Through their recently announced partnership, Vonage and SAP aim to transform enterprise intelligence and provide better digital experiences by utilizing SAP Business AI in conjunction with Vonage’s communication APIs. The goal of the partnership between SAP SE and Vonage, a multinational provider of cloud communications, is to combine Vonage’s network APIs with SAP Business AI. By […]
Skills have become the cornerstone of many human resources practices—and one of the top HR trends in 2024. SAP’s HR researchers explored why both employees and organizations value a skills-based approach to people practices such as hiring.
According to findings from over five years of global research conducted by SAP SuccessFactors HR research scientists, 88% of employees would feel positively about skills-based people decisions in their organization. Along with employee satisfaction, HR and talent acquisition leaders see many potential benefits of the skills-based approach. For example, a focus on skills can support internal mobility, help realize employee potential, and make recruitment faster, easier, and more transparent.
So, what does “skills-based” mean? With a skills-based approach to human resource management, work is organized entirely around skills, from hiring and compensation to workforce planning, reskilling, and upskilling. Decisions are made based on skills and capabilities rather than traditional criteria like education or job experience.
Of course, there’s no universal blueprint that works for every scenario: there are multiple approaches to prioritizing skills in an organization. How skills-based practices are implemented depends on organizational culture, industry, labor regulations, and many other factors, but a great place to start is with skills-based hiring.
What Is Skills-Based Hiring?
Skills-based hiring is an approach to recruiting new employees based on their skills and ability to perform a job instead of the formal qualifications listed on their resume or curriculum vitae (CV), such as education or previous job titles.
Benefits of Skills-Based Hiring for Talent Acquisition
To understand why skills-based hiring works well for talent acquisition, we must consider the question what is talent acquisition? At its core, talent acquisition aims to address not just the current talent needs but also the long-term, strategic workforce plans. It can do so by predicting what skills the organization will require in the future to stay competitive, grow, and scale to future needs. Skills-based hiring can support a future-oriented talent acquisition strategy, thanks to:
Productivity: People with the right skills for the job can be more effective in their roles.
Diverse talent pools: A skills-based approach helps find qualified talent that wouldn’t be found otherwise, expands talent pools, and increases workforce diversity.
Transparency: Skills-based talent decisions can be more equitable, fair, and legally defensible while also helping candidates get clarity and more agency over their careers.
Efficiency: Skills-based practices enable faster talent decisions, which, in turn, accelerate the entire recruitment process, reducing time to hire and productivity.
Strategic hiring: A skills-based approach helps organizations understand the skills they will need in the future and hire talent to fill those gaps.
Approach validation: Skills-based hiring is a great way to demonstrate the value of prioritizing skills—before implementing the approach across other HR practices.
Considerations for Adopting Skills-Based Hiring: Exceptions, Misconceptions, and Challenges
Of course, there are still barriers to adopting the skills-based approach to hiring and recruitment. Sometimes, traditional criteria are necessary, such as when hiring for roles that require a specific degree or certification, like lawyers, doctors, and pilots. Candidates’ backgrounds and experience can also be crucial. Senior leaders may be chosen in part due to their industry or market experience; public relations leaders may be hired for their network and media contacts.
There are also many misconceptions about skills-based hiring. For instance, some believe that resumes are unsuitable for skills-based hiring because they’re structured around traditional criteria, such as education and past job titles. In reality, candidates can focus their CVs more on skills, and organizations can use applicant tracking systems and other recruitment software to analyze resumes and screen for the best applicants. In fact, thanks to the use of AI-enabled recruiting tools, skills can even be inferred from experience listed on resumes.
Talent intelligence solutions help source the right skills needed for the future
Finally, a widespread concern among talent acquisition leaders is how to make skills-based decisions equitably and efficiently. To do it fairly and thoroughly, they may need to research which skills are relevant for each role, devise custom skill assessments, and prepare job-specific interview questions rooted in the relevant skills. However, the recruitment process also needs to move along quickly, yield good results, and create a smooth candidate experience. So, although mindsets about skills-based hiring are changing, many talent acquisition leaders are still concerned about the efficiency of this approach. Thankfully, this is where technology can make a crucial difference.
