In today's rapidly evolving landscape, the adage "disrupt yourself or risk being disrupted" holds true across all industries. However, in the automotive sector, disruption presents a monumental opportunity for growth and innovation.

The pace of change within the auto industry is staggering, with vehicles undergoing remarkable transformations in recent years. From the integration of advanced autonomous driving capabilities to heightened connectivity with the surrounding environment, the evolution is palpable. Moreover, the surge in demand for electric vehicles signals a positive shift towards sustainability, benefitting both consumers and the planet. Concurrently, consumer purchasing behaviors are evolving, with an increasing number of individuals turning to online platforms for their vehicle shopping needs.

The advent of generative AI is further catalyzing change by streamlining labor-intensive tasks and revolutionizing data utilization across various automotive processes. This technology is revolutionizing everything from design and forecasting to manufacturing and customer engagement, fostering a more personalized experience for consumers.

Precedence Research forecasts that the global market for generative AI in the automotive industry will exceed $2 billion by 2032, underscoring the urgency for automotive companies to embark on digital transformation journeys. But what does this entail?

Digital transformation entails the integration of digital technologies into all aspects of business operations. It empowers companies to capitalize on emerging growth opportunities swiftly and future-proof their operations against unforeseen challenges. By embracing digital transformation, businesses can strategize and adapt simultaneously, driving sustainable growth and resilience.

Numerous success stories within the automotive industry exemplify the transformative power of digitalization. For instance, the BMW Group's longstanding collaboration with SAP has culminated in a significant milestone: the transition to a digitized cloud architecture through SAP S/4HANA for its iFactory in Oxford, UK.

This move marks the inception of a digitized cloud architecture for connected factories, simplifying complex IT system changes across various plant functions. The BMW Group aims to establish a unified digital framework that streamlines operations, reduces costs, and enhances efficiency across its automotive plants, setting a new industry standard for process optimization.

The BMW Group's digital transformation journey underscores the potential unlocked by embracing cloud architecture and integrating generative AI. It signifies a strategic shift towards automation and innovation, positioning the company for sustained success in a dynamic market landscape.

Despite prevailing macroeconomic uncertainties, the future of the automotive industry shines bright for those who prioritize digital transformation. By placing digitalization at the core of their business strategies, automotive companies can unlock boundless opportunities for growth and prosperity in the digital age.

Despite positive financial results and forecasts, SAP, the enterprise software giant, has announced a significant restructuring focused on artificial intelligence (AI). The company revealed a large-scale restructuring plan affecting 8,000 jobs, equivalent to over 7% of its total workforce of 108,000 employees. This move signals SAP's full commitment to realigning its operations around AI-driven activities. With a planned investment of 2 billion euros, SAP aims to implement measures such as employee retraining in AI skills and voluntary departure programs to support this transformation. SAP assures that the majority of affected positions will be addressed through voluntary departures and internal retraining initiatives.

SAP's experimentation with generative AI technology, including the utilization of OpenAI's ChatGPT, will come with significant implications for its employees. The company believes that embracing generative AI will fundamentally reshape its operations and has committed over $1 billion to support AI-focused technology startups through Sapphire Ventures.

CEO Christian Klein stated, "SAP is embarking on a new chapter: through our transformation program, we will accelerate investments in strategic growth areas, particularly enterprise AI." Despite the restructuring, SAP remains confident in its prospects for 2024.

Additionally, SAP shared positive financial forecasts, expecting double-digit growth in cloud-related revenue and an increase in operating profit for the current year. Cloud revenue is projected to grow between 24% and 27% in 2024, building upon a 23% increase in the previous year.

CFO Dominik Asam expressed satisfaction with the company's performance, noting that the restructuring costs will impact the company's accounts in the short term but are expected to enhance productivity in the long run. Profit forecasts for 2025 are anticipated to reach 500 million.

This restructuring reflects a strategic shift for SAP, underscoring its commitment to AI in alignment with current trends in the technology sector. As companies like Google and Microsoft also pivot towards AI, SAP's emphasis on this technology highlights its forward-thinking approach to remain competitive in the industry.

The German parliament has granted approval for legislation aimed at facilitating the acquisition of citizenship and removing restrictions on holding dual citizenship last friday. The proposal, advocated by Chancellor Olaf Scholz's center-left, socially liberal coalition, garnered a majority vote of 382-234, with 23 lawmakers abstaining. While the government contends that the move will enhance immigrant integration and attract skilled labor, the main center-right opposition criticizes it, asserting that it could devalue German citizenship.

