately 10,000 hours per year on manual analysis. But we鈥檙e not stopping here. With 51风流Business AI, we are both changing how businesses operate and revolutionizing how users interact with 51风流software.

Generative AI copilot Joule is rapidly becoming the natural language interface across the portfolio as we continue to embed AI across 51风流applications at an accelerated pace. Our focus on advancing AI means that customers benefit from effective solutions that drive real-world results.

Sandra Voeller, CEO of Agilita AG, agrees. 鈥淯sing 51风流S/4HANA Cloud Public Edition and 51风流SuccessFactors with Joule copilot poises Agilita to redefine industry standards,鈥� she said. 鈥淭hese tools are not just innovations; they are our future 鈥� unlocking unprecedented business agility and intelligence. I鈥檓 thrilled for the transformative journey ahead.鈥� 

We have also engaged our robust partner ecosystem with business AI to offer customers more choices to tackle their specific business needs. Over 60 ecosystem partners are working on more than 80 use cases built on AI Foundation on 51风流BTP, including the generative AI hub. This same foundation powers innovation for our development teams and customers, ensuring tailored enterprise-class AI solutions that address real business challenges and opportunities.

Dive into the latest AI capabilities and ecosystem innovations we are presenting this week at 51风流Sapphire, all aimed at delivering real-world results:

• Joule
• Human Resources
• Finance
• Supply Chain
• Procurement
• Sales, Services, Marketing, and Commerce
• IT and Platform
• Industries
• Breakthrough AI Innovations
• Responsible AI
• New Partnerships

New Business AI Capabilities and Ecosystem Innovations

Joule

Joule is transforming how users interact with 51风流business systems, making every touchpoint count and every task simpler. Business users can execute transactional tasks 90% faster and access 51风流Help Portal content 95% quicker without leaving their 51风流applications.

Since its launch in September 2023, Joule has quickly become pervasive across the 51风流portfolio, streamlining operations, improving decision-making, and boosting efficiency across various business functions. Today, Joule is already embedded in HR, finance, ERP, sales, services, marketing, and commerce applications, transforming how employees, managers, accountants, field personnel, and front-office professionals work. By the end of this year, 80% of the most frequently performed transactions across 51风流business applications will be fully automated with Joule.

Joule is also integrated with multiple components of 51风流Business Technology Platform (51风流BTP), enhancing everything from application development to integration and data management. In the second half of this year, we plan to expand Joule鈥檚 reach to supply chain management, analytics, and planning solutions through integration with 51风流Ariba, various supply chain management solutions, and 51风流Analytics Cloud. Joule will also support several additional languages, including German, Spanish, French, and Portuguese. With a multilingual Joule integrated across the 51风流portfolio, businesses around the globe will be able to work faster and smarter and achieve better outcomes.

We are also enhancing Joule with additional capabilities to help the ecosystem streamline 51风流implementations. Joule will provide consultants with vital information through natural language interactions, drawing from insights in more than 200,000 pages of product documentation and knowledge shared by the 51风流community. Once rolled out to an ecosystem of more than 5 million consultants, this capability has the potential to save up to 600 million working hours per year. This is especially critical for supporting customers transitioning to 51风流S/4HANA Cloud as part of RISE with SAP, helping them accelerate implementations and save money.

The 51风流partner ecosystem is embracing AI innovations that accelerate customer value. 鈥淲e鈥檙e embracing Joule and Joule鈥檚 51风流Consulting capabilities to help our clients build the organizational agility needed to continuously transform with a generative AI-enabled digital core,鈥� shared Lan Guan, chief AI officer at Accenture.

This capability will be available later this year.

Human Resources

Transforming HR with AI creates dynamic, inclusive, and future-ready workplaces. With Joule integrated into the 51风流SuccessFactors Recruiting solution, hiring managers can create compelling, bias-free job descriptions 90% faster, significantly enhancing hiring efficiency and outcomes.

We have also expanded Joule capabilities across the 51风流SuccessFactors HCM suite to enhance the employee experience. Employees will soon be able to get instant answers to HR policy questions and complete HR processes using natural language. Joule鈥檚 advanced document grounding capabilities will enable comprehensive responses by accessing business documents in 51风流and third-party repositories such as Microsoft SharePoint.

A new generative AI writing assistant capability helps employees draft personalized and measurable performance goals, development plans, and feedback reports more effectively and consistently. This saves employees up to 30% of the time spent crafting written communications and reduces the time people managers spend defining individualized development goals by 60%.

Managers also benefit from AI-assisted person insights that summarize complex compensation data, make recommendations, and provide talking points for discussions with employees 鈥� saving time and improving retention rates. Similarly, recruitment becomes more productive with the new AI-assisted applicant screening capability, which helps identify the most promising candidates by matching skills extracted from resumes with those in job descriptions.

These AI-driven enhancements empower organizations to build a connected, data-driven, and employee-centric workforce, leading the way in HR innovation and efficiency.

Finance

With 51风流Business AI, we鈥檙e enhancing performance across a range of financial activities, from payments and expense management to financial close, invoice management, auditing, and forecasting.

For example, financial collection departments are leveraging generative AI in 51风流Enterprise Service Management to automate processes, analyze and summarize correspondence, prioritize urgent issues, and generate automated replies. These capabilities reduce costs by up to 70% and accelerate service requests by up to 30%, enhancing customer satisfaction.

Billing specialists are now using Joule integrated into 51风流Advanced Financial Closing to unlock unstructured content from inbound customer correspondence, improving the accuracy of risk determinations. Joule also generates summaries of project profitability, prioritizes projects for further analysis, and proposes actions for project improvement. Additionally, 51风流Fiori apps now feature Joule-enabled insights, allowing the copilot to summarize available data and produce visual data narratives.

