With SAPPHIRE now behind us, this is an excellent time to take stock of some of most impactful new announcements and look at where we go from here.

SAP’s Multiple AI Initiatives Combine to Address Full Range of Enterprise Requirements

As we have watched both the overall Gen AI explosive revolution and the various specific ways that companies are beginning to leverage Gen AI, one of the most intriguing storylines has revolved around how SAP’s multiple AI initiatives are beginning to take shape from a strategic perspective – and most importantly, what it means for SAP enterprise clients going forward.

Collaborations include Google Cloud, NVIDIA, Meta, Mistral AI, WalkMe, Microsoft, along with internal SAP initiatives such as Joule Copilot.

At first, one could have inferred that SAP’s plethora of different initiatives into the Gen AI universe were just a high level “shotgun approach”. However, it is now clear that the overarching strategy is to unify solutions for enterprise customers by leveraging both Open AI and Siloed AI capabilities.
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SAP to Acquire WalkMe Digital Adoption Platform for $1.5 Billion

As part of the overall strategy to enhance it’s cloud-based, AI-enabled, end-to-end, applications environment, SAP has announced intent to acquire WalkMe, a global leader in digital adoption platforms (DAPs). WalkMe’s solutions help organizations navigate constant technology change by providing users with advanced guidance and automation features that enable them to execute workflows seamlessly across any number of applications.

The context-aware WalkMe platform sits on top of an organization’s IT applications layer and determines where users might experience difficulties such as getting stuck when performing a process or task. WalkMe then provides guidance and automated processes that help the user complete the task.

According to Christian Klein, CEO and member of the Executive Board of SAP SE, “Applications, processes, data and people are the four key elements of a successful business transformation. By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.”
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What Does SAP’s Push to Cloud Transformation Mean for Partners?

For SAP solutions partners, it has always been critical to understand SAP’s overall strategic initiatives so as to align your value-added messaging while also differentiating your capabilities, and maximizing your revenue potential. Threading this needle has never been more important than during SAP’s current all out push to migrate all future business to cloud deployments. Overall, SAP’s push for moving everything to the cloud presents both challenges and opportunities for its value-added partners and system integrators. Success in this new landscape will require adaptability, innovation, and a customer-centric approach.

For partners, aligning with GROW offers opportunities for bringing in clients that are new to the SAP ecosystem and ramping them up quickly on SAP Public Cloud.  However lack of upfront revenue and relatively slim margins for ongoing consulting means partners will need to hone their business models for faster sales cycles, lower cost of sales, and focusing on delivering and supporting higher volumes of lower margin deals.

Conversely, aligning with RISE to help installed base clients transition customized applications to SAP Private or Public Cloud can offer opportunities for deeper consulting engagements with higher revenues and margins. However, with SAP guiding most clients toward GROW and Public Cloud, the number of RISE opportunities is likely to be fewer.
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New SAP AI Initiatives Will Enhance Order-to-Cash to Compliance Processes

This post from SAP partner, Bramasol, provides an exploration on how AI and Gen AI can enhance productivity, insights, and results in finance applications such as order-to-cash to compliance (OTC2), along with a look at how new SAP AI initiatives are key to this transformation. To help understand how to combine traditional AI and Generative AI, the post delves into three different scenarios. These scenarios show how Gen-AI has come of age and is poised to combine with traditional AI applications to usher in a wave of exciting new capabilities that can deliver tangible and actionable insights, along with the reality based underlying processes to drive productivity, innovation and business excellence to the next level.

The keys to success will be to take a holistic, strategic approach that is coupled with a comprehensive, unified, underlying data and systems infrastructure that can support the massive computational Gen-AI analysis, decision support, and content creation functions.  SAP has clearly staked out a leadership position based on decades of integrating traditional AI, which is now encompassing Gen-AI with new initiatives destined to Shape the Future of Business Transformation in the Era of AI.
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Jim Hunt

Jim Hunt

Jim has executive level experience on both the client and agency sides, with deep skills in strategic business positioning along with creation of hundreds of targeted content pieces. There’s nothing he likes more than mapping out the intersection of new disruptive technologies and their optimal market positioning.