The approved legislation reduces the residency requirement for citizenship eligibility from eight to five years, or three years in the case of "special integration accomplishments." German-born children automatically become citizens if one parent has been a legal resident for five years, down from the current eight years. Additionally, the law eliminates restrictions on dual citizenship, a departure from the existing requirement that individuals from countries outside the European Union and Switzerland relinquish their previous nationality upon gaining German citizenship.

The government notes that 14 percent of the population, over 12 million out of 84.4 million inhabitants, lacks German citizenship, with around 5.3 million having resided in Germany for at least a decade. Germany's naturalization rate is reportedly below the EU average. In 2022, 168,500 people were granted German citizenship, the highest figure since 2002, with a notable increase in Syrian citizens being naturalized.

Interior Minister Nancy Faeser emphasizes that the reform aligns Germany with European neighbors like France and aims to attract skilled workers. The legislation specifies that those seeking naturalization must be able to support themselves and their dependents, with exceptions for "guest workers" who came to West Germany before 1974 and those who arrived in communist East Germany to work.

The existing requirement for citizenship applicants to adhere to the "free democratic fundamental order" is retained, with the new version explicitly stating that antisemitic and racist acts are incompatible with this commitment. However, the conservative opposition argues that Germany is relaxing citizenship requirements at a time when other countries are tightening theirs, describing the legislation as a "citizenship devaluation bill."

The citizenship law overhaul is part of a broader series of social reforms agreed upon by Scholz's three-party coalition upon taking office in late 2021.

China Aerospace Science and Technology Corp, the country's primary space contractor, announced the successful launch of three experimental satellites on Saturday morning. These satellites, part of the Space-based Internet Technology Demonstrator series, were developed by the China Academy of Space Technology in Beijing.

The Long March 2C carrier rocket, measuring 43 meters in length and 3.35 meters in width, transported the satellites into their designated orbit. The launch took place at 8:13 am from the Jiuquan Satellite Launch Center in the Gobi Desert of northwestern China.

This mission marks the fourth deployment of satellites in the Space-based Internet Technology Demonstrator series, following previous launches in July, November, and December. The Long March 2C rocket, a product of the China Academy of Launch Vehicle Technology in Beijing, is primarily used for deploying satellites into low-Earth and Sun-synchronous orbits.

Both academies involved in this mission are subsidiaries of the State-owned conglomerate China Aerospace Science and Technology Corp.

Insiders in the space industry note that this successful launch signifies the completion of China's annual space launch plan for 2023. With a total of 67 rocket launches this year, 47 of them were conducted by the Long March rocket family, the country's primary launch vehicle fleet.

Notably, 2023 saw a significant increase in the use of rockets built by private Chinese companies, with a total of 12 such rockets deployed to send satellites into space. This trend underscores the growing influence and participation of private entities in China's evolving space sector.

Accenture and SAP have joined forces to enhance supply chain capabilities using SAP IBP, facilitating swift responses to shifts in supply, demand, and inventory. This collaboration integrates advanced features into SAP Integrated Business Planning for Supply Chain (IBP), serving as a dynamic "nerve center" for improved visibility and risk reduction in today's intricate supply chains. Utilizing cloud resources, generative AI (GenAI), analytics, and data from diverse sources, the nerve center enables organizations to delve deeper into their supply chains. Built on the SAP Business Technology Platform, it connects seamlessly with various SAP applications, offering comprehensive insights and fostering more resilient supply chains.

Key components of the nerve center include a supply chain resilience stress test developed by Accenture and MIT, assessing potential failure points, financial risks, and mitigation strategies. Additionally, it incorporates digital twin software from Cosmo Tech, simulating supply chain behavior under diverse stresses. Currently available, the Accenture supply chain nerve center has already been adopted by a global consumer products company to identify and address supply chain risks, enhancing business continuity.

The partnership responds to the limitations of traditional linear supply chain planning in IBP software, particularly in managing the complexity and disruptions seen today. The nerve center addresses this by incorporating bidirectional internal and external signals, crucial for building accurate plans and navigating dynamic scenarios. This platform is seen as essential for organizations to proactively manage disruptions, as exemplified during the pandemic, where better planning systems could have averted supply shortages in industries like automotive.

