Unit 1: Intelligent Processes in SAP S/4HANA - : Week 4: Embedded Predictive and Machine Learning

Week 4: Embedded Predictive and Machine Learning
Unit 1: Intelligent Processes in SAP S/4HANA –

Overview
Intelligent processes in SAP S/4HANA – Overview
Why do we care so much about intelligence in SAP S/4HANA?
External challenges Internal challenges
▪ Dynamic environment and global ▪ Quick fix for broken and legacy
competition processes
▪ Automation for differentiation vs. ▪ High maintenance of project
operation patchwork
▪ Talent scarcity and meaningful work Why intelligent processes ▪ Limited success scaling proof of
in SAP S/4HANA? concepts1
▪ Address common process challenges ▪ Native integration into SAP S/4HANA ▪ Increased automation and actionable
▪ Scale beyond proof of concept insights
▪ Designed with E2E business process in
mind ▪ Expertise, trust, and reliability of SAP ▪ Focus on higher value and expert tasks
▪ Defined models coming to life with your ▪ Built-in lifecycle management
data
1 Accenture (2019) – AI: Built to Scale

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Intelligent technologies assist, adapt, and automate end-to-end business processes
Continuous learning from business data leads to

continuous improvement of business processes
Core capabilities
▪ Assist data-driven decision-making
▪ Adapt business processes in real time
▪ Automate processes within and between systems
Key principles
▪ Scalable enterprise-grade AI
▪ Tangible business outcomes
▪ Trusted data and intelligent recommendations
▪ Integrated technologies and processes

Machine learning in SAP S/4HANA
Embed in SAP S/4HANA Consume from SAP BTP Extend to SAP Analytics Cloud
▪ Embedded machine learning, ▪ Side-by-side machine learning ▪ Explorative requirements for

predictive analytics business users
▪ Resource-intensive cases like
▪ “Simple” cases like trending or image or language processing ▪ Predictions based on SAP
forecasting S/4HANA CDS views can be
▪ Neural networks with high
▪ Algorithms with low CPU–RAM– CPU–RAM–data demand such as achieved using smart services
data demand such as regression, image recognition functionality of SAP Analytics Cloud
clustering, classification, time-
▪ Based on SAP Business
series, and so on
Technology Platform
▪ SAP HANA, SAP Analytics Cloud
Learn from custom-specific history and exceptions to predict, support, automate, and optimize business user decisions

Demo

Resources to help you get started
Intelligent scenario lifecycle management (ISLM) References

▪ ISLM in SAP S/4HANA Cloud ▪ SAP TechEd 2020 Replay
▪ ISLM in SAP S/4HANA ▪ SAP Community Webinar
▪ ISLM Community ▪ ISLM Blog Series
Trial options Intelligent ERP Community

▪ SAP S/4HANA Fully Activated Appliance ▪ Intelligent ERP Community
(→ pilot extended ISLM features)

Key takeaways
▪ SAP S/4HANA transforms end-to-end business

processes into intelligent business processes
▪ Over 300 intelligent capabilities available for
SAP S/4HANA (and that number is growing)
▪ Moderate machine learning requirements such as
forecasting can be handled embedded in
SAP S/4HANA (using PAL and APL)

Thank you.
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Unit 2: Machine Learning and Predictive Analytics:
Architecture and Concepts
Machine learning and predictive analytics: architecture and concepts
Agenda
1. Decision tree and approaches

2. Architecture overview
3. Embedded models
4. Side-by-side models

Decision tree – predictive analytics and machine learning with SAP S/4HANA
S/4 – SAP S/4HANA