Removing Barriers to Skills-Based Hiring
Skills-enabling technologies have long been used in HR practices: online learning systems to help employees develop new skills and complete required training, job architectures that help define roles and the skills needed for them, and skill assessments to help understand the capabilities and skill proficiencies that people have. While some potential barriers to adopting a fully skills-based approach may exist for certain roles, AI can help empower organizations to hire the best talent with the skills needed to succeed. Using SAP Business AI for HR and SAP SuccessFactors solutions can provide organizations with multiple approaches to adopting skills that may fit their unique workforce and hiring needs.
Using AI to Fuel Your Skills-Based Hiring Approach
The widespread adoption of AI in HR has opened up new capabilities in talent acquisition software while also optimizing existing functions. For example, with the SAP SuccessFactors Recruiting solution, talent acquisition teams can leverage AI to help them adopt skills-based hiring practices:
Skills Framework: The SAP SuccessFactors talent intelligence hub offers an AI-enabled skills framework that can allow organizations to consolidate skills data from multiple sources for a comprehensive view of their workforce. AI-driven capabilities within the skills framework can allow organizations to align skills to job roles to better understand and address skills gaps.
Job descriptions: AI-assisted content generation allows recruiters to quickly create and enhance compelling skills-based job descriptions to attract diverse candidates with the right skill sets.
Improved candidate experience: When candidates upload their resumes during the application process, AI-driven skills extraction allows them to view, validate, and manage skills on their profiles.
Job recommendations: Upcoming innovations include the ability for candidates to use AI to help them find the best opportunity for them based on skills extracted from their resume.
Resume analysis: Using AI-driven skill inference, recruiters can quickly analyze applicants’ resumes and compare best-matched candidates based on skills.
Interview questions: With insights from skills data, AI can recommend relevant skills-based interview questions to ensure interviewers are prepared to fully engage with top candidates.
Skills evaluations: Using AI-recommended interview questions, interviewers can effectively assess candidates and provide evaluations based on the skills needed for a role.
Equitable decision-making: AI-assisted applicant screening helps recruiters make bias-free, skills-based hiring decisions quickly and confidently.
AI can be a true catalyst to an organization’s hiring potential, and many of our customers are already leveraging AI-enabled capabilities. If you’re curious how works, check out this FC Bayern customer story.
Skills-based hiring is an excellent way to recruit the talent your organization needs to thrive and stay competitive—today and into the future. The right recruitment software can make skills-based hiring intuitive, equitable, and efficient.
A company with a sustainability strategy that lacks a sustainability management system is akin to a rowing boat attempting to travel upriver without a paddle. Without the right data, tools, and a structured approach to environmental, social, and economic decision-making, the company risks being carried downstream.
There are two major drivers behind the need for companies to implement a robust sustainability management system. The first is the need to future proof their business to ensure a resilient value chain and secure a competitive advantage over their peers.
The second is to transition from voluntary to regulatory reporting and comply with the torrent of new regulations. Regulations like the Corporate Sustainability Reporting Directive (CSRD) or standards like IFRS require companies to report on, and respond to, a wide variety of environmental and social sustainability topics. Some sources say there are more than 600 regulations, sustainability reporting standards, and frameworks around the world, with more coming down the pipeline every year.
What Is a Sustainability Management System?
Drive scalability, standardization, and trust in carbon data exchange across your supply chain
A sustainability management system allows companies to calculate and track metrics and targets and disclose their risk management, strategy, and governance policies. It is also a valuable tool for providing a robust and holistic view for sustainability decision-making. With carbon emissions data a central element to any sustainability strategy, SAP has created a suite of cloud-based solutions to enable companies to both respond to regulation and advance their own ambitions.
SAP’s End-to-End Approach to Carbon Management
So how does SAP provide a sustainability management system to tackle the carbon topic and its drivers end-to-end? We can enable customers to implement five key principles with the help of our modular and integrated family of sustainability software-as-a-service (SaaS) solutions.
1. Use a Reliable Foundation and Reuse Your ERP Data
SAP embraces an ERP-centric approach, using integrated sustainability data from cloud ERP business processes supported by AI technology. We can bring together different types of business data and levels of data granularity, as required, to enable the transition from voluntary to regulated carbon management. It is a flexible but robust approach with high data quality and reliability at its core.
2. Get a Complete View for Regulatory Reporting with Reasonable Effort
SAP Sustainability Control Tower can provide an easy-to-use data collection system that helps enable a holistic and complete calculation of the carbon footprint at the corporate level. As of now, customers can also generate an automated environmental, social, and governance (ESG) report based on AI and natively available ESG data.