Douglas Kent, EVP of Corporate and Strategic Alliances at the Association for Supply Chain Management, emphasizes the need for bidirectional signal access and accurate planning in today's supply chain landscape. The nerve center is positioned to assist organizations in adapting to a more dynamic world and managing ongoing disruptions effectively. While technological challenges are expected to be minimal, the real struggle lies in organizational governance and decision-making alignment, according to Michael Dominy, VP of Supply Chain Research at Gartner. He highlights the importance of achieving internal consensus and execution commitment to realize the full benefits of advanced capabilities.

In Bangalore, at the SAP TechEd event held in 2023, SAP SE unveiled a comprehensive array of generative AI capabilities and advancements. These innovations are strategically designed to empower developers of all levels of expertise in harnessing the potential of artificial intelligence and supercharging their businesses in the era of AI.

Juergen Mueller, the Chief Technology Officer and a member of the Executive Board of SAP SE, emphasized the evolving landscape of technology and business. He stressed that in today's dynamic environment, every developer needs to embrace AI technology. The innovations introduced at SAP TechEd span from AI-infused pro-code tools to a unified platform for developing generative AI extensions and applications on the SAP Business Technology Platform. These offerings aim to support the developers who are at the forefront of the AI revolution, equipping them with the necessary resources to transform the way businesses operate.

Effective collaboration between professional and citizen developers is crucial for organizations seeking to derive business value from generative AI. To facilitate this collaboration, SAP is launching the SAP Build Code solutions. These solutions streamline cooperation with business experts who leverage the low-code SAP Build solutions introduced at SAP TechEd in 2022. Uniquely tailored for SAP applications and the SAP ecosystem, SAP Build Code solutions provide developers with AI-powered productivity tools, optimized for Java and JavaScript development. Additionally, SAP Build Code leverages the capabilities of SAP's new generative AI copilot, Joule, a copilot that comprehends business intricacies, further enhancing productivity by embedding code generation capabilities for data modeling, application logic, and test script creation.

High-quality AI relies on sound data, and SAP HANA Cloud continues to lead the way in data innovation. It introduces new vector database features as part of its multimodel offerings at no additional cost. Vector data stores effectively manage unstructured data like text, images, or audio, providing long-term memory and richer context to AI models. This simplifies the process of finding and retrieving similar objects swiftly. For instance, users can search for suppliers based on the language used in their contracts, enabling an examination of payment history and the tracking of individual orders. These potent vector database features enhance interactions between extensive language models and an organization's mission-critical data. This innovation positions SAP developers at the forefront of delivering significantly enhanced data insights while maintaining a secure and private framework that utilizes industry-specific customer data to minimize discrepancies.

SAP's AI Foundation on SAP BTP serves as a centralized hub for developers to create AI- and generative AI-powered extensions and applications on SAP BTP. This further augments developers' impact and efficiency. AI Foundation encompasses all the necessary components for developers to initiate the development of AI tools ready for business use on SAP BTP. This includes readily available AI services, access to leading large language models, vector database capabilities, and AI runtime and lifecycle management.

The rapid pace of technological innovation has spurred global demand for skilled developers. In response, SAP is expanding its learning opportunities in parallel. As part of its commitment to upskill two million professionals by 2025 and complement the existing free AI learning content, SAP has introduced new role-based certification and free learning resources tailored for back-end developers using the ABAP Cloud development model. These resources cover ABAP development tools on SAP BTP and SAP S/4HANA and can be accessed through the SAP Learning site. They are designed to equip developers with the skills needed to build cloud-ready extensions that align with SAP's clean core strategy. Additionally, SAP has joined the Stanford HAI (Institute for Human-Centered AI) Corporate Affiliate Program, fostering collaboration between SAP researchers and engineers and the Stanford academic community, including research faculty and students, at the intersection of generative AI and business.

During its annual SuccessConnect event held at The Venetian Convention Center in Las Vegas, SAP made a significant announcement regarding the integration of an AI-powered talent intelligence hub and skills framework into the core of SAP SuccessFactors HXM Suite. As part of SAP's strategy to establish an enterprise AI ecosystem, these new AI-driven solutions are now aimed at addressing HR challenges.

SAP's AI capabilities will encompass the entire SAP SuccessFactors Human Experience Management (HXM) Suite, enhancing the employee experience across various HR aspects, including talent acquisition, internal mobility, learning, performance management, and overall decision-making related to people.

