First-hand knowledge.

Browse the Book

In this chapter, you’ll establish a strong technical background with a
complete view of the machine learning and predictive analytics archi-
tecture in SAP S/4HANA. You’ll walk through the solution architecture for
all three implementation methods: embedded machine learning, si-
de-by-side machine learning, and side-by-side predictive analytics with
SAP Analytics Cloud.

“Architecture”

Contents

Index

The Authors

Siar Sarferaz, Raghu Banda

Implementing Machine Learning with SAP
S/4HANA
408 Pages, 2020, $89.95
ISBN 978-1-4932-2011-3

www.sap-press.com/5158
 Chapter 4
Architecture
Before we dive into the implementation steps, it’s important to first get 4
a clear picture of the architecture of machine learning and predictive
analytics in SAP S/4HANA. We’ll walk through the architecture of the
various implementation models in this chapter.

In this chapter, we’ll dive into the architecture of SAP S/4HANA with machine learning
and predictive technologies. We’ll begin with a discussion of the technical challenges
involved with implementing machine learning and intelligent business processes.
We’ll then move on to an overview of the SAP S/4HANA solution architecture before
taking a closer look at the technical architecture for embedded machine learning, side-
by-side machine learning, and side-by-side predictive analytics. The objective is to pro-
vide you with the technical background for using the SAP S/4HANA delivered scenarios
and for implementing your own machine learning and predictive analytics use cases.

4.1 Introduction
In this section, we explain the challenges of applying machine learning in the context of
SAP S/4HANA. Solving those challenges is the added value that comes from the machine
learning approach provided with SAP S/4HANA. We also answer an important, often
asked question concerning what intelligence means within the scope of SAP S/4HANA.

4.1.1 Technical Challenges in SAP S/4HANA

Improved processing power, better algorithms, and the availability of big data are facil-
itating the implementation of machine learning for infusing intelligence into back-
office processes and providing an intelligent ERP system. With SAP S/4HANA, SAP
delivered the first intelligent ERP system on the market. SAP S/4HANA’s underlying
in-memory database SAP HANA increases speed, combines analytical and transac-
tional data, and brings innovation with embedded machine learning capabilities.
Thus, machine learning is natively integrated into SAP S/4HANA and can be easily used
across an entire organization to optimize business operations, improve employee job
satisfaction, and create better customer services. With SAP Conversational AI, a natural
language experience is provided by SAP S/4HANA, which revisits the way users interact
with the system due to enablement of hands-free applications.

83
4 Architecture 4.1 Introduction

However, incorporating machine learning capabilities into ERP solutions is a challeng- optimized resources consumption. Thus, the following equation applies: the higher the
ing task. This is due to the high complexity of such systems. SAP S/4HANA, for exam- level of automation of a business process or a system, the higher the level of intelli-
ple, consists of more than 250 million lines of code and 143,000 tables. It supports 25 gence is.
industry verticals, localizations for 64 countries, and thousands of business processes. In this section, we introduce a methodology for how to measure intelligence of busi-
Two substantial challenges must be solved: ness processes provided by SAP S/4HANA and describe both the business and technol- 4
1. How can we integrate machine learning systematically into business processes for ogy perspectives.
ease of consumption?
2. How can we make machine learning enterprise-ready? Methodology
SAP S/4HANA operates as a central system for an organization’s business processes.
Machine learning models have been created by data scientists for decades. However,
Key questions for defining automation levels center on understanding the common
often those models resided in special tools and were consumed by experts only, and so
structure of all those business processes. As illustrated in Figure 4.1, for a business pro-
they added hardly any value.
cess, there are four dimensions to be considered for automation. This is an industry
The best approach for solution architecture is to systematically build machine learning standard that’s transformed for ERP software.
into business processes so that intelligence is provided to the right person, in the right
place, and at the right time. In context of ERP systems, fused machine learning func-
Data acquisition
tionality must be enterprise-ready (which we’ll discuss at length in Chapter 5, Section automation level
5.5). This covers qualities like compliance, security, scalability, robustness, extensibil- 5
ity, configurability, operations, supportability, globalization or auditing. For example:
쐍 Training and inference processes of machine learning must consider the General 4
Data Protection Regulation (GDPR)
쐍 Machine learning models are new development artifacts that require a solution for 3
lifecycle management, starting from activation and moving through upgrades and
operations 2
Intelligence level of
쐍 Prediction power of machine learning models decreases with time; degradation
a business process

Information analysis
strategies must be devised 1

automation level

automation level
Action making
쐍 Reasoning behind inference results must be explained to end users and recorded for
legal auditing
5 4 3 2 1 1 2 3 4 5
In this chapter, we’ll focus on the solution architecture and conceptual foundations
that underly enterprise readiness. 1

2
4.1.2 How to Operationalize Intelligence

nd
Despite a long history of research and debate, there is still no common definition of 3

a
Exp
intelligence. Scientists have provided various models for mathematical, linguistic, tech-
nical, musical, and emotional intelligence, but none of them are generally accepted. But
4
how can we make SAP S/4HANA intelligent without knowing exactly what this means?
The operationalization method is applied to resolve this dilemma and make the term 5
intelligence measurable by defining different automation levels, like psychologists are Decision making
doing with IQ values. Intelligence in the context of SAP S/4HANA is not just an end in automation level
itself; rather, it’s about increasing automation toward an autonomous ERP system to
Figure 4.1 Methodology for Operationalizing Intelligence
reduce the total cost of ownership (TCO), such as through faster process runtimes or

84 85
4 Architecture 4.1 Introduction

Each dimension is rated from 1 (low) to 5 (high) for its level of automation. By determin-
ing the level of automation for each dimension for a given business process or a sys-
tem, the overall level of automation can be detected. Thus, the current and target level
of intelligence can be determined, and an execution plan can be defined for making the
business process more intelligent.
Data acquisition is the process of inputting data into SAP S/4HANA using devices such
as a keyboard, scanner, disk, or voice. The following qualities could be used for deter-
mining the different automation levels for data acquisition:
1. Manual entry by user
2. Manual entry and data integration
3. Data integration and manual entry (exceptional)
4. Conversational AI and data integration
5. AI-based data extraction and integration (e.g., PDF document is transformed to
structured data and entered by robotic bot)
4. System actively evaluates and recommends actions
5. System autonomously perform actions that are traceable and auditable
To deepen your understanding, let’s apply this methodology to the following sales per-
formance use case: A sales plan is a strategy that sets out revenue goals and identifies
4
the steps to meet those targets. Developing such a sales plan is usually a manual process
of analyzing historical data in order to forecast the revenue as a key figure. The situation
could be improved by applying machine learning to predict the forecast in terms of how
sales could develop in the future. Thus, the manual effort for sales planning can be
decreased and the actual sales volume can be increased by providing better insights to
take action where needed. Figure 4.2 depicts the application of the approach to deter-
mine the current and target levels of intelligence for the explained sales performance
scenario. As you can see, with predicting the sales revenue based on machine learning,
the automation level of the dimensions decision and action making are increased. How-
ever, the level of automation for the dimensions data acquisition and information anal-
ysis remain unchanged because no additional intelligence is infused into them.

Information analysis is the process of studying and interpreting the data for meaning-
ful findings. The following qualities could be used for determining the different auto- Data acquisition
automation level
mation levels for information analysis:
5
1. Descriptive (what happened)
2. Diagnostic (why did it happened) 4

3. Predictive (what will happen)

3
4. Prescriptive (what should we do)
5. Cognitive (autonomous self-learning analysis of happenings)
2
Intelligence level of
Decision-making is the process of selecting a logical choice from the available options sales performance

Information analysis
by considering the impacts. The following qualities could be used for determining the (current) 1

automation level

automation level
Action making
different automation levels for decision-making:
1. User makes decisions manually 5 4 3 2 1 1 2 3 4 5
2. User consumes system events and changes for decisions
1
3. System provides relevant information to the user for making decisions
4. System actively evaluates and recommends decisions 2
5. System autonomously makes decisions that are traceable and auditable

Intelligence level of 3
Action execution is the process of enforcing instructions to achieve a specific goal. The
sales performance
following qualities could be used for determining the different automation levels for
(target) 4
action execution:
1. User performs actions manually 5
2. User consumes system events and changes for performing actions Decision making
automation level
3. System provides relevant information to the user for performing actions
Figure 4.2 Example of Applying Methodology

86 87
4 Architecture 4.1 Introduction

Business View 쐍 Deep learning for image recognition

Businesses of all sizes aim to increase their top line and bottom line by using a modern 쐍 SAP Conversational AI for natural language processing (NLP)
ERP system like SAP S/4HANA. Increasing levels of intelligence within business pro- 쐍 Bots or intelligent applications based on machine learning models for autono-
cesses support them in achieving these goals by generating new insights from data or mously making decisions and performing actions
by enabling data-driven automation. However, the individual business value of adding 4
intelligence is dependent upon the context or the use case in which it is used. For
Data acquisition
example, already an incremental improvement through rule-based approaches can be automation level
perceived as more intelligent compared to the status quo, thus adding more business 5
value. The proposed framework provides the foundation for an objective discussion
with various stakeholders about the current and future state of a business process and 4
the spectrum on which business value can be generated.

3
Technology View
To make a business process more intelligent, first the current level of automation
2
based on the described methodology should be determined. This is the foundation
from which the target level can be derived by solution managers based on business

Information analysis
automation level

automation level
needs. The next question is how to achieve the defined level of automation per dimen- 1

Action making
sion. There is not just one tool but various concepts and technologies to achieve the
specified intelligence level for the dedicated dimensions.
5 4 3 2 1 1 2 3 4 5
However, as shown in Figure 4.3, categorization of techniques can be provided for real- Manual
izing different levels: 1

쐍 Manual
쐍 Rule-based
쐍 Self-learning
Business processes can be run manually without any kind of automation. To overcome
this, various rule-based techniques can be applied to increase the level of automation
and intelligence. Let’s consider a few rule-based examples:
쐍 An ABAP report performing input or process validations and displaying error mes-
sages with resolution instructions to the user
쐍 A workflow for performing individual tasks/decisions moving from one step to the
next until a predefined process is complete
쐍 An insight-to-action analytics scenario starting with a key performance indicator (KPI)
tile notifying the user about drifting trends, performing root-cause analysis and exe-
cuting corrective actions
쐍 A situation-handling application informing the user about a problem, providing the
necessary data for resolution, and recommending actions
When it comes to achieving level 5, rule-based approaches are no longer sufficient; they
must be extended to self-learning techniques. These techniques make sense of raw
data and discover hidden insights and relationships by learning from that data, rather
than programming explicit rules. Some examples include the following:
2
Rule-based
3
4
Self-learning
5
Decision making
automation level
Figure 4.3 Categories for Automation Technologies
In context of SAP S/4HANA, rule-based technologies are well known, so in this book
we’re focusing on self-learning methods based on machine learning and predictive
analytics in order to increase the intelligence level of business processes.
The described approach provides a framework to derive a strategic direction for SAP
S/4HANA in terms of making it more intelligent. To infuse SAP S/4HANA with more
intelligence, additional business processes must be moved to level 4 and 5, targeting an
autonomous ERP system. Thus, the overall intelligence of SAP S/4HANA is reflected by
the level of the intelligence of the provided business processes.