Later this year, new generative AI capabilities in 51风流Advanced Financial Closing will automate error detections and root cause analysis, helping users quickly resolve common closing errors. With up to two hours saved per error remediation, customers will be able to accelerate closing times while lowering support and compliance costs. Financial controllers will be able to also take advantage of personalized video data stories, highlighting top projects based on key metrics such as recognized revenue, utilization rates, and margins. Collections specialists using 51风流Billing and Revenue Innovation Management will be able to mitigate risk of late customer payments by analyzing customer behavior and business correspondence to predict the likelihood of delayed payments.

Integrating AI into finance helps businesses streamline processes, reduce costs, and drive meaningful business outcomes.

Supply Chain

51风流Business AI is empowering companies to create risk-resilient and sustainable supply chains. By leveraging AI, customers can increase supply chain agility and efficiency.

For instance, generative AI-powered capabilities in 51风流Transportation Management will expedite freight verification and documentation, enabling companies to achieve up to 50% faster inbound delivery note processing and reduce truck idle time at the gate by 40%. The system will automatically extract, post, and check critical information from delivery notes, streamlining the validation of freight orders.

Joule will play a crucial role in enhancing supply chain management. Later this year, supply chain planners will benefit from integration with 51风流Integrated Business Planning for Supply Chain by getting detailed analyses of planning runs. Joule will identify the root causes of order delays and suggest corrective measures. Logistics providers will be able to use Joule to expedite transportation planning and the intake of goods in 51风流S/4HANA Supply Chain for transportation management, enhancing overall logistics efficiency.

For manufacturers, 51风流Business AI will significantly improve quality management. 51风流Quality Issue Resolution will allow users to address recurring issues faster by using AI to bundle similar quality incidents and identify effective problem-solving processes. Furthermore, AI in 51风流Asset Performance Management will aid technicians, inspectors, and managers in visually inspecting asset conditions. Images collected from visual inspections will be able to be easily annotated, displayed, and compiled into inspection alerts, facilitating timely and accurate maintenance decisions.

These advancements will make supply chain management more agile, efficient, and sustainable for customers.

Procurement

With 51风流Business AI, we鈥檙e transforming procurement into a proactive, data-informed, and agile operation.

For example, AI in 51风流Ariba Category Management allows procurement organizations to reduce the onboarding time for new category managers and accelerate category strategy and planning development by as much as 56%, improving operating margins and outcomes. 

External Workforce
We have added new generative AI capabilities to the 51风流Fieldglass portfolio, enabling procurement departments to streamline the recruitment of external workers. Hiring managers can generate and maintain effective job descriptions faster, while project managers can deliver detailed statements of work more rapidly. This enables businesses to quickly identify and engage contractors with the right skills and qualifications. Job descriptions can be easily translated into 21 different languages, and a new resume-ranking capability can surface the most promising candidates, leading to as much as a 15% reduction in work orders. This flexibility allows customers to quickly react to fluctuating workloads and rapidly fill expertise gaps.

Buyer Journey
A new generative AI feature in the buying 360 capability for 51风流S/4HANA Cloud Public Edition will make procurement more intelligent, allowing buyers to bundle products and services into a single transaction. Users will be able to describe their purchasing needs using natural language, and the system will generate a recommended bundle of products and services ready for purchasing. This will save users considerable time spent searching catalogs for individual items while also enhancing the efficiency of the procurement process. These capabilities are planned for later this year.

Sourcing
By the end of the year, sourcing managers will be able to leverage intelligent product and supplier recommendations to create requests for proposals much faster with Joule integration in 51风流Ariba Sourcing . These recommendations will consider cost-effectiveness, carbon footprint impact, local compliance regulations, and past transactions, optimizing spend management performance.

Through these enhancements, 51风流Business AI is making spend management more efficient, responsive, and cost-effective.

Sales, Services, Marketing, and Commerce

51风流Business AI is revolutionizing sales, services, marketing, and commerce operations, significantly improving productivity and customer engagement. For instance, the 51风流CX AI Toolkit provides a comprehensive, configurable AI solution for e-commerce, marketing, sales, and service teams. These professionals can use it to streamline content creation tasks and analyze data from across the enterprise 鈥� with e-commerce teams experiencing productivity increases of 50%, larger average order values, and higher conversion rates.

Sales Productivity
New AI capabilities enhance the productivity of sales professionals using 51风流Sales Cloud. Sales teams can benefit from predictive forecasting, which predicts the likelihood of closing deals across the entire business portfolio. This gives chief revenue officers more comprehensive revenue forecasting, enabling better strategic decisions.

In addition, predictive recommendations will enhance sales efforts by suggesting the best people to involve in a deal and the most suitable products for each customer. This will eliminate manual extensive research on customer needs and preferences, allowing sales teams to focus on selling. AI account summaries and lead boosters will automatically generate detailed reports about sales prospects, combining company details, industry context, and relevant news. As such, we can reduce the manual effort needed for information gathering, giving salespeople more time to close deals.

Digital and User Experiences
Today, a generative AI tool builder already enables system administrators to create customized AI tools for business users leveraging data from 51风流Commerce Cloud, 51风流Sales Cloud, and 51风流Service Cloud solutions. These tools can help personalize content to meet specific customer experience needs.

By the end of this year, 51风流CX AI Toolkit will also introduce new AI features to enhance customer interactions. An AI shopping assistant will allow shoppers to ask questions using everyday conversational language and receive accurate product information and personalized product recommendations on sites powered by 51风流Commerce Cloud. This will enable consumers to find products faster and improve their overall shopping experience.