What is
your use CDS – Core Data Services
case? SAC – SAP Analytics Cloud
PAL – Predictive Analysis Library
APL – Automated Predictive Library
Simple ML scenario using Complex ML scenario using DI – SAP Data Intelligence
Unforeseen, exceptional and
classic algorithms, low CPU & deep learning, high CPU &
irregular ML scenario
RAM, no external data RAM, with external data
CDS view
Which ML Which ML
available in S/4?
library is library is
required? required?
1. Use S/4 data to 1. Acquire S/4 data in

build ML SAC or live connect
models in SAC with S/4 data 1. Access S/4 data with 1. Access S/4 data with 1. Access S/4 data with 1. Access S/4 data with
2. Leverage 2. Build ML models in HANA APL HANA PAL AI Business Services SAP DI
embedded SAC SAC automatically 2. Build ML models 2. Build ML models 2. Build ML models 2. Build ML models using
or publish 3. Visualize predictions automatically programmatically automatically Python etc.
models back to with SAC 3. Generate API for 3. Implement API for 3. Integrate API for 3. Implement API for
S/4 consumption consumption consumption consumption
Explorative Predictive Analytics Embedded Machine Learning Side-by-Side Machine Learning

Approaches
Embedding predictive algorithms in SAP S/4HANA Consuming predictive and ML services from
(embedded) SAP Business Technology Platform (side-by-side)
1 2 SAP Business Technology Platform
Side-by-side ML using SAP Data Intelligence solution (ISLM*)

Embed ISLM
Side-by-side ML using SAP AI
PAL, APL, R, Python…
PAL and APL Business Services (ISLM*)
Enhancing and extending predictive analytics

Leveraging predictive analytics with SAP Analytics and ML services (extensibility of the models)
Cloud (explorative analytics with side-by-side) SAP BTP SAP Analytics Cloud
(SAP DI ML models) (smart predict)
Business SAP Analytics Enterprise
intelligence planning
Cloud Extending
Intelligent decisions 4 machine
Smart predict learning
3
and smart assist
SAP BTP SAP S/4HANA
(AI foundation hybrid ML models) (ISLM with PAL)
Augmented
analytics SAP S/4HANA
SAP S/4HANA – CDS views (ISLM with APL)
Best practices of leveraging predictive analytics and machine learning with SAP S/4HANA
ISLM – intelligent scenario lifecycle management; BTP – Business Technology Platform
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
PAL – Predictive Analysis Library; APL – Automated Predictive Library; CDS – core data services 4
Architecture overview: SAP S/4HANA, the intelligent ERP
SAP S/4HANA SAP Business Technology Platform Automation

on-premise | cloud
remote controls
End user
SAP CoPilot Micro Charts
SAP Fiori UIs
Embedded UI SAP Intelligent Business Workflow
Proposals
Analytics RPA Rules
powered by
Side-by-side ML
Business IS Lifecyle
Events Management
Application APIs
Situation Virtual Data
Handling Model
Events
Big Data SAP Analytics SAP Data SAP
store historical situation data Services Cloud Intelligence Conversational
/ AI Business AI
live
SAP HANA ML Services
SAP HANA connection
HEMi PAL APL Database
Citizen Data Data External
Scientists Scientists users
Embedded ML External Data

Embedded predictive models in SAP S/4HANA
PROCESS THE ALGORITHMS

Built-In Explorative
Consumer Consumer WHERE THE DATA IS:
OData InA, MDX LOW TCO & OPTIMAL
PERFORMANCE
SAP S/4HANA
Services
Analytical Engine
ISLM
Modeling &
Administration
CDS View CDS View for ML
SAS LEAD BACK PREDICTIVE
ANALYTICS TO CDS VIEWS:
CONTENT & CONCEPT REUSE
SQL View ISLM
Repository
Application
Table ML Model
SAP HANA

Side-by-side ML models on SAP BTP
Intelligent SAP Fiori /

SAP S/4HANA ML App
Conversational AI
ML Service
Consumption
SAP S/4HANA ML Service SAP Data Intelligence

Consumption
Business Logic Machine Learning Client
Data Deep
Pipeline Monitor /
Business Logic Engine
Science Learning
Operate
Tools / GPU
Data Integration
Model for Model Training
Business Data Lake
Repository