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4 Architecture
4.2 Architecture Overview
In this section, we explain which machine learning application patterns have been
identified in the context of SAP S/4HANA. These are basically the underlying use cases
that must be solved with the proposed architecture. We also describe the guiding prin-
ciples behind the solution architecture.
4.2.1 Machine Learning Application Patterns
For defining the solution architecture, it’s crucial to understand which technical capa-
bilities are required for the implementation of the machine learning scenarios. Thus,
the machine learning use cases were first analyzed concerning this matter. In this con-
text, several machine learning application patterns were identified, and those will be
described in this section. The strategic direction is to provide for each pattern a uni-
form concept and framework for implementation. Thus, the machine learning applica-
tion patterns can be applied as reusable building blocks by development teams to
accelerate the implementation of machine learning use cases.
Matching
Matching assigns relationships and detects similarities and anomalies in a given data-
set. As an example scenario, say that as a master data specialist, you want to reduce the
number of duplicates in the system during consolidation. While manual matching is
very time-consuming for users, intelligent systems can significantly speed up match-
ing decisions by using machine learning methods. The system can present one or more
strategies and their quality to link similar objects. Users then only need to approve or
reject the suggestions or adjust them to their needs. Matching is needed when at least
two artifacts can be linked together due to a degree of similarity.
The process of matching follows a set of rules, which can be dynamically adjusted
(“learned”) by the system. The learned rules can change over time due to user input or
other triggers. Matching can be applied on different content types, including the fol-
lowing:
쐍 Text (e.g., search and replace) or images (e.g., find all dogs in a set of pictures)
쐍 Audio (e.g., natural language processing, when an audio stream is matched to a
query)
쐍 Video (e.g., find out which company logos appear and how often during a football
game)
쐍 Complex business objects (e.g., matching of invoices to good receipts or finding a
duplicate of a customer)
The content to be matched highly influences the type of output and its presentation.
One aspect of matching is the quality of a match. This means that objects can fully or
only partially match together. A full match is given when all defined parameters are
90
4.2 Architecture Overview
met, whereas a partial match finds only some of the required parameters to fit. The
more parameters match, the better the quality of a match is. The following matching
types have been identified so far:
쐍 Relationship matching
Logically connects objects of different types—for example, matching multiple 4
invoices to one payment
쐍 Compatibility matching
Fits objects of different types but with shared properties together to form a com-
plete system—for example, assembly of a high/medium/low-end computer (a com-
puter consists of several components, such as a motherboard, a CPU, memory, and a
display, which have to fit together—and, for instance, the CPU fits only into mother-
boards with a specific socket)
쐍 Similarity matching
Merges similar objects of the same type into one—for example, merging multiple
similar business partners because they’re the same type of object
For developing matching patterns, commonly used algorithms include multiclass clas-
sification algorithms like XGBoost/multilayer perceptron, clustering algorithms like K-
means, and nonparametric methods like the k-nearest neighbors algorithm.
Recommendations
Recommendations propose datasets or actions based on the current context. For
example, as a material requirements planner, you want to see potential solutions for
resolving a material shortage issue. Intelligent systems can help users by recommend-
ing appropriate content or by suggesting an action or input the user may prefer. In this
case, we speak of a recommendation pattern and its impact on the UI. We differentiate
among three types of recommendations:
1. Content recommendations
The system filters the content down to what may be interesting for the user, based
on the user’s behavior or the content characteristics. Examples of typical content
recommender systems include Amazon and Netflix.
2. Input assistance
The system assists the user by entering data or filtering data. Typical examples might
be a search phrase suggestion, an appropriate form template, or a set of suggested
default values for certain fields, based on the user input and interaction history.
3. Solution proposals
The system supports users working on complex problems by recommending spe-
cific actions or proposed solutions. In some use cases, this might be combined with
a simulation of the possible outcome. Typically, solution proposals involve various
decision-support systems. Examples use cases include payment and invoice match-
ing, and material shortage scenarios.
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4 Architecture
As a prerequisite for the implementation of recommendation patterns, you must have
historical data concerning actions performed and inputs provided during business
processes. For the recommendation type solution proposal, the logging of business
processes is mandatory; for content recommendation, the necessary historical data
might be derived from application data. For the recommendation type, input assis-
tance in addition to texts/descriptions could be required.
For recommendation patterns, commonly used algorithms include social analysis,
multiclass classification algorithms like XGBoost/multilayer perceptron, text analysis/
mining, or the recurrent neural network (RNN).
Ranking
Ranking distinguishes between relevant and less relevant datasets of the same type in
relation to the current context. For example, as a purchaser, you want to see the top
suppliers for a specific product in the context of a given purchasing request. Ranking
simplifies complex decisions for business users by showing the best options first.
Items in a group are ranked by comparing criteria that are relevant for the user’s busi-
ness context, such as an amount, priority, or score. In a ranked table or list, the results
are always sorted to show the most highly ranked items on top. We differentiate
between two types of ranking:
1. Ranking by inherent value
Ranking is based on a value that is already available in the existing dataset, such as
the price. The value is typically known and understood by the user and requires no
further explanation.
2. Ranking by score
Ranking is based on a calculated grade, mark, or score. In this case, users might need
to understand the calculation behind the score, especially if machine learning meth-
ods are used.
Although you can rank a list of items based on their rating, ranking and rating are two
different concepts. A rating places a single item on a predetermined scale—for exam-
ple, rating your service provider on a scale from 1 (very bad) to 5 (very good). Ranking is
always about comparing a common value across a group of items. In the UI, rankings
are usually shown for a list or group.
For developing relevance and ranking patterns, commonly used algorithms include clas-
sification algorithms like XGBoost and clustering algorithms like K-means/the gaussian
mixture model, as well as nonparametric methods like k-nearest neighbors algorithm.
Predictions
Predictions forecast future data and trends based on patterns identified in past data,
taking into account all potentially relevant information. For example, imagine that as
a master data manager, you want to estimate the potential number of change requests
a team will need to process in the next quarter to balance the workload. Intelligent
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4.2 Architecture Overview
systems based on predictive models significantly reduce the cost required for compa-
nies to forecast business outcomes, environmental factors, competitive intelligence,
and market conditions.
There are two main classes of predictive models: parametric and nonparametric. The
features of these can be combined to form a third class, semiparametric models. Usu- 4
ally, parametric models make specific assumptions with respect to one or more of the
population parameters that characterize the underlying distribution. Nonparametric
models typically include fewer assumptions about structure and distributional
arrangement but often encompass strong assumptions about independencies.
Some algorithms for predictive models include ordinary least squares, generalized lin-
ear models (GLM), logistic regression, random forests, decision trees, neural networks,
and multivariate adaptive regression splines (MARS). Each of those algorithms has a
particular use and answers a specific question or uses a certain type of dataset.
Categorization
Categorization assigns datasets to predefined groups (classes). For example, as a service
agent, say you want to classify the priority of incoming requests (high/medium/low)
based on their content to improve customer service. Categorization can also discover
new groups (clusters) in the datasets, such as grouping customers into segments for
appropriate product offerings, targeted marketing, or fraud detection.
Categorization is a complex task in which intelligent systems can help increase the
level of automation by applying machine learning methods of classification and clus-
tering. Those are used for the categorization of objects into one or more classes and
clusters based on their features. Classification and clustering are similar processes, but
there is one minor difference. For classification, there are predefined labels assigned to
each input instance according to its properties; in clustering, those labels are missing.
Because classification uses labels, training and testing datasets are required for verify-
ing models. This is not necessary for clustering. Usually classification is more complex
than clustering because there are many levels in classification, whereas only grouping
is done in clustering.
For developing categorization patterns, commonly used algorithms include classifi-
cation methods like XGBoost, neural networks like CNN/RNN/GAN, dimension-reduction
algorithms like principal component analysis, and clustering algorithms like K-means/
the gaussian mixture model.
Conversational AI
Conversational AI interacts with a system based on natural language conversation and
enables a hands-free paradigm. For example, as a purchaser, say you want to create a
purchase order by talking with the system. Being able to have a conversation with a dig-
ital assistant to complete your business processes is a key part of the user experience
for an intelligent application.
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4 Architecture 4.2 Architecture Overview

SAP Conversational AI understands typical natural language patterns to search for
business entities using various parameters, look up a specific business entity by name
or ID, retrieve the value of an attribute of a specific business entity, and create simple
new entities, including line items. SAP Conversational AI enables a humanized user
experience for applications to get tasks done in the context of the business data. Thus,
interaction with applications in natural language is supported. Creation of business
objects with information prepopulated from a conversational context is ensured. The
SAP Conversational AI technology supports sharing of notes, screenshots, and business
objects with other users within the context of a conversation. The ability to synthesize
business transactions from multiple SAP applications at a single point of interaction is
enabled with this technology. Customer skills for using a digital assistant can be cre-
ated and deployed across applications and channels.
4.2.2 Guiding Principles for Solution Architecture
The defined solution architecture will follow the key guiding principles of SAP S/4HANA,
which we’ll describe in this section, as depicted in Figure 4.4.
Search, Exten-
P
Planning, MDM UI sibility
mobile Integration
Analytic Authori-
Trans., … zation, …
Let’s walk through these principles:
쐍 One model/uniform in cross
Often the core data model is defined numerous times for different purposes only
because minor metadata must be added. For example, technology solutions for inte-
4
gration, user interface (UI), analytics, or transactions unnecessarily require their own
specific business object models. This increases the total cost of development (TCD)
as the same content must be provided again and again. Due to incompatible meta-
models, cross topics like UI integration, extensibility, and authorization must be
solved various times. This results in a high TCO and makes the consumption of solu-
tions difficult for customers. Therefore, one core data model will be defined and be
reused in different contexts by domain-specific enhancements.
The data model of SAP S/4HANA is based on core data services (CDS). Thus, redun-
dant data modeling is avoided and cross topics are solved uniformly. For machine
learning, this data model will be reused as much as possible.
쐍 Multiple deployments
SAP S/4HANA supports multiple deployment options. Therefore, the defined solu-
tion must be invariant regarding different deployment options and work in on-
premise, privately managed, and public cloud environments. This must be ensured
also for machine learning applications.
쐍 Close to data
In the context of machine learning, one golden rule is to bring the algorithms to the
data and not vice versa. Algorithms consist of minor lines of code and are usually
self-contained. In contrast, application data has high volume and holds numerous
dependencies. Thus, replication or extraction of application data is usually a very
complex and TCO-intensive task (e.g., handling of deltas, meeting performance re-
quirements, interpreting the data semantically) and should be avoided.

One model Uniform in cross

4.2.3 Solution Architecture
Improved processing power, better algorithms, and the availability of big data are facil-
itating the implementation of machine learning functionality in SAP S/4HANA. Fur-
On- Classi-
demand fication
thermore, SAP S/4HANA’s underlying in-memory platform, SAP HANA, increases speed,
On- Reg-
premise ression combines analytical and transactional data, and brings innovation with embedded
machine learning capabilities. With SAP Data Intelligence, additional features are inte-
Private Deep
mgmt. learning grated into SAP S/4HANA and the platform covers the entire spectrum, ranging from
simply consuming intelligent services to training and deploying its own machine
learning models.
Use cases like ranking, categorization, and prediction can be solved with classic algo-
Multiple deployment Close to data rithms like classification, clustering, regression, or time series analysis. Usually those
algorithms do not allocate much memory and CPU time. Thus, they can be imple-
Figure 4.4 Guiding Principles for Solution Architecture mented within the SAP S/4HANA stack, where the application data for model training

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 4 Architecture 4.3 Embedded Machine Learning

and the machine learning consuming business processes also are located. This embed- and predicting what’s likely to happen in the future. This ensures decision-makers have
ded machine learning architecture has very low TCO and TCD. As illustrated in Figure access to the right information at the right time to influence the best possible out-
4.5, the embedded machine learning architecture is based on the SAP HANA machine comes. The focus here is on smart predict, which is an explorative approach for unfore-
learning provided with the Predictive Analysis Library (PAL) and the Automated Predic- seen, exceptional, and irregular needs for machine learning methods.
tive Library (APL) as the necessary algorithms. A conversational UI for natural language interaction with SAP S/4HANA is enabled by 4
SAP Conversational AI. This is a self-learning solution using machine learning func-
Intelligent SAP Fiori/SAP Conversational AI/Explorational UI tionality to gain knowledge based on historic data and experience. Machine learning
requires additional visualization capabilities in the UI, such as for illustrating confi-
dence intervals or forecasting charts. Thus, to embed machine learning capabilities in
SAP S/4HANA SAP Cloud Platform UIs, intelligent SAP Fiori elements are used.
Machine In the following sections, we’ll provide more details about embedded machine learn-
learning service Application content: machine learning
Machine learning ing, side-by-side machine learning, and predictive analytics architecture. The focus
application consumption scenarios/pipelines
here is on the development architecture; the data science tasks are not within the scope
Data Deep of this book.
Pipeline Monitor/
science learning/
engine operate
Predictive tools GPU
Business logic
analytics
SAP Data Intelligence 4.3 Embedded Machine Learning
Embedded machine learning is an appropriate approach for use cases like ranking, cat-
SAP HANA Application content: models/stories
machine learning egorization, and prediction, in which classic algorithms such as classification, cluster-
ing, or regression are sufficient for the implementation. The SAP S/4HANA platform
Smart Smart Smart Search
predict insights discover insight contains with SAP HANA machine learning libraries that can be used for the develop-
Application Data integration
for model training
ment of embedded machine learning scenarios without the need to move application
data
SAP Analytics Cloud data. For a given key question to be solved with machine learning, data scientists per-
form experiments and explorations to determine the required algorithms and the data
Figure 4.5 Overall Solution Architecture attributes for model training. Those are the input for the development of the machine
learning use case that is the focus of this section.
Use cases like image recognition, sentiment analysis, and NLP require deep learning As illustrated in Figure 4.6, the solution is based on two main architecture decisions:
algorithms based on neuronal networks. For model training, usually these kinds of algo- using CDS views and making use of the machine learning techniques provided by SAP
rithms demand a huge volume of data and graphics processing unit (GPU) time. There- HANA.
fore, these kinds of scenarios are scaled out to SAP Data Intelligence to keep the load in
The data persistency in SAP S/4HANA is represented by application database tables. On
the transactional SAP S/4HANA system low. For this side-by-side machine learning
top of these tables, a virtual data model (VDM) is implemented using CDS views. One
approach, the requested data—images, audio, text documents, historical data, applica-
purpose of these VDM views is to hide the cryptic database model and to provide a
tion logs—are typically stored not in SAP S/4HANA but rather in the business data lake.
reusable semantic layer that can be consumed in different scenarios, such as analytics,
In general, the consumption of a trained model is based on remote interfaces. However,
planning, search, or transactions. At runtime, the CDS views are consumed via the ana-
for mass processing those interfaces must be bulk-enabled, or local deployment of infer-
lytical engine or the Service Adaptation Description Language (SADL), which is part of
ence models must be provided.
the ABAP application server. Those frameworks evaluate the metadata of the CDS views
Predictive analytics uses machine learning to automate data preparation, insight dis- in terms of annotations to enable the required functionality for the business process,
covery, and insight sharing for business users, operational workers, and data scientists. such as hierarchy handling or analytics capabilities. Out of the ABAP CDS views, the SAP
SAP Analytics Cloud provides predictive analytics features, also known as smart fea- HANA SQL views are generated so that SQL operations can be pushed down to SAP
tures. These features are dedicated to uncovering insights, understanding root causes, HANA for optimal performance.

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4 Architecture 4.3 Embedded Machine Learning

The algorithms for embedded machine learning can be performance-intensive as is to provide a common interface for the consumption of machine learning models inde-
high volumes of application data must be processed. Thus, for performance optimi- pendent of the underlying predictive engine. The intention is to harmonize the manage-
zation, the algorithms should be processed close to the application data. SAP HANA ment of machine learning models and to provide a simple common interface to allow
provides PAL and APL to offer statistical and data mining algorithms. In addition, applications to interact with different types of supported machine learning libraries
specific algorithms can be implemented if required. As shown in Figure 4.6, those algo- without the requirement for applications to develop machine learning engine-specific 4
rithms are invoked and orchestrated by the modeling and administration component, code. Consumer applications interface only with application programming interfaces
which is explained later in this section. (APIs) and do not interact with low-level machine learning libraries.
The ISLM architecture is shown in Figure 4.7. The ISLM framework contains information
Built-in Explorative about the installed SAP HANA libraries. It provides a repository for machine learning
consumer consumer
models that includes, for example, information concerning model types (e.g., regres-
OData InA, MDX
sion, classification, time-series), model data sources (e.g., tables, views), model training
data, and model quality figures to allow for assessing metrics and supporting model
SAP S/4HANA
comparison. The ISLM framework also provides a pluggable infrastructure and adapters

Machine learning
Analytical engine/SADL for APL and PAL. In addition to hiding the complexity of machine learning libraries

services
Training and
from application development, the ISLM framework supports the lifecycle manage-
monitoring
CDS view/AMDP class ment of the involved artifacts in terms of transport within the system landscape, deliv-
CDS view
for machine learning ery, and upgrade mechanisms. Furthermore, it provides configuration capabilities for
model training based on the customer data in their development landscape. This frame-
work is going to be explained in detail in Chapter 5.