SAP SuccessFactors is an integral part of the broader SAP portfolio, offering one of the most extensive suites of business applications, with a customer base of over 26,000 cloud clients. The inclusion of SAP Business AI technology, accessible across various scenarios and partner solutions, is intended to empower businesses to adapt and thrive in an ever-evolving business landscape.

Aaron Green, Chief Marketing and Solutions Officer for SAP SuccessFactors at SAP, emphasized that the AI capabilities within SAP SuccessFactors solutions prioritize people and their experiences. He highlighted how these AI capabilities will unlock new potentials, enhance performance, and improve operational efficiency for both individuals and organizations.

The talent intelligence hub, integrated into SAP SuccessFactors HXM Suite, serves as an AI-driven engine for an organization's talent and learning strategy, creating a comprehensive skills profile for each employee. With this hub, organizations can utilize a unified skills model to drive various HR functions such as recruitment, onboarding, learning and development, and performance management.

Employees will have the ability to record and manage information about themselves, including their aspirations, motivations, preferences, and working styles. Managers will be able to view, add, and update skills and other attributes for their team members, offering enhanced visibility into skill coverage and gaps within their teams.

Josh Bersin, a global HR industry analyst from The Josh Bersin Company, praised SAP's leadership in the HR tech market and highlighted how SAP's AI offerings help organizations effectively hire, develop, and upskill their employees on a large scale.

The SuccessConnect event provided both in-person and virtual attendees with insights into SAP's AI-powered HR solutions. The event brought together leaders from the business, IT, and HR sectors to share successful strategies for building a future-ready workforce and a profitable business.

During the event, SAP showcased various AI capabilities, all slated for release by the end of October. Notably, this included SAP's latest generative AI copilot, Joule, and its impact on HR-related tasks such as managing time-off requests, handling names, locations, and pronouns. Additional functionalities, including clocking in and out and accessing pay statements, are expected to be available at the beginning of the next year.

Source: www.erp.today 

SAP SE and LeanIX GmbH have announced a significant agreement wherein SAP is set to acquire LeanIX, a prominent player in the field of enterprise architecture management (EAM) software. This strategic move is aimed at bolstering SAP's business transformation offerings, providing customers with a complete toolbox to facilitate ongoing business transformation and fostering AI-driven process optimization. LeanIX, a privately held company, has been a trusted strategic partner of SAP and SAP Signavio solutions for a decade. A multitude of CIOs has come to rely on LeanIX's solutions as an integral part of their digital transformation journey with the RISE with SAP solution. The transaction is anticipated to conclude in the fourth quarter of 2023, subject to customary closing conditions and regulatory approvals, with the specific financial terms remaining undisclosed.

This acquisition represents SAP's extension of its comprehensive transformation suite, designed to assist customers in navigating change more seamlessly and achieving sustained enhancements in their business operations. LeanIX will complement the transformation capabilities offered by SAP Signavio solutions, granting SAP customers unparalleled clarity into their IT landscapes, a vital aspect for maximizing the benefits of business transformation. The combined offering forms a robust foundation for AI-driven process optimization.

LeanIX's software-as-a-service (SaaS) platform currently empowers over 1,000 customers across the globe to visualize their entire IT application landscape. It aids in identifying applications at risk of becoming obsolete, facilitates the design of target states, and assists in devising new architectural roadmaps. Furthermore, LeanIX has recently introduced an AI assistant, harnessing the potential of generative AI for enterprise architecture management. This advancement enhances automation and paves the way for an intelligent recommendation engine for IT landscape transformation in the future.

Christian Klein, CEO and Member of the Executive Board of SAP SE, emphasized the interconnectedness of systems and processes, stating, "Together with LeanIX, we want to offer a first-of-its-kind transformation suite to provide holistic support to our customers on their business transformation journeys. Building on our decades of expertise, we’ll embed generative AI to offer self-optimizing applications and processes that can help businesses achieve key goals such as maximizing cash flow while minimizing their environmental impact."

SAP's forthcoming business transformation solution suite will furnish customers with a comprehensive understanding of their business processes and applications. This includes mapping process dependencies and assessing the impact of potential transformations on the IT landscape. By combining LeanIX's IT landscape transformation capabilities with SAP Signavio Process Transformation Suite, RISE with SAP, and SAP Business Technology Platform, SAP customers will have the tools to foster a culture of continuous adaptability and improvement. Furthermore, LeanIX will continue to serve non-SAP landscapes.