Side-by-side models with explorative predictive analytics on SAP Analytics Cloud
SAP Fiori UI Explorative UI

▪ Create BI dashboards
with smart services Smart
Services
▪ Embed predictions into
the planning dashboards SAP S/4HANA Predictive SAP Analytics Cloud
Analytics
▪ Data acquisition or live
connection from Application Application Content: Models/Stories
SAP S/4HANA
▪ Leverage SAP HANA
APL algorithms
Autom. Predict. Smart Smart Smart Search
Library Predict Insights Discover Insight
Application Data
Integration Business Data Lake
Data

Key takeaways
▪ Bring the algorithms to the data to avoid data

replication
▪ Model training is TCO-relevant
▪ Data model of SAP S/4HANA is based on core data
services (CDS technology)
▪ SAP S/4HANA supports multiple deployment options
– on-premise, private cloud and public cloud

Thank you.
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Unit 3: Embedded Machine Learning with ISLM
Embedded machine learning with ISLM
Agenda
1. Overview
2. Evolution of ISLM
3. Personas and ML models
4. Demo

Overview
Standardized consumption and operation of

machine learning scenarios for both flavors
Embedded scenario: Side-by-side scenario:

Machine learning provider (for example, ML Machine learning provider runs in different
with Automated Predictive Library and stack (for example, the SAP Data
Predictive Analysis Library in SAP HANA) Intelligence solution) than the business
runs in same stack as business application application (SAP S/4HANA)
(SAP S/4HANA)

End-to-end lifecycle management
Harmonized framework in basis SAP software layer
Successor of SAP Predictive Analytics integrator
Standard to train, deploy, activate even for remote ML providers
Support for all phases (readiness, first usage, life cycle operations, deletion, decommission
Lifecycle management of ML services

provisioned as a service
Common consumption model for application

integration for SAP S/4HANA

Managing the lifecycle of SAP S/4HANA Machine Learning Scenarios
Intelligent scenario lifecycle management closes the gap between business app (e.g. SAP S/4HANA)
and the used machine learning artifact as it offers lifecycle management of the machine learning artifact in
the context of the intelligent application consuming it.
Customer segments are:
Migrated “PAi” New SAP S/4HANA Custom developed Custom developed

scenarios Intelligent Scenarios scenarios scenarios
integrated in based on based on embedded
Approx. 20 shipped business solution side-by-side ML SAP HANA ML
scenarios &
partner/customer Based on HANA ML
scenarios migrated to (APL, PAL), SAP DI, ML offered in SAP DI, Predictive scenarios
ISLM AIF, AI BUS, … based on HANA ML
(APL/PAL)

SAP Predictive Analytics integrator evolution into ISLM
Enhanced
&
Evolved
ISLM offered as part of basis layer
ISLM delivers feature compatibility with predictive analytics integrator functionality to support:
▪ Smooth migration for existing Predictive Analytics integrator use cases and artifacts
▪ Side-by-side use cases: AI API based, SAP DI, AI Business Services, AIF/AI core, Google AI (PoC)etc.
▪ Enhanced features: Creation of Intelligent scenarios of all types
One central cockpit to integrate

▪ Scenarios based on libraries provided by SAP HANA, such as Automated Predictive Library (APL) and Predictive Analysis
Library (PAL)
▪ Remote scenarios based on SAP Data Intelligence

Personas involved in development, consumption, and operation
SAP S/4HANA
Business application
Enhance business
application with ML Inference consumption Utilize ML inference
Business user
Create and publish Enable, train, deploy

ABAP developer
Intelligent scenario owner intelligent scenario ML scenario
Embedded ML in AMDP, CDS
Business administrator
SAP HANA (APL, PAL)
Side-by-side ML scenario via

Rest APIs Set up and configure
Develop ML artifacts SAP BTP or other ML technical sides
Data science developer platforms Technical administrator
Create intelligent scenario