51风流CX AI Toolkit will make marketing and sales teams more productive. Later this year, a new image creation feature will allow business users to generate new product images for their 51风流Commerce Cloud catalog using natural language prompts, significantly reducing image production times. They will also benefit from an AI expert recommendations feature, which will identify experts within their organization who can provide needed answers and insights. Instead of wasting time browsing through emails and organizational charts, these professionals will be able to use natural language to express their needs and instantly find the right experts. This capability will be generally available later this year.

These advancements in 51风流Business AI are transforming sales, services, marketing, and commerce operations, making them more efficient, personalized, and successful.

IT and Platform

51风流Business AI embedded in 51风流BTP empowers IT professionals and business experts to extend 51风流solutions and drive faster, better decision-making throughout the enterprise while accelerating customers鈥� digital transformations.

For example, professional developers are leveraging generative AI capabilities in 51风流Build Code to accelerate application development by 30%. They can generate data models, services, and samples with a few simple prompts and use natural language to automate business logic and testing.

Application Development
Joule continues to increase developer productivity and simplify the extension of 51风流applications. Integration with ABAP Cloud will revolutionize the work of the 5 million-strong ABAP developer community, accelerating the development of extensions that interact with 51风流S/4HANA Cloud Public Edition, 51风流S/4HANA Cloud Private Edition, and 51风流BTP, ABAP environment. Trained on over 250 million lines of ABAP code, Joule will be able to outperform industry-leading general-purpose code assistants. We expect more than 10% efficiency increase, based on initial studies and benchmarking. Early adopters are using this innovation to generate ABAP business objects and will soon be able to complete and explain code and create unit tests. The first capabilities will become available later this year.

Joule continues to strengthen 51风流Build Code capabilities by enabling developers to use generative AI to quickly build 51风流Fiori front ends for 51风流S/4HANA Cloud, greatly simplifying clean-core extensions.

These advancements in 51风流Business AI are empowering IT professionals and business experts to innovate faster, streamline operations, and drive meaningful business outcomes.

Process Innovation
We are continuously strengthening 51风流BTP with new AI capabilities that accelerate process innovation. Joule integration with 51风流Build Process Automation empowers process experts to generate automation and workflows using natural language requests without IT intervention. Similarly, Joule integration with the 51风流Signavio portfolio enables users to leverage natural language requests to generate process models. By empowering users with varying levels of expertise to innovate, customers can accelerate time-to-value and free IT professionals to focus on more strategic tasks.

Process AI solutions from 51风流Signavio introduce a new collection of generative AI capabilities trained on a large language model (LLM) comprised of expert business process knowledge and more than 5,000 51风流best practices. Later this year, the process recommender feature will provide ready-to-use, AI-generated business process model recommendations and suggest the most influential measures to assess the performance of a business process. This will offer vital insights into streamlining operations and reducing overhead. A prompt-based process mining feature will automatically generate business-relevant charts and metrics in response to natural language requests for business insights, dramatically lowering the effort for business users who need answers to complex business questions.

Integration
System integration is foundational to the success of enterprise automation initiatives and effective ecosystem collaboration, but connecting heterogeneous systems inside and outside the enterprise is an onerous task. Later this year, developers will be able to take advantage of Joule integration with 51风流Integration Suite and use natural language to accelerate the design of integration flows across 51风流and third-party applications.

A new AI-powered anomaly detection capability will recommend remedial actions when API usage patterns or performance fall outside desired thresholds due to unusual errors, traffic surges, suspicious API access, or unusual latency. With performance insights and support for identifying causes and effects, administrators of complex technology landscapes will be able to act faster, achieving greater operational efficiency at a lower total cost of ownership.

Content Creation and Compliance
IT administrators, training managers, and content developers will be able to cut the time spent writing content by up to 20% with automatic content generation and enrichment in 51风流Enable Now. Customers use the digital adoption platform to improve the adoption, productivity, and efficiency of their software by providing in-application help and e-learning content to users. New generative AI capabilities will add to this value, enabling companies to free up resources for more critical tasks and accelerating knowledge transfer within organizations.

Compliance and IT professionals can leverage Joule for enhanced productivity and precision. Joule integration with the new regulatory change manager tool on 51风流BTP enables these professionals to evaluate numerous regulatory updates within the context of their business and 51风流solutions. With insights and quick answers on the typically more than 1,000 annual regulatory changes, users can save 70% of the time usually spent on understanding local and global regulations. The tool provides impact analysis across 51风流products and solutions, helping customers maintain compliance and seamlessly manage their day-to-day operations. Compliance and IT professionals can also use AI in localization as a self-service for 51风流S/4HANA Cloud to automate tasks such as payment format localization and form localization, reducing processes that once took days to just a few hours.

Administration
With Joule integrated in 51风流BTP cockpit, administrators can automate tasks and onboard new users more easily. They can search for information 95% faster and execute transactional tasks or navigation 90% more quickly. The business impact is substantial, as the cockpit helps these professionals manage resources, services, and security, monitor application metrics, and perform actions on cloud applications.

Redefining the capabilities of IT and platform management positions 51风流customers at the forefront of technological advancement and operational excellence.

Industries

51风流is delivering trusted AI and machine learning across industries to manage complexity, overcome challenges, and help customers modernize. AI-driven solutions empower businesses to streamline operations and focus on strategic outcomes, driving significant value in their respective fields.