Modeling and
SAP HANA machine administration
SQL view
learning library: PAL/APL

Application Machine learning

table model SAP HANA API
(SQLScript procedure/scripted calculation view)

SAP HANA

Figure 4.6 Embedded Machine Learning Architecture ISLM engine adapter ISLM repository

The algorithms require application data as input for model training. The VDM, with its
SQL views and the application tables, can be reused for this purpose. However, in con-
APL Other
trast to the ABAP CDS views, not all metadata is available. This drawback can be elimi- Machine learning
embedded embedded
model
nated once the ABAP CDS views can be transformed to SAP HANA CDS views. The engines engines
trained models are exposed to business processes by wrapping them with CDS views.
SAP HANA
The details of this integration are described in the next section. The CDS views for
machine learning can be combined with other VDM CDS views and can then be exposed Figure 4.7 ISLM Architecture
to the consumers. By consuming machine learning models through CDS views, existing
content (e.g., VDM views) and concepts (e.g., authorization, extensibility, UI integration) Machine learning models are stored in SAP HANA and exposed by generated SQL script
are reused. This results in a simple and very powerful solution architecture. procedures or scripted calculation views. But how are those SAP HANA entities con-
The modeling and administration tool illustrated in Figure 4.6 was previously known as sumed from the ABAP application server?
the Predictive Analytics integrator (PAi). As of the 2020 SAP S/4HANA release, it is re- Various techniques are provided by the ABAP application server to access the underly-
branded as the intelligent scenario lifecycle management (ISLM) framework. Its purpose ing database system. As already mentioned, existing content and concepts are reused

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4 Architecture 4.3 Embedded Machine Learning

wherever possible. Therefore, CDS views and CDS table functions are the appropriate APL has built-in data science steps like feature engineering and detection of adequate
technologies to consume the machine learning models stored in SAP HANA, as shown algorithms. Therefore, this library is very easy to use und results in very low TCO and
in Figure 4.8. SQL script procedures are used to wrap the machine learning models on TCD. However, the algorithms are restricted to classification/regression, clustering,
the SAP HANA level. Those SQL script procedures can’t be invoked by standard CDS time series analysis, and recommendation models. Thus, for breakout scenarios in
technology but can be with CDS table functions. These are used for breakout scenarios. terms of using other algorithms or fine-tuning the models, PAL is used; it provides 4
They are data dictionary objects and are defined via data definition language (DDL) more than 100 machine learning algorithms. Figure 4.9 illustrates how this library is
sources, but in contrast to CDS views, they are not database-independent; they repre- integrated for embedded machine learning.
sent native SQL script functions. These functions are implemented using the tech-
niques of ABAP Managed Database Procedures (AMDP)—that is, via ABAP with an SAP S/4HANA
implementation in SQL script. On top of the machine learning models exposed via SQL
Read Consume
script procedures, corresponding CDS views for machine learning are defined by using Input CDS Machine learning Machine learning
CDS table function technology. The CDS table function represents the input and output view logic AMDP class application
structure of the SQL script procedure that is called by the AMDP implementation of the Copy Train
CDS table function. The provided CDS view, and respective CDS table function, can be
Template Training app
combined with other VDM views and consumed accordingly. For this purpose, OData AMDP class
services can be generated automatically. Existing CDS annotations can be used.

SAP S/4HANA
Application Machine learning
PAL library
data model

CDS table SAP HANA

CDS view
function
Figure 4.9 PAL Integration

For development efficiency, for each PAL algorithm, a template in the form of an AMDP
ABAP class
class is provided. This class implements predefined interfaces and offers standardized
methods for training and consumption of models. For extensibility, business add-in
(BAdI) enhancement points are provided for those methods. Application developers
copy and adopt those templates for specific machine learning scenarios. CDS views as
inputs for model training are defined. Consumption and integration of the machine
learning models into the business processes is based on the method of the AMDP class.
SQL script
procedure Concrete machine learning model instances are available once the customer triggers
training via the training application.
The following qualities are provided by this solution architecture using PAL:
ISLM: repository, engine 쐍 Seamless integration into the SAP S/4HANA programming model
SQL view
adapter and API
쐍 Reuse of existing SAP S/4HANA concepts (e.g., authorization, UI integration), CDS
view content, and tools
쐍 Powerful extensibility based on enhancement points and BAdIs from start due to
Machine learning
Application table model reuse of the transactional programming model
쐍 Rich set of PAL algorithms and usage of SAP HANA text analysis
SAP HANA
쐍 Supports breakouts per definition, such as orchestration of multiple algorithms or
Figure 4.8 ABAP Integration data transformations

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4 Architecture 4.4 Side-by-Side Machine Learning

쐍 Lifecycle management and operations with SAP S/4HANA ABAP tools and concepts can be used to innovate critical business processes, which will then produce even more
쐍 GDPR compliance by design; no data transfer fine-grained contextualized data, feeding a virtuous cycle. Embedded machine learn-
ing targets scenarios in which the business and machine learning logic reside in the
쐍 On-premise and cloud deployment ensured due to one-code-line approach
SAP S/4HANA platform, but the term side-by-side machine learning is used in the fol-
Lifecycle management and ABAP integration of PAL models are also based on intelli- lowing use cases: 4
gent scenarios, as depicted in Figure 4.10. The details of lifecycle management will be
쐍 SAP S/4HANA machine learning based on SAP Cloud Platform
described in Chapter 5, Section 5.5.1.
The SAP S/4HANA application and the according business logic are based on SAP
Cloud Platform. Such applications should consume the required machine learning
SAP S/4HANA services directly from SAP Data Intelligence and SAP HANA machine learning, fol-
lowing the rule of bringing the algorithms to the data.
Consume 쐍 SAP S/4HANA machine learning based on ABAP application server
Machine learning
Intelligent scenario The SAP S/4HANA applications and the related business logic are based on the SAP
application
Register S/4HANA platform. However, the required machine learning capabilities are not
Consume available on SAP S/4HANA—for example, image and language recognition, or senti-
Train ment analysis. These features are consumed from SAP Data Intelligence remotely or
Machine learning based on an exchange of trained models.
Training app
logic AMDP class
Side-by-side machine learning fits use cases like image recognition, sentiment analysis,
or NLP that require deep learning algorithms based on neural networks. These kinds of
algorithms are very demanding regarding consumption of system resources. They usu-
Trained model PAL library ally require huge volumes of data and GPU time for model training. Thus, to keep the
load in the transactional SAP S/4HANA system low and ensure acceptable runtime for
the business processes, side-by-side machine learning scenarios are scaled out to SAP
Figure 4.10 PAL Model Training Data Intelligence. This infrastructure also complements the overall solution in which
specific algorithms are not provided on the SAP S/4HANA platform, classic methods
As already mentioned, PAL algorithms are integrated via AMDP technology from SAP (e.g., regression, classification) consume too many resources of the transactional sys-
HANA into ABAP. The AMDP class implements an interface with methods for training tem, or huge volumes of external data (e.g., Facebook, Twitter) are required for model
and consumption. The intelligent scenario is created for the PAL-based use cases, too. training. In particular, SAP S/4HANA extension applications should consume SAP Data
An intelligent scenario is a business application-specific machine learning design time Intelligence capabilities because the application data and business processes are founded
artifact that includes metadata about an application data source for training (e.g., table on SAP Cloud Platform. Thus, the golden rule of bringing the algorithms to the data is
or view), an algorithm type (e.g., regression or classification), and a consumption API. followed.
The AMDP class for the PAL algorithms is registered in an intelligent scenario. Because
So because side-by-side machine learning scenarios are based on SAP Data Intelligence,
the generic training application is based on intelligent scenarios, it triggers the training
the question arises: How do we integrate this technology into SAP S/4HANA in terms of
method of the AMDP class and saves the trained model. Machine learning applications
model training and inference? The answer to this question is given next.
can consume the trained model via the AMDP class.
SAP Data Intelligence is an important component of the side-by-side machine learning
architecture. It’s designed for the cloud and deployable in any cloud, hybrid, or on-
premise landscape that addresses the entire end-to-end lifecycle for creating value out
4.4 Side-by-Side Machine Learning
of data, combining enterprise AI with intelligent information management, and
The journey toward the intelligent enterprise is enabled by the interaction among enabling enterprises to effectively operationalize machine learning and data science
three main pillars: data, intelligent algorithms, and business processes. Nowadays, en- on complex and real enterprise landscapes. We introduced SAP Data Intelligence in
terprises have big and diverse enough data assets to feed intelligent algorithms, which Chapter 3, Section 3.3.1.

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4 Architecture
SAP Data Intelligence handles how customers discover, refine, govern, orchestrate, and
scale efforts in getting intelligence out of data assets they own or those to which they
need to connect. This covers all the data management use cases that deal with different
kinds of data (structured, unstructured, streaming), different integration approaches
(batch, real-time, near-real-time), or different processing patterns (offline, online, lamb-
da). Key capabilities include the following:
쐍 Data connectivity and orchestration
Leverage central connection management to connect to data wherever it resides—
on premise or in the cloud—regardless of the data type—structured, unstructured,
streaming—and integrate it with flexible data pipelines. Orchestrate data process-
ing across highly distributed and heterogeneous landscapes, executing any SAP or
non-SAP processing engines close to the data sources to minimize the amount of
data to be moved or replicated.
쐍 Data governance and cataloging
Access an advanced metadata management system/catalog, enabling data lineage,
data quality, profiling, data discovery, and searching of datasets to ensure auditabil-
ity and governance. This gives IT team members the flexibility and control they
require to ensure trusted and accurate data is easily discoverable by the teams that
need it, all integrated within a single solution.
쐍 End-to-end lifecycle management of machine learning models
Streamline data science and machine learning projects, from modeling and develop-
ment to operations, across all enterprise data assets to manage the end-to-end life-
cycle. A central repository enables versioning and a tailored lifecycle management
process for machine learning projects.
Support data discovery, access and preparation, and experimentation in Jupyter
Notebook; leverage a library of pretrained models for the most common functional
services; and support deployment, (re)training, serving, and monitoring of all mod-
els. Access ready-to use, adaptable business content in terms of operators and tem-
plates. Finally, SAP Data Intelligence provides an environment for model deploy-
ment and operation, a means to integrate results back into an application or employ
delayed consumption, and continuous testing and maintenance of all models in
production.
쐍 One integrated solution
SAP Data Intelligence includes data pipelining, orchestration, machine learning, and
metadata cataloging in a single solution. This is very valuable: all hyperscalers have
different services for these functionalities, which have to be integrated, while the
main pure players and niche players focus only on a subset of these areas.
쐍 Hybrid and multicloud deployment
SAP Data Intelligence is available both as a service in SAP Cloud Platform and as a
bring-your-own-license product. It has been natively built on Kubernetes since its
initial design, allowing it to deploy the very same solution in any hyperscaler, pri-
vate cloud, or on-premise data center.
104
4.4 Side-by-Side Machine Learning
쐍 Native integration capabilities
Besides reusing all relevant open-source technologies and open standards, SAP Data
Intelligence is also capable of natively integrating and reusing SAP data sources and
engines. SAP Data Intelligence pipelines can natively integrate into ABAP applica-
tions; orchestrate SAP Business Warehouse (SAP BW) process chains, SAP Data 4
Services jobs, and SAP HANA flowgraphs; execute SAP HANA streaming analytics
scenarios; and integrate into all SAP Cloud Platform applications.
Many of these capabilities may exist today in a customer’s information management
landscape, but they are typically offered in a myriad of different ways across several
disparate toolsets that require different skills and different frameworks, whereas SAP
Data Intelligence provides a single, comprehensive way to manage all data types cohe-
sively and intelligently.
SAP Data Intelligence is designed to be used by different user profiles throughout the
enterprise. From a business user with technical affinity to developers and data scien-
tists, there are modules, services, and tools for all levels. The typical lifecycle SAP Data
Intelligence supports comprises the following phases:
1. Data management
With a comprehensive set of intelligent information management capabilities, it’s
possible to manage the data that drives the entire AI process, making it possible for IT
enterprise architects, data engineers, and data management professionals to elimi-
nate data silos and ensure that the data needed for data science teams is made avail-
able in a governed manner. With tools to help profile, prepare, and merge data, data
science teams can rapidly get to the datasets they need to move on to the next phase.
2. Experimentation
For data scientists developing models, SAP Data Intelligence provides the tools they
are experienced with, like Jupyter Notebook, and the frameworks they require, like
R, Python, or TensorFlow. Once provisioned, data science teams can work in a Jupy-
ter Notebook environment to develop models using open-source frameworks and
SAP frameworks (like APL and PAL), pretrained services, and a visual pipeline GUI to
orchestrate data ingestion, training steps, or multiple models. These experiments
for a specific business problem are put under version control so teams can explore
various potential solutions and models and easily test and iterate until they land on
a model they would like to pursue in production.
3. Productization
Models can rapidly be delivered into production by packaging the required assets
(like pipelines and model assets) into a machine learning scenario. In production, a
team responsible for machine learning operations can easily take over and connect
production data to the new scenario, (re)train, deploy models to model servers, inte-
grate with business applications, and start generating insights. Once in production,
models can be centrally managed from a single cockpit in which the ongoing testing,
retraining, and quality of those models can be monitored.
105
 4 Architecture 4.4 Side-by-Side Machine Learning