Click to enlarge
3. Go Deep Where It Matters Most
For a deeper perspective that is informed by the corporate overview, customers can use the integration with SAP Sustainability Footprint Management to help enable additional automated and in-depth calculations. Emissions can be tracked at the company, operational, and product level. The ERP-centric approach uses transaction data directly from SAP S/4HANA Cloud to help calculate a consistent carbon footprint at the corporate and product level on one data foundation. AI comes into play when emission factors from standard databases are needed. With the intelligent mapping feature, customers can leverage AI to help automatically provide mapping suggestions. This feature can save significant time by replacing a tedious and manual process while being robust enough to help inform final decision-making.
WITTE Automotive, a customer already using SAP Sustainability Footprint Management as well as SAP Sustainability Data Exchange said:
“By leveraging SAP Sustainability solutions, WITTE AUTOMOTIVE is now able to calculate carbon footprints of the product portfolio in compliance with the Catena-X Rulebook and share it in a standardized way.”
– Michael Tworek, Head of Digital Innovations, WITTE Automotive GmbH.
4. Exchange Actuals with Your Suppliers and Customers
SAP Sustainability Data Exchange helps handle the exchange of relevant data across the supply chain. Customers like WITTE Automotive can therefore request missing data and exchange sustainability data such as the carbon footprint of products with their network. The usage of WBCSD PACT and Catena-X standards in the product can enable consistent and open communication and processing of data.
5. Drive Transformation in Operational Business Processes and Transition to Carbon Accounting in the Financial Sense
The flexibility of SAP Sustainability and the ERP-centric approach means it can meet corporate requirements providing the granularity, accuracy, and auditability needed. Calculated product carbon footprints can be used for financial decision-making thanks to its integration with SAP Green Ledger, which can enable companies to determine carbon emissions versus profitability. All this is done using the same rigorous accounting principles and practices that are used in finance. It can provide a trusted data foundation that can go beyond compliance and help improve business performance management through the integration of trusted carbon data into business processes that matter.
Product carbon footprints can also be integrated into SAP Spend Control Tower, for example. With Scope 3 emissions being the largest proportion of carbon emissions for most businesses, procurement processes become a key lever in decarbonization efforts. The integrated solution can help to analyze and manage the carbon impact of a company’s spend to identify emission hot spots to inform a data-driven Scope 3 decarbonization strategy.
Are You Ready to Adopt a Carbon Management System?
Wherever a company is on their sustainability journey, SAP’s end-to-end carbon management solutions can allow it to go all in on sustainability and build resilient, future-proof operations. This allows them to streamline reporting and meet compliance requirements while benefiting the environment and their bottom line.
SAP Sustainability solutions can do more for you beyond carbon management and ESG-related disclosures. Check out our sustainability page to learn more about the support for operational compliance and material transition.
Gunther Rothermel is chief product officer and co-GM for SAP Sustainability.
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In a July 1995 e-mail announcing SAP’s International Demonstration and Education System (IDES), a demo system for the SAP R/3 client-server software (release 3.0 and later), project manager Dietmar Pfaehler asked employees not to expect miracles of the new system and acknowledged that it was not yet error-free. “The data is far from perfect,” and “the new help scripts are not yet available,” he wrote. Nevertheless, the project team had “reached its first milestone in terms of providing a system that contained plenty of realistic data.” Adding that there was “enormous demand for a fairly stable 3.0 system that people could work with,” he commented that “many of us will certainly find it helpful to have a well-maintained 3.0 system to play around with and test.”
IDES was initially modeled on an international company with multiple subsidiaries. Complete with a demo guide, it helped users familiarize themselves with SAP R/3 functions and with the organizational and integrated process structures that the SAP R/3 system covered. With data being added all the time, the IDES model companies felt very lifelike, and users had plenty of scope to test the various application areas.
“IDES wasn’t just a system, it was a new philosophy – a revolution in demo and training,” says Marcelo Cura Daball, who joined the team in late 1995 and played a key role in shaping the development of IDES. “The system behaved like a real customer system. It looked like a real customer system. That was new, and the customers loved it,” he recalls.
