December 10^th marks Human Rights Day around the world and commemorates the anniversary of one of the world’s most groundbreaking global pledges: the Universal Declaration of Human Rights (UDHR). With societal inequality, conflict, political polarization, and intensifying climate change on the rise, it is ever more important that businesses play their role in living up to this pledge. They should not infringe on human rights and respect the dignity and fundamental rights and freedoms of all individuals who are affected by their activities, products, or services.

I talked to Stephanie Raabe, human rights officer at SAP, and asked her three questions about SAP’s progress in embracing this role in the past 12 months.

Q: A year ago, you explained how SAP was working to take its human rights due diligence processes to the next level. The aim was to improve how SAP “knows and shows” where its actual and potential negative impacts on people are and what actions are taken to prevent or mitigate these. Was this achieved?

A: We are getting there step by step, but there will always be room for improvement. Together with all the teams that are part of our human rights due diligence program, we have further refined and harmonized our methodologies and processes to assess our impacts on people. This provides the basis for defining and fine-tuning appropriate measures.

We now have a deeper understanding of the salient human rights issues across our value chain – be it through the product and services we procure, our own business operations, or the products and services we sell and deliver. We now know better which risks are already well managed through effective policies and measures and where we still have to close gaps.

Q: What does this mean in practice? Can you specify what your findings were?

A: Absolutely! In this year’s assessment cycle, the following impacts were identified to be salient:

• In our own operations: non-discrimination
• In our direct and indirect supply chain: decent living wages
• Related to products, services, and customers: non-discrimination and privacy

When breaking down these impact areas, we found that, firstly, in our own operations, many effective measures are already in place to address non-discrimination in our workforce, for example through SAP’s Global Anti-Discrimination Policy, mandatory anti-discrimination and anti-harassment training, or SAP’s comprehensive diversity and inclusion programs. The teams involved are doing such a great job that currently no additional measures are required.

Secondly, in SAP’s supply chain, SAP has established contractual assurances through its Supplier Code of Conduct, which also sets the expectation for suppliers to pay an adequate living wage. Yet, we recognized that further mitigation measures still need to be defined. We therefore conducted a hot spot analysis by country and industry for this topic. We started to discuss the results with relevant procurement category teams in dedicated workshops. The next steps will include identifying which suppliers to focus on first, engaging with them for better insights, and collaborating to improve the situation where necessary.

Thirdly, when we talk about human rights impacts in our downstream value chain, artificial intelligence (AI) is top of mind. While there is great positive societal potential that AI can help to unlock, it is a priority for SAP to handle AI responsibly and avoid negative impacts specifically in the areas of discrimination and privacy. This is why, many years ago, SAP launched its Guiding Principles for AI Ethics and implemented dedicated due diligence governance and processes. In 2024, SAP updated its Global AI Ethics policy to align with UNESCO’s “Recommendation on the Ethics of AI.” We further strengthened SAP’s commitment by establishing an AI ethics office consisting of two teams and maturing our AI ethics assessment process for all AI use cases. Finally, just last month, a new mandatory AI ethics training for all employees was launched.

Q: Looking back at the past year, are there any lessons learned that you can to share?

A: One key thing that I took away is that there is no silver bullet to human rights due diligence. While frameworks like the UN Guiding Principles on Business and Human Rights serve as a North Star, there are different approaches and methods on how to implement the principles in your day-to-day operations. Companies should not be afraid of making mistakes, even if there might not yet be any proven practices yet. This is one of the experiences we made when preparing for our first human rights report in line with the German Supply Chain Act this year. There is no point in waiting until you have found the perfect approach before taking action. Rather, it is important to be open to continuously revisit, challenge, and develop your approach. Exchanging with peers is very valuable in this context, which is why our human rights team engages strongly in networks such as the business and human rights groups in the UN Global Compact, Business for Social Responsibility, and econsense.

Another lesson learned for us was that it can’t be underestimated how important it is to engage internal stakeholders across diverse lines of business in an ongoing manner. We already started with role-specific trainings and capacity building but recognized that it needs time and multiple iterations until awareness, understanding, and mindset and behavior changes are established to truly integrate human rights considerations into business processes and decisions. Furthermore, our efforts have to extend to additional critical roles since, for example, it is not only important to get colleagues from SAP’s procurement organization onboard, but also all other decision-makers involved with supplier selection.

Christine Susanne Mueller is deputy human rights officer at SAP.

As we close out 2024, it’s time to reflect on the year’s developments in procurement, external workforce, business network, and travel and expense management. The past year has been marked by economic uncertainty, supply chain disruptions, and an increased focus on sustainability and social responsibility. Despite these challenges, businesses have shown remarkable resilience and adaptability.

Looking ahead to 2025, several key trends are poised to reshape the landscape, promising both challenges and opportunities for forward-thinking organizations. To gain insight into what lies ahead, we’ve reached out to Intelligent Spend and Business Network executives at SAP for their predictions.