Models and pipelines can be reused, recombined, and traced through the entire process open to third-party frameworks a data scientist would like to work with. There is also
and to jumpstart new scenarios. This includes reuse of datasets as well. The machine specific support for SAP HANA-embedded machine learning; that is, a connection to any
learning functionality of SAP Data Intelligence is used directly by data scientists SAP HANA, PAL, or APL data stored in SAP HANA can be used from an SAP Data Intelli-
through a set of tools run as web applications either inside SAP Data Intelligence or gence context.
indirectly by applications that call representational state transfer (REST) APIs of SAP The pipeline engine orchestrates complex data flow pipelines, is based on scalable 4
Data Intelligence. Both tools and backends providing REST APIs are based on the sys- infrastructure provided by SAP Cloud Platform/Kubernetes, supports heterogenous
tem application server, which helps to delegate aspects like user authentication and execution runtimes (e.g., R, Python, Spark machine learning), and enables connectivity
authorization to the platform. Tools include design-time tools for data scientists, like
to SAP S/4HANA. Based on the application data, exploration and feature engineering is
the open-source JupyterLab component and the SAP Data Intelligence pipeline mod-
performed by data scientists to define machine learning models. For this, common
eler. Moreover, there are tools for managing the lifecycle of a machine learning project
data science tools like Jupyter Notebook and Python are supported. For deep learning
and the lifecycle of datasets used in a machine learning context.
scenarios, a framework is provided that enables training on a GPU infrastructure.
As illustrated in Figure 4.11, SAP Data Intelligence provides a data lake for business data.
To implement machine learning use cases, applications must define machine learning
Thus, application data can be extracted from SAP S/4HANA for training machine learn-
scenarios and model pipelines. SAP Data Intelligence organizes each machine learning
ing models.
use case by the artifact machine learning scenario. This bundles all design-time entities
Intelligent SAP Fiori/ SAP S/4HANA machine to solve a machine learning business question. In addition, it is the bracket keeping
SAP Conversational AI learning app track of consumed and produced artifacts, like datasets and machine learning models,
Machine learning as well as the metrics reported by these, and is thus the basis for machine learning sce-
service consumption nario lifecycle management. Thus, the machine learning scenario artifact contains all
SAP S/4HANA SAP Data Intelligence development entities that are required for the implementation of a specific machine
Machine learning
service consumption learning use case.
Machine learning
application Application content: machine learning scenarios/pipelines Inference and training processes are developed as pipelines comprising sequential and
parallel tasks. In particular, for each machine learning scenario, a training pipeline is
Data Deep
provided, which receives the training data from SAP S/4HANA and processes the data
SAP HANA Pipeline Monitor/
machine learning engine
science learning/
operate
to train the algorithms for a specific use case. Structured data is handled by a CDS oper-
tools GPU
ator and stored, such as in SAP HANA, whereas unstructured data is managed by an
object store and big data storage. Often, saved application data is deleted after a train-
Application
data Business data lake ing run. However, there are use cases with high retraining frequency, in which, after an
Data integration
for model training initial upload, the deltas periodically must be received and stored for the next training
run. The application data can be persisted. Alternatively, streaming based on continu-
Figure 4.11 Side-by-Side Machine Learning Architecture ous data transfer without persistency can be applied. The training and inference pipe-
lines are exposed by REST services. Those are invoked by SAP S/4HANA applications
For pre- and postprocessing of the application data, the pipeline engine offers a graph- remotely and integrated into the business processes and UIs. Thus, machine learning
ical programming model to create pipelines. A pipeline orchestrates data ingestion, capabilities are provided as built-in functionality to the right person, in the right place,
training, and inference activities. It consists of operators and data flows connecting and at the right time.
those operators. Operators can be predefined connectors to integrate into data sources
The operation and monitoring of machine learning models are managed with different
leveraging proven SAP technologies from SAP Data Services, SAP HANA smart data inte-
administration applications:
gration, SAP Landscape Transformation Replication Server (via an ABAP agent), freely
programmable options (like a Python operator), or serving operators for exposing a 쐍 The machine learning operations cockpit provides a view of currently deployed
REST endpoint. For machine learning cases, SAP Data Intelligence provides specific ma- models and their runtime KPIs and produced artifacts. It allows for manual activa-
chine learning operators that call functional services (like for image classification) or tion of machine learning scenarios and calling the associated pipelines. It also sup-
core services (for model serving and training) provided by SAP Data Intelligence or by ports landscape management, model configuration, and provisioning of machine
hyperscaler services. With the operator concept, SAP Data Intelligence is completely learning scenarios to other tenants.

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 4 Architecture 4.4 Side-by-Side Machine Learning

쐍 Scenario scheduling allows automated calls to the pipeline API.

쐍 The debrief cockpit provides data scientists with KPIs for the created inference pipe- <<interface>>
IF_ISLM_INTELLIGENT_SCENARIO
lines/models during the exploration and retraining phases.
+ GET_SCENARIO_GUID : GUID
Figure 4.12 drills into the details of the integration between SAP Data Intelligence and … 4
SAP S/4HANA. On the SAP S/4HANA side, an intelligent scenario is the artifact corre-
sponding to the machine learning scenario on the SAP Data Intelligence side. An intel-
Implement
ligent scenario is also a design-time artifact that represents a machine learning use case scenario marker
<<interface>>
and contains metadata like the name and description of the use case. In particular, it IF_ISLM_PREREQUISTE_CHECK
Implement
encompasses the ABAP class, which implements the consumption API of the machine CL_ML_LOGIC checks
+ GET_CHECKS_METADATA
learning model. + GET_CHECKS_PARAMETERS : PARAMETERS
+ CONSUME_INFERENCE ( ) + PERFORM_CHECKS : RESULT
SAP S/4HANA SAP Data Intelligence Handle inference …
Consume Get inference
R R
Machine request
learning scenario client
Machine learning Machine learning
application logic ABAP class
Consume
Training Trained Inference
R CL_ISLM_INFERENCE_CLIENT
pipeline model pipeline CL_ISLM_INFERENCE_PROVIDER
Application data CDS extractor
Extract + ADD_REQUEST_BODY (STRING)
Register
+ GET_INFERENCE_CLIENT:
data Operators + ADD_REQUEST_HEADER (HEADER_TABLE)
R IF_ISLM_INFERENCE_HTTP_CLIENT
+ SEND_AND_RECEIVE () : RESPONSE_DATA
Intelligent
scenario ISLM framework + CL_LMFRW_INFERENCE_PROVIDER (
R Machine IF_ISLM_INTELLIGENT_SCENARIO) …
Train, deploy, learning library
monitor
Figure 4.13 Design of ABAP Machine Learning Logic Class
Figure 4.12 SAP Data Intelligence Integration into ABAP

As already mentioned, in SAP Data Intelligence, a pipeline for model training and con-
sumption is provided for each machine learning use case. The training pipeline reads
the necessary application data based on the CDS extraction view, which is provided by
the SAP S/4HANA application. The pipelines are exposed via REST services and can be
invoked from SAP S/4HANA. The training REST service has a standardized signature
and can be called generically the ISLM framework. This component is in charge of the
lifecycle management of the machine learning models and provides capabilities like
scheduling of training jobs or monitoring. The signature of the REST services for model
consumption is scenario-specific (e.g., forecast revenue for sales orders or predicting
debt default risk) and is handled by the machine learning logic ABAP class shown in Fig-
ure 4.12. This ABAP class basically wraps the REST service into an ABAP API that can be
consumed by machine learning applications in order to integrate inference results into
business processes and UIs. Optionally, inference results can be cached for scenarios in
which performance optimization is required.
Figure 4.13 illustrates the details of the integration with a machine learning logic class
CL_ML_LOGIC.
As described, the machine learning logic ABAP class is registered to an intelligent sce-
nario on the SAP S/4HANA side. To have a harmonized programming model across all
machine learning use cases, the ABAP class is standardized by implementing inter-
faces. Side-by-side machine learning scenarios have to register the machine learning
logic ABAP class in the ISLM framework via an intelligent scenario. During develop-
ment, changes to the intelligent scenario are expected. Therefore, the artifact is saved
as a draft initially. The draft status controls the transportation of the scenario registra-
tion content in the ISLM framework.
Once the intelligent scenario is finalized, it has to be published. The intelligent scenar-
ios need to implement the IF_ISLM_INTELLIGENT_SCENARIO marker interface to be identi-
fied as an intelligent scenario in the ISLM framework. This is a mandatory procedure for
side-by-side machine learning scenarios for implementation of the GET_SCENARIO_GUID
method. This method returns the corresponding machine learning scenario of SAP
Data Intelligence. Thus, the development artifacts between SAP S/4HANA and SAP Data
Intelligence are connected. The IF_ISLM_INTELLIGENT_SCENARIO interface defines the re-
quired behaviors of an intelligent scenario in the ISLM framework. This enables the
operational part of the intelligent scenario to be more concrete and stable. This imple-
mentation will be validated during the registration process.

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4 Architecture 4.4 Side-by-Side Machine Learning

The CONSUME_INFERENCE method wraps the REST service for model consumption as an reusing the CL_ISLM_INFERENCE_PROVIDER machine learning utility class. Based on the
ABAP API that is exposed to machine learning applications. The input consists of one or URL, a REST client object is created in ABAP. This proxy object is used to call the REST
more records for which inference results are provided based on the underlying service for inference. The input parameters for the inference call are passed by the
machine learning model. machine learning application. The calculated results are also processed by the machine
It is difficult for customers to understand which technical and business prerequisites learning application—for example, integrated into business processes or illustrated in 4
are required to train and consume machine learning scenarios. For example, sufficient the UI.
data volume must be in place for training of machine learning algorithms. Also, under-
lying business processes must be activated and configured in order to have a meaning-
CL machine CL machine SAP Data
ful foundation for the training process. With an increasing number of machine ISLM framework
learning logic learning utility Intelligence
learning scenarios, such evaluation can no longer be performed by the customers man-
ually due to high TCO and huge complexity. Therefore, a prerequisite check capability
is required to automatically validate for each machine learning scenario whether the Get_Scenario_ID
necessary prerequisites for training and consumption are met. Intelligent scenarios
provide the necessary prerequisite checks by implementing the IF_ISLM_PREREQUISITE_ Scenario_ID
CHECK interface. Thus, the readiness and consistency of the machine learning use case
Get_Endpoint (Scenario_ID, Training)
can be checked, such as whether enough data is available for model training. Those Get_Endpoint
checks are performed by the ISLM framework to evaluate whether the prerequisites for
model training are fulfilled. Training_URL
Training_URL
To enable the ABAP class for customer extension, enhancement spots are provided.
Thus, customers can enhance the consumption logic or add specific transformations as
Create_REST_Client (Training_URL)
examples. Reusable routines are provided by the CL_ISLM_INFERENCE_PROVIDER and CL_
ISLM_INFERENCE_CLIENT utility ABAP classes. These classes support methods like getting
REST_Client
the currently activated model for inference, receiving the URL endpoint of a REST ser-
vice provided by SAP Data Intelligence, creating an ABAP REST client object based on REST_Client.Train
the REST service URL, triggering training for a machine learning scenario, or reading
monitoring data for a trained model. The interactions among those classes in the con- Model_Version
text of training and inference processes are shown in Figure 4.14.
The training process is triggered by the ISLM framework for a selected intelligent sce-
nario. Because an ABAP class is registered for each intelligent scenario, the ABAP imple-
mentation for the selected intelligent scenario can be determined. Thus, the corre-
sponding machine learning scenario on the SAP Data Intelligence side can be read.
With the ID of the machine learning scenario, the URL for the training REST service can
be determined by invoking the necessary reuse routine of the machine learning utility Figure 4.14 Training Sequence
class. Once the URL for the training REST service is available, an ABAP REST client object
can be created based on the URL. This proxy object is used to call the training method The REST inference call is handled by the CL_ISLM_INFERENCE_CLIENT machine learning
from ABAP and run the necessary job. The status of the training—whether the job was utility class. As a first step, an HTTP client is created based on the URL of the REST ser-
successful or failed—is displayed by the ISLM framework for the end user. vice. This proxy object is used to send the request and receive the according response.
The inference process is usually triggered by the machine learning application, as The request message must be compiled by setting header and body attributes. The
shown in Figure 4.15. The API for the inference calls is provided by the machine learning response message must be transformed into ABAP structures for consumption by
logic ABAP class, which is known for the machine learning application during design business processes.
time. Like the training process, the URL for the inference REST service is determined by

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 4 Architecture 4.4 Side-by-Side Machine Learning

methods. Figure 4.16 illustrates the basic steps for the training and inference pipelines,
which can vary per use case.
Machine learning CL machine CL machine SAP Data
application learning logic learning utility Intelligence

Training Inference
Consume (Input) 4
Get_Endpoint
Get_Endpoint
(Scenario_ID, Inference)

Inference_URL Read
Inference_URL training data
(CDS extractor)
Create_REST_Client (Inference_URL)
Read Create
REST_Client Apply training model REST listener
data filter
REST_Client.Consume (Input) (optional)

Result

Result Transform
training data

Save Apply
Figure 4.15 Inference Sequence inference
training data
(optional) request
Now that we’ve introduced the basic structure of the REST client, the question of how
to manage dynamic changes to the REST endpoints can be addressed. Machine learning
Train Provide
models must be retrained regularly to learn from changes to the data environment. inference
algorithm
Each retraining results in a new machine learning model version with a new REST ser- metrics

vice for inference. However, consuming machine learning applications usually breaks
if the underlying inference REST service is changed. The mitigation of this issue is cov-
Save Return inference
ered by the machine learning utility class. From a technical point of view, new infer- trained model results (including
ence REST services result in new URL endpoints. The CL_ISLM_INFERENCE_PROVIDER metrics data)

machine learning utility class dynamically determines the inference REST endpoints
and provides a stable interface with the machine learning applications. For this, the
Provide Drop
request and response structure of the inference REST service must remain stable or model metrics trained model
be enhanced compatibly. (optional)

As mentioned earlier, on the SAP Data Intelligence side, the machine learning scenario
Delete
and pipeline artifacts must be defined. The training and inference pipelines cover the training data
necessary machine learning logic. Pipelines are modeled graphically based on opera- (if no deltas)
tors for transformation, validation, or incorporation of algorithms. The machine learn-
ing scenario constitutes a link among all development artifacts in SAP Data Intelligence
to resolve lifecycle management. The training and inference pipelines are exposed by
REST services to the SAP S/4HANA platform. The machine learning logic ABAP class is
required for wrapping those REST services and making them consumable by ABAP
Figure 4.16 Design of Training and Inference Pipelines

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 4 Architecture 4.5 Side-by-Side Predictive Analytics

4.5 Side-by-Side Predictive Analytics
In a side-by-side setup with SAP Analytics Cloud, smart assist expands the conversation
beyond just visualizations, charts, and data connectivity, offering easy-to-consume
machine learning capabilities embedded deeply within SAP Analytics Cloud, alongside
and integrated with analytics and planning. The smart features within SAP Analytics
Cloud make insight discovery faster by bringing data science to the masses. Intelligent
쐍 Smart discovery
machine learning technology drives the analytics process while reducing human bias,
ensuring that decision makers can act with confidence. Figure 4.17 depicts the architec-
ture of the predictive analytics services provided by SAP Analytics Cloud, including sev-
eral smart assist features.
SAP Fiori UI Explorative UI
Smart
services
insights helps us to understand revenue contribution trends at a more granular
level, such as by region or product. With the click of a button, machine learning algo-
rithms run in the background to analyze all the data relevant to the selected infor-
mation. First, suggested visualizations ranked in order of relevance are presented.
Then, these visualizations can be added to an SAP Analytics Cloud story along with a 4
text explanation thanks to the natural language generation engine.
Acts as a digital business analyst. It automates the data exploration process to reveal
information that is statistically relevant. Trained machine learning models that are
specific to customer data generate an overview of significant patterns, outliers, key
drivers, and influencers. Then, an interactive what-if simulation is created based on
the model, allowing you to explore the possible results of changing factors and vari-
ables. With the autogenerated story from smart discovery, the data speaks for itself.
Intelligent algorithms remove the need for analytics to be fully human-led, reducing
bias to ensure that important trends are not missed.

