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SAP and Infosys Join Forces to Accelerate Enterprise Digital Transformation Projects

Infosys and SAP are in talks to create a joint go-to-market engagement model between project Embrace from SAP and Infosys’ Innov8 program. The joint engagement model is intended to help companies accelerate their digital transformation based on SAP S/4HANA® to build intelligent enterprises.According to a press release, the collaboration aims to enable Infosys to become one of SAP’s first global strategic service partners for project Embrace—designed to drive enterprise customer adoption of cloud and digital technologies from SAP. Dinesh Rao, Executive Vice President, Infosys, said, “Navigating the cloud ecosystem requires a structured strategy that provides a consolidated view into a company’s overall transformation journey. Through Innov8, we are focused on leveraging our industry knowledge and experience to accelerate the delivery of business solutions. Through this collaboration, we are focusing on ensuring that our clients are able to rapidly adopt tomorrow’s business models today.”The Innov8 program is infused with more than 70 ready-to-deploy use cases spanning blockchain artificial intelligence, machine learning, the internet of things (IoT) and data analytics—empowering clients to invest in purposeful innovation and build truly intelligent enterprises. Innov8 helps clients transform their business model to one based on predictable OPEX-based costs and offers flexible points of entry to the SAP environment for both existing and new cloud users.Regarding the collaboration, David Robinson, senior vice president, SAP Cloud Business Group and global lead, Embrace program at SAP, said, “SAP is excited about its plans to partner with Infosys to help clients invest in purposeful innovation to build their intelligent enterprise. Innov8 for Embrace leverages Infosys’ industry knowledge and expertise on SAP and cloud technologies. This is a platform that is delivered on a cloud hyperscale environment with SAP digital solutions delivering end-to-end business outcomes at an accelerated pace. We couldn’t be more excited.”

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Accenture Partners with R3 and SAP to Improve Settlement Systems by Using Blockchain

Consultancy firm Accenture has partnered with blockchain technology firm R3, and software giant SAP to produce a prototype that uses distributed ledger technology to allow real-time gross settlements.

John Velissarios, managing director and global blockchain technology lead at Accenture, mentioned that the need for the platform stems from the current “highly complex and fragmented” payment settlement infrastructure. He believes that with real-time gross settlement (RTGS) systems, blockchain would be able to allow central banks to be more efficient.

RTGS systems allow electronic fund transfers between banks to happen in real-time and on a one-to-one basis, enabling immediate clearing for high-value transactions usually handled by central banks.

The prototype utilizes the SAP Payment Engine application, which allows for payment initiation, processing, clearing, and settlement while integrating with the R3 Corda platform to enable collaboration with the RTGS systems. With Accenture’s expertise in central bank clearing and settlement as well as blockchain experience, the prototype will allow peer-to-peer payments between banks.

Velissarios said:

The RTGS prototype, designed in collaboration with SAP and R3, demonstrates the next stage of efficiency in payment systems and ultimately, paves the way to linking tokenized-assets, like equities, to create an increasingly integrated and seamless financial services ecosystem.”

Stablecoins will be used in the prototype, as they are less volatile than regular cryptocurrencies. The companies are aiming to work alongside the traditional financial system rather than against it, which has led to many controversies Facebook’s Libra has been dealing with.

Cathy Minter, Chief Revenue Officer at R3, stated that there is a need for interoperability between the traditional financial services industry and token-based systems.

She added: “Corda was designed to execute transactions seamlessly from the outset, with the highest levels of certainty and security. Through our Accenture and SAP, R3 is collaborating with two of the tech industry’s major players to provide a real-time gross settlement token-based exchange. The end result is nearly instantaneous settlements, which will reduce friction throughout the transaction chain.”

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SAP and GS1 to Establish Blockchain Prototype to Enhance Road Safety

SAP, a multinational software corporation, and GS1, a non-profit organization that maintains and develops global standards, have created a blockchain prototype intended at the digitization of tire retread activities for better road safety. Notably, the blockchain network deployed will be instrumental in tracking tires’ life-cycle.

Realistically, the renewal of tire treads can happen several times before a tire is relinquished. This procedure is environmentally friendly as compared to producing a new one. It is also advantageous to vehicle fleet owners because it is a cheaper option.

Nevertheless, keeping precise records for tire retreads is cumbersome based on the many procedures required. For instance, whenever a tire gets to a retreading center, several inspections have to be carried out to test whether it can endure the entire process.

Deployment of blockchain technology and RFID Tags

SAP and GS1 seek to address this challenge by employing blockchain technology and radio frequency identification (RFID) tags. The perception behind this approach is for tires to be fitted with machine-readable RFID tags for identification purposes. Blockchain will then be used to record the distance covered by each tire, as well as its service history.

GS1’s traceability project manager, Nicolas Pauvre, noted: “Information about each singular repair or retread is stored in the blockchain. Due to the decentralized nature of the blockchain technology, it is impossible for one member of the chain to manipulate the information stored there.”