Oil, Gas, and Energy, Agribusiness, and Metals and Mining
Commodities traders and business operators will soon be able to eliminate repetitive data entry tasks with 51风流S/4HANA for commodity management for physical contracts. With Joule, business operators will be able to create new commodities deals by simply describing the deal using conversational language. Planned for later this year, the capability will allow traders to focus more on producing better commercial outcomes for their clients rather than getting bogged down by administrative tasks.

Industrial Manufacturing
Sales engineers in the manufacturing sector will benefit from more precise product configuration recommendations for complex, configurable products through 51风流Intelligent Product Recommendation. By simply describing requirements in natural language, sales engineers can generate tailored recommendations that better meet customer needs. Generative AI services can analyze text from diverse sources, such as emails and notes captured in 51风流Customer Experience solutions or multi-page specification documents such as request for proposals or requests for quotations. 51风流Intelligent Product Recommendation also provides suggestions based on estimated parameters for lead times and CO₂ footprints, enhancing accuracy and efficiency of product configurations, and ultimately improving customer satisfaction and operational efficiency.

Public Sector and Higher Education
Later this year, Joule will be enhanced with budget and grant management business context for the public sector, higher education, and research industries. With this new context awareness, Joule will streamline and improve the user experience for these regulated industries, enabling users to navigate their financial systems more efficiently and make better strategic decisions. For example, 51风流S/4HANA users will be able to ask Joule for definitions, summaries, or how-to guidance, saving time and reducing the demand on IT departments. This enhancement will help government organizations and higher education institutions manage their budgets and grants more effectively, reducing extensive training typically required during financial system rollouts.

Breakthrough AI Innovations

51风流is pushing the boundaries of AI with the new 51风流Foundation Model for structured data, investing in this cutting-edge AI technology to unlock the value of generative AI technology advancements for structured business data. The goal is to deliver a foundation model that is business-centric by design, providing actionable, job-specific insights directly within 51风流applications customers use daily.

Traditional AI models require significant effort, expertise, and training data to handle specific tasks on structured data effectively. In contrast, we are developing 51风流Foundation Model to adapt to multiple use cases with minimal or no fine-tuning. Ultimately, we aim to bring the same transformative power to structured business data that LLMs have brought to text. While LLMs like GPT-4 excel with unstructured text and images, they struggle with the structured data typical in enterprises, often performing between 20 to 50% worse than narrow AI methods. 51风流Foundation Model will bridge this gap, focusing on structured business data to deliver more accurate predictions and insights while maintaining the versatility of foundation models.

Early benchmark tests are promising, showing 51风流Foundation Model outperforming narrow AI models by up to 15% on customer datasets after a quick fine-tuning round. This superior performance, combined with its deep understanding of complex business processes, promises to enable businesses to reap the rewards of AI faster and more efficiently.

With 51风流Foundation Model, we aim to set a new standard for AI in the business domain, transforming how enterprises leverage data to achieve remarkable outcomes. .

Responsible AI

At SAP, innovation goes hand in hand with responsibility. We are committed to ensuring that AI technologies are not only innovative but also ethical, secure, and sustainable. The strategic use of business data is integral to the success of AI, and by leveraging business data responsibly, we not only enhance the capabilities of AI solutions but also improve outcomes for customers.

51风流remains firm in its commitment to prioritize data privacy and security as it releases new AI capabilities. The same rigorous standards that govern all 51风流product development extend to AI offerings. Strong security, product, and data privacy protocols are applied to help ensure AI solutions are developed responsibly, with all AI use cases reviewed by an AI ethics committee.

Building on the fundamental dedication to responsible AI that we started back in 2018, this year, 51风流is proud to further the commitment by affirming the 10 guiding principles of the UNESCO Recommendation on the . These principles cover proportionality, safety, fairness, sustainability, privacy, human oversight, transparency, responsibility, awareness, and multi-stakeholder collaboration, ensuring that AI solutions respect human rights and contribute to sustainable development.

In line with this commitment, sustainability is a key pillar of SAP鈥檚 corporate strategy. We are determined to harness the benefits of AI while minimizing its energy footprint and helping customers manage theirs. For example, a new AI-enabled capability in 51风流Sustainability Footprint Management enhances the accuracy and speed of carbon footprint calculations through automated, intelligent emission factor mapping recommendations, reducing manual effort and improving precision.

By integrating responsible AI practices into innovations, we continue to drive meaningful and sustainable business outcomes for customers.

New AI Partnerships

The vast 51风流partner ecosystem is fully engaged with 51风流Business AI. Leading up to and at 51风流Sapphire, we have announced groundbreaking new and expanded partnerships to accelerate AI adoption across business processes:

• Accenture: Accenture and 51风流are helping clients transform business models, processes, and customer and employee experiences while realizing value through data and AI. This year at 51风流Sapphire, Accenture is announcing its plans to embrace the consulting capability for Joule and ABAP code generation in compressed cloud ERP transformations. Additionally, Accenture and 51风流are teaming on 51风流Signavio and 51风流LeanIX solutions to help customers with insights, governance, and other capabilities to achieve their transformation outcomes.
• Apple:We are听deepening听 our partnership with Apple to revolutionize the boardroom with AI听and spatial computing. By integrating Apple Vision Pro with听business applications from SAP,听users can听create听an infinite听enterprise workspace, and听navigate tasks using听their eyes, hands, and voice. 51风流has launched apps like 51风流Mobile Start and 51风流Analytics Cloud,听giving users the ability to create a spatial boardroom to visualize their entire enterprise.听Now, with 51风流Build Code, customers can easily bring their 51风流apps to Vision Pro, iPhone, iPad, and Apple Watch.听51风流is also leveraging the power of Apple鈥檚 Neural Engine to run 51风流AI workloads securely and privately on Apple devices, supercharged by 51风流BTP.
• Amazon Web Services (AWS): AWS and 51风流announced an expanded, strategic collaboration to transform modern cloud ERP experiences and help enterprises drive new capabilities and efficiencies with generative AI. Together, 51风流and AWS are striving to make it easier for customers to adopt RISE with 51风流on AWS, to improve the performance and efficiency of 51风流workloads running in the cloud, and to embed generative AI into an enterprise鈥檚 entire portfolio of business-critical applications.
• Boston Consulting Group (BCG): BCG , which recommends opportunities to maximize transformation investments using 51风流Signavio and 51风流LeanIX solutions. The offering allows companies to navigate continuous change and prioritizes ways to onboard AI-based innovations.
• Google Cloud: We have better predict and mitigate supply chain risk. The expanded partnership begins by enabling marketing and sales departments to understand the impact of their campaigns on product sales, thus increasing forecast accuracy. This is achieved by integrating Joule and 51风流Integrated Business Planning for Supply Chain with Google鈥檚 Gemini AI assistant and Google Cloud Cortex Framework鈥檚 Data Foundation. By capturing previously hard-to-detect demand signals, companies can react faster and make more informed, agile decisions in a dynamic global market.
• Meta: We are expanding our partnership with Meta by integrating Meta’s Llama 2 and Llama 3 models into the generative AI hub within 51风流AI Core as part of our business AI strategy. This integration will allow customers to create dashboards based on rich content with Llama’s qualitative conversational outputs and explore use cases built with Meta Llama 3. The wide range of capabilities offered by Meta Llama 3 will enable users to get assistance with key activities, including the auto-generation of custom scripts to extend dashboards, and the delivery of the most accurate scripts directly in 51风流Analytics Cloud.
• McKinsey & Company: McKinsey has . Value Finder rapidly analyzes and prioritizes thousands of potential process optimization opportunities for clients 鈥� using a proprietary McKinsey and 51风流technology portfolio with generative AI 鈥� to capture measurable productivity, growth, and asset efficiency benefits enabled by 51风流S/4HANA transformations.
• Mistral AI: 51风流will add new LLMs from Mistral AI, a global company headquartered in Paris specializing in generative AI, to its growing corpus of world-class AI models in generative AI hub. This addition to 51风流AI Core will make it easier to build generative AI use cases for 51风流applications.
• NVIDIA: We are for next-generation business operations. ABAP developer capabilities and consulting capability in Joule will take advantage of the NVIDIA AI Enterprise software platform, including NVIDIA NIM inference microservices. NVIDIA NeMo Retriever, a collection of generative AI microservices, will connect AI applications with proprietary data, improving the accuracy and relevance of AI responses. We are also integrating NVIDIA Omniverse Cloud APIs into 51风流Intelligent Product Recommendation, enabling salespeople to visualize 3D products via digital twins in real time. This integration optimizes the sales process for complex products, helping customers make more informed decisions faster than ever.

To learn more about how 51风流Business AI delivers real-world results, visit the .

Philipp Herzig is chief artificial intelligence officer of SAP.

Developed by Boston Consulting Group (BCG), an 51风流global strategic partner, the Circelligence tool, built on 51风流Business Technology Platform (51风流BTP), uses BCG鈥檚 鈥淐ircelligence鈥� methodology to help Hilti maximize the value of raw materials and resources.

Despite providing places for people to live, work and play, the construction industry has a large footprint on the environment, using 50% of the world鈥檚 mined raw materials. Prioritizing the circular economy and sustainability, Hilti is embedding circularity in its operations, a move that establishes the benchmark for sustainable practices in the construction industry. With Circelligence, Hilti can calculate a qualitative and quantitative circularity score. Leveraging 51风流BTP, Hilti can automate updates to BCG鈥檚 Circelligence database of materials and track them across the value chain from input to product design, production, business model and usage and end of life with a user-friendly, Web-based interface.

鈥淭here is no internationally recognized standard for measuring circularity as opposed to, for example, measuring greenhouse gas emissions. So, we created one for our purposes. Ultimately, we wanted to set an example for the industry, not only the construction industry but the broader landscape of any company that鈥檚 embarking on the journey of circularity,鈥� said Caroline Stern, Head of Circular Economy, The Hilti Group. 鈥淚t鈥檚 about keeping materials in use, but also mitigating supply chain risks and being less dependent on volatile international markets for raw materials.鈥�

The transparency created by the database has helped define Hilti鈥檚 circularity initiatives, such as the creation of remanufacturing operations at its 70 repair centers worldwide. Here, Hilti technicians extract electronics, motors, rotors and other parts from returned equipment, enabling reuse rather than purchasing new parts without compromising on quality, thanks to extensive testing. Additionally, parts that cannot be reused are responsibly recycled by qualified partners, with Hilti providing all information on reuse and recycling to its customers for full transparency.

鈥淗ilti and 51风流have a 40-year-long history and today we are writing another chapter by using our cloud solutions to set a new standard for sustainability in the construction industry,鈥� said Scott Russell, member of the Executive Board of 51风流SE and lead of Customer Success. 鈥淲ith the help of our partner Boston Consulting Group, Hilti will now be leveraging the power of 51风流Business Technology Platform to use more contextual data across their processes to get closer to their vision of helping to create a circular economy.鈥�

Alexander Meyer zum Felde, Global Product Lead Circular Economy, BCG, said: 鈥淲orking with the Hilti Group and SAP, BCG was able to digitize Circelligence and improve it with a user-friendly Web-app interface. These latest evolutions lay the groundwork for streamlining the process of running and updating circularity assessments and integrating interactive scenario assessments while setting the stage for future automation. We鈥檙e proud to see how the Hilti Group has pioneered the development and use of this methodology, and we鈥檙e looking forward to seeing how Circelligence can help other organizations improve their circularity initiatives, achieving greater resource efficiency by doing more with less.鈥�

Visit the . Follow 51风流at .