Predictive 쐍 Search to insight

SAP S/4HANA SAP Analytics Cloud
analytics Makes content creation easier with the power of natural language query. To use
Application search to insight, simply ask a question about the data, and SAP Analytics Cloud will
Application content: models/stories
intelligently create relevant visualizations that can be added to stories.

Automated Smart Smart Smart Search

A dataset is an SAP Analytics Cloud entity representing a collection of homogenous
predictive library predict insights discover insight data (basically a database table) that can be produced and consumed in different SAP
Analytics Cloud workflows. Typical workflows are data acquisition, consisting of creat-
ing a dataset from data located in an external system, and story building, consisting of
Application
Data integration Business data lake creating a dashboard using a dataset. The physical location of data held by the dataset
data
is complemented by a dataset description that comprises information for each column
like the data type, length, format, and semantic information (e.g., latitude, longitude,
Figure 4.17 Predictive Analytics Architecture
country), plus more predictive-specific information like the category (e.g., nominal,
ordinal). The data integration infrastructure of the SAP Analytics Cloud platform pro-
As depicted in Figure 4.17, the smart assist functionality is covered by the following
vides two data access modes for the smart assist features:
components (which we introduced in Chapter 3, Section 3.4.2):
1. Data-acquisition mode
쐍 Smart predict
In this mode, data is either transferred from external systems like SAP S/4HANA or
Augments existing business intelligence capabilities by learning from your historical
uploaded from the end user environment to the SAP Analytics Cloud platform and
data to predict what is most likely to happen in the future. With classification, re-
processed. This offline approach safeguards the resource consumption of the exter-
gression, and time series forecast algorithms, smart predict creates high-performing
nal systems and allows a scale-out of predictive processing on SAP Analytics Cloud.
and stable models to help you optimize operations and drive strategic decisions for
Its drawback is that the offline data can become outdated with time and must be
growth. Smart predict makes machine learning accessible by automatically handling
updated on a regular basis.
complex data science procedures. This allows business analysts to focus on imple-
menting insights to influence existing business processes. 2. Live-connection mode
In this mode, data stay on external systems like SAP S/4HANA and are processed
쐍 Smart insights
there as well. In the context of smart assist, usually the SAP HANA database with APL
Reveals the top contributors behind a specific data point or variance. This feature is
installed is required. With the live connection, real-time access to data is provided so
particularly useful when we are looking at aggregated data, such as revenue. Smart

114 115
4 Architecture 4.5 Side-by-Side Predictive Analytics

that the latest state of the application data is always considered. However, for pro- the future, it is planned to provide a pipeline-based editor targeting the maverick data
cessing APL directly on the online data, greater CPU time and RAM in the external scientist. In addition to providing support for managing model specifications, smart
system are consumed. Currently, live-connection mode is implemented for access predict core services implement the concept of a task, typically encapsulating model
to application data on the database system but not on the application server level. training or applying work and a mechanism for executing such tasks in a regulated
fashion, preventing the overload of underlying automated engines. Tasks pertaining to 4
Datasets can have one of two origins. They can be either the result of a data acquisition
models authored through the automated UI and handled by the automated engine are
or can be the result of a predictive model application. This relates to the role a dataset
exposed as a Cloud Foundry application. The associated composer models are pro-
can have:
cessed by an embedded composer engine by delegating the execution to the APL in
쐍 Training dataset SAP HANA. Execution of automated tasks involves interaction with the automated
A dataset can be used as the training dataset for a predictive model. In this context, engine through a synchronous and stateful KxCommonInterf/Thrift protocol.
the dataset contains valid values for the model’s explanatory variables and target
variables. The data will be used to optimize the model fit. SAP S/4HANA SAP Analytics Cloud/SAP Cloud Platform
application server
쐍 Apply-in dataset
Browser
A dataset can be used as the input for the application of a predictive model. In this Smart predict SAP HANA
Smart assist UI
context, the dataset contains values for the model’s explanatory variables but not client SAP HANA XS
for the target variables, the goal being precisely to evaluate the value of that target SAP HANA SAP Analytics
Cloud predictive
variable using a trained model. SAP Analytics Cloud
agent
쐍 Apply-out dataset Smart predict Predictive
SAP HANA script server
A dataset can be used as the output for the application of predictive model. In this SAP HANA script server core services services Automated
predictive library
context, at the end of the application phase, the dataset will contain the estimated Automated
predictive library R
value of the target variable for all the records of the apply-in dataset.
R R

Smart assist can be consumed in SAP Analytics Cloud stories and from there integrated Task manager service SAP HANA index server
SAP HANA index server Acquired business
into SAP S/4HANA UIs. A story is a presentation-style document that uses charts, visu-
data
Live business
alizations, text, images, and pictograms to describe data. Once a story is created or data Predictive
opened, pages, sections, and elements can be added and edited. The story toolbar is Live predictive Smart predict processing server models
divided into different categories such as File, Insert, Data, and Tools to help users find models
Composer Automated
Debriefing
data
options and perform tasks more efficiently. Owners of stories can share them with Live debriefing engine engine
data
other users and grant permissions for these stories. After stories are shared, users with
view permissions can analyze the data by navigating within the stories.
Figure 4.18 Smart Predict Architecture
We’ll focus mainly on the smart predict architecture, which enables the implementa-
tion of predictive analytics generically. The remaining smart assist features are pro- The smart predict core services provide for automated and composer models for author-
vided as built-in functionality in the SAP Analytics Cloud infrastructure for direct ing, debriefing, entity management, and task management services. The automated
usage. Another reason for concentrating on smart predict is that most of the smart engine supports a native mode in which the engine itself executes the predictive algo-
assist functions are based on this service. Figure 4.18 illustrates the detailed architec- rithms based on the data it fetches over open database connectivity (ODBC) from the
ture of smart predict. SAP HANA instance. In a delegated mode, the automated engine hands over the pro-
In SAP Analytics Cloud, predictive features essentially fall into smart predict—which cessing of the predictive algorithms to APL running in the SAP HANA instances, pre-
provides for managing model authoring and storage and for training models and venting the data from being moved from the database to the engine. The SAP HANA
applying them—and smart assist—which is an umbrella for a number of predictive fea- instance of SAP Analytics Cloud stores the predictive models (physical model settings,
tures built on top of the predictive cloud services, like smart discovery and smart scoring equations, and model raw statistics), the predictive model debriefing informa-
insight. Smart predict bundles two different authoring experiences, a purely form- tion (model statistics), and the physical data that are accessed and produced during the
based and easy-to-consume automated UI geared toward the nontechnical user and, in execution of the predictive workflows.

116 117
4 Architecture

4.6 Summary
In this chapter, we explained what makes SAP S/4HANA intelligent and how this is
related to automation. We gave a brief overview of technical challenges that must be
solved in the context of SAP S/4HANA regarding machine learning and predictive ana-
lytics. For understanding the structure of the already delivered scenarios, we shared
the application patterns that have been identified so far. To enable you to use the exist-
ing SAP S/4HANA machine learning and predictive scenarios, we explained the solu-
tion architecture behind them.
This knowledge is the foundation for the next chapter, in which we will describe how to
implement your own machine learning and predictive analytics use cases step by step
according to the SAP S/4HANA programming model. We will also share with you how
to resolve advanced aspects like lifecycle management, GDPR, and model degradation,
which are crucial in the context of enterprise applications such as SAP S/4HANA.

118
Contents

Preface ....................................................................................................................................................... 13

1 Introduction to Predictive Intelligence 19

1.1 The Intelligent Enterprise .................................................................................................. 19

1.2 How Predictive Intelligence Is Evolving at SAP ........................................................ 22

1.3 Connected End-to-End Scenarios ................................................................................... 24

1.3.1 Modular Approach ................................................................................................. 25
1.3.2 Example Scenarios ................................................................................................. 25
1.4 Analytics of the Future ........................................................................................................ 32
1.4.1 Unified Analytics ..................................................................................................... 33
1.4.2 Business Problems and Business Needs ......................................................... 34
1.4.3 Trends and Technologies ..................................................................................... 35
1.4.4 User Roles with Analytics .................................................................................... 35
1.5 Summary ................................................................................................................................... 37

2 The Evolution of Predictive Analytics and

Machine Learning at SAP 39

2.1 Predictive Analytics and Machine Learning before SAP S/4HANA ................. 39

2.2 Technologies and Methodologies .................................................................................. 40

2.2.1 Automated Analytics ............................................................................................. 41
2.2.2 Expert Analytics ...................................................................................................... 44
2.3 Best Practices ........................................................................................................................... 45

2.4 Summary ................................................................................................................................... 48

3 Tools, Technologies, and Services 49

3.1 Machine Learning and Predictive Analytics Approaches ..................................... 49

3.2 Embedded Machine Learning and Predictive Analytics ....................................... 51

3.2.1 Overview .................................................................................................................... 51

7
Contents Contents

3.2.2 Embedded Machine Learning with the SAP HANA Automated 5.2.2 Coded Approach Based on the SAP HANA Predictive Analysis
Predictive Library .................................................................................................... 53 Library ......................................................................................................................... 131
3.2.3 Embedded Machine Learning with the SAP HANA Predictive 5.3 Implementing Side-by-Side Machine Learning Applications ............................ 137
Analysis Library ....................................................................................................... 55
5.3.1 Required Development in SAP Data Intelligence ......................................... 137
3.3 SAP Cloud Platform ............................................................................................................... 57 5.3.2 Required Development in ABAP ........................................................................ 144
3.3.1 SAP Data Intelligence ............................................................................................ 57 5.4 Implementing Side-by-Side Predictive Analytics Applications ......................... 148
3.3.2 Hybrid Machine Learning Models ..................................................................... 62
5.5 Application Management Processes ............................................................................. 155
3.4 SAP Analytics Cloud .............................................................................................................. 63
5.5.1 Lifecycle Management ......................................................................................... 155
3.4.1 Overview .................................................................................................................... 63 5.5.2 Data Integration ..................................................................................................... 169
3.4.2 Smart Assist Services ............................................................................................. 65 5.5.3 Data Protection and Privacy ................................................................................ 183
3.4.3 Smart Predict Services .......................................................................................... 67 5.5.4 Configuration .......................................................................................................... 194
3.5 SAP Intelligent Robotic Process Automation ............................................................ 70 5.5.5 Extensibility .............................................................................................................. 200
3.6 SAP Internet of Things ......................................................................................................... 76 5.5.6 Model Degradation ................................................................................................ 215
5.5.7 Explanation of Results .......................................................................................... 221
3.7 Summary ................................................................................................................................... 80
5.5.8 Workload Management and Performance .................................................... 229
5.5.9 Legal Auditing .......................................................................................................... 237
5.5.10 Model Validations .................................................................................................. 244
4 Architecture 83 5.5.11 User Interface Design ............................................................................................ 252
5.6 Summary ................................................................................................................................... 260
4.1 Introduction ............................................................................................................................. 83
4.1.1 Technical Challenges in SAP S/4HANA ........................................................... 83
4.1.2 How to Operationalize Intelligence ................................................................. 84
6 Business Implementation 261
4.2 Architecture Overview ........................................................................................................ 90
4.2.1 Machine Learning Application Patterns ......................................................... 90 6.1 Overview of Intelligent Scenarios .................................................................................. 261
4.2.2 Guiding Principles for Solution Architecture ................................................ 94 6.1.1 Creating a Purchase Requisition as an Employee ........................................ 262
4.2.3 Solution Architecture ............................................................................................ 95 6.1.2 Processing a Purchase Requisition as an Operational Purchaser ........... 263
4.3 Embedded Machine Learning ........................................................................................... 97 6.1.3 Monitoring the Spend as a Strategic Purchaser ........................................... 264
6.1.4 Creating Sales Inquiries as a Sales Manager ................................................. 264
4.4 Side-by-Side Machine Learning ....................................................................................... 102
6.1.5 Recording Financial Transactions as an Accounts Receivable
4.5 Side-by-Side Predictive Analytics ................................................................................... 114 Manager .................................................................................................................... 265
4.6 Summary ................................................................................................................................... 118 6.2 Configuration Basics ............................................................................................................ 266
6.2.1 SAP Best Practices Explorer ................................................................................. 267
6.2.2 SAP Help Portal ........................................................................................................ 271
5 Technical Implementation 119 6.3 Finance ....................................................................................................................................... 272
6.3.1 SAP Cash Application ............................................................................................ 273
5.1 Approach Comparison ......................................................................................................... 119 6.3.2 Accounting and Financial Close ......................................................................... 280
6.3.3 Financial Planning and Analysis ........................................................................ 285
5.2 Implementing Embedded Machine Learning Applications ................................ 122
6.3.4 Governance, Risk, and Compliance .................................................................. 289
5.2.1 Generated Approach Based on the SAP HANA Automated Predictive
6.3.5 Detect Abnormal Liquidity Items ...................................................................... 293
Library ......................................................................................................................... 123