Key takeaways
▪ ISLM enabling efficient lifecycle management of machine learning

scenarios in SAP S/4HANA
▪ New harmonized framework in basis SAP software layer
(no additional license required)
▪ No ticket-based approach
▪ ISLM, the successor of Predictive Analytics integrator
functionality
▪ New entity: intelligent scenarios (predictive scenarios + ML
scenarios)
▪ Common consumption model for application integration of
SAP S/4HANA – to ensure stable APIs for developers
▪ Management of remote models especially for ML services
provisioned as a service
▪ Support for all phases (readiness, first usage, lifecycle operations,
deletion, decommission)
▪ Released with SAP S/4HANA 2020
▪ First cloud shipment with SAP S/4HANA Cloud 2011
Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 4: Leveraging Predictive Services from
SAP Analytics Cloud
Leveraging predictive services from SAP Analytics Cloud
SAP Analytics Cloud
COMPLETE CONTEXTUAL CERTAIN

Improve decision- Gain instant insights and Make smarter and faster
making with all analytics take action in context of decisions with artificial
capabilities in one place business processes intelligence (AI)-
driven insights

SAP Analytics Cloud – augmented analytics
Catalog Mobile App

Centralized Portal iOS & Android
Digital Boardroom Stories Analytic Applications MS Office Integration
Business Augmented Enterprise

Intelligence Planning
Analytics
Data Exploration Conversational Events & Workflows
Dashboards & Visualizations Automated Analytics Sharing & Simulation
Enterprise Reporting Predictive Analytics Predictive Planning
Data Connectivity Content Translation Scheduling

PLATFORM SERVICES Data Preparation Lifecycle Mgmt Collaboration
Data Modeling Auditing & Monitoring APIs and SDKs

Make decisions faster with AI-driven insights
1. Conversational 2. Automated 3. Predictive

Ask questions in a conversational Detect drivers of a KPI and take the Predict potential outcomes,
manner with instant results next best action using automated generate forecasts, and automate
explained in natural language machine learning that discovers predictive planning
unknown relationships in data

A faster way to find better answers – conversational analytics
▪ Ask questions in natural

language and instantly
generate the best
visualizations
▪ Enhance visualizations with
in-context explanations
▪ Recognize important trends
and drivers at the click of a
button

Search to insight = what’s happening in my business?
User selects Automatically

Auto-complete
User enters natural query from Query executes generated
and NLP assist
language search generated automatically chart provides
the user
proposals the results
▪ As questions are easy to ask, analysis can happen on an ad-hoc basis in meetings, etc.
▪ Auto-complete and natural language processing aid you in finding the information you need
▪ Save time when building stories with automatically generated visualizations

Smart insights = what’s behind this number?
User can embed insight in

SAP Analytics Cloud finds
User selects data point chart or find additional
contributors
insights
▪ Find out what contributes to an interesting data point or variance

▪ The contributors often prompt you as to what question to ask next
▪ Answer follow-on questions with a single click
▪ Add depth to visualizations with contextual explanations

Smart discovery = why did this happen?
SAP Analytics Cloud Predictive model A story is generated

User selects a figure or
automatically reveals patterns and to drive accelerated
outcome
analyzes the data relationships data exploration
▪ Automated story-building and data exploration

▪ Builds a story automatically that provides multiple perspectives on your data incredibly quickly
▪ Natural language and visualization explain the reasons behind key figures or outcomes

Smart predict in BI and planning workflows
Traditional Analytics
Data BI & planning Story design

preparation modeling & consumption
Augmented Analytics with Smart Predict
Data BI & planning Story design

Smart predict
preparation modeling & consumption
Prepare data with Build predictive Enrich BI and planning Visualize new insights in
additional attributes model in a few clicks models with outcomes BI and planning stories