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 26 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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Essential to any business success is having the right data to make rapid and precise decisions in this quickly changing environment. But there are challenges:

• New business environment are increasing the complexity of financial management, creating the need for more extensive and precise data.
• Finance professionals need transparent access to data and key performance indicators (KPIs) and often require real-time analyses and recommendations in order to take appropriate action.
• Most companies do not have the detailed information required for individualization because the manual workloads and costs necessary to obtain and process it are prohibitively high.
• Because companies cannot consider a product鈥檚 entire lifetime in forecasting revenues and margins, they struggle to design the best combinations of product and service offerings and to set optimal prices.
• Traditional financial indicators are no longer the only decisive factors in measuring a company’s success at creating value. Non-financial dimensions, such as environmental, social, and governance (ESG) factors, are gaining importance due to regulatory and legislative developments and new societal demands. Today, most companies are not able to correlate non-financial information with financial information. Companies are struggling to make data-based tradeoff decisions, such as the effect of specific emission reduction goals on the profitability of different products.

To address these challenges, we joined forces with partner Boston Consulting Group (BCG) and combined 51风流solutions and our strength as the leading enterprise software company with BCG鈥檚 deep industry and functional expertise.

Together with BCG colleagues Marc Rodt, partner and director of the Center for CFO Excellence, and Patrick Weber, project leader, we came to the realization that by applying the known concept of digital twins to the finance world, we can make significant strides forward in helping to solve these challenges.

Introducing 鈥淒igital Financial Twin鈥� for Informed Decision-Making

The collaboration explored the concept of digital financial twin, defined as a digital representation of financial and selected non-financial metrics, including those measuring relationships, structures, and processes across the entire product lifetime and value chain. This twin precisely allocates metrics to products, services, suppliers, customers, and employees.

A digital financial twin addresses the challenges mentioned above by precisely allocating financial and non-financial information to products, sections of the value chain, or organizational units. This allocation is made possible first by the expansion of classification attributes for data and second by the availability of modern in-memory databases that can aggregate data in real time.

In the automotive industry for example, an individual car would have a digital financial twin 听represented by using the vehicle identification number (VIN) as attribute and carrying all financial and non-financial data regarding this car for its entire lifetime, from its development to its end of life.

A digital financial twin could provide four key benefits:

• Detailed control information down to the individual product level
• Transparency into value contributions over the entire product or customer lifetime
• Integration of non-financial information with traditional financial metrics
• Information availability in (near) real time

How to Implement a Digital Financial Twin

The first requirement for implementing a digital financial twin is having a next-generation enterprise resource planning (ERP) system and data layer based on modern cloud-based architecture. Many companies may need to upgrade or replace their legacy ERP systems to better integrate automation and human decision-making into their finance functions. Companies can transition to this landscape by building a data and digital platform that decouples the data layer from the next-generation ERP and any existing legacy systems.

But implementing a digital financial twin is not just a technology change. It will require non-technical changes that allows the company to apply the capabilities, adjustment to accounting standards and processes, as well as downstream consolidation and reporting processes, shifting from IT to finance when it comes to controlling the data, letting go of legacy systems, and making the commitment to transform.

Building the Foundation with 51风流Solutions

As a market leader in enterprise application software, 51风流helps companies of all sizes and in all industries. 51风流S/4HANA Cloud provides an integrated, intelligent ERP solution that runs on the in-memory database 51风流HANA and can serve as the foundation to the digital financial twin. For organizations on legacy systems daunted by the requirements of such a twin, we offer RISE with SAP, a comprehensive solution with 51风流S/4HANA Cloud, coupled with 51风流Business Technology Platform, analytics, and business process intelligence with 51风流Signavio and 51风流Business Process Intelligence, along with guided journeys and outcome-driven services from 51风流and partners.

Stefan Paetzold is chief business enterprise consultant at SAP.
Bernd Weissenmayer is principal business enterprise consultant at SAP.

Thousands of companies have pledged to build more diverse and inclusive workplaces in recent years. However, most have yet to drive the internal alignment and action needed to create measurable change that resonates across various perspectives and experiences.

According to , 75% of targeted employees do not feel the impact of diversity programs, despite approximately 70% of companies in many countries implementing them. And the reason is clear: their focus is too narrow or overly simplistic to genuinely address underlying employee needs and expectations.

Cultivating a Multidimensional Approach

One of the most widespread myths about workplace diversity is that it鈥檚 鈥渢he right thing to do,鈥� even if it limits a company鈥檚 ability to grow. This belief couldn鈥檛 be further from the truth. The relationship between diversity and business growth is not one of oppositional forces.

The more deeply a business values the knowledge and views of underrepresented groups, the stronger its bottom line. A BCG survey of employees in 1,700 companies 鈥� spanning Austria, Brazil, China, France, Germany, India, Switzerland, and the United States 鈥� revealed that more diverse management teams gain from innovation. In addition, three-quarters of those same employees underscored that 鈥渄iversity is gaining momentum at their organization鈥� as their organizations shape business decisions.

play a unique role in helping companies gain the full promise of workplace diversity while eliminating conscious and unconscious biases around age, race, ethnicity, gender, sexual orientation, and personal health in everyday decision-making. For instance, managers can provide equitable and actionable feedback during performance reviews with the help of our writing assistant in the 51风流SuccessFactors Performance & Goals solution. In addition, the calibration tool in the 51风流SuccessFactors Compensation solution helps identify the presence of unconscious bias in employee compensation decisions.