The AI-Powered Procurement Revolution

Etosha Thurman, chief marketing officer for Intelligent Spend and Business Network at SAP, envisions a future where artificial intelligence (AI) takes center stage in procurement:

“In 2025, AI and cloud-based solutions will position procurement at the heart of data-driven decision-making, enabling real-time insights and freeing teams to focus on high-impact initiatives. The future belongs to procurement professionals who blend strategic thinking with relationship management and a combination of functional and technological expertise. These skills will be crucial in fostering cross-functional collaboration and advancing corporate goals, from supply assurance to compliance to sustainability. In the digital age, spend management expertise extends to not just supporting, but also steering the business.”

This prediction underscores the critical role that AI will play in transforming procurement from a support function to a strategic driver of business value.

Streamlining Processes Through Orchestration

Manoj Swaminathan, president and chief product officer for Intelligent Spend and Business Network at SAP, highlights the growing importance of process orchestration:

“The technology landscape is rapidly evolving, and organizations are grappling with a heterogeneous mix of solutions. Many companies now employ multiple systems to meet their end-to-end business needs, leading to siloed processes and confused employees. Procurement, in particular, often suffers from fragmented systems handling everything from purchase requests to supplier onboarding, creating inefficiencies and frustration.

To address this challenge, we’re seeing a shift toward process orchestration – a centralized approach that connects disparate systems, streamlining procurement inquiries and status updates. Our newest solution, SAP Ariba Intake Management, can tackle this head-on by automating request creation and providing a single point of entry so that organizations can empower employees to adhere to policies and regulations without the burden of manual corrections. This approach can not only save valuable time and resources but also drive user adoption and increase compliance and efficiency, positioning companies to thrive in an increasingly competitive landscape.”

The Rise of a New Generation of Procurement Leaders

Jeff Collier, chief revenue officer for Intelligent Spend and Business Network at SAP, predicts a significant shift in procurement leadership:

“In 2025, a shift will occur in the procurement landscape as a wave of fresh faces step into the chief procurement officer role. AI-driven procurement strategies, ever-evolving requirements, and changing demographics have created the perfect storm for new leaders to emerge. As the industry stands on the precipice of transformation, organizations must prioritize nurturing existing talent, upskilling their workforce, and attracting bright young professionals to the procurement function. The stage is set for junior procurement leaders, who have proven their mettle during the challenging COVID-19 years, to rise to the occasion, particularly those who can showcase tangible achievements in sustainability, AI integration, or risk management. Brace yourselves for a year marked by new names, fresh perspectives, and a reshaped procurement industry in 2025.”

The Power of AI Across Business Networks

Val Blatt, chief revenue officer for SAP Business Network, offers insights into how AI will transform business networks:

“In the near term, AI is already making waves by optimizing process efficiency and information sharing within and across companies in a supply chain. As we move into 2025 and beyond, we’ll see AI do more to synthesize intelligence and efficiency across areas like risk, demand, and inventory planning, as well as manufacturing and delivery. This evolution becomes even more relevant because no business does business alone, and AI can synthesize and be predictive across company boundaries. We’ll see AI decision support evolve into decision-making – and, ultimately, automated process execution. These advancements will occur as the need for AI to sense and predict situations with proposed planning recommendations grows, spanning across related functional areas and processes that involve trading partners in a supply chain.

In its Network Adoption Research Study* sponsored by SAP, IDC found that “Digital Champions” who use modern, cloud-based tools like AI, analytics, and business networks have grown over 140% in revenue and profit performance indices from 2016 to 2021. As AI capabilities expand to sense, predict, and execute across organizational boundaries, businesses will gain next-level efficiency, visibility, and compliance. This will enable them to maintain a resilient supply chain that delivers on customer promises, especially in times of disruption, by leveraging the collective intelligence of their entire business network.”

The Evolution of Travel and Expense Management

Christopher Juneau, SVP and head of SAP Concur Product Marketing, Intelligent Spend and Business Network Marketing & Solutions, shares his insights on the future of travel and expense (T&E):

“As leaders strive to position their company for growth in 2025, they will still attempt to maintain employee spending at 2024 levels. Inflation drove higher spending beginning in 2023, resulting in fewer trips in 2024. As inflation slows, many leaders are likely to expect that their T&E budget – even if flat year over year – will go further in 2025.

Meanwhile, finance teams and travel managers will adjust their T&E policies to account for AI as more tasks and processes become automated. Will managers need to approve every expense report? Will they need to review them at all? How can policies and rules be modified so that travelers spend as little time in T&E tools as possible? These are some of the questions they will start to ask in 2025.

Investments in technology innovation and security infrastructure will be top priorities. The risks associated with security and privacy incidents will only continue to grow, which means companies are looking for technologies that deliver greater value to customers with lower risk. It is really a balancing act to move fast without disregarding the very important aspects of security and privacy when architecting solutions – internally and for customers.”