No data science skills needed = automated ML process to choose the best model
Input Encode Train Optimal model Best Simple

dataset data models selected automatically model debrief
Vladimir Vapnik
------
Statistical Learning Theory
1998

Explorative analytics using SAP Analytics Cloud – smart predict, smart assist
▪ Build predictive models using SAC smart predict

and smart assist functionality
▪ Leverage the SAP S/4HANA whitelisted CDS views
▪ Acquire data into SAC
▪ Visualize in SAC
Demo
A quick overview of the smart predict functionality in SAC

Key takeaways
▪ Reduced time to benefit

▪ Lower costs with one integrated solution
▪ Scale to your needs with easy extensibility
▪ Rapid innovation with AI-driven insights

Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 5: Machine Learning Services Consumed
from SAP Business Technology Platform
Machine learning services consumed from SAP Business Technology Platform
Intelligent Enterprise overview
Artificial
intelligence
Intelligent Increased
Insight
Enterprise into action resilience
Machine
learning
Robotic process
automation

Overview
Best practices integrated into

your business processes
Fast time to Flexibility to serve your

business value needs and standards
SAP AI
Business Services
SAP Business Technology Platform

SAP AI Business Services overview
SAP AI Business Services provide strategic machine learning capabilities that help
you automate and optimize processes while enriching the customer experience.
These reusable services are available on SAP Business Technology Platform.
Business Document Processing
Business Entity Document Document Data Attribute Invoice Object Service Ticket
Recognition Information Classification Recommendation Recommendation Intelligence
Detects and Extraction Classifies Automates creation, Recommends general Classifies and
highlights Automatically extracts unstructured maintenance, and ledger accounts and cost recommends tickets
named entities in information from documents management of centers for invoices without automatically
unstructured text unstructured documents structured data order reference
Available via CPEA and SAP Store

Business Entity Recognition
Detect and highlight any

type of named entity in
Unstructured text Leverage pre-trained Automatically unstructured text
documents for entity
extraction or train custom entity recognize entities in
recognition model text document
Improve text document processing via detecting and highlighting any type of
named entity in unstructured text, and sort into predefined categories
Increase overall
Increase Be productive
document
efficiency immediately with 5
processing
and reduce errors pretrained models
productivity

Document Information Extraction
Extract structured
information from
▪ Master data for
matching Automatically Automatically match unstructured documents
▪ Transactional data digitalize extracted information
for matching unstructured with master data and
▪ Business documents business documents transactional data
Significantly reduce manual efforts by automatically extracting

structured information from unstructured business documents
Increase document
Reduce costs for
Improve efficiency processing
6
shared services
productivity

Document Classification Service
Classify documents based

on customer-specific criteria
Train a classification
▪ Classification criteria model based on a Automatically
for customer-specific classify new and
subset of already
models existing documents
▪ Business documents classified (labeled)
documents
Reduce manual effort and errors for the classification of business documents,
and speed up document processing by channeling documents based on their type
Reduce costs Increase overall

using fast, document
Improve efficiency 7
automatic processing
processes productivity

Data Attribute Recommendation
Automate master data

▪ New master data
records management tasks
Classify product
▪ Inconsistent master hierarchy and Create consistent
data records harmonize master master data records
▪ Master data records
data
with missing attributes
Reduce manual master data management efforts

by applying machine learning to match hierarchies
Automate and Reduce errors

Gain master data
accelerate master and manual effort
insights faster and 8
data creation and when maintaining
with less effort
maintenance master data

Invoice Object Recommendation
Automate Invoice
Processing
Invoices with no Identify correct Automatically assign
purchase order invoice account for G/L account or
G/L postings propose G/L account
to accountant
Improve invoice processing time and quality when there is no purchase order
Increase
Reduce error-
efficiency of Reduce invoice
prone manual 9
shared service processing time
invoice processes
center

