CUSTOMER

Joseph Houben, VP SAP EMEA, Customer & Strategy Office, Machine Learning

May, 2018

SAP Leonardo Machine LearningEnabling the Intelligent Enterprise

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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the

permission of SAP. This presentation is not subject to your license agreement or any other service or subscription

agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation

and SAP's strategy and possible future developments, products and or platforms directions and functionality are all

subject to change and may be changed by SAP at any time for any reason without notice. The information in this

document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This

document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied

warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational

purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this

document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Legal disclaimer

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SAP Leonardo – Digital Innovation System

Machine

LearningBig Data

BlockchainInternet

of Things

Data Intelligence Analytics

SAP Leonardo

Technologies

SAP Data Center

SAP Cloud

Platform

Multi-Cloud

Infrastructure

Microservices | Open APIs | Flexible Runtimes | Integration

Integration AnalyticsUser Experience

Geospatial

SecurityCollaborationDev & Ops

MobileData & StorageBusiness

More details:https://cloudplatform.sap.com/

SAP Cloud PlatformEverything you need to build enterprise apps in the cloud

predictiveInternet of Things

Machine

Learning

blockchain

Workflows

Monitoring

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SAP’s Vision - ERP of the Future: the intelligent enterprise

Inverting the effort pyramid through automation

Innovations, Strategy

and Growth

Keeping the

lights on

Compliance, Efficiency,

Business Performance

Productivity,

Innovations,

Strategy and

Growth

Keeping the

lights on

Today 2020

Simplification

&

Automation

“Up to 70% of tasks are potentially ‘automate-able’ with

next generation technologies“ (McKinsey 2016)

Of companies see ML

as critical for

competitive advantage

94%

60%Of human tasks will

be automated

by 2025

$18BEnterprise Machine

Learning Market

by 2020

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Example: Computer vision is surpassing human abilities

A dog with ball in its mouth

Late 19th-century

architecture

Human performance95

75

90

85

80

2012 2013 2014 2015 year

100

ImageNet performanceAutomated captioning

Accuracy in %

Image recognition

accuracy

(human: 95%)

97%

A skier is jumping over

snow covered hill

Group of seven people

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Machine learning is the reality behind artificial intelligence

▪ Big Data (for example, business networks,

cloud applications, the Internet of Things,

and SAP S/4HANA)

▪ Massive improvements in hardware

(graphics processing unit [GPU] and

multicore)

▪ Deep learning algorithms

▪ Computers learn from data without

being explicitly programmed.

▪ Machines can see, read, listen,

understand, and interact.

▪ If a task can easily be described by a

set of rules than it is best solved by a

traditional rules-based programming

approach.

▪ For tasks that cannot be described in

rules but where structured tabular data

is available, most likely statistical

methods should be applied.

▪ For complex tasks with unstructured

data (e.g. text, video, image) machine

learning might be the best solution

What is machine learning?

Why now?

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How enterprise data is transformed into business valueFrom data to insights

Input Machine learning Output

Train

model

Prepare

data

Apply

model

Capture

feedback

Text

Image

Video

Speech

… and more Services(such as invoice processing,

profile matching)

…and more

Applications (such as cash application)

NVIDIA‘s Volta AI platform

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ML services portfolio and future releases

Tabular Image & Video Text Speech & Audio

General

availability

1710

▪ Time series change point

detection

▪ Similarity scoring

▪ Image classification

▪ Customizable image

classification

▪ Image feature extraction

▪ Topic detection

▪ Text classification

▪ Text feature extraction

▪ Customizable text classification

Alpha 1710 ▪ Time series forecasting

▪ Multi-dimensional time series

forecasting

▪ Multi-dimensional data

clustering

▪ Generic classification (tabular

and text)

