SAP's generative AI assistant, Joule, is revolutionizing enterprise operations by offering insights, tailored outcomes, and personalized experiences. According to SAP, this innovation significantly boosts productivity and efficiency. "We are entering a new phase of AI with endless opportunities for all of us," said SAP CEO Christian Klein at the Sapphire 2024 conference in Barcelona. By the end of 2024, Joule will manage 80% of the most frequently used tasks, increasing productivity by 20%.

Joule will streamline tasks in management, billing, cash collections, and finance, expediting processes and compliance checks. It will also serve as a powerful analytical engine, providing strategic recommendations using an extensive business-to-business data model. This model includes finance, supply chain, HR, sales, and ESG data from thousands of customers, enabling Joule to optimize operations.

During Klein's keynote, Nvidia CEO Jensen Huang praised SAP's role in managing Nvidia's complex supply chain, highlighting Joule's transformative potential. "This is the beginning of a new computing age, the beginning of a new industrial revolution," said Huang.

Dr. Philipp Herzig, Chief AI Officer of SAP, noted that internal use of Joule saved SAP consultants up to 2 hours daily. With over 50 SAP certification programs and 2TB of curated content integrated into Joule and powered by Nvidia's technology, these productivity gains could save up to 600 million working hours annually.

SAP has expanded its strategic partnerships with Google and Meta. The collaboration with Google enhances supply chain risk prediction by integrating Joule with Google’s Gemini AI assistant and Cloud Cortex Framework. The partnership with Meta leverages its advanced language model to enhance SAP SuccessFactors and SAP Analytics Cloud, transforming enterprise requirements into actionable insights.

Major Partnership Enhances Cloud ERP Capabilities

Ahead of its Sapphire 2024 conference in Orlando, SAP has announced an expanded strategic collaboration with AWS to enhance modern cloud ERP experiences using SAP GenAI (generative artificial intelligence). This partnership, led by new AWS CEO Matt Garman, aims to provide a significant boost for SAP cloud customers.

Streamlined RISE with SAP on AWS

The collaboration seeks to simplify the adoption of RISE with SAP on AWS, improve the performance and efficiency of SAP workloads in the cloud, and integrate SAP GenAI into essential business applications.

“AWS was the first cloud provider certified to support the SAP portfolio, and today, thousands of enterprises run SAP solutions on AWS to maximize their mission-critical applications,” said Garman. “Now, AWS and SAP are making it easier for companies to apply generative AI to their core business data to become more efficient, responsive, and sustainable.”

Accelerating Innovation with Generative AI

Christian Klein, CEO of SAP SE, highlighted the importance of this partnership: “Partnerships like this with AWS are critical as we embed generative AI solutions across our ERP applications, enabling customers to drive innovation at an accelerated pace. We are excited to support Amazon on their own transformation journey with RISE with SAP for pioneering projects like Project Kuiper, Amazon’s satellite initiative.”

Integration of Generative AI Models

The SAP AI Core infrastructure’s generative AI hub will provide secure access to a wide range of large language models (LLMs) for SAP business applications. By integrating GenAI models from Amazon Bedrock, SAP customers can leverage high-performing LLMs and foundational models to build customized applications.

This integration will help SAP customers adopt GenAI and modernize key business processes on SAP solutions. These innovations can be used within RISE with SAP and intelligent scenario lifecycle management, either as an integration component or directly on SAP Business Technology Platform (SAP BTP).

SAP and AWS will expand the use of Bedrock capabilities in the generative AI hub to enable further embedded AI functionality in SAP’s cloud solutions, including finance and product lifecycle management.

Leveraging AWS Graviton and Trainium

SAP currently uses AWS Graviton3 chips to support SAP HANA Cloud. The partnership includes collaboration on the next generation of Graviton4 for SAP HANA Cloud and other SAP applications. SAP also plans to use AWS Trainium and AWS Inferentia chips for AI and machine learning workloads, enhancing the development process of SAP GenAI.

Enhanced Memory and Flexibility with Amazon EC2

AWS has improved its memory database with Amazon EC2 High Memory U7i instances, offering up to 32TiB of memory in a single instance. These instances support expanding SAP HANA database requirements and improve the performance of memory-intensive applications like SAP S/4HANA Cloud as part of RISE with SAP.

Microsoft has officially launched GPT-4 Turbo with Vision, a robust addition to their Azure OpenAI Service capable of handling both text and image data. This multimodal AI model, now generally available, marks a significant upgrade in capabilities.

The newly released GA model, named gpt-4-turbo-2024-04-09, supersedes several preview models, including gpt-4-1106-preview, gpt-4-0125-preview, and gpt-4-vision-preview. Customers in Sweden Central and East US 2 regions of the Azure OpenAI Service can seamlessly deploy this advanced model through the Studio UI.