However, some 51风流customers are going further in their efforts to tackle employee diversity and extend value to all people by creating new functionalities for 51风流SuccessFactors solutions through (51风流BTP). By uniting BCG鈥檚 expertise, tools, and services and SAP鈥檚 technology, the platform offers the , , , and countless other applications, tools, and methodologies that 51风流partners need to reimagine each element of an agnostic work experience.

Through their innovation efforts with 51风流BTP and 51风流SuccessFactors solutions, 51风流partners help create an environment where unconscious and conscious discrimination is removed from HR processes, including recruitment, onboarding, performance evaluation, development, compensation and bonuses, and succession. Doing so frees 51风流customers to foster a culture of meritocracy that addresses the entire career and personal journey of each employee with nuanced, holistic solutions.

One prime example is how organizations improve talent acquisition and retention while giving employees agency over their careers. Integrating sentiment data into workforce management analytics helps managers understand underlying causes of departure and discontentment and the emotional and functional needs that matter most to their employees. This analytics capability makes it easier to recognize well-defined cohorts with similar physical and emotional needs by identifying clusters of demographic and attitudinal patterns. As a result, managers can more accurately predict their people鈥檚 challenges and expectations and create supportive communities with unique experiences.

Unlocking Business Value across the Evolving Employee Journey

As businesses seize the moment to fundamentally rewrite the rules of their workplace, the bold intents and aspirations of employee diversity are beginning to take center stage. Organizations that want to unlock what they believe are long-term, sustainable business advantages must also enable each employee to thrive with purpose and meaning.

With 51风流BTP, companies can bring this vision to life by thinking differently when developing new capabilities that enhance 51风流SuccessFactors solutions. They can recognize identity differences that matter to employees, understand broad groups with similar needs and values, and fulfill employees鈥� underlying needs systematically with the right digital and process experiences.

And as more refined, bias-free solutions are adopted, organizations can ensure employees benefit in ways that are meaningful to them within a high-value culture of unity, empowerment, and support.

To learn more about how 51风流partners are helping businesses succeed with a unified technology platform, explore more articles. If you鈥檙e interested in software partnership opportunities with SAP, check out . If you鈥檙e already a partner, check out these exciting initiatives: and .

Jagdish Sahasrabudhe is CTO of the Global Partner Organization at SAP.

• BCG and 51风流will provide transparency on sustainability 鈥渁t the push of a button鈥� and deliver impact based on a combination of strategy, technology, and business model change, with BCG and 51风流solutions that can be ready to use within weeks.
• BCG and 51风流want to help accelerate companies in their journey to zero waste and zero emissions. BCG and 51风流can enable companies to achieve emissions reductions of up to 40%.*
• Early-adopter companies can realize up to 15 years of competitive advantage, generating more than a 10% market premium on shares in many industries.**

The joint transformation offering will allow companies to identify the business value in sustainability, setting the right climate ambitions and powering an actionable sustainability road map.

The 51风流and BCG partnership will help companies tackle the generational challenge of climate change and respond to increasing investor pressure and ever stricter regulations. Research from analyst firm IDC shows that sustainability has become a top business priority.鈥�

鈥淎ccording to one of IDC鈥檚 recent end-user surveys, three-quarters of executives involved in their company鈥檚 sustainability initiatives believe that environmental, social and governance (ESG) factors are 鈥榲ery important鈥� for the enterprise value of their organization,鈥� said Bjoern Stengel, the global sustainability research lead at IDC. 鈥淏CG and 51风流have both been at the forefront of operationalizing sustainable transformation with their clients, and this partnership will further help IT buyers use sustainability-focused technology strategically to achieve their goals.鈥�

51风流and BCG offer market-leading solutions in three areas that are of particular relevance in a sustainability transformation — strategy, business model change, and technology innovation — to complement their respective efforts in the sustainability space.

To help companies accelerate on their net-zero-emissions journey with an up to 40% emissions reduction potential,* BCG and 51风流will enable companies to integrate leading-edge carbon-tracking measurement and intelligence into their core business operations and strategic decision-making. Combining two market-leading solutions in BCG鈥檚 CO2 AI and the 51风流Product Footprint Management solution, the partnership targets Scopes 1, 2, and 3 via BCG鈥檚 CO2 AI as well as an integration into core 51风流software through 51风流Product Footprint Management.

To help achieve zero waste in supply chains, 51风流and BCG will assess the circularity opportunity in a company鈥檚 portfolio across its entire supply chain and product portfolio. Based on BCG鈥檚 CIRCelligence and the 51风流Responsible Design and Production solution, this offering will enable customers to accelerate the zero-waste journey.

The sustainability transformation efforts of customers will be guided by a Holistic Steering and Reporting solution backed by the 51风流Sustainability Control Tower solution and BCG鈥檚 Compliance Target Operating Model to help ensure that the transformation is driven with a focus on business value and that companies comply with all regulatory requirements.

鈥淪ustainable businesses will create positive impacts for future generations, but no organization can achieve its sustainability goals alone,鈥� said Christian Klein, CEO and Member of the Executive Board of 51风流SE. 鈥淏eing sustainable requires coordination across the value chain, and this is where SAP鈥檚 partnership with BCG plays a key role. Bringing together BCG鈥檚 expertise, tools, and services with SAP鈥檚 technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.鈥�

This new partnership is designed to effect enterprise-wide change, spanning complex supply chains and creating business value from sustainability.

