Michel Haesendonckx - SAP

1. PUBLIC
Michel Haesendonckx, Global Solution Owner FP&A, SAP SE
Antwerpen, October 4, 2018
How machine learning and other innovative technologies
can contribute to continuous accounting

2. 2© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This
presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue
any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This
document, or any related presentation and SAP's strategy and possible future developments, products and/or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document
is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of
any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-
infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors
or omissions in this document, and shall have no liability for damages of any kind including without limitation direct, special, indirect, or
consequential damages that may result from the use of this document. This limitation shall not apply in cases of intent or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and
they should not be relied upon in making purchasing decisions.

3. 3© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Vision of Finance Transformation
From daily routine to supporting growth and new business models
Automation
Running
the Business
Insights
Operations
Deliver
Insights
Operations
Predictive
Insights
Real-time
Insights
Backward
looking
Advanced
Analytics
Support
Strategy
Operations
Forward
looking
Predictive
Insights
Real-time
Insights
Backward
looking

4. 4© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Digital Age UX
Finance Benefits from a Next-Generation Intelligent ERP
Unparalleled capabilities to support core finance processes
Single data platform
Universal Journal
Intelligent FinanceApplications
Single
source
of truth
• Natural UX
• Digital assistant
• Business ContextAwareness
• Single Journal entry
• Actual, plan, simulationdata
• Reconciled by design
• Transactional & analyticaldata
• Unlimited drill-down
• Data consistency
• Machine learning
• Predictive analytics
• Cross-companyintegration
Business steering with predictive insights
Accelerated closing
Continuous accounting
Dynamic financial planning
Automation of finance operations
Total spend management
Working capital optimization
Embedded risk and compliance
Real-time business simulation
Intelligent ERP… …for intelligent Finance

5. 5© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Intelligent Finance process running on single source of truth
How to most effectively utilize the company’s financial resources to optimally increase profitability
and grow, while avoiding putting the company at serious financial risk
Financial Steering Model (Universal Journal)
Simulate &
optimizeCost control
Margin
analysis
Group Close
Financial
ReportingEntity Close
Plan &
forecast
Financial
accounting
Analyze-to-Optimize
Record-to-Report
Automate
PredictDetect
Assist

6. What is Machine Learning ?

8. 8© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Data Training Inference
Apply
model
Services
(such as invoice processing,
profile matching)
…and more
Applications
(such as cash application)
Text
Image
Video
Speech
… and more
Train
model
Prepare
data
Capture
feedback
How does Machine Learning work?
From data to insights

9. 9© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
 Automating the End-to-End processes
Increase efficiency and reduce costs with SAP’s
Finance Portfolio
 Detect and prevent
Detect and rank information out of Big Data
 Predict
Derive knowledge from historical information to
increase the accuracy of predictive scenarios
 Proactive context sensitive support
The digital assistant boost productivity of your financial
experts
SAP Leonardo Innovations
Changing the world of Finance by adding intelligence to applications
Automate
PredictDetect
Assist

10. Machine Learning: the next level of Automation

11. 11© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Journey to smart automation in SAP S/4HANA Finance
Finance
Robotics Process
Automation
Machine
Learning
Engines
SAP S/4HANA Finance – The Digital Core
Foundation for digitalautomation
eCommerce
IoT
Business
Network
Digital
Collaboration
Accurate
digital data
Robotics Process Help run
repetitive, rule-based
monotone tasks
Engines specific process
knowledge enablesrule-based
automation
Accurate digital data reduces
reconciliations and enables
higher degree of end-to-end
automated processing
Machine Learning Identify
hidden patterns inknowledge-
intensive processes and then
execute processing
Accurate digital data

12. Machine Learning applied in a Shared Services environment

13. 13
SAP Service Ticket Intelligence
Automatic classification and suggested responses of shared servicetickets
Service tickets
Knowledge base
articles*
Classifications
Resolutions
Routing
SAP Leonardo
Machine Learning
Integration with SAP Shared
Services Framework for
reduced time to value
Redefine service delivery with
conversational interfaces and
intelligent automation
Improved service response
times with automated
processing
*SAP Service Ticket Intelligence does not replace knowledge managementsolutions.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Create your own intelligent infrastructure
SAP Service Ticket Intelligence automatically processes inquiries to
deliver best-in-class shared services.

14. Machine Learning applied in Accounts Receivables

15. 15© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Example: SAP Cash Application
Challenges facing AR teams in clearing incoming payments
Payments
Jane, 34
AR Accountant
Lump
sum
Missing info Discounts
Exchange
Customer call
???

16. 16© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Example: SAP Cash Application
Next generation intelligent invoice matching powered by machine learning
History
Payments
Invoices
Matching
proposals
SAP Cash Application intelligently learns matching criteria from
historical data and automatically clears payments
Machine Learning

17. Machine Learning supporting a more efficient Closing
https://www.youtube.com/watch?v=jJXqWF1wJkw

18. 18© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
More Efficient GR/IR Clearing
Next level of user support with Analytics, Assistance and MachineLearning
Cleared
Balance
Efficient
clearing
Intelligent
Recommendation
Goods Receipts
Rule based
clearing
Match
Nomatch
Writeoff
GR/IR Posting
Invoice Receipts
Analytics, Assistance and Machine Learning

19. 19© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Analytical
capabilities
This presentationand SAP‘s strategy and possible futuredevelopmentsare subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
withouta warranty of any kind, either expressor implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.

20. 20© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Embedded
collaboration
This presentationand SAP‘s strategy and possible futuredevelopmentsare subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
withouta warranty of any kind, either expressor implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.

21. 21© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Intelligent
recommendations
This presentationand SAP‘s strategy and possible futuredevelopmentsare subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
withouta warranty of any kind, either expressor implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.

22. Machine Learning and Predictive Accounting
https://www.youtube.com/watch?v=yH-HJWeDyXA

23. 23© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
TOP-DOWN Prediction
Time series algorithm on historic
data in order to predict future values
considering trend, cycles and/or
fluctuation
Different types of predictive logic
adding intelligence to finance applications
Predict
sum sum
BOTTOM-UP Prediction Line item Line item
Predictive Accounting on the basis of
predicted documents being part of an Sales Order Predictive Predictive
individual business process and its Goods Issue Invoice
document flow
S/4HANA 1809
This presentationand SAP‘s strategy and possible futuredevelopmentsare subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
withouta warranty of any kind, either expressor implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.

30. Machine Learning for Detection
https://www.youtube.com/watch?v=wpakxWVEQv8

38. Digital assistant

39. 39© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
 Automating the End-to-End processes
Increase efficiency and reduce costs with SAP’s
Finance Portfolio
 Detect and prevent
Detect and rank information out of Big Data
 Predict
Derive knowledge from historical information to
increase the accuracy of predictive scenarios
 Proactive context sensitive support
The digital assistant boost productivity of your financial
experts
SAP Leonardo Innovations
Changing the world of Finance by adding intelligence to applications
Automate
PredictDetect
Assist

42. More information on how technology can support the
finance function of tomorrow...
https://blogs.sap.com/2018/09/20/technology-meets-finance-expertise-sap-s4hana-1809/

43. What do you think ?
Contact information:
Michel Haesendonckx
Global Solution Owner Financial Planning &Analysis
Finance Solutions
SAP SE
michel.haesendonckx@sap.com
+32 472 491 699

44. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this docume nt or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ st rategy and possible future developments, products, and
platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information
in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undu e reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
© 2018 SAP SE or an SAP affiliate company. All rightsreserved.