Harness the power of automation and machine learning in financial shared services with SAP Leonardo Machine Learning

Transcription

1 Harness the power of automation and machine learning in financial shared services with SAP Leonardo Machine Learning Klaus Schimmer, Director Business Development Machine Learning EMEA, SAP SE October 24, 2017

2 Digitization Every company to become a software-driven company by Connected Data Integration Collaboration Mobile Big Data Business Process Innovation Intelligently connecting People, Things and Businesses Machine Learning APIs Natural Language Real-time Analytics IoT Networks Microservices 2

3 SAP Leonardo Digital Innovation System Design Thinking Services Data Intelligence Analytics SAP Leonardo Technologies Blockchain Internet of Things Machine Learning Big Data SAP Cloud Platform Microservices Open APIs Flexible Runtimes Integration Data Management Multi-Cloud Infrastructure Open Source Storages SAP HANA SAP HANA Vora SAP AWS S3 SWIFT Hadoop 3

4 Technology trends: Computer vision Computer vision is surpassing human abilities Water Travel No person Sea Landscape A skier is jumping over snow covered hill Sources: LeCun: The unreasonable effectiveness of deep learning, Zeiler: Visualizing and Understanding Convolutional Networks, 4

5 Technology trends: natural language processing Vector Embeddings of Words Zero-shot Neural Machine Translation Stock Market Thermometer Human Animal = Ethics Library Books = Hall President Power = Prime Minister Source

6 TECHNOLOGY TRENDS: REINFORCEMENT LEARNING Source: 6

7 Machine learning is the reality behind artificial intelligence What is machine learning? Computers learn from data without being explicitly programmed. Machines can see, read, listen, understand, and interact. Why now? 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 7

8 SAP s vision for enterprise machine learning SAP Leonardo Machine Learning Create your own intelligent infrastructure Automate Knowledge Work Transformational HR services Lights out finance operations Self-driving customer service Conversational sales bots Customer retention insights Do the Impossible Image-based Ariba commerce Contextual Concur travel concierge Video-aware marketing Visual store execution Drone and satellite-based asset management Vision-enabled manufacturing Contextual logistics SAP Cloud Platform and SAP HANA 8

9 Machine learning can reinvent businesses 60% Of human tasks will be automated by % Image recognition accuracy today (better than human rate 95% ) Process Automation Full automation of business processes, from HR to payments processing, to workflow approvals for purchase orders and sales execution Dynamic Analytics Proactive analysis of new data types and discovery of unfamiliar patterns that provide a new level of insights Next gen UX User experience based on voice, vision and messaging will replicate how people interact in real life and increase business productivity 95.1% Speech recognition accuracy today (better than human rate 94.1% ) $18B Enterprise Machine Learning Market by 2020 Source: SAP CSG analysis, McKinsey Quarterly Report July 2016, Google PR, Microsoft PR, SAP Market Model 9

10 SAP needs to make the leap to become the Intelligent Enterprise Impact Transactional Enterprise Digital Enterprise Intelligent Enterprise 2020 Yesterday Enterprise software guides processes Programmed/rule based Human knowledge work 2017 First autonomous process steps with ML Learning from single customer data sets End-to-end processes require human-in-loop with some predictive support End-to-end AI drives core business & support functions Highly personalized by business & user context Humans focus on exceptions and higher value work Maturity 10

11 Envision the Architecture of the Modern Enterprise A Digital Core and a Digital Innovation System Digital Core SAP S/4HANA Digital Innovation SAP Leonardo Connect all parts of your business to run live with S/4HANA SAP Hybris SAP SuccessFactors Concur SAP Fieldglass SAP Ariba IoT Machine Learning Big Data Modern Analytics Blockchain Data intelligence Tailor, Integrate & Expand the Core with SAP Cloud Platform SAP HANA SAP Cloud Platform 11

12 Build your intelligent enterprise now SAP Leonardo makes machine learning incredibly simple Assets 76% of the world s transaction revenue touches an SAP software system 25 industries 12 LoBs The world s largest business network SAP Leonardo Machine Learning Applications Business services Functional services Lifecycle management SAP Cloud Platform and SAP HANA Increasing revenue Reimagining processes Quality time at work Customer satisfaction Enabling innovations 12