SAP built IDES to provide its developers with a test environment that would double as a basis for international training systems, customer workshops, and prototyping. “The basic idea,” Cura Daball explains, “was that our salespeople, in presales for example, would give a demo in the same system SAP used for customer training. And that, after a training course, customers could go home and repeat the training exercises with the same data they had used in their course.”
We’ve been building a track record of innovation for more than 50 years
Pfaehler was the mastermind behind IDES and is credited with developing the business concept for the new system. A seasoned sales professional, he was an institution at SAP, says Cura Daball, and had connections across the globe. While the content for IDES was developed at company headquarters in Walldorf, Germany, Pfaehler also received support from colleagues all over the world; the system was then translated and made available to the local subsidiaries. Many customers provided real business data – such as BOMs – for the system, and the team worked with genuine, albeit anonymized, addresses.
But getting the system up and running was by no means a walk in the park. Time and again, Pfaehler had to ask for more specialists and more support from SAP’s subsidiaries. He argued that “at the very least” he needed a team of 12 developers, plus another two employees to continuously add and manage data and to update the IDES system. He also needed access to additional employees from SAP subsidiaries on a project basis, as he explained in a September 1995 letter to the Executive Board of SAP SE, in which he put forth the case for getting the staffing he required: “The IDES team could potentially become a training ground for the next generation at SAP, a place for our people to gain specialist business expertise and learn how to model customer scenarios and implement SAP systems as part of our project business. Employees of this kind are few and far between at SAP, but demand for them will grow in the future.”
The IDES team at a meeting in 2003 (from left): Jochen Rothermel, Gerhard van der Beck, Wolfgang Deventer, Peter Mierzwa, Martin Rupp, Bernd Hess, Wolfgang Müller, Volker Rein, Sergio Marcelo Cura Daball, Ashraf Hamed. Rothermel, van der Beck, Hess, Müller, Cura Daball, and Hamed still work at SAP. Dietmar Pfaehler in conversation with Angela Merkel, then chairperson of the CDU, at CeBIT in 2001.
IDES was shipped to the first customers in the spring of 1996 and was soon able to simulate the more than 1,000 business processes that could be mapped in SAP R/3. Initially, the focus was on finance, materials management, and sales. IDES allowed users to learn about the system in their own familiar working environment, using examples that were specific to their company. The IDES team grew, and it was not long before they were building around 800 customer-specific demos – per week – as Gerhard van der Beck says. During this period, Training, Demo, Consulting (TDC), a dedicated IT team responsible for making system copies and handling the technical maintenance of the IDES systems, was also set up. Having established IDES and seen it through to its initial milestones, Pfaehler left SAP (although he rejoined the company at a later date) and van der Beck, ably supported by Cura Daball, took over as head of the IDES team.
The Internet: A New Opportunity
SAP co-founder Hasso Plattner liked the IDES idea – even more so when Cura Daball and van der Beck suggested putting the system outside the firewall and using it to demonstrate that SAP software could run on the Internet. “To do this, we had to reduce the complexity and radically streamline the system,” van der Beck says. “Hasso was thrilled when we managed to reduce highly complex transactions involving multiple screens and subscreens down to the bare minimum. Now, for the first time, SAP users could create an order by navigating two screens and making just a few clicks,” Cura Daball adds.
“Customers who purchased an SAP license could install an IDES system free of charge,” says Jan Krell, who, with Thomas Habersack, was responsible for delivering the system. However, the team’s main clients remained Sales and Presales, who used IDES to show customers what SAP could do.
IDES continued to evolve over the years. As the Internet’s popularity increased, the system’s name changed slightly – from “International Demonstration and Evaluation System” to “Internet Demonstration and Evaluation System” and, starting in 1999, it gave customers, partners, and prospects a way of trying out mySAP.com online. According to SAP’s 1999 Annual Report, IDES was also expected to “reduce sales and marketing costs in the medium term.”
Because the IDES team relied on specialists from other departments and on instructors and students to enter, manage, and update the IDES data and to test the system after each update, it remained relatively small, never numbering more than 30-35 members. “At times, our colleagues were amazed at what we managed to do with so few people,” says Thomas Schulze, who was responsible for IDES documentation. “Being able to say you’d spent six months on the IDES team testing and learning the applications was a real door-opener. You learned so much on that team, and it was a real advantage when applying for positions within SAP. Many of those who worked on IDES in the early days stayed at SAP and built a career here,” he adds. Proof enough that Pfaehler’s wish for IDES to become a “training ground for the next SAP generation” came true.