▪ Product image classification

▪ Human detection service

▪ Object detection service

▪ Machine translation

▪ Language detection

▪ Product text classification

▪ Document clustering

▪ Speech-to-text*

▪ Text-to-speech*

Road map ▪ Time-to-failure forecasting

▪ Association rule learning

▪ Customizable recommender

▪ Image segmentation

▪ Face detection

▪ Document optical character

recognition

▪ Image text extraction

▪ Image NER/extraction

▪ Apparel detection

▪ Sentiment analysis

▪ Named entity recognition

▪ Hate speech detection

▪ File-to-text conversion

▪ Voice recognition (speaker

identification)

*Internal release only, not yet available for externals

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Use Case: Image-based product identification in customer serviceBroken product similarity search

Image Feature Extraction

Similarity Scoring

Service Ticket, e-mail incl.

image of broken product

Product Identification and

automatic classification

SAP’s Machine Learning automatically classifies product images and enables faster customer

interaction with precise information on potential product repair cost or item substitution.

SAP LeonardoML Foundation

video demo

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SAP Leonardo ML for Cash ApplicationNext-generation intelligent invoice matching powered by machine learning

History

Payments

Invoices

Matching

proposals

Improves days of sales

outstanding

Allows shared services

to scale as the

business grows

Integrated with SAP

S/4HANA for reduced

TCO and time to value

Empowers finance to

focus on strategic tasks

and service quality

SAP Cash Application intelligently learns matching criteria from

your history and automatically clears payments.

SAP LeonardoMachine Learning

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Challenges facing accounts receivable (AR) teams in clearing incoming

payments

Joni Chen

AR accountant

Lump sum

Missing infoDiscounts

Exchange

Customer

call

???

Payments

video

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SAP Service Ticket IntelligenceAccelerate customer service in an omnichannel front office

Service tickets

Knowledge base

articles*

Classifications

Resolutions

Routing

SAP Service Ticket Intelligence automatically processes customer

inquiries to deliver best-in-class customer service.

SAP LeonardoMachine Learning

Integration with SAP Hybris

Cloud for Customer for reduced

time to value

Enablement of customer service

to scale with increased digital

interactions

Improved service response

times with automated

processing

*SAP Service Ticket Intelligence does not replace knowledge management solutions.

Create your own intelligent infrastructure

Video

SAP internal

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SAP Resume MatchingFind the best talent faster with intelligent candidate matching

History

Resumes

Jobs

Best candidates

Fast-track the screening

process to save time

and effort

Identifies the best

candidates and reduce

false positives

Mitigates the recruiter’s

personal bias in

screening candidates

Reduces possibility of

missing potential

candidate

SAP Resume Matching automates the screening process by

identifying the candidates with the best skills and education match

with reduced bias

SAP Leonardo

Machine Learning

video

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Result

▪ Automated classification of

relevance of new changes

▪ Translation of from source

language into multiple target

languages

▪ Automated alerting of

responsible experts and

potentially affected customers

▪ Initiation of follow-up

workflows

Machine Learning

▪ Machine Learning Foundation

services

Input

▪ Scan relevant documents and

data on legal changes which are

published on specific websites

SAP Legal Compliance; Law2codeCustomer Example: SAP

Text Classification

Text Feature Extraction

Language Detection

Similarity Scoring

Law decrees

documents

Machine Translation

video

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SAP Leonardo Machine Learning for Brand ImpactReimagine marketing and sponsorship engagements

Video

Brand logos

Exposure metrics

for business impact

SAP ML for Brand Impact automatically analyzes brand exposure in video and images by

leveraging advanced computer vision techniques. It helps media agencies, production companies,

and brands to gain accurate, timely insights into sponsoring and advertising ROI.