Blockchain will be pivotal in tracking down a tire’s life-cycle, and this will boost road safety.

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IBM and SAP Partner to Enhance Consumer Industries with AI-Driven Solutions

IBM and SAP, two leading forces in technology and enterprise solutions, have announced a groundbreaking partnership to revolutionize the consumer packaged goods and retail industries. The collaboration focuses on leveraging generative AI to enhance various aspects of business, such as supply chain, finance operations, sales, and services. This initiative aims to drive efficiency, reduce waste, and facilitate greener last-mile delivery, thus improving overall business outcomes.

Key Developments and Goals

Enhancing Supply Chain and Operations: IBM’s WatsonX AI, an enterprise-ready AI and data platform, will be integrated into SAP’s solutions. This combination aims to address the complexities of the direct store delivery process and product portfolio management. By incorporating AI into SAP’s Direct Distribution solution, the partnership seeks to identify optimal store delivery routes, taking into account external factors like weather, traffic, and local events. This integration will not only help in reducing operational costs and carbon footprints but also offer real-time updates for on-the-fly adjustments.

Optimizing Store-Level Assortments: The partnership plans to use AI to develop store-level assortments tailored to each store’s market dynamics, sales patterns, and product mix. This approach intends to maximize sales and minimize waste, delivering a more efficient and consumer-focused retail experience.

Automating Order Settlement: The complexities of direct store delivery often hinder automatic transaction settlements. IBM and SAP are working to develop solutions that automate this process, using intelligent workflows to enhance operational efficiency and settlement accuracy.

IBM Consulting’s Role and Expertise

With over 21,000 data and AI professionals, IBM Consulting is poised to accelerate business transformation using enterprise-grade AI. Their collaborative and open ecosystem approach, coupled with deep industry expertise, positions IBM as a trusted partner in modernizing and securing complex systems.

Investor and Market Implications

Investors and market analysts are closely monitoring this collaboration, anticipating transformative changes in the industry. There is a keen interest in the potential cost savings, margin improvements, and revenue growth these AI solutions could bring. The scalability of these solutions across different markets and client sizes is also under scrutiny, as it will significantly impact the financial outcomes for IBM and SAP.

Conclusion

The IBM-SAP partnership is a significant step in harnessing the power of AI to transform the consumer goods and retail industries. By improving operational efficiency, reducing environmental impact, and enhancing customer satisfaction, this collaboration is poised to deliver substantial business value in today’s fast-paced consumer industry.

SAP Announces 2 Billion Euro Restructuring Plan Affecting 8,000 Jobs

SAP SE, a global leader in enterprise application software, has announced a sweeping restructuring plan for 2024, with a budget of approximately €2 billion. This strategic move will impact around 8,000 roles within the company, as SAP pivots to concentrate more on artificial intelligence (AI)-driven business areas. This decision reflects the evolving landscape of the technology industry, where AI and cloud-based solutions are increasingly becoming pivotal.

SAP’s restructuring is part of its broader ambition to adapt to the changing demands of the digital economy. The company plans to enhance its focus on Business AI, which it identifies as a key strategic growth area. Through this process, SAP aims to transform its operational setup to capture organizational synergies and drive AI-based efficiencies. This transformation is expected to prepare the company for scalable future revenue growth.

The restructuring strategy involves a mix of voluntary leave programs and internal re-skilling measures to manage the transition of the workforce. Despite the significant number of roles affected, SAP anticipates maintaining a headcount similar to current levels by the end of 2024, reflecting re-investments in strategic growth areas.

Financially, SAP projects that the majority of the restructuring expenses, estimated at around €2 billion, will be recognized in the first half of 2024, impacting IFRS operating profit. However, excluding these restructuring expenses, the program is expected to yield only a minor cost benefit in 2024. SAP’s 2024 financial outlook and the updated 2025 non-IFRS operating profit and free cash flow ambition fully reflect these expected cost savings and re-investments.

For 2024, SAP forecasts significant growth in its cloud revenue, projecting an increase of 24% to 27% at constant currencies, compared to €13.66 billion in 2023. The company also expects an increase in cloud and software revenue, estimating a rise of 8% to 10% at constant currencies, compared to €26.93 billion in 2023.

SAP’s proactive move towards AI-driven business areas aligns with the trends observed across the technology sector. Major tech firms are increasingly focusing on AI and automation to enhance efficiency and innovation. SAP’s early experimentation with OpenAI’s ChatGPT and plans to embed generative AI technology in its products underscore its commitment to this strategic direction.

In conclusion, SAP’s €2 billion restructuring plan marks a significant step in its evolution as a technology leader. By focusing on AI-driven business areas and enhancing operational scalability, SAP is positioning itself to effectively navigate the rapidly changing landscape of the tech industry. The company’s efforts to maintain workforce levels through re-skilling and voluntary programs demonstrate a commitment to its employees during this transformative phase. With these measures, SAP aims to bolster its position as a major player in the enterprise software market, adapting to meet the future needs of the digital economy.