13 Reimagine your value chain with Machine Learning Design Trend Analysis (Face, Age, Gender, Emotion, Apparel) Inbound Logistics Image-based Purchasing Goods & Services Classification Marketing Sales & Service Personalized Design Supplier Risk Assessment Brand Impact Conversational AI Operations Outbound Logistics Social Media Analysis Service Ticketing Predictive Maintenance Routing Optimization Customer Behavior Segmentation Customer Support Solution Recommender Quality Inspection Optimal Planning & Scheduling Supply Chain Resilience Last-mile Delivery Cash Application Accounts Payable Remittance Advices Predictive Accounting Fraud Management Finance Learning Recommender Synchronous Translation of training content Career Path Recommender Human Resources 13

14 2 Trends in the Modern Finance Digitization of Finance and Machine Learning Digitization of Finance Machine Learning New digital reality drives finance organizations towards Lights out Finance Intelligent software provides new data insights and automates knowledge work 14

15 The CFO s new reality Becoming a Live Business in a digital world Increasing complexity of external conditions Explosion of Big Data Pressure to support global growth initiatives Business trends Technology trends Digital work-style enabled by networks and mobility Requirement to reduce the cost of finance Accelerated adoption of technology innovations 15

16 SAP s vision finance of the future Inverting the effort pyramid through automation Today 2020 Strategy and growth Keeping the lights on Strategy and growth Compliance, efficiency, and business performance Automation Keeping the lights on Up to 70% of tasks are potentially automate-able with next-generation technologies (McKinsey 2016) 16

17 Technology drives Efficiency Accurate digital data and machine learning boost automation SAP S/4HANA Finance The Digital Core Foundation for digital automation Accurate digital data reduces reconciliations and enables higher degree of end-to-end automated processing Accurate digital data IoT Business Network Machine Learning Engines specific process knowledge enables rule-based automation Finance Machine Learning Identify hidden patterns in knowledgeintensive processes and then execute processing Engines Digital Collaboration ecommerce Robotics Process Automation Help run repetitive, rule-based monotone tasks Robotics Process Automation 17

18 Fundamentally changing the world of Finance Assist Detect Predict Automate 18

19 SAP Leonardo Machine Learning for Finance at SAP Key Processes ML Use Cases Order to Cash SAP Cash Application Remittance Advice Procure to Pay Record to Report SAP Accounts Payable ExpenseIt Receipt Processing Intelligent Invoice Correction (Future use cases) SAP Service Ticket Intelligence CoPilot Financial Planning & Analysis (Future use cases) 19

20 SAP Leonardo Machine Learning for Finance at SAP Key Processes ML Use Cases Order to Cash SAP Cash Application Remittance Advice Procure to Pay Record to Report SAP Accounts Payable ExpenseIt Receipt Processing Intelligent Invoice Correction (Future use cases) SAP Service Ticket Intelligence CoPilot Financial Planning & Analysis (Future use cases) 20

21 Order to Cash / Accounts Receivables End-to-end process with machine learning Bank statements Automatic clearing Cleared payment Remittance advice Remittance Advice Extractor R2R confirms proposal (configurable) Standard clearing rules Manual clearing Invoices Cash Application Payment difference is too high R2R confirms proposal (configurable) Unstructured data ( s. documents, memo) Future Services Current Services included in the suite Payment difference cannot be written off Dispute Proposal Service Dispute Cash Collection Recommender Promise to pay The suite will be continuously expanded with further functionality. 21

22 SAP Cash Application Next-generation intelligent invoice-matching powered by machine-learning History Payments Invoices SAP Leonardo Machine Learning Matching proposals SAP Cash Application intelligently learns matching criteria from your history and automatically clears payments. Improves days sales outstanding Integrated with SAP S/4HANA for reduced TCO and time to value Allows shared services to scale as the business grows Empowers finance to focus on strategic tasks and service quality 22

23 SAP Cash Application Next-generation intelligent invoice matching powered by machine learning 23

24 Remittance Advice Extractor Extract payment information from unstructured documents 24

25 SAP Leonardo Machine Learning for Finance at SAP Key Processes ML Use Cases Order to Cash SAP Cash Application Remittance Advice Procure to Pay Record to Report SAP Accounts Payable ExpenseIt Receipt Processing Intelligent Invoice Correction (Future use cases) SAP Service Ticket Intelligence CoPilot Financial Planning & Analysis (Future use cases) 25

26 SAP Service Ticket Intelligence Accelerate customer service in an omnichannel front office Service tickets Knowledge base articles SAP Leonardo Machine Learning Classifications Resolutions Routing SAP Service Ticket Intelligence automatically processes customer enquiries to deliver best-in-class customer service. Improve service response times with automated processing Integrated with SAP Hybris Cloud for Customer for reduced time to value Enablement of customer service to scale with increased digital interactions *SAP Service Ticketing does not replace Knowledge Management solutions 26