Service Ticket Intelligence
Customer service Reimagine customer service

▪ Phone customer
service requests
agents can: with automated processes
▪ Reduce repetitive
▪ E-mail customer ▪ Ticket classification
tasks
service requests ▪ Ticket routing
▪ Focus on tasks that
▪ Chatbot customer ▪ Similar ticket
create value for the
service requests recommendation
organization
Process customer issues quicker and deliver greater customer experiences
Increase problem
Speed up service Increase10customer
resolution rates
response times satisfaction
and ticket closures

Intelligent Enterprise overview
▪ Build machine learning models using

ISLM framework
▪ Leverage PAL, APL, R, Python,
TensorFlow, Sci-Kit Learn etc., algorithms
▪ Reuse AI business services

Demo
A quick overview of Sales Order Automation

Key takeaways – SAP AI Business Services
▪ Rapid time to value

▪ Innovation support
▪ First step on your machine learning-based journey
▪ Generic usability
▪ Powerful integration
▪ Expertise
▪ Simple access to a payment service – via CPEA credits and pay as
you go!

Thank you.
open@sap.com
Follow all of SAP

warranty.
Unit 6: Conclusion
Conclusion
The future
“Success in creating AI would be the

biggest event in human history.
Unfortunately, it might also be the last,
unless we learn how to avoid the risks.”
Stephen Hawking, 2014, in “The Independent”

Conclusion
The road ahead
SAP S/4HANA Intelligent Enterprise with AI-enabled scenarios
ISLM framework, the standard to embed AI into SAP S/4HANA
SAP AI Business Services integrated with the ISLM framework
Explainable machine learning with SAP S/4HANA processes
Automated machine learning with SAP S/4HANA processes

Conclusion
Key takeaways
▪ Availability of a CAL (Cloud Appliance Library) image

with SAP S/4HANA intelligent processes
▪ Webinars from the SAP Community
▪ Continued engagement through the Podcast series
▪ Availability of a best practices package with knowledge
support

Thank you.
open@sap.com
Follow all of SAP

warranty.

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Week 4: Embedded Predictive and Machine Learning

Unit 1: Intelligent Processes in SAP S/4HANA –

External challenges Internal challenges

1 Accenture (2019) – AI: Built to Scale

Continuous learning from business data leads to

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

▪ Embedded machine learning, ▪ Side-by-side machine learning ▪ Explorative requirements for

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Intelligent scenario lifecycle management (ISLM) References

Trial options Intelligent ERP Community

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

▪ SAP S/4HANA transforms end-to-end business

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

1. Decision tree and approaches

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

S/4 – SAP S/4HANA

1. Use S/4 data to 1. Acquire S/4 data in

Explorative Predictive Analytics Embedded Machine Learning Side-by-Side Machine Learning

1 2 SAP Business Technology Platform

Side-by-side ML using SAP Data Intelligence solution (ISLM*)

Enhancing and extending predictive analytics

SAP S/4HANA SAP Business Technology Platform Automation

Embedded ML External Data

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

PROCESS THE ALGORITHMS

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Intelligent SAP Fiori /

SAP S/4HANA ML Service SAP Data Intelligence

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

SAP Fiori UI Explorative UI

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

▪ Bring the algorithms to the data to avoid data

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Standardized consumption and operation of

Embedded scenario: Side-by-side scenario:

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Harmonized framework in basis SAP software layer

Successor of SAP Predictive Analytics integrator

Standard to train, deploy, activate even for remote ML providers

Lifecycle management of ML services

Common consumption model for application

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Migrated “PAi” New SAP S/4HANA Custom developed Custom developed

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

ISLM offered as part of basis layer

One central cockpit to integrate

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Create and publish Enable, train, deploy

Side-by-side ML scenario via

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

▪ ISLM enabling efficient lifecycle management of machine learning

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

COMPLETE CONTEXTUAL CERTAIN

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Catalog Mobile App

Digital Boardroom Stories Analytic Applications MS Office Integration

Business Augmented Enterprise

Data Connectivity Content Translation Scheduling

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3