Looking Ahead

As we look to 2025, it’s clear that the world of spend management and supply chain is on the brink of transformative change. The convergence of AI, sustainability imperatives, and interconnected business ecosystems will reshape how organizations operate and compete.

At SAP, we’re not just observing these trends – we’re actively shaping them, working to ensure our customers are well-equipped to navigate the complexities of tomorrow’s business landscape.

The future may be uncertain, but one thing is clear: those who embrace these emerging trends and technologies will be best positioned to thrive in the dynamic world of 2025 and beyond. As we continue to design and deliver spend management and business network solutions that drive efficiency, leverage AI responsibly, and create greater visibility for businesses of all sizes, we look forward to partnering with our customers on this exciting journey of transformation and growth.

Cindy McKendry is a director for Intelligent Spend and Business Network Corporate Communications at SAP.

*Source: “IDC Network Adoption Research Study eBook: Driving Best-in-Class Supply Chain Collaboration with a Business Network,” #US5084723, August 2023, page 18

Cyber Week has once again been an incredible success for SAP customers and given us interesting insight into market trends.

Through Cyber Week, SAP Commerce Cloud powered US$12.2B in gross merchandising value (GMV) for our customers, with a 23.42% year-over-year (YoY) increase in number of orders processed through the solution and 100% uptime. This level of success requires personalized customer engagement, and, for Cyber Week 2024, SAP Emarsys Customer Engagement delivered a 10% YoY increase of overall engagement across all channels, with mobile channels seeing a 200% growth YoY.

But more than just numbers, we’re drawing insights and learnings from some of the largest brands we serve around the world.

Imitation Is a Form of Flattery for B2B Companies

Many industries have looked at how B2C retail companies reach their customers historically and used it as a model. This year, we saw our wholesale distribution customers running Black Friday and Cyber Week promotions to their customers – B2B buyers – with outstanding results. In fact, customers in the wholesale distribution industry saw a 125.2% increase YoY in GMV.

Holiday Shopping Continues to Start Earlier Each Year

E-mails, SMS, social ads, and more for Black Friday sales have been circulating since well before November 29^th. Understandably so, as retailers compete for market share. According to the U.S. Commerce Department, retail sales saw an increase of 2.3% in October, which beat analyst predictions and is a good early indicator for the holiday shopping season. For SAP customers in electronics, appliances, and personal care and beauty, we saw spikes in sales in mid- to late-October, which supports the U.S. Commerce Department’s findings.

However, getting started early doesn’t mean that retailers are simply shifting their sales and then finished. Instead, getting started early allows retailers to do both – lean into a first round of promotions earlier than the “shopping season” and a second round during peak Cyber Week shopping, leading to a higher total year-end volume. In addition, by providing two rounds of promotions, companies were able to capture customers who may have missed the initial offering. SAP customers, particularly in the home improvement and personal care industries, were able to achieve this success with a “two-hit” strategy.

Consumers Perceive Deals May Get Sweeter If They Wait

It’s been the belief for years that the best deals happen on Black Friday, but we’ve seen a shift this year. Our data shows that on Cyber Monday the GMV values were significantly more than Black Friday, with an explosive 71.8% increase YoY. Was this trend due to shoppers rushing to take advantage of sales on the last day of the sales event? Or have shoppers been re-conditioned to wait for the best deals on Cyber Monday? We’ll see if this shift has a stronghold in the upcoming years.

Cyber Week Isn’t About the American Thanksgiving Holiday Anymore

With the adoption of e-commerce and the desire to seek out deals, this major sale event has become a global phenomenon, and SAP Commerce Cloud data shows it. Last year, we reported that the Europe, Middle East, and Africa (EMEA) region was comparable to North American sales, with the Asia Pacific and Japan (APJ) region showing explosive growth – and now it is official! Our data shows EMEA with 139.6% and APJ with 49.7% Cyber Week GMV growth. Customers in countries like Germany (+314.3% GMV), the United Kingdom (+106.1% GMV), and South Korea (+12.3% GMV), continue to adopt this sales event, and it’s looking like a mainstay for the future. 

A Village Is Key to Success

To achieve this kind of success takes months of work from entire teams – both from our customers’ side and from SAP. By infusing artificial intelligence (AI) and automation tools to predict, prevent, and address issues proactively, our team of dedicated engineers created 360-degree action plans for our customers and created recommendations to help achieve peak holiday success. With 24×7 control room support, real-time monitoring, and risk mitigation, SAP helped ensure seamless performance and availability during peak traffic periods like Black Friday and Cyber Monday, with 100% uptime, setting a new benchmark for holiday readiness.

To learn how SAP Customer Experience solutions can help your organization drive transformational innovation, visit us at sap.com/crm.

Balaji Balasubramanian is senior vice president and global head of Commerce & Industry Cloud at SAP.