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Does SAP truly need AI? SAP CEO Christian Klein has discovered this megatrend and can no longer imagine an ERP system without it. But many tasks can be solved without AI, using SAP Hana PAL instead. Is there a good deal of fuss over nothing?
Peter M. Färbinger, E3 Magazine
April 24, 2024
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SAP AI copilot fails

There are areas of computer science where generative AI can be quite convincing, but it is precisely in this area where SAP is failing. At the end of last year, Chief Technology Officer Jürgen Müller presented a co-pilot for creating software. When asked, it turned out that this copilot could handle JavaScript, but not ABAP (SAP’s own programming language), which is important for SAP customers.

The unofficial reason for the copilot's lack of Abap knowledge: there is not enough Abap code to train a large language model (LLM) with. Such a shame.

However, a Microsoft employee told E3 magazine off the record that Microsoft has an Abap copilot in its labs. An embarrassing situation for SAP, which board member Jürgen Müller has yet to rectify.

The perfect combination: Signavio and Aleph Alpha

SAP could surprise the IT world with AI-powered innovation. No other IT company knows as much about business processes as SAP, after all. If this knowledge could be used to train a large language model from Aleph Alpha, and then combined with Signavio's process mining, then SAP would once again have a unique selling point in the B2B world.

SAP CEO Christian Klein does not seem keen on reflecting on SAP's strengths, however, but rather seeks salvation in copying supposed megatrends. Why is SAP focusing on generative AI when business processes are the dominant topic for SAP customers? Global IT companies are the ones who should be providing copilots for low-code/no-code; SAP should instead stick to providing business algorithms. SAP could achieve so much more, but is instead wasting valuable resources copying technical gimmicks from other companies.

SAP Hana Graph and Vector DB

In some cases, directed graphs are superior to a relational SQL construct. The Hana platform has a graph engine based on graph theory. This could be used to build many innovative functions, for example to solve logistics problems. A vector database can also handle tasks that are cumbersome for an SQL database. In-memory computing is not always necessary to receive real-time answers.

SAP has good solutions to many problems, but if they do not align with that SAP CEO believes is the current Zeitgeist, then he ignores them. SAP should be more independent and self-confident, but this is unlikely to happen with the departure of Professor Hasso Plattner, Chairman of the Supervisory Board. Plattner’s successor is a mere puppet, and while Christian Klein is a conscientious reorganizer, he is not an innovator or entrepreneur. Too bad for SAP.

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork. All information about the event can be found here:

SAP Competence Center Summit 2024

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
A-5020 Salzburg

Event date

June 5 and 6, 2024

Regular ticket:

€ 590 excl. VAT

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
69115 Heidelberg

Event date

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.