“Proud of IDES”
“As a long-serving sales and presales employee and – more particularly – as a former SAP customer, I’ve always understood the importance of having examples that are clear and easy to follow. The IDES project gave us our first-ever opportunity to provide those examples to all our employees – and later also to our customers – to explain how the system’s complex processes worked and make them simpler to learn and understand.
Even now, many years later, it still feels great to know that so many different people from our vast SAP family came together to create IDES, and that an amazing team was there to take up the reins and continue the work we started.
I’m proud of SAP and IDES and of everything we achieved with it. And I’m grateful to everyone who worked on it and enhanced it over the years.”
– Dietmar Pfaehler
Growing Complexity
As the 1990s drew to an end, a new level of complexity was emerging, driven largely by the arrival of SAP’s New Dimension products – CRM, SCM, business intelligence, and others. With SAP transforming into a multi-product company, even the IDES team was stretched to its limits. “As a demo team, we had to cover the entire product portfolio, which meant dividing topics between us and specializing,” Krell says. But, as Schulze adds, “There was simply no way that we could maintain that level of complexity in the long term,” .
At the same time, SAP’s new head of marketing Marty Homlish, who joined the company in 2000, was pushing – with Plattner’s backing – for “our demo system to be better and more appealing,” van der Beck says.
CD cover, 1998.
And despite efforts to meet customer expectations for a simple and fast way of testing SAP software over the Internet by inviting them to “Test-Drive Your Solution Online,” it became clear that IDES had had its day. “The performance wasn’t good enough; the technology – the Internet Transaction Server – was not as stable as we had hoped,” van der Beck says.
IDES gradually became less and less relevant. Yet the team, now called Solution & Innovation Experience (SIX) DID (Demo Infrastructure Delivery), still exists today – and operates the SAP Demo and Education Cloud environment, which contains systems used by SAP’s presales and sales personnel to demo software for customers. Nowadays, Krell and his colleagues refer customers who want to download a test package to the SAP S/4HANA fully-activated appliance.
While Pfaehler has long since retired, and recently ended an eight-year stint managing Dietmar Hopp’s Anpfiff ins Leben non-profit organization, Cura Daball and van der Beck are still at SAP – having served for 36 and 30 years respectively. They and their colleagues built IDES as an innovative demo system that still has its supporters today, such as SAP University Alliances. van der Beck now contributes his expertise to the Customer Adoption team, and Cura Daball works in the Customer Services & Delivery Board area, where he develops automation tools for demo and training system landscapes. Both still have a great deal to give to the company that means so much to them.
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As we prepare for Climate Week and the 79th session of the UN General Assembly (UNGA 79) taking place in New York City this month, there are three topics of conversation that we are taking with us. We encourage you to consider how these themes might offer a more robust experience for you and your organization and, ultimately, lead to better outcomes.
In our effort to align with the UN’s theme to build a “peaceful, sustainable, and promising future for all,” we look to the following priorities to influence our decision-making and inspire others to take action in incorporating positive economic, social, and environmental impact into their end-to-end businesses.
1. The Benefits of Ecosystem Building
At the crux of gatherings like UNGA 79 and Climate Week is bringing the top minds and leaders in government, private, social, and academic sectors together to discuss collaborative solutions to pressing issues. Understanding the value of working together to create networks of resources enables sharing knowledge, funding, or diverse perspectives with each other to achieve your goals.
Multilateral partner ecosystems offer an opportunity to play to each other’s strengths. For example, SAP is not the expert in creating social and environmental impact; that expertise resides within the social sector. However, SAP understands the critical role technology can play in creating promising results in addressing issues like climate change and creating a more circular economy. At the same time, governments set the guidelines for policies that influence climate action. Each of us has a role to play and it is important to understand how we can best work together to deliver results and accelerate change.
Together, we can enable a future with zero emissions, zero waste, and zero inequality
When participating in conversations on key global issues, like climate change, remember that collaboration between government, private, and social sectors is paramount in catalyzing a positive shift in business to make progress on the UN Sustainable Development Goals (SDGs).