27 SAP Service Ticket Intelligence Next-generation customer service 27

28 Vision: Self-driving Finance E2E Processes, towards 70% automation Order-to- Cash Order & Contract Mgmt. Check Credit Issue Invoice Receive and Apply Cash Resolve Disputes Collect Cash Settle, Reconcile, Account Procure-to- Pay Request Goods & Svc. Credit limit Utilization (1) Predictive Risk Scores (1) Order Goods and Services Discount proposal (1) Purchase Order Mapping (1) Receive Goods & Services Cash Application (6) Remittance Advices (5) Bad debt identification and handling (1) Perform Invoice Processing Invoice to Record (6) Vendor Matching (6) Invoice Line Item Matching (2) GR/PO/IR Matching (3 Way Matching) (1) Approver recommender (1) Account recommender (1) Dispute Proposal Service (1) Discount & Payment Term Opt. Cash Collection Recommender (2) Identification of the most optimal dunning method (1) Make Payments Execute Closing & Carry Out Reconciliation Correctness of outgoing payments marked as successful in the Reconciliation account payment run proposal (1) recommender (1) Indication of a duplicate free form payment request (1) Reconciliation account recommender (1) Record-to- Report Accounting Compliance Entity Close Intercompany Goods Receipt / Invoice Receipt Monitor ML Status Proposal (3) Posting Uploader from Files (1) Accounting Rule Mining (1) Predictive softclose (1) Automated Intercompany Reconciliation and Processing (1) Financial Planning & Analysis Predictive Accounting (1) Strategy Dev. & Translation Plan, Budget, Forecast Forecasting by key KPIs in Accounts Receivables and Accounts Payables (1) Cost Management Smart Alerts (1) Product Cost Mgmt. Profitability & Cost Mgmt. Profit & Cost Simulation Monitoring & Reporting 1 idea, 2 planned, 3 beforepoc, 4 in PoC, 5 in development, 6 evolution of released product 28

29 What SAP offers? Let s start the machine learning journey Ready to Use Ready to Co-Innovate SAP Cash application SAP Service Ticketing SAP Leonardo ML Foundation Brand Impact Customer Retention Revenue & references 10+* new co-innovation projects for wave II and III Co-Innovate on existing products next release Additional functional services for ML foundation Adopt & create further references * Co-innovation projects could be : Brand Impact, Cash Application, Service Ticketing, Conversational AI, Accounts Payable, Predictive Maintainance, Supplier Risk Assessment, Routing Optimization, Customer Behavior Segment, Learning Recommender 29

30 SAP Leonardo Machine Learning Discovery Service Service Description Machine learning technology provides new solutions to existing and new business opportunities. We conduct an onsite workshop with you to define an approach for your business to benefit from the capabilities of machine learning. SAP machine learning experts provide guidance about the benefits of machine learning and intelligent application for potential uses cases and line of businesses. Delivery Approach Discovery Analysis Ideation Prototyping Action Plan Fundamentals & SAP machine learning vision Customer Vision, Goals and Needs Business Benefits Imagination and Inspiration Low fidelity prototypes Summary, Prioritizatio n & Next Steps Understand the business benefits of machine learning and intelligent applications Define a vision and value proposition for machine learning based on SAP Leonardo Validate a high level action plan to maximize business benefits Applications SAP Leonardo Machine Learning Foundation S/4HANA and other backend systems Key Deliverables Initial customer vision to machine learning Value proposition based on SAP Leonardo machine learning High level action plan Variants & Duration Standard variant: 1 day onsite (3 person days effort based on T&M) Variant with extended prototyping: 2 days onsite (6 person days effort based on T&M) 30

31 Links and Further Information Official Website Explore SAP Leonardo ML under Watch the intro video Download the solution brief Read about the intelligent enterprise Learn about our Machine Learning foundation Education Participate in the opensap course Enterprise Machine Learning in a Nutshell (overview course) Early Adoption & Co-Innovation Be an early adopter and co-innovate with us for next-wave cases Try out our Machine Learning services: api.sap.com 31

32 SAP Leonardo offers you the building blocks for the intelligent enterprise Your Data SAP Leonardo Machine Learning Applications 76% of all transactions 25 Industries Leonardo Discovery Workshops Business Services Training and Lifecycle management Foundation Functional Services 12 Line of Businesses The largest Business- Network 32

33 Thank you. More information: SAP Leonardo: SAP Innovation Center Network: icn.sap.com