8 9
Contents Contents

6.4 Sourcing and Procurement ................................................................................................ 295 7 Services on SAP Cloud Platform 375
6.4.1 Contract Consumption ......................................................................................... 296
6.4.2 Propose Resolution for Invoice Payment Block ............................................ 297
7.1 Key Trends and Capabilities .............................................................................................. 375
6.4.3 Supplier Delivery Prediction ................................................................................ 299
6.4.4 Proposal of New Catalog Item ........................................................................... 300 7.2 SAP Data Intelligence .......................................................................................................... 382
6.4.5 Proposal of Material Group ................................................................................. 301 7.3 Machine Learning .................................................................................................................. 383
6.4.6 Proposal of Options for Materials without Purchase Contract ............... 303
7.4 Internet of Things .................................................................................................................. 386
6.4.7 Image-Based Buying .............................................................................................. 305
6.4.8 Intelligent Approval Workflow .......................................................................... 306 7.5 Blockchain ................................................................................................................................. 387
6.4.9 Blockchain-Verified RFQ Processing ................................................................. 307 7.6 Summary ................................................................................................................................... 388
6.5 Inventory and Supply Chain ............................................................................................. 308
6.5.1 Stock in Transit ........................................................................................................ 309
6.5.2 Demand-Driven Replenishment ........................................................................ 311 8 The Road Ahead and Further Learning 389
6.5.3 Defect Code Proposal with Text Recognition ............................................... 313
6.5.4 Early Detection of Slow and Nonmoving Stock ............................................ 315
8.1 Upcoming Features and Functionality ......................................................................... 389
6.6 Sales ............................................................................................................................................. 317 8.1.1 Embedded Predictive Models ............................................................................. 389
6.6.1 Predict Conversion of Sales Quotations to Sales Orders ........................... 318 8.1.2 Machine Learning Models on SAP Cloud Platform ...................................... 390
6.6.2 Predict Sales Forecasts .......................................................................................... 319 8.1.3 SAP Analytics Cloud ............................................................................................... 391
6.6.3 Predict Delivery Delay ........................................................................................... 322 8.1.4 Extensions of Existing Approaches .................................................................. 392
6.7 Research and Development/Engineering .................................................................. 323 8.2 Blogs for Continuous Information ................................................................................. 392
6.7.1 Project Cost Forecasting ....................................................................................... 324
8.3 Summary ................................................................................................................................... 393
6.7.2 Digital Content Processing .................................................................................. 325
6.8 Industries ................................................................................................................................... 327
6.8.1 Professional Services ............................................................................................. 327
The Authors ............................................................................................................................................. 395
6.8.2 Component Manufacturing ................................................................................ 336
Index .......................................................................................................................................................... 397
6.8.3 Retail ........................................................................................................................... 342
6.8.4 Utilities ....................................................................................................................... 352
6.8.5 Consumer Products ............................................................................................... 357
6.8.6 Insurance ................................................................................................................... 360
6.8.7 Telecommunications ............................................................................................. 364
6.8.8 Banking ...................................................................................................................... 368
6.8.9 High-Tech .................................................................................................................. 370
6.8.10 Sports and Entertainment ................................................................................... 372
6.8.11 Public Services ......................................................................................................... 373
6.9 Summary ................................................................................................................................... 374

