HR Trends: Back To The Future In 2016

Matias Rodsevich

In 2015 we saw the emergence of a number of new HR trends. The HR landscape is changing more rapidly than ever before. HR trends, such as recruitment through social media, the impact of Generation Z, and the overhaul of performance reviews, were all apparent in 2015.

In 2016, it’s likely that traditional business practices will be further disrupted by technology. According to the Bersin report, it’s likely the entire human resources platform will be accessible from one mobile application. Companies will look to create further employee engagement – employees who are fully absorbed by and enthusiastic about their work – and undertake further culture management. Tech companies will likely be looking to take advantage of the new generation of HR leaders, all of whom have been accustomed to the use of mobile technology in their personal lives already.

What were some of the other developments that occurred in 2015, and how likely are they to affect 2016?

What changes will the industry see in 2016, and how do they affect your workplace?

According to Dan Schawbel’s 10 workplace trends for 2015 , the workplace should have seen an array of companies using social media to attract and retain top talent. According to the global recruiting trends report, one of the most effective ways to attract talent in 2015 was still through company career websites and Internet job boards. Many believed the job board would die with the advent of social media; however, 74 percent of the 4000 interviewed companies said that the Internet job board still remained the most effective source of attracting top talent. However, the report went on to say that the fastest-growing platform for hires remains quality social professional networks such as Linkedin.

2015 saw the introduction of Gen Z into the workforce through internships and trainee programs. This post-independent, pragmatic, and always-in-a-rush generation is determined to succeed. According to Laurence Benhamou, a journalist who penned the article Everything You Need to Know about Generation Z, “this generation’s primary driver is to own and run their own business.” He goes on to say that “76 percent of this generation are aiming to make a hobby out of their job and they believe that their success comes from their ‘network’ instead of their qualifications.”

How did Gen Z perform in the workplace in 2015?

A recent report compiled by Adecco outlined what Gen Z expects in the workplace. Their top priority is obtaining their dream job within 10 years, so companies need to focus on talent development and career growth. Out of the 1000 students surveyed, 36 percent cited that opportunity for growth is their number-one priority when looking for employment. A further 19 percent wanted their roles to be somehow associated to their personal interests.

The annual performance review was bound to get a revamp in 2015. According to data obtained from the management research firm CEB, 6 percent of Fortune 500 companies have stopped using annual performance reviews and forced rankings. This year we saw both Deloitte and Accenture dumping and redesigning performance reviews in favor of more continuous and ongoing feedback, as their performance reviews had never been through any “upgrade” and the process was in need of a complete overhaul. According to a public survey conducted by Deloitte, 58 percent of their managers stated that traditional performance reviews do not serve their purpose. Deloitte has since moved to a model that recognises, understands, and fuels performance. Tech companies are rethinking the way they conduct performance reviews, focusing on ongoing and real-time feedback.

2016: A Look to the year ahead

What are the biggest trends we can see going forward? What is likely to disrupt the way companies view the workplace, and how does HR fit into this ever-changing work environment? In this new world of work, we are seeing the line between work life and personal life becoming obsolete. Employees are now hyperconnected to their roles, and technology is likely to have an even greater impact on business in 2016. Information is accessible with a simple tap of a screen or wearable device, providing key data insights into companies and ambitious startups alike.

The workplace and mobile applications

According to the KPCB report, there are now more than 2.1 billion smartphone users on the planet. Mobile Internet growth increased by 69 percent in 2014 and will continue to grow at a rapid pace. The study, in which 1019 millennials were interviewed, found that 78 percent of interviewee’s smartphones never left their side, and are the first thing they look at when they wake and the last thing they look at when they go to sleep. A further 60 percent believed that by 2020, every daily activity will be done through a smartphone.

In 2016 there is a good chance that this mobile technology will spill over into the HR space. Companies will need to “appify” their HR tools in order to engage and understand employees in a more quantifiable manner. According to the Bersin report, in 2016 it’s likely that we will see a breakthrough in engagement and feedback systems, as well as apps for learning, employee feedback, and performance check-ins. It is also likely that there will be more applications for time and attendance management, expense reimbursement, employee directories and collaboration, as well as applications for video interviewing, recruitment, and candidate marketing.

