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SAP S/4HANA Cloud, the Intelligent Cloud ERP: Q2 2019 overview of key business scenarios

Welcome to this quarterly update! I will share again key “intelligent ERP” innovations coming with SAP S/4HANA Cloud 1905, as well as a few innovations planned for future releases.

Let me begin in the Manufacturing area. With the new SAP Fiori app “Record Defect”, the quality technician can effectively record defects with high data quality. The system proposes the simplest matching defect codes automatically; that is predicated on the entered description text employing a predictive analytics model (see picture below).

My next highlight is in Finance, with a machine leaning use case. With accruals management in financial accounting, accountants are now supported by the system as they can have data automatically converted from purchase order items into accrual items, and then they can calculate, check, and post the accruals. Beginning with the 1905 release, intelligent accruals management permits you to use the machine learning service provided by SAP for recommending reliable accruals.

Let’s move to a Procurement highlight: Predictive contract consumption, that is this quarter enhanced by situation handling. With our 1905 release the system proactively alerts the procurement clerk concerning contracts that are expected to be consumed earlier. Procurement organization are able to take necessary steps to mitigate potential risks avoiding negative consequences to the business processes of the corporate. This improves the operational procurement productivity.

Now let’s discuss Enterprise Portfolio and Project Management, where SAP CoPilot was introduced with 1805. With this 1905 update, we are enabling project financial controllers to retrieve insights into project financials with the help of the SAP CoPilot. Financial controllers are enabled to pull a list of projects and filter the list based on parameters like the project manager and the profit center.

SAP CoPilot, SAP’s digital assistant, is enriching quite a few areas this quarter again.

With 1905, new skills or commands, are embedded in several lines of business. In Finance, you can work with “Display Correspondence History” or “Manage Revenue Contract”. In Professional Services I’d like to highlight the enhanced applications “Manage Resource Requests” and “Manage Client Projects”.

This automation of processes will help improve end user efficiency across the line of business, with one intuitive conversational interface.

What’s planned after SAP S/4HANA Cloud 1905? Let me mention three highlights taken from our roadmap.

For Finance: An acquisition order value prediction situation is planned.This intelligent process will reflect costs that are expected, but not yet recorded in financial accounting.

In Manufacturing: We plan to reduce inventory carrying cost by forecasting component demand with predictive material and resource planning (pMRP) to size buffer levels

For Product compliance: We intend to ship the service “Intelligent Compliance Management” with automated substance group assignments which is supposed to be based on machine learning models.

For more information check out the video below.

Looking for more information on this release?

Don’t miss the full collection of innovations per product update is this blog.

Looking for more roadmap information?

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