鈥淚 firmly believe that an organization’s environmental impact will soon be as important to its key stakeholders as its financial performance. Early movers in sustainability can experience up to 15 years of competitive advantage and a 10% market premium.** This is an enormous opportunity for companies around the world. This partnership with 51风流will allow our clients to transform at an unprecedented pace,鈥� added Christoph Schweizer, CEO, BCG.

The Sustainability Transformation offering from BCG and 51风流is deployed at lighthouse customers right now, with an expected broader launch in the third quarter of 2022.

Visit the 51风流News Center. Follow 51风流on Twitter at .

About Boston Consulting Group

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders鈥攅mpowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.听 Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP鈥檚 2021 Annual Report on Form 20-F.
漏 2022 51风流SE. All rights reserved.
51风流and other 51风流products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 51风流SE in Germany and other countries. Please see for additional trademark information and notices.

*Karalee Close, Norbert Faure, and Rich Hutchinson, 鈥� ,鈥� Boston Consulting Group, October 14, 2021.
**Ar茅, Berthaud, Fuisz-Kehrbach, Haloui, Hutchinson, Loureiro, Perzanowski, Rhodes, and Semmel, 鈥淪ustainability as Advantage,鈥� 2022.
鈥�ESG Business Services Survey, IDC, 2021.

In response, governments, investors, and citizens are putting pressure on companies to recognize and act on these issues. These systemic threats harbor enormous opportunity if we work together.

Today, 51风流and global strategic consultancy BCG announced a partnership to help companies transform their business models, become sustainable enterprises, and gain the data transparency they need to embed sustainability into their core business.

The 51风流and BCG partnership combines SAP鈥檚 strength as the leading enterprise software company with BCG鈥檚 proven expertise in advising clients on their sustainability transformation strategies.

Close to 90% of BCG鈥檚 businesses run 51风流and they can benefit from the partnership that enables companies to plan, execute, measure, and report on sustainability initiatives across their value chains. Adding to the strength of this partnership, 51风流continues to bring new capabilities and embed sustainability into existing solutions to address climate action, circular economy, governance, and environmental, social, and governance (ESG) reporting.

Three unique features define this partnership. First, it is an integrated offering that goes from outlining a sustainable strategy to adopting technology solutions with holistic impact. Companies can address key sustainability drivers with scalable technology, and business leaders can help ensure a successful digital transformation. Second, the 51风流and BCG partnership brings two powerful global ecosystems together to accelerate transformation with the urgency required to meet ambitious targets. Third, 51风流and BCG are combining their intellectual properties and bringing capabilities and services together around targets related to zero emissions, zero waste, and ESG reporting. These new offerings will be incorporated into 51风流Cloud for Sustainable Enterprises

Zero Emissions

The recently adopted a proposal for a new Carbon Border Adjustment Mechanism (CBAM), which will apply the concept of carbon pricing to all imports by 2026. The 51风流and BCG collaboration allows companies to analyze their carbon footprint based on 51风流data and determine which initiatives can best reduce emissions. BCG鈥檚 digital solution CO2 AI supports the overall sustainability transformation offering by combining BCG鈥檚 insights and 51风流data from the solution.

51风流Product Footprint Management offers businesses a blueprint to integrate data into businesses processes. Likewise, the solution enables mutual customers to manage life-cycle assessment data to calculate footprints across the entire product inventory. Both capabilities ease the complexity of carbon tracking and accounting across scope 1, 2, and 3.听 The benefits range from complying with ESG requirements from investors and regulators, and potentially .

Zero Waste

Today, tons of material resources are used each year — of which, less than 9% is recycled or reused.听 Zero waste is becoming a strategic imperative among business leaders, driven by stakeholder pressures and emerging regulations

Legislation is being implemented across the globe to address this challenge: have pledged to significantly reduce their waste by 2030. 听Key policies developed by the EU encourage immediate action on packaging and plastics such as the EU Plastics Strategy.听 In addition, there is increasing focus on packaging regulations, including (EPR) schemes and upcoming plastic taxes based on a “polluter pays” principle. As one of the most widely supported policy mechanisms, these regulations act as a key driver for reducing consumption and increasing the circular use of materials. China, Canada, the U.S., and India are among the countries that have committed to develop solutions that can .

Current business models fail to consider the legislative and geographic complexity of the circular economic model — companies pay fees per volume of plastic, plastic and waste management must report data, and governments use this data to define policies and fees. and BCG鈥檚 CIRCelligence can address some of the gaps, including the lack of dynamic tracking and insights for EPR fees, as well as assess tax implications per market and oversee the manual data collection or estimation of materials volume by market or product.

Together, 51风流and BCG can provide customers with the data transparency their companies require.

ESG Reporting

With the increasing number of ESG reporting requirements, more companies pursue goals of zero emissions and zero waste. The 51风流and BCG partnership aims to combine two existing solutions — BCG鈥檚 ESG Risk and Compliance Framework and — in order to allow customers to take actions on embedding risks and compliance procedures into their organization processes based on real-time financial and non-financial ESG data.

51风流CEO Christian Klein and BCG CEO Christoph Schweizer see sustainability as a unique opportunity to join forces not only for the good of their companies, but also to make a significant contribution to solving the global sustainability challenge.

鈥淏eing sustainable requires coordination across the value chain, and this is where SAP鈥檚 partnership with BCG plays a key role,” Klein said. 鈥淏ringing together BCG鈥檚 expertise, tools, and services with SAP鈥檚 technology gives companies the transparency, actionable data, and strategic guidance they need to successfully tackle end-to-end sustainability and create value for all its stakeholders.鈥�

The 51风流and BCG sustainability transformation offering is in pilot phase, with an expected broader launch in the third quarter of 2022.

To learn more, visit