Preface

21

Target Audience

22

How This Book Is Organized

23

Conclusion

26

Acknowledgments

26

1 Introduction

31

1.1 Introduction to SAP Leonardo

31

1.1.1 Technology and Components

32

1.1.2 Intelligent Enterprise Components

35

1.1.3 Adoption Options

37

1.2 Benefits of SAP Leonardo

38

1.3 Digital Transformation

39

1.3.1 Digital Disruption

39

1.3.2 Business Process Innovation

41

1.3.3 Workplace Innovation

43

1.3.4 Business Usage

47

1.4 SAP Cloud Platform

48

1.4.1 Business Services

50

1.4.2 Platform Services

50

1.4.3 Data and Storage Services

51

1.4.4 SAP Edge Services

53

1.5 Associated Technology

55

1.5.1 Big Data

56

1.5.2 Data Intelligence

58

1.5.3 Data Analysis

59

1.5.4 Machine Learning

60

1.5.5 Blockchain

63

1.5.6 Internet of Things

66

1.6 Summary

72

2 Digital Transformation: Ecosystem and Approach

73

2.1 Intelligently Connected People

73

2.1.1 Collaboration

75

2.1.2 User Interfaces

78

2.1.3 Real-Time Analytics

84

2.2 Intelligently Connected Things

88

2.2.1 Connected Products

89

2.2.2 Connected Assets

90

2.2.3 Connected Fleet

91

2.2.4 Connected Infrastructure

92

2.2.5 Connected Markets

92

2.3 Intelligently Connected Processes

94

2.3.1 Integrated Processes

94

2.3.2 Process Automation

100

2.3.3 Microservices

103

2.4 Design Thinking

104

2.4.1 Design Thinking at SAP

104

2.4.2 Approach

109

2.4.3 Design-Led Development

119

2.5 Summary

121

3 Big Data

125

3.1 What Is Big Data?

125

3.2 Universal Data Management Platform

129

3.3 Big Data Operations Management

130

3.4 Big Data Services

135

3.5 Summary

137

4 Analytics

139

4.1 What Is Analytics?

140

4.2 Business Intelligence Portfolio

141

4.3 Planning and Analysis

145

4.3.1 SAP Analytics Cloud

146

4.3.2 SAP Digital Boardroom

147

4.3.3 SAP Business Planning and Consolidation

148

4.3.4 SAP Profitability and Performance Management

148

4.4 Predictive Analytics

149

4.5 Summary

152

5 Machine Learning

153

5.1 What Is Machine Learning?

153

5.2 Machine Learning Foundation

158

5.3 Embedded Machine Learning

163

5.3.1 Machine Learning with SAP Concur

165

5.3.2 Machine Learning with SAP SuccessFactors

166

5.3.3 Machine Learning with SAP Fieldglass

167

5.3.4 Machine Learning for Enterprise Applications

168

5.4 Robotic Process Automation

169

5.5 Summary

173

6 Data Intelligence

175

6.1 What Is Data Intelligence?

176

6.2 Data-Driven Business

177

6.3 Data Monetization Strategies

179

6.4 Data-as-a-Service

180

6.5 Summary

184

7 Blockchain

185

7.1 What Is Blockchain?

185

7.2 Enterprise Blockchain

190

7.2.1 Foundational Services

191

7.2.2 Blockchain Services

192

7.3 Blockchain for Industries

196

7.3.1 Consumer Products, Agribusiness, and Retail

197

7.3.2 High-Tech

198

7.3.3 Utilities and Energy

199

7.3.4 Life Sciences

200

7.4 Blockchain for Lines of Business

201

7.4.1 Procurement

201

7.4.2 Logistics

202

7.4.3 Finance

203

7.5 Summary

205

8 Internet of Things

207

8.1 What Is the Internet of Things?

208

8.2 Reference Architecture

211

8.2.1 Connecting Assets and Processing on the Edge

212

8.2.2 Data Processing and Storage

213

8.2.3 Analytics

214

8.2.4 Reusable Business Services

215

8.3 Applications

215

8.4 Platform and Foundation Services

218

8.5 Edge Computing

220

8.6 Application Enablement

221

8.7 Summary

223

9 Products and Inventory

227

9.1 Digital Product Management

229

9.1.1 Compliant Product Lifecycle Management

229

9.1.2 Intelligent Enterprise Portfolio and Project Management

232

9.1.3 Product and Project Insights

236

9.2 Demand Management

242

9.2.1 Consensus Demand Planning

245

9.2.2 Sensing Short-Term Demand Patterns

251

9.2.3 Incorporating Demand Influencing Factors

254

9.3 Inventory Optimization

260

9.3.1 Accounting for Inherent Variabilities in the Supply Chain

261

9.3.2 Establishing Multistage Inventory Targets

263

9.3.3 Meeting Customer Service Levels

263