10 11
Index
A Analyze demand ...................................................... 28
A/B testing ............................................................... 245
ABAP application server ...................... 97, 99, 159
side-by-side model ........................................... 103
ABAP CDS Reader .................................................. 180
ABAP class ............................................. 108, 120, 162
enable for customer extension ................... 110
prerequisite checks .......................................... 164
utility ..................................................................... 168
ABAP Class Builder ..................................... 133, 145
ABAP development .............................................. 144
ABAP editor ............................................................. 213
ABAP environment .............................................. 377
ABAP in Eclipse ...................................................... 131
ABAP lifecycle management ............................... 55
ABAP Workbench .................................................. 247
Accounting .................................................... 280, 284
Accounts receivable clerks ................................ 275
Accounts receivable manager ...... 265, 273, 289
Accruals .................................................................... 283
Accruals management ........................................ 282
Accruals prediction .............................................. 282
Accuracy KPIs ......................................................... 216
Action execution ..................................................... 86
Affinity analysis .................................................... 346
Algorithm exchange ............................................ 201
technical implementation ............................ 208
Algorithms ................................................... 19, 46, 95
APL ......................................................................... 101
basic ......................................................................... 22
categorization ...................................................... 93
embedded machine learning ........... 23, 52, 98
matching ................................................................ 91
operator ............................................................... 141
PAL ......................................................................... 102
predictions ............................................................. 93
ranking .................................................................... 92
recommendations .............................................. 92
SAP Analytics Cloud ........................................... 63
self-learning .......................................................... 13
side-by-side machine learning ............. 59, 103
strategy ................................................................... 43
AMDP class .......................... 55, 100–102, 120, 132
extensibility ........................................................ 209
implement ........................................................... 133
register ................................................................. 133
Analyze spend .......................................................... 28
Anomaly detection .............................................. 364
Application logs .................................................... 237
Application management ................................. 155
Application patterns .............................................. 90
Apply-in dataset .................................................... 116
Apply-out dataset ................................................. 116
Architecture ............................................................... 83
embedded model ................................................ 97
guiding principles ............................................... 94
machine learning ............................................... 90
SAP Analytics Cloud ....................................... 114
SAP S/4HANA ....................................................... 95
side-by-side model .......................................... 102
Artifacts ........................................................... 119, 158
configuration and extensibility ................. 195
custom ................................................................. 214
Artificial intelligence (AI) ..................................... 21
evolution ................................................................ 22
Association rules ..................................................... 42
Assortment lists .................................................... 345
Assortment planning ......................................... 345
Attachment service ............................................. 182
Attended automation ............................................ 71
Audit execution .................................................... 243
Audit planning ...................................................... 243
Audit preparation ................................................ 243
Auditing ................................................................... 238
entities ................................................................. 238
phases .................................................................. 242
Auditors ................................................................... 239
Augmented analytics ................................... 67, 391
Auto classification .................................................. 45
Automated analytics .............................................. 41
principles ................................................................ 42
Automated decision-making .................... 15, 185
Automated Predictive Library (APL) ........ 22, 50,
52–53, 96, 122
approach comparison ................................... 120
extensibility .............................................. 208, 213
integration ......................................................... 101
maintain ............................................................. 125
technical implementation ........................... 123
Automated techniques ......................................... 88
Automation ............................................................... 71
397
Index
B C
Back orders ................................................................. 31
Backflush issues .................................................... 340
Bad debts .................................................................. 335
BAdI implementation ......................................... 209
Banking ..................................................................... 368
financial services data platform ................ 370
upcoming ideas ................................................ 369
Behavioral insights .............................................. 374
Best practices ............................................................. 45
Bid management .................................................. 328
Biometric bridge ................................................... 373
Blockchain
mobile theft ........................................................ 365
payment fraud prevention ........................... 365
RFQ processing .................................................. 307
SAP Cloud Platform ............................... 379, 387
Blocking ................................................. 184–185, 190
Bonded loans management ............................. 369
Buffer levels ............................................................ 312
Business add-ins (BAdIs) .................................... 209
Business administrators .......................... 157, 161
Business customer analytics ............................ 368
Business entity recognition ............................. 386
Business experts ................................................... 157
Business feature .................................................... 246
Business implementation ................................. 261
banking ................................................................ 368
component manufacturing ......................... 336
configuration ..................................................... 266
consumer products .......................................... 357
finance .................................................................. 272
high-tech .............................................................. 370
industries ............................................................. 327
insurance ............................................................. 360
inventory and supply chain ......................... 308
professional services ....................................... 327
public services ................................................... 373
R&D/engineering ............................................. 323
retail ...................................................................... 342
sales ....................................................................... 317
sourcing and procurement .......................... 295
sports and entertainment ............................. 372
telecommunications ....................................... 364
utilities .................................................................. 352
Business integrity screening ............................ 290
Business services ........................................... 58, 376
Business users ....................................... 24, 157, 159
Business validation .............................................. 249
398
Capacity allocation ............................................... 351
Cash and liquidity management .................... 293
Cash collection ......................................................... 32
Catalog items .......................................................... 300
Categorization ................................................ 93, 294
Category influence ............................................... 228
Change data capture approach ........................ 176
Change indicator ................................................... 259
Claims management ............................................ 359
Claims severity ....................................................... 361
Classification ... 42–43, 45, 68, 93, 291, 294, 299,
302, 314, 325
Classification scenario ........................................ 148
Cloud Data Integration operator .......... 141, 180
configuration ..................................................... 180
parameters .......................................................... 143
Cloud factory ...................................................... 73–74
Cloud Foundry ........................................................ 117
Cloud scalability .................................................... 376
Clustering ................................................................... 44
Collaboration .......................................................... 379
Collaborative enterprise planning ................. 391
Commercialization ............................................... 378
Compatibility matching ....................................... 91
Complexity .............................................................. 222
Component manufacturing ............................. 336
Composer engine .................................................. 117
Configuration ......................................................... 194
business implementation .............................. 266
business requirements .................................... 194
lifecycle management .................................... 194
model hyperparameter .................................. 199
multiple model support ................................. 197
technical implementation ............................ 195
Connection Management app ......................... 137
Consent ................................................. 184, 186, 190
embedded machine learning ....................... 188
side-by-side machine learning .................... 193
Consent management data ............................... 189
Consistency ............................................................. 172
Consumer demand forecast ............................. 352
Consumer products ............................................. 357
upcoming ideas ................................................. 360
Consumption API ........................................ 146, 211
Consumption API extension ............................ 201
technical implementation ............................ 210
Containers ................................................................ 236
Content recommendations ................................ 91
Continuous accounting ...................................... 284
Contract consumption ........................................ 296
Controlling .............................................................. 286
Convergence speed ................................................. 42
Conversational AI .................................................... 93
Core data service (CDS) table functions ......... 53,
100, 130
Core data service (CDS) views .... 52, 64, 97, 100,
119, 130, 219
consumer-defined ............................................ 172
data extraction ................................................. 174
data integration ..................................... 171, 173
data source extension .................................... 205
extend ................................................................... 203
time-dependent ................................................ 221
Core data services (CDS) ........................................ 95
Cost-optimal ordering ........................................ 351
Criticality .................................................................. 222
Cross product allocation .................................... 349
Custom Business Object app ............................ 207
features ................................................................ 208
Custom CDS Views app ............................ 206, 213
Custom field extensions .................................... 202
Custom tables ......................................................... 207
Custom visualizations ........................................... 64
Customer Business Object app ........................ 213
Customer invoicing ................................................ 32
Customer profile from insurance .................. 363
Customer profitability analysis ............ 356, 364
Customer scenarios ................................................ 46
Customer service chatbot ................................. 367
Customers ................................................................ 326
Customer-specific tables ................................... 207
D Demand Data Foundation (DDF) ................... 346
Data acquisition ....................................................... 86
Data actions monitoring ................................... 391
Data attribute recommendation .................... 385
Data change support ........................................... 173
Data connectivity .......................................... 35, 104
Data extraction ............................................ 171, 174
annotation schema ......................................... 177
steps ....................................................................... 175
Data governance ..................................... 60, 62, 104
Data integration .................................................... 169
business requirements ................................... 170
model .................................................................... 171
pipelines and operators ................................. 179
solution characteristics ................................. 171
technical implementation ............................ 173
Data landscape management ............................. 61
Data locking ............................................................ 391
Data management ...................................... 105, 377
Index
Data mining ............................................................... 42
Data persistency ...................................................... 97
Data pipelining ............................................... 61, 106
Data Preview tool ................................................. 131
Data protection and privacy ................... 172, 183
business requirements ................................... 183
embedded machine learning ...................... 187
side-by-side machine learning ................... 190
technical implementation ........................... 185
Data scientists ................................................ 67, 383
Data source extension ....................................... 205
Data-acquisition mode ...................................... 115
Datasets ........................................................... 115, 139
origins .................................................................. 116
Debrief cockpit ...................................................... 108
Decision tree ............................................................. 45
Decision-making ..................................................... 86
Decoupled extensions ........................................ 214
Defect code proposal .......................................... 313
Defect processing ................................................. 313
Defect recording ................................................... 339
Defects ...................................................................... 313
Degradation component .......................... 219–220
Delayed feedback ................................................. 218
Deletion ................................................. 184–185, 190
Delivery class A ..................................................... 176
Delivery delays ...................................................... 299
predict .................................................................. 322
Delivery insights ...................................................... 79
Delivery performance ............................... 317, 322
Delta handling ....................................................... 170
approaches ......................................................... 176
Delta loads ............................................................... 170
Demand signal management .......................... 358
Demand-driven replenishment ..................... 311
Deployment .................................................. 156, 166
test ......................................................................... 167
Deprecation ............................................................ 214
Desktop agents .................................................. 73–74
Desktop studio .................................................. 73–74
Developers ........................................... 157, 161, 240
DevOps ............................................................ 156, 378
Digital content processing ............................... 325
Digital transformation ................................... 20, 22
Digitization ............................................................. 326
Disruption ............................................................... 376
Dockerfiles .............................................................. 180
Document classification ................................... 384
Document information extraction ............... 385
Document management ................................... 379
Drift and skew detection .......................... 217, 219
Dynatrace service ................................................. 378
399
Index
E Extensibility (Cont.)
Electricity supply .................................................. 354
Email to record ...................................................... 362
Embedded machine learning ............... 50–51, 97
ABAP integration ................................................ 99
algorithms ............................................................. 98
APL ........................................................ 53, 101, 123
approach comparison .......................... 119, 121
criteria ..................................................................... 53
data protection and privacy ........................ 187
inferencing .......................................................... 168
PAL ........................................................ 55, 101, 131
technical implementation ............................ 122
training ................................................................... 98
workload management and
performance ........................................ 230–231
Embedded machine learning service ........... 287
End user feedback ................................................. 239
End users ........................................................... 36, 240
End-of-purpose check ......................................... 185
End-to-end scenarios ..................................... 24–25
intelligent invoice-to-cash ..................... 31, 264
intelligent order-to-cash ............................... 274
intelligent procure-to-invoice .............. 26, 262
intelligent quote-to-order ................................ 29
intelligent sell-from-stock ............................... 30
intelligent source-to-contract .............. 27, 264
Energy providers ................................................... 354
Engineering ............................................................. 323
Enterprise portfolio and project
management ..................................................... 323
Enterprise readiness ..................................... 84, 155
Enterprise reporting ............................................ 391
Event-based scheduling ..................................... 232
Experimentation ................................................... 105
Expert analytics ........................................................ 44
Explainability ......................................................... 226
Explainable machine learning .............. 221, 253
backend processes ........................................... 226
business requirements ................................... 222
technical implementation ............................ 222
training ................................................................ 227
user interface ..................................................... 223
Explanation levels ................................................ 223
user interface ..................................................... 224
Explanations ................................................. 222–223
component ......................................................... 226
elements ............................................................... 224
Explicit feedback ................................ 218, 220, 250
Extensibility ..................................................... 50, 200
algorithm exchange ........................................ 208
400
APIs ........................................................................ 211
artifacts ................................................................ 195
business requirements .................................... 201
custom API extension ..................................... 210
lifecycle management .................................... 214
machine learning logic extension ............. 208
new machine learning app ........................... 212
technical implementation ............................ 202
training data source extension ................... 202
upcoming features ........................................... 392
Extensibility lifecycle management .... 202, 214
Extensibility registry ........................................... 205
Extension includes ..................................... 202, 204
External ID ............................................................... 145
External nodes ....................................................... 388
F Identity Authentication service ...................... 382
Factory data ............................................................. 371
Feature toggle ......................................................... 246
Feedback loops ................................... 215, 217, 253
Finalizing action .................................................... 255
Finance ...................................................................... 272
Finance controllers ..................................... 325, 335
Financial close ........................................................ 280
Financial planning and analysis ...................... 285
Financial transactions ......................................... 265
Flood prediction and emergency
management ...................................................... 373
Forecasting ................................................................. 42
Free-text items ....................................................... 300
Full match .................................................................. 90
Functional services ................................................. 58
Further learning ........................................... 389, 392
blogs ....................................................................... 392
G consume .............................................................. 146
GDPR workbench ........................................ 191, 193
General Data Protection Regulation
(GDPR) ................................................................... 183
embedded machine learning ....................... 188
requirements ...................................................... 184
side-by-side machine learning .................... 190
General ledger ........................................................ 289
Generalization capacity control ........................ 43
Global explanation ............................................... 226
Global international mobile equipment
identity storage and service ......................... 365
Globalization ........................................................... 378
Globally unique identifier (GUID) .................. 162
Goods receipt ............................................................ 27
Governance, risk, and compliance (GRC) .... 289
GR/IR account reconciliation ........................... 281
H analytics ................................................................. 33
Helm .......................................................................... 236
High-tech ................................................................. 370
Hiring managers ................................................... 331
Horizon-wide mean absolute percentage
error (horizon-wide MAPE) .......................... 152
Hybrid models .......................................................... 62
Hyperledger Fabric ............................................... 388
I Intelligent quote-to-order ................................... 29
Idea to design ......................................................... 323
Image-based buying ............................................ 305
Implausible meter readings ............................. 353
Implicit feedback ........................................ 217, 220
Implicit selection .................................................. 172
In-Arena Coaching app ....................................... 372
Industries ................................................................. 327
banking ................................................................ 368
component manufacturing ......................... 336
consumer products .......................................... 357
high-tech .............................................................. 370
insurance ............................................................. 360
professional services ....................................... 327
public services ................................................... 373
retail ...................................................................... 342
sports and entertainment ............................. 372
telecommunications ....................................... 364
utilities .................................................................. 352
Inference ........................................ 60, 107, 168, 230
API ....................................................... 158, 196, 242
display results .................................................... 131
logic ....................................................................... 136
pipelines ............................................ 112, 140, 144
request and response ...................................... 238
side-by-side model ........................................... 110
Information analysis .............................................. 86
Initial loads .............................................................. 170
Input assistance .............................................. 91, 256
Inspection plans .................................................... 338
Insurance ................................................................. 360
upcoming ideas ................................................ 363
Intelligence ................................................................. 84
Intelligent Account Finder for Payments
app ......................................................................... 368
Index
Intelligent approval workflow ........................ 306
Intelligent bad debts risk analyzer ................ 335
Intelligent bid management ............................ 328
Intelligent enterprise ............................................. 19
end-to-end scenarios .................................. 24–25
evolution ................................................................ 20
strategy ............................................................ 21–22
Intelligent invoice-to-cash ............... 31, 264–265
Intelligent matching ........................................... 254
Intelligent overdraft decisions ....................... 370
Intelligent procure-to-invoice ................. 26, 262
Intelligent project profitability
monitoring ......................................................... 332
Intelligent robotic process automation
architecture ........................................................... 73
bot making ............................................................ 75
deployment ........................................................... 73
overview ................................................................. 71
phases ..................................................................... 72
Intelligent rollover ............................................... 369
Intelligent scenario lifecycle management
(ISLM) framework ....................... 50–51, 53, 122
APL ............................................................................ 53
architecture ........................................................... 98
connect to SAP Data Intelligence .............. 147
deployment ........................................................ 167
inferencing ......................................................... 168
intelligent scenarios ....................................... 160
KPIs ....................................................................... 165
lifecycle management ................................... 159
model validation ............................................. 250
monitoring ......................................................... 169
PAL ............................................................................ 55
phases and roles ............................................... 161
pipelines .............................................................. 140
prerequisite check ............................................ 163
provide metadata ............................................ 134
side-by-side machine learning ................... 161
smart predict ........................................................ 70
steps ......................................................................... 54
training ................................................................ 166
upcoming features .......................................... 389
Intelligent Scenario Management app ........ 123,
128, 147, 161, 233, 249
Intelligent scenarios ............... 102, 108, 123, 197
business implementation ............................. 261
create .................................................................... 161
create based on APL ....................................... 124
create based on PAL ....................................... 132
create based on SAP Data Intelligence ... 144
401
Index
Intelligent scenarios (Cont.) Legal contracts .......................................................... 29
input tab .............................................................. 126 Lifecycle management ....................... 58, 104, 155
lifecycle management .................................... 160 business requirements .................................... 155
multimodal ......................................................... 391 configuration ..................................................... 194
output tab ........................................................... 127 deployment ......................................................... 166
publish .................................................................. 109 inferencing .......................................................... 168
train ............................................................. 128, 147 monitoring .......................................................... 169
user interface ..................................................... 251 prerequisite check ............................................. 163
Intelligent Scenarios app ...... 123, 144, 161, 213 technical implementation ............................ 158
Intelligent sell-from-stock ................................... 30 training ................................................................. 165
Intelligent source-to-contract .................. 27, 264 Liquidity items ....................................................... 294
Intelligent staffing and resource Live-connection mode ........................................ 115
management ..................................................... 331 Local accounting principles .............................. 281
Intelligent store management ........................ 351 Local APIs .................................................................. 211
Intelligent technologies ........................................ 21 Local explanation ........................................ 226, 228
Intelligent WIP project tracking ...................... 333 Location cluster sets ............................................ 344
Intelligent workforce planning ....................... 330 Lockbox information ........................................... 277
International Mobile Equipment Identities benefits ................................................................. 278
(IMEIs) ................................................................... 365 Logging ............................................................ 237, 240
Internet of Things (IoT) ......................................... 76 entities ........................................................ 238, 241
SAP Cloud Platform ............................... 380, 386
use cases ................................................................. 78 M technical implementation ............................ 215
Intrinsic interpretability .................................... 226
Inventory accounting ......................................... 280 Machine learning ............................................. 13, 51
Inventory management ..................................... 308 application patterns .......................................... 90
Inventory managers .................................. 309, 312 approaches ............................................................ 49
Invoice inspector .................................................. 363 architecture .................................................... 83, 90
Invoice object recommendation .................... 386 best practices ........................................................ 45
Invoice payment blocks ..................................... 297 business implementation .............................. 261
Invoice payment forecasting ........................... 289 decision tree .......................................................... 50
IT users ......................................................................... 36 embedded ................................................ 50–51, 97
ethical considerations ...................................... 14
J evolution ................................................................ 39
explanations ....................................................... 222
Jupyter Notebook ....................... 62, 105, 139–140 hybrid models ...................................................... 62
JupyterLab ......................................................... 60, 106 model ..................................................................... 216
SAP AI Business Services ................................ 384
K SAP Analytics Cloud .......................................... 63
SAP Cloud Platform ............................... 380, 383
Key performance indicators (KPIs) ................ 216 scenario .................................................................. 62
Key users ..................................................................... 36 side-by-side ........................................ 57, 102, 137
K-nearest neighbors .................................. 315, 325 technical challenges .......................................... 84
Kubelet ...................................................................... 236 technical implementation ............................ 119
Kubernetes .................................................... 236, 376 technologies and methodologies ................. 40
upcoming features ........................................... 389
L Machine learning logic extension .................. 201
technical implementation ............................ 208
Lead time .................................................................. 312 Machine learning model validation .............. 247
buffer replenishment ...................................... 312 Machine learning operations cockpit ........... 107
Legal auditing ......................................................... 237 Machine learning scenario ... 108, 120, 158, 219
business requirements ................................... 237 consume ............................................................... 110
technical implementation ............................ 238 create ..................................................................... 138
402
Machine learning scenario (Cont.)
details ................................................................... 138
release ................................................................... 144
