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PUBLIC
Shivani Govil
Ani Chauhan
June 2017
Revolutionizing Procurement with
Artificial Intelligence and Machine
Learning
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Overview
Procurement-Specific Use Cases
Deep Dive...
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Global business in a changing world…
Digital Tran...
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Vision: Cognitive Procurement
Make procurement pr...
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Cognitive computing involves self-learning system...
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Why is this becoming mainstream?
Better algorithm...
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Industries Use cases Companies
Consumer industrie...
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Procurement-specific use cases (illustrative set)...
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Capital asset request example
Rig manager
Chad N...
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SAP Ariba and IBM join forces
…and showcase the ...
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Contract
Compliance
Contract
Creation
Contract
N...
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Environmental Monitoring Sourcing
Execution
Sour...
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Demo (Contracts)
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Digital Assistant With Slack
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Making the system intelligent
+ +
Data Intellige...
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Deeper engagement and adoption
 Increase end-us...
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Revolutionizing Procurement with Artificial Intelligence and Machine Learning

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Imagine a future where procurement processes, such as ordering parts, are as simple as exchanging text messages with an intelligent digital assistant. Hear from experts on how artificial intelligence (AI), machine learning, and advanced cognitive analytics can be used to build intelligent applications that transform procurement.

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Revolutionizing Procurement with Artificial Intelligence and Machine Learning

  1. 1. PUBLIC Shivani Govil Ani Chauhan June 2017 Revolutionizing Procurement with Artificial Intelligence and Machine Learning
  2. 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Overview Procurement-Specific Use Cases Deep Dive Summary Agenda
  3. 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Global business in a changing world… Digital Transformation Two-thirds of Global 2000 CEOs have digital transformation at the center of their corporate strategy Sources: IDC Study and MIT Sloan Executive Education Disruptive Technologies Constantly changing technology innovations challenge business competitiveness
  4. 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Vision: Cognitive Procurement Make procurement processes more intelligent by creating better connections between people, processes, systems, data and context. The result? Higher engagement, better decision making and improved business outcomes – resulting in greater savings and lower costs.
  5. 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Cognitive computing involves self-learning systems that mimic the functioning of the human brain through computer models and help improve human decision making. What is cognitive computing? Speech recognition Neural networks Artificial intelligence Machine learning/ deep learning Natural language processing Image recognition Other….
  6. 6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Why is this becoming mainstream? Better algorithms and technology Investments Reduction in cost and rise in Big Data Changing user behaviors and expectationsParadigm shifts Source: Chatbot magazine By 2019, 40% of all digital transformation initiatives – and 100% of all IoT efforts – will be supported by cognitive/AI capabilities (IDC)
  7. 7. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Industries Use cases Companies Consumer industries  Product recommendations  Customer service Amazon, Macy’s Travel  Travel advisor  Dynamic pricing WayBlazer, Expedia, Hipmunk (now Concur) Manufacturing  Autonomous cars  Predictive maintenance Uber, Kaeser Kompressoren Banking and financial services  Personal financial advisor  Fraud detection ANZ Global Wealth, American Express Healthcare  Diagnosis in medical imaging  Treatment recommendations IBM Watson, Medecision High tech and telco  Malware detection  Marketing personalization Google, Facebook Applications emerging across various industries
  8. 8. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Procurement-specific use cases (illustrative set) Invoice creation and reconciliation Identify and procure right parts and products Productivity apps (approvals, status, notifications, …) Contract authoring Category management/ demand analysis Customer support 2.0 Sourcing and RFP creation Risk and compliance Demand signal/ inventory optimization
  9. 9. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Capital asset request example Rig manager Chad Noll NLP/ NLG X SAP Ariba Supplier Risk AI Weather.com AI CFO Archie Rooney NLP/ NLG ERP Data SAP Ariba Catalog AI
  10. 10. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Ariba and IBM join forces …and showcase the future starting with two centers for cognitive procurement We are planning on building game-changing cognitive applications in the source-to-settle space Contract intelligence Sourcing intelligence © 2017 IBM and SAP SE or an SAP affiliate company. All rights reserved.
  11. 11. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Contract Compliance Contract Creation Contract Negotiation/Award Contract Intelligence Proposed Contract Authoring Scans contract & converts to contract sections & clauses Predetermines clauses based on commodity, region/legal regulatory needs Automatically recommends critical clauses based on contracting history Analyzes frequently modified clauses, suggests library additions Suggests missing sections, clauses, subclauses Recommends the optimal team members to engage Minimizes risk exposure by ongoing checks of document compliance Automates the link from contract terms and items to Compliance, simplifying tracking Assess terms and pricing against benchmarks Initial Release Future Release News-based commodity dashboard Digital Assistant for Easy, Conversational Interface Monitor News, Twitter, Weather for commodity- relevant trends & regulation changes Shows % match to previous contracts (completeness check) Shows % match to previous contracts (correctness check) Cognitive Value Add Contract Life Cycle
  12. 12. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Environmental Monitoring Sourcing Execution Sourcing Intelligence Proposed Sourcing Event Initiation Initial Release Future Release Digital Assistant for Easy, Conversational Interface Cognitive Value Add Sourcing Event Life Cycle Monitor News, Twitter, Weather for commodity- relevant trends Uncover pricing pressures and demand trends for selected products Recommend sourcing event initiation based on trends Recommend RFX event type based on commodity type, region and history. Assess results against benchmark prices Recommend number of suppliers to engage based on commodity, history and for optimal results Recommend duration of sourcing event for optimal results Populate sourcing event data using unstructured data Guide selection of sourcing template based on unstructured data News-based commodity dashboard
  13. 13. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Demo (Contracts)
  14. 14. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Digital Assistant With Slack
  15. 15. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Making the system intelligent + + Data Intelligence UX Action Smarter model Part of the business process Prescriptive and proactive Finance – ERP Rules – SAP Ariba solution Weather – External Catalog – SAP Ariba solution Supplier – SAP Ariba solution Invoices – SAP Ariba solution / ERP Logistics – Transportation management Comments – Unstructured data News – Unstructured data NLP Artificial intelligence Machine learning Auto-complete Smart recommendations Conversational bot
  16. 16. 21PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Deeper engagement and adoption  Increase end-user productivity (ease of use, less training required)  Bring the application to users in their environment of choice Better decision making  Have access to richer and broader set of data  Uncover and discover hidden insights Improve business outcomes  Automate repetitive tasks  Improve approvals and accuracy  Improve efficiency by delivering personalized and context-specific information #MAKEPROCUREMENTAWESOME Value proposition for procurement
  17. 17. 22PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  18. 18. Thank you. Contact information: F name L name Title Address Phone number Partner logo

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