For users currently utilizing the preview models with auto-update functionality enabled, Microsoft will automatically transition them to the latest version starting from June 10th onwards, with prior notification to customers. Although certain features such as Optical Character Recognition (OCR) and video prompts from the preview models are not yet integrated into the GA release, Microsoft assures continuous efforts to incorporate them into future iterations. Furthermore, enhancements such as JSON mode and function calling for image inputs are in the pipeline, promising additional functionalities to augment the model's capabilities.

This GA release signifies a significant advancement in AI technology, empowering businesses to achieve higher levels of efficiency and innovation through robust text and image analysis. With ongoing development and feature integration efforts, Microsoft demonstrates its commitment to maintaining the forefront position of this technology in the AI landscape.

The German operator becomes the first major enterprise to announce its transition to SAP's managed offering, Rise and Grow. Over 300 systems will transition to the new generation of software. SAP achieves a significant milestone in its effort to shift its installed base towards its managed offerings, known as Rise with SAP and Grow with SAP. As part of the partnership between SAP and T-Systems on these offerings, the parent company of the German IT services provider, Deutsche Telekom, will migrate a large portion of its ERP environments to Rise. The project involves consolidating over 300 different systems into both public and private cloud, according to a statement from the Waldorf-based software vendor, without further detail.

"With SAP S/4 Hana Cloud, Deutsche Telekom will enhance the efficiency of key business functions such as logistics, procurement, and finance," assures Peter Laukert, CIO of the leading European telecom operator, which boasts over 252 million mobile customers, manages 25 million fixed lines, and 22 million broadband lines. While the project will showcase T-Systems' expertise in this type of migration, it marks a significant endorsement of the strategy of the leading European software vendor, which is now pushing its customers towards its cloud offerings.

GetLink, an 18-month project

In France, Getlink, the operator of the Channel Tunnel infrastructure, has completed its migration to Rise with SAP after an 18-month project. Led by the specialized provider Pasàpas, a subsidiary of the Talan consultancy, the project aimed to replace aging versions of SAP (ECC 6.0, BW 7.0, and CRM 7.0) and was sequenced into two major phases: a progressive technological migration of components and functional optimization.

It is worth noting that SAP's insistence on leading its installed base towards its managed cloud offerings has irked the vendor's customer base, a large portion of which has initiated or plans to modernize their software to the S/4 Hana generation without necessarily embracing the shift towards the latest offerings from the vendor. "Our members would first like to complete the transition to S/4 and understand the value of migrating to Rise. We feel like we're witnessing a rush forward, and the gap between what companies expect and what SAP provides is growing," explained Gianmaria Perancin, president of USF (the French-speaking SAP users' club), in our columns last February. Although since then, the atmosphere has somewhat calmed following assurances, particularly from SAP France.

Recently, SAP has acquired LeanIX, a renowned powerhouse in Enterprise Architecture Management (EAM) software. LeanIX boasts a strong track record of leveraging its Software as a Service (SaaS) solutions, artificial intelligence (AI) enhancements, and expertise in EAM to drive businesses towards modernizing their IT landscapes and spearheading business transformation initiatives.

By joining forces with LeanIX, SAP aims to bolster its business transformation portfolio by introducing a transformation suite. This suite will provide customers with access to a comprehensive set of tools necessary for achieving continuous business transformations. The transaction is slated to close in the fourth quarter of 2023, pending customary closing conditions and regulatory approvals.

LeanIX has long been a strategic partner of SAP and SAP Signavio solutions, playing a pivotal role in numerous CIOs' digital transformation journeys as part of their RISE with SAP initiatives. Christian Klein, CEO of SAP SE, emphasized the symbiotic relationship between systems and processes, highlighting the goal of offering a groundbreaking transformation suite in collaboration with LeanIX. This suite aims to offer holistic support to customers on their business transformation journeys, leveraging generative AI to deliver self-optimizing applications and processes that align with key business objectives.

The acquisition of LeanIX complements SAP Signavio solutions' transformation capabilities, laying the groundwork for AI-enabled process optimization. LeanIX's recent introduction of an AI assistant further demonstrates its commitment to enhancing enterprise architecture management through increased automation and intelligent recommendation engines.

SAP's new business transformation solution suite is designed to provide customers with a comprehensive view of their business processes and applications. By overlaying process dependencies and mapping potential transformations' impact on the IT landscape, SAP aims to enable customers to foster a culture of continuous adaptability and improvement. LeanIX's expertise in IT landscape transformation, combined with SAP Signavio Process Transformation Suite, RISE with SAP, and SAP Business Technology Platform, promises to empower SAP customers across various industries to navigate technological shifts such as cloud computing and AI seamlessly.