The return of the employee

In an era where job-hopping among young professionals has become the norm, millennial employees will likely be seen again in the future. According to the workplace trends report, 76 percent of the organizations interviewed preferred rehiring former employees since these employees require less training, being already aware of business practices and generally a better culture fit. The report went on to say that in the past 5 years, 85 percent of the companies interviewed received job applications from previous employees. What’s more, 40 percent of these companies said that they hired those employees.

Several factors are contributing to this new phenomenon. Social media sites are making it easier for company leaders and managers to keep in contact with previous employees. With digital profiles of former employees being stored more regularly, companies are now able to get historical information of previous employees more quickly and timely.

There are a number of benefits to hiring a “boomerang employee.” When employees leave the company, they gain valuable skills and expand their professional networks. When they eventually return, they come with a wealth of experience and extensive networks from which your company can benefit. What’s more, these employees boost office morale, streamline reentry into the workplace culture, and require less information when onboarding, making it more agile and faster to bring them up to speed.

The millennial manager

Generation Y is currently the largest generation in the workplace, so it’s inevitable that business will see them as leaders in the near future. As this generation continues to mature, they will move into leadership roles in ways that are much different than generations before them. Often these millennials do not have prerequisites or experience required for certain job titles. In a study compiled by Virtuali, 71 percent of millennials already consider themselves to be leaders in their personal capacity (even though less than half interviewed had held any formal leadership positions). The majority of these millennials consider themselves “situational leaders” – leaders in project teams, volunteering their experiences and influencing people.

The report goes on to say that 64 percent of respondents do not feel they are fully prepared to be leaders yet, mostly because they lack the ability to manage and develop other employees. According to the report compiled by workplace trends, nearly 50 percent of millennials surveyed defined leadership as empowering others to succeed. A more compassionate leadership style will be the trademark of the millennial manager. Millennials like to collaborate with their peers in order to achieve objectives and are transformational leaders. Using strong team skills, millennial leaders consider creating leadership teams in order to share demanding workloads.

Wearing productivity

In 2015 there was a growing trend toward wearable technology such as smart bands and smartwatches in the workplace. These devices have the ability to track, monitor, and store data about an employee’s efficiencies and wellness in the workplace. In 2015, for example, British Petroleum distributed 24,500 Fitbits to track its employees’ health and wellness.

According to the wearable technology report, around 2000 companies worldwide will offer their employees fitness trackers in 2016. What’s more, more than 60 percent of millennials in the report said that they would be willing to wear smart devices, provided that they increased efficiencies and productivity. Smart devices are likely to increase efficiencies incrementally as tasks such as checking email and checking in at the office become streamlined to the wrist. From 2015 on, workplace software Kronos says it’s expanding its platform to smart devices to offer tracking and communication capabilities. This new technology is likely to take advantage of the 24/7 business environment, retrieving information and notifying employees more quickly than any other smart mobile device.

Conclusion

Be prepared for the eventuality of mobile applications in the workplace. With mobile applications being on the upward trend and millennials entering leadership roles, it means that there will be an increasing likelihood that business functions will all be mobile in 2016. These mobile applications will increase are likely to increase productivity and take advantage of the 24/7 workplace.

  • Be open to returning employees — it’s likely there will be more and more “boomerang” employees. These individuals will be returning with enormous wealth of experience. Make sure you can take advantage of this by creating “returning” policies.
  • It’s likely there will be some millennial managers in the workplace from next year. Create a workplace that is conducive to their managerial style and set up leadership training so they can take full advantage of their already strong desire to lead. Get them into the mindset to give and receive open and honest feedback.

Want more insight on how technology is changing HR? See To Drive Digital Transformation, HR Needs A Seat At The Executive Table.

A version of this post was first published on the impraise.com blog.

The post HR Trends: Back to the Future in 2016 appeared first on TalentCulture.

photo credit: Scrabble – Position via photopin (license)

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How To Design Your Company’s Digital Transformation

Sam Yen

The September issue of the Harvard Business Review features a cover story on design thinking’s coming of age. We have been applying design thinking within SAP for the past 10 years, and I’ve witnessed the growth of this human-centered approach to innovation first hand.