2. The Importance of Education
Education is a fundamental human right and a key driver in economic development. Next to partnership, prioritizing education and skills development is necessary to remain resilient in a rapidly changing world and help bridge the digital divide in under-resourced communities. Yet, it is not often a topic of conversation at convenings like Climate Week.
Climate disasters disrupt the education of nearly 40 million children annually and continues to increase. The skills gap is growing. More than half the workforce in 57 of 108 countries have jobs that do not match their education level or help citizens adapt to climate change and the green transition. Universal education has an impact on climate change. Financing education can significantly reduce carbon emissions, up to 51.48 gigatons by 2050 in low and lower-middle income countries. Young impact entrepreneurs known as The Possibilists also see climate action as one of the most important issues they face and use education as a tool “[…] for reducing inequalities and creating change.”
During Climate Week conversations with partners like UNICEF’s Generation Unlimited, SAP is hoping to collaborate across sectors and embrace innovative strategies to educate and foster a new generation of environmentally skilled workforces. By building cross-sector collaboration in areas like education, we gain access to new perspectives in social innovation and a wider talent pool as we work toward a more fair, sustainable world.
Advocating for education initiatives and partnerships within climate conversations is important. Education underpins the vitality of the broader business ecosystem, nurtures the next generation of talent, and creates a pathway to environmental progress.
3. The Opportunity of Intergenerational Leadership
When discussing ecosystem building and education, we cannot forget young voices. Young people are at the frontline of issues like climate change, but often fail to appear in key decision-making spaces. SAP embraces the idea of intergenerational collaboration, bringing together diverse perspectives across the business. For example, We Are Family Foundation, with support in part from SAP, conducted a study in which 96% of respondents believed intergenerational collaboration holds significant value and can generate positive change when faced with global challenges.
Youth offer intersectional voices that hold a unique moral authority over issues like climate justice. In addition, they bring innovative and tech-driven approaches as digital natives in an everchanging world. When private, public, and social sector organizations tap into the potential of young experts, business and the world as a whole benefit.
With more than half the world under the age of 30, it’s imperative to ensure equitable representation of youth voices during the upcoming convenings, like Climate Week and COP29.
Trade Capital Corporation (TCC), provider of the world’s only outsourced vendor-managed inventory (VMI) platform solution, 1TCC, has a mission to make seamless trade enabled by technology. Its capital-efficient solution enables global supply chains to optimize their balance sheets through enhanced liquidity and capital efficiency.
TCC’s technical requirements are complex, necessitating best-in-class software and services to support its customers in the industrial, automotive, healthcare, and high-tech markets.
Choosing SAP S/4HANA Cloud Public Edition
TCC researched enterprise resource planning (ERP) solutions to support its platform and deliver measurable, positive impact to its large corporation, manufacturing, and OEM customers. TCC chose to partner with SAP based on a decades-long track record of success with the company. Among SAP’s offerings, TCC selected SAP S/4HANA Cloud Public Edition given its reliability, scalability, and ease of integration with its customers’ systems and business processes.
Discover a ready-to-run cloud ERP that delivers the latest industry best practices and continuous innovation
Parthasarathy Narayanan, TCC chief technology officer, explained: “We have witnessed, firsthand, SAP’s commitment to bringing robust and effective new architecture to large corporations and delivering true and tangible business outcomes that lead to customer satisfaction.” TCC determined that SAP is more cost effective than competitors, and its customer service is prompt and supportive. Narayanan added that SAP innovation in the area of artificial intelligence (AI), including access to various large language models (LLMs) and the introduction of Joule, a generative AI copilot embedded in its cloud solutions, are “exceptional and visionary developments.”
In addition, TCC’s patented solutions, in conjunction with SAP Supply Chain Management (SAP SCM), give corporations an effective way to manage their inventories. Supply chain disruptions in this decade have forced many organizations to maintain large inventories, tying up valuable capital. SAP SCM can enable corporations to plan and manage inventories using forecasting models.
“Our solution helps customers maintain required inventories to fulfill their customers’ needs, but it also provides a unique way to free up capital and deploy it in high-yielding projects, improving ROI and overall metrics,” Narayanan said. “We are excited about leveraging rich SAP functionalities to keep up with our clients’ ever-evolving business needs and the complex environments in which we all operate.”
Image courtesy of TCC. Click to enlarge.