Fast: Near real-timeAccurate and scalable

to millions of hours

Transparent

Interactive interface

Time-annotated

impact indicator API

for combining data

with CRM, ERP,

Web site stats

video

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SAP Leonardo Machine Learning for Customer Retention Build customer loyalty through proactive retention

Customer data

Digital fingerprints

Churn prediction

Root causes

Automatically classifies

and finds patterns

Provides understanding

of root causes and

timely predictions to act

Detects at-risk

customers

SAP ML for Customer Retention identifies leading indicators based on

transactional interactions to anticipate customer behavior, such as

product cancellations or renewals

powered by SAP HANA

video

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History

Invoices

Claims

Potential

fraud

Ability to focus on cases

with highest likelihood

of fraud and ROI

Models update as

patterns of fraud evolve

Integrated with SAP

HANA for reduced TCO

and time to value

Custom and 3rd-party

algorithms to optimize

for customer’s business

SAP Fraud Management increases accuracy of fraud alerts with predictive

algorithms that identify potential cases based on historical data.

SAP Fraud ManagementIdentify fraud behavior

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We are building the next set of use cases

Remittance

advices

Quicker payment

information processing

Remittance advice scanning automatically extracts payment

information from unstructured data for further processing.

Incoming

invoices

Increased compliance

Reduced cost

SAP ML for Accounts Payable is an expanding suite of

services that automate the accounts payable processes. Video

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Person (gender: male)

Safety glasses (…)

Respirator

Illustration

Hard hat (color: blue, model: Z830)

What we envision

• Reduce incidents and improve workers’ safety

Analyze live video feed to prevent unauthorized

access or unsafe use of equipment; check if PPE is

worn (and worn correctly) before operating equipment

• Capture live video feeds cost-efficiently

Install/ connect embedded devices and cameras to

equipment and bring decision-making to the edge

• Get compliance insights

See real-time results in workplace safety dashboard

to drive safety improvement measures

Notes: Concept only. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality.

* based on workers’ consent

Intelligent workplace safety and compliance with SAP’s Health & Safety solutions and SAP Leonardo Machine Learning

What we look for

• Feedback on concept and business requirements

based on your industry and geography

• Discussion with industrial hygiene experts,

IT experts, and data scientists to shape & explore

this concept

• Dataset of tagged images* for training & validation

• Co-innovation with interested customers

• Industries incl. Automotive, Chemicals, Oil & Gas,

Manufacturing, Mining, Utilities, Wholesale/ Distrib.

What’s in it for you

• Experience the potential of machine learning (computer vision) for improving health & safety and compliance,

and shape the next generation of solutions together with SAP experts.

• Co-innovate with SAP to explore this concept and, based on your data, see how a solution like this could drive

improvements in your business to prevent accidents.

Dynamic production environments, configurations, and locations require next-generation health & safety

solutions to manage the increasing complexity. You already know what personal protective equipment

(PPE) is required for the job – now you have the power to make this information actionable!

See how we envision the future of health & safety enabled by machine learning and IoT/ Industry 4.0.

Let’s start a dialog to shape it together!

How to reach us

• Andreas Welsch (andreas.welsch@sap.com)

Business Development, SAP Leonardo ML

• Ingo Sigmund (ingo.sigmund@sap.com)

Product Management, SAP Health & Safety Mgmt.

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Lube vessels PoC

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SAP Connected Agriculture allows to manage agricultural processes

with data down to the tree level

Connected to the Agricultural Internet of

Things including smart machines, drones and

robots to enable smart data collection and

automation

Enable precise agricultural solutions

leveraging agricultural big data

Enable Insight creation and constant

optimization of processes and practices by

leveraging smart algorithms

Enable collaboration through

standardization and open interfaces also

allowing the ecosystem to develop into an

open agribusiness network

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Machine Learning and Image Analysis Usecase: oil palm tree detection

label palms manually on a subset of the image

a) blue points are centers of palms

b) red points are not center of palms

About 500 palm centers and 500 no palm centers

have been selected

set patchsize of algorithm approximately to the palm

size

Next step: train neural network

training set: ~400 palms, ~400 no palms

test set: ~100 palms, ~100 no palms

retrain

Slide a window over the image

Neural Network

shows likelyhood of two classes

• palm center

• no palm center

and apply the neural network

1. Train Neural Network 2. Detect trees on image applying

Neural Network

3. Result

4. Create or map palm

tree entities in SAP

Connected Agriculture

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SAP Co-Pilot - One Digital Assistant with