With over 1,000 global clients spanning diverse industries, including a significant presence among Fortune 500 companies and half of the German DAX 40, LeanIX has established itself as a formidable player in the enterprise architecture management space. André Christ, CEO and co-founder of LeanIX, underscored the company's unwavering commitment to customer-centricity, superior usability, and seamless ecosystem integration. LeanIX's strategic vision revolves around empowering organizations to adapt continuously in a rapidly evolving business landscape by providing them with an integrated view of IT applications and business processes, thereby accelerating modernization efforts and mitigating transformation risks.

In today's rapidly evolving landscape, the adage "disrupt yourself or risk being disrupted" holds true across all industries. However, in the automotive sector, disruption presents a monumental opportunity for growth and innovation.

The pace of change within the auto industry is staggering, with vehicles undergoing remarkable transformations in recent years. From the integration of advanced autonomous driving capabilities to heightened connectivity with the surrounding environment, the evolution is palpable. Moreover, the surge in demand for electric vehicles signals a positive shift towards sustainability, benefitting both consumers and the planet. Concurrently, consumer purchasing behaviors are evolving, with an increasing number of individuals turning to online platforms for their vehicle shopping needs.

The advent of generative AI is further catalyzing change by streamlining labor-intensive tasks and revolutionizing data utilization across various automotive processes. This technology is revolutionizing everything from design and forecasting to manufacturing and customer engagement, fostering a more personalized experience for consumers.

Precedence Research forecasts that the global market for generative AI in the automotive industry will exceed $2 billion by 2032, underscoring the urgency for automotive companies to embark on digital transformation journeys. But what does this entail?

Digital transformation entails the integration of digital technologies into all aspects of business operations. It empowers companies to capitalize on emerging growth opportunities swiftly and future-proof their operations against unforeseen challenges. By embracing digital transformation, businesses can strategize and adapt simultaneously, driving sustainable growth and resilience.

Numerous success stories within the automotive industry exemplify the transformative power of digitalization. For instance, the BMW Group's longstanding collaboration with SAP has culminated in a significant milestone: the transition to a digitized cloud architecture through SAP S/4HANA for its iFactory in Oxford, UK.

This move marks the inception of a digitized cloud architecture for connected factories, simplifying complex IT system changes across various plant functions. The BMW Group aims to establish a unified digital framework that streamlines operations, reduces costs, and enhances efficiency across its automotive plants, setting a new industry standard for process optimization.

The BMW Group's digital transformation journey underscores the potential unlocked by embracing cloud architecture and integrating generative AI. It signifies a strategic shift towards automation and innovation, positioning the company for sustained success in a dynamic market landscape.

Despite prevailing macroeconomic uncertainties, the future of the automotive industry shines bright for those who prioritize digital transformation. By placing digitalization at the core of their business strategies, automotive companies can unlock boundless opportunities for growth and prosperity in the digital age.

Despite positive financial results and forecasts, SAP, the enterprise software giant, has announced a significant restructuring focused on artificial intelligence (AI). The company revealed a large-scale restructuring plan affecting 8,000 jobs, equivalent to over 7% of its total workforce of 108,000 employees. This move signals SAP's full commitment to realigning its operations around AI-driven activities. With a planned investment of 2 billion euros, SAP aims to implement measures such as employee retraining in AI skills and voluntary departure programs to support this transformation. SAP assures that the majority of affected positions will be addressed through voluntary departures and internal retraining initiatives.

SAP's experimentation with generative AI technology, including the utilization of OpenAI's ChatGPT, will come with significant implications for its employees. The company believes that embracing generative AI will fundamentally reshape its operations and has committed over $1 billion to support AI-focused technology startups through Sapphire Ventures.

CEO Christian Klein stated, "SAP is embarking on a new chapter: through our transformation program, we will accelerate investments in strategic growth areas, particularly enterprise AI." Despite the restructuring, SAP remains confident in its prospects for 2024.

Additionally, SAP shared positive financial forecasts, expecting double-digit growth in cloud-related revenue and an increase in operating profit for the current year. Cloud revenue is projected to grow between 24% and 27% in 2024, building upon a 23% increase in the previous year.

CFO Dominik Asam expressed satisfaction with the company's performance, noting that the restructuring costs will impact the company's accounts in the short term but are expected to enhance productivity in the long run. Profit forecasts for 2025 are anticipated to reach 500 million.

This restructuring reflects a strategic shift for SAP, underscoring its commitment to AI in alignment with current trends in the technology sector. As companies like Google and Microsoft also pivot towards AI, SAP's emphasis on this technology highlights its forward-thinking approach to remain competitive in the industry.

The German parliament has granted approval for legislation aimed at facilitating the acquisition of citizenship and removing restrictions on holding dual citizenship last friday. The proposal, advocated by Chancellor Olaf Scholz's center-left, socially liberal coalition, garnered a majority vote of 382-234, with 23 lawmakers abstaining. While the government contends that the move will enhance immigrant integration and attract skilled labor, the main center-right opposition criticizes it, asserting that it could devalue German citizenship.