unique identifier ............................................... 139
Machine learning scenario manager ............... 62
Mapping rules ........................................................ 233
Master data .............................................................. 381
Matching ................................................. 90, 254, 276
user interface ..................................................... 254
Matching groups ................................................... 254
Material groups ..................................................... 301
Material tracing ..................................................... 372
Materials without a purchase contract ........ 303
Metrics component ............................................. 219
Misdirected payments ........................................ 368
ML Scenario Manager app ................................. 137
Mobile devices ....................................................... 366
Model accuracy KPIs ............................................ 130
Model degradation ..................................... 215, 220
business requirements ................................... 215
solution architecture ...................................... 218
Model dispatcher .................................................. 197
Model hyperparameter ............................ 194, 199
user interface ..................................................... 200
Model validation ................................................... 244
business requirements ................................... 244
solution architecture ...................................... 249
technical implementation ............................ 245
user interface ..................................................... 251
Model versions ...................................................... 129
Modeler app ............................................................ 137
Modular approach ................................................... 25
Monitoring ........................................... 157, 159, 169
module ................................................................. 219
MultiChain .............................................................. 388
Multicloud ............................................................... 388
Multiple deployments ........................................... 95
Multiple model support ........................... 194, 197
user interface ..................................................... 198
N extensibility ....................................................... 210
Natural language processing (NLP) ....... 65, 367,
383
Negative feedback ................................................ 217
Neural network ......................................................... 45
New machine learning app ............................... 202
extensibility ........................................................ 212
Node agents ............................................................ 236
Nonparametric models ......................................... 93
Notification API ..................................................... 192
Index
O
ObjectStore .................................................... 183, 377
Off-contract spend ............................................... 303
Offline validation ................................................. 247
Online validation ................................................. 247
Open receivables ..................................................... 32
Open Service Broker API (OSBAPI) ................ 378
Operational data provider (ODP)
framework .......................................................... 174
Operational purchasers ..................................... 301
Operationalization ................................................. 84
business view ........................................................ 88
methodology ........................................................ 85
technology view .................................................. 88
Operators ........................................................ 106, 179
Order-to-cash process ............................... 274, 317
Outgoing payments ............................................ 279
Outliers ..................................................................... 152
Output batches ...................................................... 341
Output control ...................................................... 182
Output management ................................. 182, 380
Outsorted billing documents .......................... 356
Overdue Materials—Stock in Transit
app ................................................................ 309–310
P
Packaged solutions ................................................. 46
Parametric models ................................................. 93
Partial match ............................................................. 91
Payables line item matching ........................... 279
Payment advice information extraction .... 276
Payment fraud prevention ............................... 365
Performance ........................................................... 230
measurements .................................................. 232
Periodic valuation ................................................ 280
Personal data .......................................................... 184
Pipeline modeler ......................................... 106–107
Pipelines ................................ 61, 106, 120, 139, 179
create .................................................................... 140
inference ..................................................... 112, 144
templates ............................................................ 140
training .................................... 107–108, 112, 141
Planning rules ........................................................ 345
Pods ........................................................................... 236
PostgreSQL .............................................................. 378
Predict conversion ............................................... 318
Predicted Delivery Delay app .......................... 322
Predicted store inventory ................................. 351
Prediction class ..................................................... 145
403
Index
Prediction confidence ............................... 130, 216
Prediction ledger ................................................... 285
Prediction power ................................ 130, 215–216
Predictions ....................................................... 92, 154
Predictions dashboard ........................................ 289
Predictive accounting ......................................... 284
Predictive Analysis Library (PAL) ...... 22, 50, 52,
55, 96, 123
approach comparison .................................... 120
architecture ........................................................ 101
criteria ..................................................................... 56
extensibility .............................................. 209, 213
integration .......................................................... 101
model training .................................................. 102
technical implementation ............................ 131
Predictive analytics ......................... 22, 32, 96, 282
approaches .................................................. 49, 119
architecture ................................................... 83, 90
best practices ................................................ 34, 45
business problems .............................................. 34
decision tree .......................................................... 50
embedded ............................................................... 51
evolution ................................................................ 39
SAP Analytics Cloud ........................................... 63
side-by-side .................................................. 57, 114
technical implementation .................. 119, 148
technologies and methodologies ................. 40
trends and technologies ................................... 35
unified ...................................................................... 33
user roles ................................................................ 35
Predictive Analytics integrator (PAi) ..... 51, 161
architecture ........................................................... 98
Predictive intelligence ........................................... 19
evolution ................................................................ 22
Predictive maintenance ..................................... 354
Predictive models .................................................... 40
Predictive scenarios ................................................ 65
create ................................................... 69, 148, 150
properties ............................................................ 150
smart predict ........................................................ 68
training ................................................................ 150
types ...................................................................... 148
Preferred proposal ................................................ 257
Prepacks .................................................................... 345
Prerequisite checks .................................... 110, 163
methods ............................................................... 164
Presentation variants .......................................... 259
Procure-to-pay process ....................................... 295
Product similarity scoring ................................ 347
Production and inventory planners ............. 315
Production operators .......................................... 338
404
Production planners ............................................ 341
Production planning ............................................ 341
Productization ........................................................ 105
Professional services ............................................ 327
Profit and loss analysis ....................................... 287
Progressive disclosure technique ................... 224
Project cost forecasting ...................................... 324
Project delivery ...................................................... 334
Project managers ...................... 324, 332, 334–335
Project profitability .............................................. 332
Project tracking ...................................................... 334
Promotion analysis .............................................. 350
Promotion Analysis app ..................................... 350
Promotion management ................................... 346
Promotions .............................................................. 350
Public services ........................................................ 373
Purchase order processing ................................ 300
Purchase orders ....................................................... 27
bots ........................................................................... 75
Purchase requisition .............................................. 27
create as an employee .................................... 262
image-based buying ........................................ 305
intelligent approval workflow ..................... 306
process by the operational purchaser ...... 263
Purchasers ...................................................... 298, 303
Purchasing managers .......................................... 300
Python ....................................................................... 137
Q embedded predictive models ....................... 389
Quality engineers ........................................ 314, 337
Quality indicator ................................................... 255
Quality inspectors ....................................... 338, 372
Quality management analytics ....................... 371
Quality systems ..................................................... 245
Quality technicians .............................................. 314
Quorum ..................................................................... 388
Quota management ............................................. 231
Quote negotiation .................................................. 30
R SAP Cloud for Energy .......................................... 352
R visualizations ........................................................ 64
Ranking ............................................................. 92, 258
by inherent value ................................................ 92
by score ................................................................... 92
user interface ...................................................... 258
value ...................................................................... 258
Rating ........................................................................... 92
R-based logistic regression .................................. 45
Read access ............................................................... 172
Real-time sensor data ............................................ 24
Receivables line item matching ...................... 274
lockbox information ....................................... 277
payment advice information
extraction ....................................................... 276
Recommendation pattern ................................... 91
Recommendations ........................................ 91, 255
catalog items ..................................................... 300
items ...................................................................... 256
user interface ..................................................... 255
Redis-as-a-service ................................................. 378
Regression ......... 44, 68, 228, 291–292, 297–299,
310, 312, 316, 319, 323, 356
Regression scenario ............................................. 148
Relationship matching .......................................... 91
Remittance Advice Extractor ........................... 274
Remote APIs ............................................................ 211
Reporting ................................................................. 244
Request for quotation (RFQ) ...................... 30, 303
blockchain-verified processing ................... 307
Requests ................................................................... 238
Research and development (R&D) ................. 323
REST APIs .................................................................. 161
REST inference call ............................................... 111
Resynchronization ............................................... 171
Retail .......................................................................... 342
upcoming ideas ................................................ 350
Retraining ...................................................... 112, 244
Revenue accounting and reporting ............... 280
Roadmap .................................................................. 389
extensions ........................................................... 392
machine learning on SAP Cloud
Platform .......................................................... 390
SAP Analytics Cloud ........................................ 391
Robot pricing .......................................................... 363
Robot underwriting ............................................. 363
Robotic process automation (RPA) ................... 71
Root cause analysis .............................................. 336
Rule-based automation ......................................... 13
Rule-based techniques ........................................... 88
R-visualizations ........................................................ 69
S SAP Cloud Platform ................. 21, 23, 50, 57, 103
Sales ............................................................................ 317
planning .............................................................. 319
Sales forecasts ........................................................ 319
Sales inquiries ........................................................ 264
Sales managers ................................... 264, 319–320
Sales order fulfillment monitoring ............... 319
Sales order probability ........................................ 319
Sales orders ................................................................ 31
Index
Sales performance ............................................... 317
Sales plan .................................................................... 87
Sales quotation ...................................................... 317
predict conversion ........................................... 318
Sales quotation conversion rate .................... 319
Sales representatives ................................. 318, 322
SAP AI Business Services ................................... 384
services ................................................................. 384
SAP Allocation Management .................. 343, 349
SAP Analytics Cloud ......... 33–34, 50, 63, 96, 289
approach comparison ................................... 121
architecture ........................................................ 114
connect ................................................................... 69
create predictive scenario ............................ 148
dashboard .......................................................... 289
data access modes .......................................... 115
display prediction results ............................. 154
features ................................................................... 64
model debriefing .............................................. 152
overview .......................................................... 35, 63
process flow .......................................................... 64
roles .......................................................................... 69
smart assist services .......................................... 65
smart predict services ....................................... 67
store results ........................................................ 153
technical implementation ........................... 148
training ................................................................ 150
upcoming features .......................................... 391
workflows ........................................................... 115
SAP API Business Hub ........................................ 380
SAP API Management ......................................... 380
SAP Assortment Planning ....................... 343, 345
SAP Audit Management ........................... 241–242
SAP Best Practices ......................................... 34, 269
SAP Best Practices Explorer .............................. 267
configuration guide ........................................ 269
SAP Business Integrity Screening .................. 290
SAP BW/4HANA ................................................ 33–34
SAP Cash Application .......................................... 273
lockbox functionality ..................................... 278
payables line item matching ...................... 279
receivables line item matching .................. 274
ABAP environment ......................................... 377
analytics .............................................................. 377
application runtime ....................................... 382
blockchain ................................................. 379, 387
business logic ....................................................... 58
capabilities ......................................................... 376
continuous integration and delivery ....... 378
data privacy and security ............................ 378
developer tools ................................................. 379
405
Index
SAP Cloud Platform (Cont.)
integration .......................................................... 380
Internet of Things (IoT) ................. 80, 380, 386
machine learning ................................... 380, 383
master data ........................................................ 381
mobile services .................................................. 381
orchestration ..................................................... 382
rates and measures ......................................... 382
SAP Data Intelligence ..................................... 382
services ....................................................... 375, 377
upcoming features .......................................... 390
user experience ................................................. 381
SAP Cloud Platform Integration ..................... 380
SAP Conversational AI ............ 72, 83, 94, 97, 223
SAP CoPilot .................................................... 224–225
SAP Customer Activity Repository ................ 343
DDF ........................................................................ 346
product similarity scoring ............................ 347
store clustering ................................................. 344
UDF ........................................................................ 343
SAP Customer Experience .................................... 25
SAP Data Intelligence ... 25, 50, 57, 96, 103, 161,
380
approach comparison .................................... 120
architecture ....................................... 60, 103, 107
benefits .......................................................... 60, 383
capabilities ......................................................... 104
components ........................................................... 61
connect to ISLM framework ........................ 147
data protection and privacy ........................ 191
deployment ........................................................ 104
evolution ................................................................ 24
extensibility .............................................. 210, 213
GUID ...................................................................... 162
integration .......................................................... 105
integration with SAP S/4HANA .................. 108
lifecycle management ............................. 58, 156
lifecycle phases .................................................. 105
modeler ................................................................ 180
SAP Cloud Platform ......................................... 382
technical implementation ............................ 137
training ................................................................ 107
upcoming features .......................................... 390
workload management and
performance .................................................. 236
SAP Demand Signal Management ................. 358
SAP Digital Boardroom ................................ 35, 373
SAP Enterprise Consent and Preference
Management ..................................................... 186
SAP ERP ......................................................... 22, 39, 47
SAP Financial Statement Insights .................. 286
SAP Fiori ................................................................... 381
406
SAP Fiori launchpad ............................................... 35
SAP governance, risk, and compliance
solutions .............................................................. 289
SAP HANA ................... 25, 39, 45, 52, 97, 100, 377
libraries ................................................................... 99
SAP HANA Enterprise Cloud ............................... 47
SAP HANA Optimization Function Library 349
SAP HANA Python Client API ........................... 137
SAP Help Portal ...................................................... 271
SAP Information Lifecycle Management
(SAP ILM) .................................................... 172, 185
SAP Integrated Business Planning for Supply
Chain (SAP IBP) .................................................. 350
SAP Intelligent Robotic Process
Automation .......................................................... 70
components .......................................................... 72
SAP Internet of Things .......................................... 76
benefits ................................................................... 77
overview ................................................................. 77
process flow .......................................................... 78
SAP Jam ..................................................................... 379
SAP Leonardo Machine Learning
Foundation ................................................. 59, 390
SAP Localization Hub .......................................... 378
SAP Lumira ................................................................ 22
SAP Merchandise Planning ............................... 343
SAP Predictive Analytics ...................................... 47
SAP Promotion Management .......................... 343
SAP RealSpend ........................................................ 287
SAP S/4HANA .............................................. 13, 25, 33
architecture .................................................... 83, 95
business implementation .............................. 267
business logic ....................................................... 58
data extraction .................................................. 171
embedded algorithms ....................................... 23
embedded analytics .......................................... 33
embedded machine learning .................. 50, 97
guiding principles ............................................... 94
integration with SAP Data
Intelligence ..................................................... 108
methodology ........................................................ 85
technical challenges .......................................... 83
SAP S/4HANA Cloud ............. 21, 25, 69, 210, 282
extensibility .............................................. 212, 214
SAP S/4HANA Retail ............................................. 347
SAP S/4HANA Retail for merchandise
management ...................................................... 343
SAP S/4HANA Utilities ........................................ 352
SAP Sales Insights for Retail .............................. 346
SAP SportsOne ........................................................ 373
SAP Supply Base Optimization ........................ 372
SAP Tax Compliance ............................................ 292
SAP Trade Management ..................................... 357
SAP Transactional Banking for
SAP S/4HANA .................................................... 368
SAP Translation Hub ........................................... 379
SAPUI5 ....................................................................... 381
Scalability ................................................................. 236
Scenario scheduling ............................................. 108
Scheduling ............................................................... 232
Scikit-Learn ........................ 140, 275, 280, 283, 326
Search to insight .............................................. 64–65
architecture ........................................................ 115
benefits .................................................................... 66
Security ........................................................................ 35
Segmentation ............................................................ 42
Self-learning techniques ....................................... 88
Semantic colors ..................................................... 259
Service request automation ............................. 362
Service Ticket Intelligence ...................... 362, 385
Side-by-side machine learning .................. 57, 96,
102, 273
ABAP development .......................................... 144
approach comparison .......................... 119, 121
criteria ..................................................................... 58
data integration ............................................... 169
data protection and privacy ........................ 190
inference process .............................................. 110
prerequisites ....................................................... 110
process flow ........................................................... 59
technical implementation ............................ 137
use cases .............................................................. 103
workload management and
performance .................................................. 236
Signal analysis ........................................................ 152
Similarity matching ................................................ 91
Slow and non-moving stocks ........................... 315
Smart assist ................................................................ 65
architecture ........................................................ 114
consume .............................................................. 116
Smart discovery ................................................ 64, 66
architecture ........................................................ 115
benefits .................................................................... 67
Smart features ................................................. 96, 114
Smart grouping ................................................ 64, 69
Smart insights ................................................... 64, 66
architecture ........................................................ 114
benefits .................................................................... 66
Smart master data quality
improvements .................................................. 355
Smart meter data analytics ............................... 352
Smart pack sizes .................................................... 351
Smart predict ......................................... 67, 121, 328
architecture .............................................. 114, 116
predictive scenarios ........................................... 68
training ................................................................... 68
Index
Snapshots ....................................................... 240–241
Social network analysis ......................................... 42
Solution proposals .................................................. 91
Sourcing and procurement .............................. 295
Spend monitoring ................................................ 264
Sports and entertainment ................................ 372
SQL script procedures ..................................... 53, 99
SQL views ................................................................. 119
Stability contracts ................................................ 173
Staffing and resource management ............. 331
Statement memory limit .................................. 234
Statement priority ............................................... 234
Statement thread limit ...................................... 233
Stock transport orders ....................................... 310
Stock-in-transit ..................................................... 309
Store clustering ..................................................... 344
Store video monitoring ..................................... 352
Strategic purchaser .............................................. 264
Structural risk minimization (SRM) ................ 41
Subpipelines ........................................................... 210
Supplier delivery prediction ............................ 299
Supplier invoices .................................................. 298
Supply chain management .............................. 308
Switch framework ................................................ 247
System logs ............................................................. 237
T
Target attribute ..................................................... 229
Tax compliance ..................................................... 292
Technical challenges .............................................. 83
Technical implementation ............................... 119
ABAP development ......................................... 144
APL ......................................................................... 123
application management processes ........ 155
approach comparison ................................... 119
configuration .................................................... 195
data integration ............................................... 173
data protection and privacy ....................... 185
embedded machine learning ...................... 122
explanation of results .................................... 222
extensibility ....................................................... 202
landscape management ............................... 158
legal auditing .................................................... 238
model degradation ......................................... 215
model validation ............................................. 245
PAL ......................................................................... 131
SAP Analytics Cloud ....................................... 148
side-by-side machine learning ................... 137
side-by-side predictive analytics ............... 148
user interface ..................................................... 253
workload management and
performance ................................................. 231
407
Index
Telecommunications .......................................... 364
TensorFlow .... 277–278, 301–302, 304–306, 360
Testing ....................................................................... 245
Thing model ............................................................... 78
Ticket priority ......................................................... 220
Time series .................................................................. 64
Time series forecasting ............... 64, 68, 316, 321
view chart ............................................................ 152
Time series scenario ............................................ 149
Timestamp approach .......................................... 176
Top 5 influencing factors ................................... 306
Trade management .............................................. 357
Trade Promotions Management app ........... 359
Training ............................................ 52, 60, 165, 249
APL-based intelligent scenarios ................. 128
coding ................................................................... 141
data integration ............................................... 170
data protection and privacy ........................ 187
embedded model ................................................. 98
explainability ..................................................... 227
filters ..................................................................... 128
lifecycle management .......................... 156, 159
logging ................................................................. 241
logic ....................................................................... 135
model versions .................................................. 129
pipelines ............................................ 108, 112, 141
SAP Data Intelligence ........................... 107, 147
scheduling ........................................................... 232
side-by-side predictive analytics ................ 150
smart predict ........................................................ 68
Training data source extension ...................... 201
technical implementation ............................ 202
Training dataset .................................................... 116
Transparency .......................................................... 222
408
U
UI theme designer ................................................ 381
Unattended automation ...................................... 71
Undeployment ....................................................... 168
Unified demand forecast (UDF) ....................... 343
Universal Journal ................................................... 285
User interface .......................................................... 252
business requirements .................................... 252
explainability ........................................... 223–224
model validation .............................................. 251
technical implementation ............................ 253
User roles .......................................................... 35, 157
User stories ...................................................... 65, 116
Utilities ...................................................................... 352
Utilities Linear Asset Analytics tool ............... 355
Utility class .............................................................. 110
V
VC dimension ........................................................... 42
Vendor-initiated payments .............................. 279
Virtual data model (VDM) ............................. 52, 97
Volatility ................................................................... 222
W
Where-used list ............................................ 203–204
Workforce management ...................................... 25
Workforce planning ............................................. 330
Workload class ........................................................ 233
Workload management and
performance ....................................................... 229
business requirements .................................... 229
embedded machine learning ....................... 231
side-by-side machine learning .................... 236
technical implementation ............................ 231
 First-hand knowledge.

Dr. Siar Sarferaz is a chief software architect at SAP. In this role

he drives digital transformation by focusing on artificial intelli-
gence and predictive analytics. He began his career as a method
researcher at Siemens AG, before moving to SAP, where he has
now worked for more than 20 years, holding various positions. He
is the lead architect for machine learning implementation in SAP S/4HANA and
is in charge of all concepts for infusing intelligence into business processes.
He studied computer science and philosophy and holds a Ph.D. in computer
science.
Raghu Banda is a senior director of AI product strategy at SAP
Labs, where he is responsible for infusing AI technologies in SAP
S/4HANA. He began his career as a software developer and
architect in India before moving to the US in 1997. He joined with
SAP in 2001 and worked in various roles such as engineering de-
velopment, customer support and implementations, product marketing, and
product management. He has worked with predictive analytics and machine
learning since SAP entered this arena in 2012. He holds a Bachelor of Science
in computer science and engineering and will soon graduate from the presti-
gious INSEAD business school. He is the lead product manager for leveraging
machine learning into SAP S/4HANA.

Siar Sarferaz, Raghu Banda

Implementing Machine Learning with SAP
S/4HANA
408 Pages, 2020, $89.95 We hope you have enjoyed this reading sample. You may recommend
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