Paving the Way for Innovation
TCC and SAP working together also creates opportunities to offer innovative solutions and engage in joint go-to-market strategies. As a member of the SAP PartnerEdge program and leveraging SAP Business Technology Platform (SAP BTP) and SAP technical support, TCC can continue to build deep-tech applications to help customers automate their operations and take strides toward their visions of “autonomous supply chains.” Furthermore, SAP BTP architecture helps provide a single gateway to develop and deliver applications, giving TCC access to SAP and external inputs to completely integrate business processes.
“As a Silicon Valley company and a tech disrupter, we have outsized ambitions and plans to extend our platform across geographies and to continually add enriched functionalities that benefit our customers,” Narayanan said. “Anchoring the TCC platform on SAP is going to benefit our clients’ effortless onboarding and seamless process integration for efficient deployment. We look forward to serving our common customers through accelerated deployment of transformational and business applications.”
Gaining an Edge from SAP
Since choosing SAP S/4HANA Cloud Public Edition for its VMI solution, TCC has found additional measurable benefits, including:
Streamlined maintenance: With SAP S/4HANA Cloud Public Edition, TCC has reduced the time and effort necessary to maintain systems compared with its previous platform architecture. As a result, TCC can focus on its core business rather than system maintenance.
Fast prototyping: SAP best practices and test data for the automotive, industrial, healthcare, and high-tech industries have helped TCC quickly prototype solutions and go live, reducing this initial phase of products to only 45 days.
Flexibility while maintaining a clean core: TCC has been able to achieve its goals using standard SAP-delivered processes, with only some custom developments.
Ease of use: The TCC business team implements its solution quickly and with minimal training.
By leveraging SAP S/4HANA Cloud Public Edition, TCC has created a VMI solution that provides comprehensive, capital-efficient inventory management capabilities, transforms global supply chains, and positions companies for innovation and growth.
Learn more about the advantages of SAP S/4HANA Cloud Public Edition and an SAP partnership.
Lori Rosano is SVP and managing director for SAP S/4HANA Cloud Public Edition and Midmarket Segment at SAP.
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RPA and artificial intelligence (AI) technologies are essential for organizations that want to drive innovation and improve efficiencies across their business. Our solution, SAP Build Process Automation, was developed with the bold vision that business users and developers alike should be able to build automations and workflows. It is an AI-powered solution that combines workflow management, task automation, and decision management into one comprehensive, cloud-based solution running on SAP Business Technology Platform (SAP BTP).
SAP is recognized in the 2024 Gartner Magic Quadrant for RPA for our Ability to Execute and Completeness of Vision. We believe this recognition exemplifies SAP’s strong product offering, continued investment in customer programs, and tight integration across SAP S/4HANA, SAP Signavio, and SAP BTP.
Automate ERP and Other Business Applications with Confidence
Most business applications need to be adapted to meet customer specific requirements. Part of SAP Build, SAP Build Process Automation is uniquely designed to enable organizations to quickly increase the automation rate, extend, and customize business processes running in SAP S/4HANA Cloud and other business applications.
In concert with other industry-leading solutions — SAP Integration Suite, SAP Signavio, and Joule — it enables customers to meet their specific requirements, quickly and easily connect any on-premise or cloud IT landscape, gain visibility into business processes and their performance, and then automate those processes seamlessly enabling end-to-end enterprise automation.
Gain a Competitive Edge with SAP Build Process Automation
Since launching SAP Build Process Automation, we have seen tremendous growth in customers embracing automation in impactful ways. Mahindra, for example, increased its developer efficiency by 35% and accelerated back-order processing by 20%. Lufthansa Technik automated data collection and entry tasks to increase the transaction volume in material logistics process for defective parts by over 40%. And SAP’s own IT organization has created over 60 bots to enhance process efficiency and accuracy across all business areas.
Next Steps
To learn how SAP Build Process Automation adds value to your cloud ERP, you can explore use cases that address specific challenges in your Lead to Cash and Source to Pay processes. And, if you’re ready to unlock the full potential of automation and AI, take the next step with the following resources:
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SAP vulnerabilities were a key focus during the September Patch Day, with multiple security updates released to enhance the protection of SAP systems. In September 2024, SAP released nineteen new and updated security notes aimed at addressing vulnerabilities in various systems. Among these were updates to one HotNews note and one High Priority note. The […]
Demands on the SAP Global AI Ethics policy have fundamentally changed since the document was last updated in 2021. While the policy previously only addressed a niche audience of SAP employees developing AI, the advent of generative AI and business AI has changed both the scope of the policy as well as the number of interested stakeholders.