Design thinking is, as the HBR piece points out, “the best tool we have for … developing a responsive, flexible organizational culture.”

This means businesses are doing more to learn about their customers by interacting directly with them. We’re seeing this change in our work on d.forum — a community of design thinking champions and “disruptors” from across industries.

Meanwhile, technology is making it possible to know exponentially more about a customer. Businesses can now make increasingly accurate predictions about customers’ needs well into the future. The businesses best able to access and pull insights from this growing volume of data will win. That requires a fundamental change for our own industry; it necessitates a digital transformation.

So, how do we design this digital transformation?

It starts with the customer and an application of design thinking throughout an organization – blending business, technology and human values to generate innovation. Business is already incorporating design thinking, as the HBR cover story shows. We in technology need to do the same.

Design thinking plays an important role because it helps articulate what the end customer’s experience is going to be like. It helps focus all aspects of the business on understanding and articulating that future experience.

Once an organization is able to do that, the insights from that consumer experience need to be drawn down into the business, with the central question becoming: What does this future customer experience mean for us as an organization? What barriers do we need to remove? Do we need to organize ourselves differently? Does our process need to change – if it does, how? What kind of new technology do we need?

Then an organization must look carefully at roles within itself. What does this knowledge of the end customer’s future experience mean for an individual in human resources, for example, or finance? Those roles can then be viewed as end experiences unto themselves, with organizations applying design thinking to learn about the needs inherent to those roles. They can then change roles to better meet the end customer’s future needs. This end customer-centered approach is what drives change.

This also means design thinking is more important than ever for IT organizations.

We, in the IT industry, have been charged with being responsive to business, using technology to solve the problems business presents. Unfortunately, business sometimes views IT as the organization keeping the lights on. If we make the analogy of a store: business is responsible for the front office, focused on growing the business where consumers directly interact with products and marketing; while the perception is that IT focuses on the back office, keeping servers running and the distribution system humming. The key is to have business and IT align to meet the needs of the front office together.

Remember what I said about the growing availability of consumer data? The business best able to access and learn from that data will win. Those of us in IT organizations have the technology to make that win possible, but the way we are seen and our very nature needs to change if we want to remain relevant to business and participate in crafting the winning strategy.

We need to become more front office and less back office, proving to business that we are innovation partners in technology.

This means, in order to communicate with businesses today, we need to take a design thinking approach. We in IT need to show we have an understanding of the end consumer’s needs and experience, and we must align that knowledge and understanding with technological solutions. When this works — when the front office and back office come together in this way — it can lead to solutions that a company could otherwise never have realized.

There’s different qualities, of course, between front office and back office requirements. The back office is the foundation of a company and requires robustness, stability, and reliability. The front office, on the other hand, moves much more quickly. It is always changing with new product offerings and marketing campaigns. Technology must also show agility, flexibility, and speed. The business needs both functions to survive. This is a challenge for IT organizations, but it is not an impossible shift for us to make.

Here’s the breakdown of our challenge.

1. We need to better understand the real needs of the business.

This means learning more about the experience and needs of the end customer and then translating that information into technological solutions.

2. We need to be involved in more of the strategic discussions of the business.

Use the regular invitations to meetings with business as an opportunity to surface the deeper learning about the end consumer and the technology solutions that business may otherwise not know to ask for or how to implement.

The IT industry overall may not have a track record of operating in this way, but if we are not involved in the strategic direction of companies and shedding light on the future path, we risk not being considered innovation partners for the business.

We must collaborate with business, understand the strategic direction and highlight the technical challenges and opportunities. When we do, IT will become a hybrid organization – able to maintain the back office while capitalizing on the front office’s growing technical needs. We will highlight solutions that business could otherwise have missed, ushering in a digital transformation.

Digital transformation goes beyond just technology; it requires a mindset. See What It Really Means To Be A Digital Organization.

This story originally appeared on SAP Business Trends.

