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Implementation Machine Learning in SAP S/4HANA- Operationalize Intelligence


We have been hearing/reading lot about SAP S/4HANA – Intelligent capabilities to consume and build applications infused with Machine Learning capabilities for text processing, image processing, predictive analytics…

In this article I would like to share the strategic dimensions and Intelligent Enterprise Solutions guiding principles enabled SAP to Operationalize Intelligence and thus increased process automation, faster response times.

SAP S/4HANA the Digital core ERP system acts as central system for an enterprise organization’s business processes infused with Intelligent capabilities.

The question we should probably asks ourselves is “How do we measure the Automation levels and how do we understand the common structure and apply those among business processes “?

To answer the above there are 4 dimensions that one should be looking for automation, these standards have transformed the ERP software.

5-Points formula for each dimension are classified as below , these shall be used to evaluate/measure the level of automation on each dimension ( 1 being Manual – low , 5 being high level of automation)

Data acquisition automation level : The data ingestion process to SAP S/4HANA

  1. Manual entry by user
  2. Manual entry and data integration
  3. Data integration and manual entry (exceptional)
  4. Conversational AI and data integration
  5. AI-based data extraction and integration(eg: PDF document is transformed to structured data and entered by BoT)

Information analysis: The process of studying and interpreting the data insights

  1. Descriptive – what happened
  2. Diagnostic – why did it happen
  3. Predictive – what will happen
  4. Prescriptive – What should we do
  5. Cognitive – self learning analysis of happenings

Decision making: The process of evaluating available solution options , impact analysis and then choosing the logical option

  1. User makes decision
  2. User consumes system events and changes for decision making
  3. system provides relevant information to the user for decision making
  4. System actively evaluates and recommends the decisions
  5. System autonomously makes decisions that are traceable and auditable

Action execution: The process of enforcing instructions to achieve the goal

  1. User performs actions manually
  2. User consumes system events and changes for performing actions
  3. system provides relevant information to the user for performing actions
  4. System actively evaluates and recommends the Actions
  5. System autonomously performs actions that are traceable and auditable



The abstract and construct of the Operationalize the Intelligence explained indeed set the direction forward for the organizations enterprise and solution architects in defining the  strategy , roadmap and embark on to Digital Transformation journey.                                                                                  In the context of S/4HANA Digital Core – one should be able to adopt the above methodology in all possible business model/process capabilities( O2C, P2P,HR,Production,FSCM…) to foster the automation of business processes and thus improve the response times , customer satisfaction.

The expected level of Intelligent applications with in S/4HANA should align with Organization’s Digital transformation roadmap, vision, strategy, key business drivers and capabilities.

Accordingly Organizations should be able to adopt the respective

Source: SAP Press Book – Implementing Machine Learning with SAP S/4HANA – By Siar Sarferaz , Raghu Banda

Refer the Blog Series by @Venkata Raghu Banda for more details on implementing Machine Learning with SAP S/4HANA

Further resources :

Resources and journey to machine learning with SAP S/4HANA | SAP Blogs

Artificial Intelligence in SAP & SAP Data Intelligence – components | SAP Blogs

Thank you


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