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SAP Releases SAP S/4HANA 1809

SAP announced the latest version of SAP S/4HANA; SAP S/4HANA 1809. The latest release promises to continue on with SAP's commitment to both converting existing ECC functionality into S/4, as well as, introducing newer functions and features.

Here is an overview of SAP S/4HANA 1809 from sap.com

Innovations and Intelligence in SAP S/4HANA 1809

In the area of Procurement, SAP is delivering number of Machine Learning capabilities with SAP S/4HANA:

  • Increased invoice automation and efficient invoice monitoring for exception handling

  • Reduction of free-text items by automatically proposing the creation of a new catalog item

  • Proposal of material group for free-text items in purchase requisitions

  • Provision of options for materials without source of supply

Quotation Conversion Rates is an innovation in Sales and Distribution which truly delivers on the promise of an intelligent ERP. As an internal sales representative or a sales manager, you can use Quotation Conversion Rates to track to what extent your quotations are being converted into sales orders before expiring. By leveraging machine learning capabilities, you can gain predictive insights into quotation conversion by comparing actual and predicted results. The Quotation Conversion Probability (also known as Order Probability) is the probability that a quotation item will be converted into a sales order item. The probability, expressed as a percentage, and net value of the quotation is used in order to calculate a total expected order value.

In Manufacturing SAP is introducing Demand-driven replenishment. With the demand-driven buffer level management, you can plan and manage supply chains much more efficiently. Providing decoupling points with strategic stock positions, manufacturers can avoid the so-called “Bull-Whip-Effect”, where the variations in demand increases as you move further up the supply chain from customer to supplier.

Moreover, in inventory management, SAP included intelligence by leveraging predictive analytics and machine learning for decision support.

Finance as well has quite a few intelligent innovations in store for you, for example predictive accounting. When a sales order is confirmed in the system, this is not recorded in accounting until goods have been delivered and the invoice has been sent. With the predictive accounting functionality, based on the sales order, a predictive goods issue and a predictive invoice is registered.

The Intelligent Suite build on the ingredients of the digital core

The Intelligent Suite will retain the modularity and flexibility of independent solutions while delivering a suite experience. Scenarios are business-driven and integrated, intelligent, and extensible. We embedded intelligence to deliver unmatched business value in each of the scenarios.

Intelligent Technologies

Intelligent Technologies will help SAP Applications differentiate while at the same time natively comprehending the context of the business application. This includes higher-order intelligence with many scenarios oriented along business outcomes and relevant to lines of business, feedback mechanisms leveraging IoT and business networks as data sources for training feedback, as well as actionable insights in order to derive connecting insights to strategic decisions via a consistent User Experience (UX).

The Digital Platform

The Digital Platform will offer the best-in-class runtime experience to users. And development experience to SAP and non-SAP developers alike. With the Digital Platform we allow for a unified integration for processes as well as data, dynamic scalability based on Cloud-native principles for all new developments, and an ecosystem success with the richest business content. We want to cover all data processing needs by leveraging data-driven applications, and new services and innovations shall be obtained via the digital marketplace, a modern consumption model.

New Technologies Enable a New Generation of Intelligent ERP

What is the foundation for a digital core? These four characteristics are the basis for a digital core:

  • An architecture that delivers a scalable foundation to transact at highest possible automation

  • A system that supports and steers the business using real-time embedded analytics, simulation, prediction, and decision support to run live business

  • An end-to-end experience that allows to be faster implemented, consumed, and adapted

  • An open architecture to allow connectedness and adoption of micro-services

  • How can we add intelligence to our digital core?

SAP built three ingredients which make our digital core intelligent:

  • A digital age UX, or more precisely a conversational user interface and natural language interaction which allow us to target a hands-free ERP by 2020

  • Automation of business processes: SAP strives for an automation of 50 % of all ERP business processes within the next three years. This automation mainly addresses companies´ bottom lines and helps saving costs.

  • The next generation of business processes: While providing a streamlined architecture and technology that did not exist before, SAP wants to target the top line increase by providing the infrastructure to completely rethink value creation and service tasks

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