Top image via Shutterstock

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Sam Yen

About Sam Yen

Sam Yen is the Chief Design Officer for SAP and the Managing Director of SAP Labs Silicon Valley. He is focused on driving a renewed commitment to design and user experience at SAP. Under his leadership, SAP further strengthens its mission of listening to customers´ needs leading to tangible results, including SAP Fiori, SAP Screen Personas and SAP´s UX design services.

How Productive Could You Be With 45 Minutes More Per Day?

Michael Rander

Chances are that you are already feeling your fair share of organizational complexity when navigating your current company, but have you ever considered just how much time is spent across all companies on managing complexity? According to a recent study by the Economist Intelligence Unit (EIU), the global impact of complexity is mind-blowing – and not in a good way.

The study revealed that 38% of respondents spent 16%-25% of their time just dealing with organizational complexity, and 17% spent a staggering 26%-50% of their time doing so. To put that into more concrete numbers, in the US alone, if executives could cut their time spent managing complexity in half, an estimated 8.6 million hours could be saved a week. That corresponds to 45 minutes per executive per day.

The potential productivity impact of every executive having 45 minutes more to work every single day is clearly significant, and considering that 55% say that their organization is either very or extremely complex, why are we then not making the reduction of complexity one or our top of mind issues?

The problem is that identifying the sources of complexity is complex in of itself. Key sources of complexity include organizational size, executive priorities, pace of innovation, decision-making processes, vastly increasing amounts of data to manage, organizational structures, and the pure culture of the company. As a consequence, answers are not universal by any means.

That being said, the negative productivity impact of complexity, regardless of the specific source, is felt similarly across a very large segment of the respondents, with 55% stating that complexity has taken a direct toll on profitability over the past three years.  This is such a serious problem that 8% of respondents actually slowed down their company growth in order to deal with complexity.

So, if complexity oftentimes impacts productivity and subsequently profitability, what are some of the more successful initiatives that companies are taking to combat these effects? Among the answers from the EIU survey, the following were highlighted among the most likely initiatives to reduce complexity and ultimately increase productivity:

  • Making it a company-wide goal to reduce complexity means that the executive level has to live and breathe simplification in order for the rest of the organization to get behind it. Changing behaviors across the organization requires strong leadership, commitment, and change management, and these initiatives ultimately lead to improved decision-making processes, which was reported by respondents as the top benefit of reducing complexity. From a leadership perspective this also requires setting appropriate metrics for measuring outcomes, and for metrics, productivity and efficiency were by far the most popular choices amongst respondents though strangely collaboration related metrics where not ranking high in spite of collaboration being a high level priority.
  • Promoting a culture of collaboration means enabling employees and management alike to collaborate not only within their teams but also across the organization, with partners, and with customers. Creating cross-functional roles to facilitate collaboration was cited by 56% as the most helpful strategy in achieving this goal.
  • More than half (54%) of respondents found the implementation of new technology and tools to be a successful step towards reducing complexity and improving productivity. Enabling collaboration, reducing information overload, building scenarios and prognoses, and enabling real-time decision-making are all key issues that technology can help to reduce complexity at all levels of the organization.

While these initiatives won’t help everyone, it is interesting to see that more than half of companies believe that if they could cut complexity in half they could be at least 11%-25% more productive. That nearly one in five respondents indicated that they could be 26%-50% more productive is a massive improvement.

The question then becomes whether we can make complexity and its impact on productivity not only more visible as a key issue for companies to address, but (even more importantly) also something that every company and every employee should be actively working to reduce. The potential productivity gains listed by respondents certainly provide food for thought, and few other corporate activities are likely to gain that level of ROI.

Just imagine having 45 minutes each and every day for actively pursuing new projects, getting innovative, collaborating, mentoring, learning, reducing stress, etc. What would you do? The vision is certainly compelling, and the question is are we as companies, leaders, and employees going to do something about it?