The approved legislation reduces the residency requirement for citizenship eligibility from eight to five years, or three years in the case of "special integration accomplishments." German-born children automatically become citizens if one parent has been a legal resident for five years, down from the current eight years. Additionally, the law eliminates restrictions on dual citizenship, a departure from the existing requirement that individuals from countries outside the European Union and Switzerland relinquish their previous nationality upon gaining German citizenship.

The government notes that 14 percent of the population, over 12 million out of 84.4 million inhabitants, lacks German citizenship, with around 5.3 million having resided in Germany for at least a decade. Germany's naturalization rate is reportedly below the EU average. In 2022, 168,500 people were granted German citizenship, the highest figure since 2002, with a notable increase in Syrian citizens being naturalized.

Interior Minister Nancy Faeser emphasizes that the reform aligns Germany with European neighbors like France and aims to attract skilled workers. The legislation specifies that those seeking naturalization must be able to support themselves and their dependents, with exceptions for "guest workers" who came to West Germany before 1974 and those who arrived in communist East Germany to work.

The existing requirement for citizenship applicants to adhere to the "free democratic fundamental order" is retained, with the new version explicitly stating that antisemitic and racist acts are incompatible with this commitment. However, the conservative opposition argues that Germany is relaxing citizenship requirements at a time when other countries are tightening theirs, describing the legislation as a "citizenship devaluation bill."

The citizenship law overhaul is part of a broader series of social reforms agreed upon by Scholz's three-party coalition upon taking office in late 2021.

China Aerospace Science and Technology Corp, the country's primary space contractor, announced the successful launch of three experimental satellites on Saturday morning. These satellites, part of the Space-based Internet Technology Demonstrator series, were developed by the China Academy of Space Technology in Beijing.

The Long March 2C carrier rocket, measuring 43 meters in length and 3.35 meters in width, transported the satellites into their designated orbit. The launch took place at 8:13 am from the Jiuquan Satellite Launch Center in the Gobi Desert of northwestern China.

This mission marks the fourth deployment of satellites in the Space-based Internet Technology Demonstrator series, following previous launches in July, November, and December. The Long March 2C rocket, a product of the China Academy of Launch Vehicle Technology in Beijing, is primarily used for deploying satellites into low-Earth and Sun-synchronous orbits.

Both academies involved in this mission are subsidiaries of the State-owned conglomerate China Aerospace Science and Technology Corp.

Insiders in the space industry note that this successful launch signifies the completion of China's annual space launch plan for 2023. With a total of 67 rocket launches this year, 47 of them were conducted by the Long March rocket family, the country's primary launch vehicle fleet.

Notably, 2023 saw a significant increase in the use of rockets built by private Chinese companies, with a total of 12 such rockets deployed to send satellites into space. This trend underscores the growing influence and participation of private entities in China's evolving space sector.

Accenture and SAP have joined forces to enhance supply chain capabilities using SAP IBP, facilitating swift responses to shifts in supply, demand, and inventory. This collaboration integrates advanced features into SAP Integrated Business Planning for Supply Chain (IBP), serving as a dynamic "nerve center" for improved visibility and risk reduction in today's intricate supply chains. Utilizing cloud resources, generative AI (GenAI), analytics, and data from diverse sources, the nerve center enables organizations to delve deeper into their supply chains. Built on the SAP Business Technology Platform, it connects seamlessly with various SAP applications, offering comprehensive insights and fostering more resilient supply chains.

Key components of the nerve center include a supply chain resilience stress test developed by Accenture and MIT, assessing potential failure points, financial risks, and mitigation strategies. Additionally, it incorporates digital twin software from Cosmo Tech, simulating supply chain behavior under diverse stresses. Currently available, the Accenture supply chain nerve center has already been adopted by a global consumer products company to identify and address supply chain risks, enhancing business continuity.

The partnership responds to the limitations of traditional linear supply chain planning in IBP software, particularly in managing the complexity and disruptions seen today. The nerve center addresses this by incorporating bidirectional internal and external signals, crucial for building accurate plans and navigating dynamic scenarios. This platform is seen as essential for organizations to proactively manage disruptions, as exemplified during the pandemic, where better planning systems could have averted supply shortages in industries like automotive.

Douglas Kent, EVP of Corporate and Strategic Alliances at the Association for Supply Chain Management, emphasizes the need for bidirectional signal access and accurate planning in today's supply chain landscape. The nerve center is positioned to assist organizations in adapting to a more dynamic world and managing ongoing disruptions effectively. While technological challenges are expected to be minimal, the real struggle lies in organizational governance and decision-making alignment, according to Michael Dominy, VP of Supply Chain Research at Gartner. He highlights the importance of achieving internal consensus and execution commitment to realize the full benefits of advanced capabilities.