One Personality Across All Products &

Solutions, Industries and LoBs

SAP Co-PilotThe digital assistant for the live enterprise

Business context awarenessUnderstanding the business context, and pro-actively

suggesting solutions using predictive functionality

Conversational (multi-modal) UIConversational UI using Natural Language Processing

functionality with a focus on the next-gen UX to create a

human-like experience

Cross ApplicationsAllows seamless transition across platforms; start a task on a

mobile device and continue later, on a desktop or vice versa

Self Learning Using machine learning functionality to gain knowledge based

on historic data, experience, and take action in response to

new or unforeseen events

Simple Access to Enterprise AI PlatformIntegration to SAP and Non-SAP Solutions

Simple access to Natural Language Processing and Machine

Learning functionality via APIsVideo BVideo A

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Buyers advisorThe bot helps the

customer choose the

best tires for its

vehicle through an

interactive user

interface on

Messenger.

Hi, I need to change the

tires of my Citroen C2

Bots: Michelin simplified its buying processwith an AI powered tire advisor

What is the size of your car’s

current tires?

175/65 R14 82T

What is the motorization of

your C2?

1,1 l 60

Thanks! I can suggest

different tires:

Video

Off-the-shelf customer support bots

integratable in a few days!

All off-the-shelf bots are pretrained and can

be used efficiently right away

Multiple languages supported such as

English, Russian, Arabic, Dutch, etc!

Typical implementation time ONLY 9 weeks!

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Conversational

• RecastAI corporate standards • RecastAI full compliance

• German as gold language

• Hybris consumer service bot

• Telco industry bot

• CoPilot/SFSF productive rollout

• Ariba conversational procurement

• S/4 conversational enablement

• Cross-application integration

• Further languages enablement

• Further Industry templates – such as

Insurance and Retail

Intelligent Apps

• Accounts Receivables (AR)

Automation - Payment Advice

Extraction

• Goods Receipt/ Invoice Receipt Monitor

• Accounts Payable (ByDesign)

• AR Automation – Lockbox

• GRC Watchlist Screening

• AR Automation – Outgoing Payment

Matching

• Accounting – Accrual Recommender

• Propose new catalog item

• Propose Material Group

• Optimized Purchase Requisition

Processing

• Detailed Q4 roadmap tbd.

• Product compliance - goods classifier • Physical Inventory Counting

• Integrated Digital Content Mgt. • Smart Variant Configurator • Detailed Q4 roadmap tbd.

• Matching External Hierarchies (DSIM) • Matching External Hierarchies

• Brand Impact • Lead Scoring

• Customer Retention

• Detailed Q4 roadmap tbd.

• Catalog Enrichment • ML Based Search

• Item Recommendation

• Supplier Performance Score

• Resume Matching (WorkConnect & Fieldglass)

• Job Matching (Fieldglass)

• Learning Recommender • Detailed Q4 roadmap tbd.

Q1 Q2 Q3 Q4

ML Foundation

• Text-to-speech

• Customizable text classification

• Enable S/4

• Named entity recognition

• Customizable recommender

• Generic classifier

• Train your own TensorFlow model

• Partner & SAP Model Store

• ML Foundation OnPremise

• Support Python/scikit ML framework• Further functional services

• Data pipelines• Holistic process for training and

serving

S/4

Finance

Procure

Produce

Idea

MDM

CEC/Hybris

Ariba

HR/SFSF

Machine Learning is embedded across the SAP portfolio

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Links and further information

Official Website For updates and more information check our official Web site

Education Participate in the openSAP course Enterprise Machine Learning in

a Nutshell (overview course)

Early adoption and

co-innovation Be an early adopter and co-innovate with us for next-wave cases

Thank you!

Invitation to connect

joseph.houben@sap.com

twitter.com/brewie12

xing.com/profile/joseph_houben

https://www.linkedin.com/in/houben

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

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of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated

companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are

set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release

any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,

and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The

information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various

risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)

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