To read more about the EIU study, please see:

Feel free to follow me on Twitter: @michaelrander

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About Michael Rander

Michael Rander is the Global Research Director for Future Of Work at SAP. He is an experienced project manager, strategic and competitive market researcher, operations manager as well as an avid photographer, athlete, traveler and entrepreneur. Share your thoughts with Michael on Twitter @michaelrander.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Why Artificial Intelligence Is Not Really Artificial – It Is Very Tangible

Sven Denecken

The topic of artificial intelligence (AI) is buzzing through academic conferences, dominating business strategy sessions, and making waves in the public discussion. Every presentation I see includes it, even if it’s only used as a buzzword – its frequency is rivaling the use of “Uber for X” that’s been so popular in recent years.

While AI is a trending topic, it’s not mere buzz. It is already deeply ingrained into the strategy and design of our products – well beyond a mere shout-out in presentations. As we strive to optimize our products to better serve our customers and partners, it is worth taking AI seriously because of its unique role in product innovation.

AI will be inherently disruptive. Now that it has left the realm of academic projects and theoretical discussion – now that it is directly driving speed and hyper-automation in the business world – it is important to start with a review that de-mystifies the serious decisions facing business leaders and clarifies the value for users, customers, and partners. I’ll also share some experiences on how AI is contributing to solutions that run business today.

Let’s first start with the basics: the difference between AI, machine learning, and deep learning.

  • Artificial intelligence (AI) is broadly defined to include any simulation of human intelligence exhibited by machines. This is a growth area that is branching into multiple areas of research, development, and investment. Examples of AI include autonomous robotics, rule-based reasoning, natural language processing (NLP), knowledge representation techniques (knowledge graphs), and more.
  • Machine learning (ML) is a subfield of AI that aims to teach computers how to accomplish tasks using data inputs, but without explicit rule-based programming. In enterprise software, ML is currently the best method to approach the goals of AI.
  • Deep learning (DL) is a subfield of ML describing the application of (typically multilayer) artificial neural networks. Neural networks take inspiration from the human brain, with processors consisting of small neuron-like computing units connected in ways that resemble biological structures. These networks can learn complex, non-linear problems from input data. The layering of the networks allows cascaded learning and abstraction levels. This can accomplish tasks like: starting with line recognition, progressing to identifications of shapes, then objects, then full scene. In recent years, DL has led to breakthroughs in a series of AI tasks including speech, vision, and language processing.

AI applications for cloud ERP solutions

Industry 4.0 describes the trend of automation and data exchange in manufacturing. This comprises cyber-physical systems, the Internet of Things (IoT), cloud computing, and cognitive computing – everything that adds up to create a “smart factory.” There is a parallel in the world beyond manufacturing, where data- and service-based sectors need to capture and analyze more data quickly and act on that information for competitive advantage.

By serving as the digital core of the organization, enterprise resource planning (ERP) solutions play a key role in business transformation for companies adapting to the emerging reality of Industry 4.0. AI solutions powered by ML will be a broad, high-impact class of technologies that serve as a key pillar of more responsive business capabilities – both in manufacturing and all the sectors beyond. As such, ERP must embrace AI to deliver the vision for the future: smarter, more efficient, more flexible, more automated operations.

Enterprise applications powered by AI and ML will drive massive productivity gains via automation. This is not automation in the sense of repetitive, preprogrammed processes, but rather capabilities for software to handle administrative tasks and learn from user behavior to anticipate what every individual in the company might need next.

Cloud-based ERP is ideal for companies looking to accelerate transformation with AI and ML because it delivers innovation faster and more reliably than any onsite deployment. Users can take advantage of rapid iterations and optimize their processes around outcomes rather than upkeep.

Case in point: intelligent ERP applications need to include a digital assistant. This should be context-aware, designed to make business processes more efficient and automated. By providing information or suggestions based on the business context of the user and the situation, the digital assistant will allow every user to spend more time to concentrate on higher-value thinking instead of on repetitive tasks. Combined with built-in collaboration tools, this upgrade will speed reaction to changing conditions and create more time for innovation.

Imagine a system that, like a highly capable assistant, can greet you in the morning with a helpful insight: “Hello Sven, I have assessed your situation and the most recent data – here are the areas you should focus on first.” This approach to contextualized analysis of real-time data is far more effective than a hard-programmed workflow or dump of information that leaves you to sort through outdated information.