9.4 Connected Products

266

9.4.1 Network of Digital Twins

266

9.4.2 Connecting IoT Sensors to the Enterprise

267

9.4.3 Operationalizing Sensor Data and Establishing New Business Models

269

9.5 Summary

271

10 Manufacturing and Assets

273

10.1 Smart Manufacturing Optimization

273

10.1.1 Factory Automation

274

10.1.2 Building Blocks of a Smart Factory

276

10.2 Digital Manufacturing and Operations

277

10.2.1 Characteristics of a Smart Factory

278

10.2.2 Smart Shop Floor Overview

279

10.2.3 Shop Floor Control Tower

282

10.2.4 Material Availability

284

10.2.5 Floorplan View

285

10.2.6 Dynamic Routing

288

10.2.7 Production Planning and Detailed Scheduling

291

10.3 Digital Asset Network and Operations

292

10.4 Predictive Maintenance

297

10.4.1 On-Demand Spare Parts through 3D Printing

298

10.4.2 Building Blocks of Predictive Maintenance

299

10.4.3 Digital Dashboard

306

10.4.4 Machine Learning Service

309

10.5 Digital Twins

313

10.5.1 Digital Twins of a Physical Objects

313

10.5.2 Varieties of Digital Twins

315

10.5.3 Digital Twin Integration in SAP Leonardo

316

10.5.4 SAP Leonardo Digital Twin Portfolio

318

10.6 Summary

320

11 Transportation and Warehousing

321

11.1 Transportation Logistics

322

11.1.1 Digitalizing Transportation with Dynamic Planning

323

11.1.2 Logistics 4.0 and the Connected Fleet

325

11.1.3 Inbound Transportation

329

11.1.4 Outbound Transportation

330

11.1.5 SAP Leonardo Integration with SAP S/4HANA

330

11.1.6 SAP Transportation Management

331

11.1.7 SAP Leonardo for Transportation

335

11.2 Intralogistics

343

11.2.1 Digitizing the Yard and Warehouse with Dynamic Planning

343

11.2.2 Inbound and Outbound Processing

344

11.2.3 SAP Warehouse Insights

346

11.2.4 Yard and Hub Logistics

353

11.2.5 SAP Leonardo for Intralogistics

354

11.3 Logistics Network

362

11.3.1 Supply Chain Visibility

362

11.3.2 SAP Global Track and Trace

363

11.3.3 SAP Logistics Business Network

364

11.4 Summary

367

12 Finance

369

12.1 Financial Planning and Analysis

370

12.1.1 Budgeting and Forecasting

371

12.1.2 Planning and Predictive Finance

375

12.1.3 Dynamic Reporting

378

12.2 Financial Accounting

380

12.2.1 Accounts Receivable and Digital Automation

380

12.2.2 Accounts Payable and Digital Automation

384

12.3 Accounting and Financial Close

391

12.3.1 Reconciliation and Year-End Reporting

391

12.3.2 Continuous Soft Close

395

12.4 Financial Controls

397

12.4.1 Audit and Compliance Management

397

12.4.2 Fraud Management

400

12.4.3 Risk Management

402

12.5 Summary

404

13 Assorted Business Processes

405

13.1 Reimagined Solution Architecture

405

13.1.1 Architecting the Digital Core

406

13.1.2 Microservices

416

13.2 Human Resource Management

419

13.2.1 Intelligent HR Solutions

420

13.2.2 Examples and Use Cases

424

13.3 Sourcing and Procurement

427

13.3.1 Cognitive Procurement

428

13.3.2 Examples and Use Cases

432

13.4 Sales and Marketing

436

13.4.1 Sales and E-Commerce

437

13.4.2 Smart Campaigns

438

13.4.3 Examples and Use Cases

440

13.5 Summary

443

14 Digitization of Industries

445

14.1 Discrete Manufacturing Industry

446

14.1.1 Digital Innovation Use Cases

446

14.1.2 Business Examples

448

14.2 Process Industry

453

14.2.1 Digital Innovation Use Cases

454

14.2.2 Business Examples

455

14.3 Consumer Products and Retail Industries

458

14.3.1 Digital Innovation Uses Cases

459

14.3.2 Business Examples

460

14.4 Other Industries and Sectors

463

14.4.1 Digital Innovation Use Cases

463

14.4.2 Business Examples

465

14.5 Summary

468

15 Roadmap and Outlook

469

15.1 SAP Leonardo Technological Innovation Roadmap

469

15.2 SAP Leonardo Process Innovation Roadmap

471

15.3 SAP Leonardo IoT Roadmap

472

15.4 Summary

474

Appendices

475

A Future Cities

475

A.1 Smart Cities

476

A.2 Connected Communities

489

A.3 Smart Buildings

498

A.4 Summary

506

B The Authors

507