“Generative AI”, explains Vikram Nagendra, director of Sustainability at SAP, “led to an explosion of interest in the policy. Nearly all of the lines of business became involved, business AI is now the centerpiece of our strategy, and today nearly every employee is touched by AI, either building it or as a user.”
Now the latest version of the SAP Global AI Ethics policy is aligned to the UNESCO Recommendation on the Ethics of AI, covering generative AI and applicable to specific partner and third-party systems as well all employees.
The UNESCO Recommendation on the Ethics of AI is the most comprehensive global framework available for shaping the development and use of AI systems. Adopted by all 193 Member States, it comprises 10 principles that protect and advance human rights, human dignity, the environment, transparency, accountability, and legal adherence. “Knowing that SAP has aligned its ethical principles on a globally accepted standard means that as long as SAP colleagues comply to these principles during the development, deployment, use, and sale of AI, they can be truly confident that it is to the highest ethical standards,” Nagendra says.
The SAP Global AI Ethics policy comprises 10 guiding principles on AI ethics grounded on the UNESCO principles, and each principle is defined in the context of AI at SAP. A brief section on governance, Nagendra explains, “shows how individual developers and teams are not alone and can rely on both governance bodies and processes for proper handling if there is a problem.”
SAP’s Guiding Principles on AI Ethics
Proportionality and Do Not Harm
Safety and Security
Fairness and Non-Discrimination
Sustainability
Right to Privacy and Data Protection
Human Oversight and Determination
Transparency and Explainability
Responsibility and Accountability
Awareness and Literacy
Multi-Stakeholder and Adaptive Governance and Collaboration
Why Does SAP Use the UNESCO Recommendation?
The UNESCO Recommendation on the Ethics of AI is an internationally recognized set of values that reaches beyond current legal adherence and creates ethical safeguards in the absence of national or global standards. For example, the Fairness and Non-Discrimination value commits SAP to not only protecting fairness but also to promoting it and putting in place as many safeguards as possible to avoid discriminatory or biased outcomes.
SAP aligns with the UNESCO Recommendation on the Ethics of AI because it:
Reinforces SAP’s Commitment to Human Rights
The cornerstone of the UNESCO Recommendation on the Ethics of AI is the protection of human rights and dignity. This aligns with SAP’s commitment to respect and advance human rights across business operations, product lifecycle, and the extended value chain. Upholding this commitment is foundational to SAP’s approach to AI ethics.
“The UNESCO principle of Proportionality and Do Not Harm resonates with me because the power to affect the rights of individuals should correspond to the responsibility to protect the relevant human rights.”
– Camila Lombana Diaz, AI Ethics Expert and Researcher, SAP
Increases Trust with Stakeholders, Employees, and Customers
Grounding SAP’s AI ethics in the UNESCO Recommendation on the Ethics of AI enables SAP to match business opportunity with human rights considerations and role model behavior for ethically developing, deploying, selling, and internally using AI systems.
Enhances the Reputation of SAP as a Responsible and Socially Conscious Organization
The 10 guiding principles on AI ethics in the SAP Global AI Ethics policy form the basis for SAP’s AI Ethics Handbook. This handbook translates the principles into actionable items and processes to guide the development and deployment of AI systems that have human oversight and determination, are fair and non-discriminatory, and protect and promote sustainability as well as individual privacy. The principles in the SAP Global AI Ethics policy combined with external guidance from the SAP AI Ethics Advisory Panel, internal guidance from the SAP Global AI Ethics steering committee, and the AI Ethics Handbook provide transparency on how SAP delivers responsible AI.
“The UNESCO principle of Sustainability resonates with me because it underlines SAP’s sustainability commitment and the need to assess and address the impacts of AI – both positive and negative – from a holistic perspective. We need to take them into account across the full range of dimensions: human, social, cultural, economic, and environmental.”
– Christine Susanne Mueller, Deputy Human Rights Officer, SAP
Supports Risk Mitigation
The UNESCO Recommendation on the Ethics of AI provides a robust, globally recognized framework to help ensure regulatory requirements for customer compliance with current and future regulations related to AI.