Personal assistants have been around in the consumer space for some time now, but it takes an ML-based approach to bring that experience, and all its benefits, to the enterprise. Based on the pace of change in ML, a cloud-based ERP can best deliver the latest innovations to users in a form that has immediate business applications.

An early application of ML in the enterprise will be intelligence derived from past patterns. The system will capture much richer detail of customer- and use-case-specific behavior, without the costs of manually defining hard rule sets. ML can apply predictive detection methods, which are trained to support specific business use cases. And unlike pre-programmed rules, ML updates regularly as strategies – not monthly or weekly – but by the day, hour, and minute.

How ML and AI are making cloud ERP increasingly more intelligent

Digital has disrupted the world and changed the way businesses operate, creating a new level of complexity and speed. To stay competitive, businesses must transform to achieve a new level of agility. At the same time, advances in consumer technology (Siri, Alexa, and Google Now in the personal assistant space, and countless mobile apps beyond that) have created a desire and need for intuitive user interfaces that anticipate the user’s needs. Building powerful tools that are easy to interact with will rely on ML and predictive analytics solutions – all of which are uniquely suited to cloud deployment.

The next wave of innovation in enterprise solutions will integrate IoT, ML, and AI into daily operations. The tools will operate on every type of device and will apply native-device capabilities, especially around natural language processing and natural language interfaces. Augment this interface with machine learning, and you’ll see a system that deeply understands users and supports them with incredible speed.

What are some use cases for this intelligent ERP?

Digital assistants already help users keep better notes and take intelligent screenshots. They also link notes to the apps users were working on when they were created. Intelligent screenshots allow users to navigate to the app where the screenshot was taken and apply the same filter parameters. They recognize business objects within the application context and allow you to add them to your collection of notes and screenshots. Users can chat right from the business application without entering a separate collaboration room. Because the digital assistants are powered by ML, they help you move faster the more you use them.

In the future, intelligent cloud ERP with ML will deliver value in many ways. To name just a few examples (just scratching the surface):

  1. Finance accruals. Finance teams use a highly manual and speculative process to determine bonus accruals. Applying ML to these calculations could instead generate a set of unbiased accrual figures, so finance teams have more time during closing periods for activities that require review and judgment.
  1. Project bidding. Companies rely heavily on personal experience when deciding to bid for commercial projects. ML would give sales and project teams access to decades-worth of projects from around the world at the touch of a button. This capability would help firms decide whether to bid, how much to bid, and how to plan projects for greatest profitability.
  1. Procurement negotiation. Procurement involves a wide range of information and continuous supplier communication. Because costs go directly to the bottom line, anything that improves efficiencies and reduces inventory will make a real difference. ML can mine historical data to predict contract lifecycles and forecast when a purchasing contract is expected so that you can renegotiate to suit actual needs, rather than basing decisions on a hunch.

What does the near future hold?

An intelligent ERP puts the customer at the center of the solution. It delivers flexible automation using AI, ML, IoT, and predictive analytics to drive digital transformation of the business. It delivers a better experience for end users by providing live information in context and learning what the user needs in every scenario. It eliminates decisions made on incomplete or outdated reports.

Digitization continues to disrupt the world and change the way businesses operate, creating a new level of complexity and speed that companies must navigate to stay competitive. Powering business innovation in the digital age will be possible by building and deploying the latest in AI-powered capabilities. We intend to stay deeply engaged with our most innovative partners, our trusted customers, and end users to achieve the promises of the digital age – and we will judge our success by the extent to which everyone who uses our system can drive innovation.

Learn how SAP is helping customers deploy new capabilities based on AI, ML, and IoT to deliver the latest technology seamlessly within their systems

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Sven Denecken

About Sven Denecken

Sven Denecken is Senior Vice President, Product Management and Co-Innovation of SAP S/4HANA, at SAP. His experience working with customers and partners for decades and networking with the SAP field organization and industry analysts allows him to bring client issues and challenges directly into the solution development process, ensuring that next-generation software solutions address customer requirements to focus on business outcome and help customers gain competitive advantage. Connect with Sven on Twitter @SDenecken or e-mail at sven.denecken@sap.com.