André Christ, CEO and co-founder of LeanIX, spoke of their customer-centric approach, commitment to superior usability, seamless ecosystem integration, and their leadership position in enterprise architecture management. He explained their strategy to empower organizations for continuous transformation in a rapidly evolving business environment. With an integrated, comprehensive view of IT applications and business processes, LeanIX accelerates modernization, reduces transformation risks, and ensures adaptability to technology shifts such as cloud and AI.

MADRID — In a significant development, SAP SE (NYSE: SAP) has announced the successful transition of Amadeus, one of the world's foremost technology companies in the travel and tourism sector, to the cloud through the RISE with SAP solution. This achievement represents a major milestone in Amadeus' digital transformation journey, aligning with their vision to enhance the travel experience for individuals worldwide.

Amadeus, renowned for its pioneering solutions in the travel and tourism industry, leveraged the power of SAP's RISE with SAP S/4HANA Cloud, private edition, to migrate its internal processes to the cloud, with Microsoft Azure as its chosen cloud platform. This strategic move aimed to bolster operational resilience and transition to a cloud operations-centric model. The simplified approach offered by RISE with SAP, encompassing a single commercial package for infrastructure, managed services, and licensing, has been instrumental in enhancing Amadeus' operational efficiency.

By embracing RISE with SAP, Amadeus gains exclusive access to the latest updates, enhancements, and industry-specific solutions. This shift empowers the company to scale, adapt, and operate more efficiently while driving innovation within its cloud-based operational model. With the added capability to swiftly adjust operational capacity in response to market dynamics and demand fluctuations, Amadeus is well-prepared to support further growth in the travel industry.

Santiago Franco, Chief Information Officer at Amadeus, emphasized the company's commitment to leveraging technology to enhance traveler experiences. Franco highlighted the decision to adopt RISE with SAP as a pivotal move toward delivering an elevated level of service. He expressed confidence that this decision will not only enhance operational efficiency but also foster innovation and improve internal processes.

Scott Russell, a member of the Executive Board of SAP SE and lead of Customer Success, commended Amadeus for its cloud migration journey. He underscored the strategic significance of this transition, which positions Amadeus to elevate its success to new heights. Russell expressed SAP's pride in supporting Amadeus in streamlining their internal business processes, thereby enhancing efficiency and productivity, ultimately accelerating growth and success.

Amadeus plays a pivotal role in empowering the travel and tourism industry with innovative solutions and booking systems, serving airlines, travel agencies, and other industry stakeholders in over 190 countries worldwide. Amadeus' open platform serves as a connecting force within the global travel and hospitality ecosystem, bridging startups, major industry players, and governments, reshaping the future of travel.

In the ever-evolving landscape of enterprise technology, SAP continues to be a linchpin for businesses worldwide. SAP solutions are pivotal in managing complex operations, driving efficiency, and facilitating digital transformation. However, the ever-growing SAP skills gap presents a significant challenge for organizations seeking to harness the full potential of this robust platform. In this article, we explore the challenges posed by the SAP skills gap and how contract engineers can help bridge this divide.

The SAP Skills Gap: A Growing Concern: The SAP skills gap is a well-documented issue in the tech industry. As SAP technologies evolve and new modules are introduced, the demand for skilled SAP professionals has surged. Unfortunately, the supply of SAP experts has not kept pace. Several factors contribute to the widening skills gap:

1. Rapid Technological Advancements: SAP is a dynamic platform with a continuous stream of updates and new functionalities. Staying current with the latest SAP innovations requires ongoing training and development, which many organizations struggle to provide.

2. Retirement of Experienced SAP Professionals: As veteran SAP professionals retire, their deep expertise leaves with them, creating a knowledge void that is challenging to fill.

3. High Competition: Organizations across industries are vying for the same limited pool of SAP talent, leading to fierce competition and often driving up labor costs.

4. Evolving Business Needs: Businesses' SAP requirements evolve over time, and finding professionals with the specific skill sets needed for each project can be challenging.

5. Cost of Hiring and Training: Hiring full-time SAP experts is a costly and time-consuming process. Training new hires or existing employees in SAP can also be resource-intensive.

Contract Engineers: A Solution to the SAP Skills Gap ?

Contract engineers, also known as SAP freelancers or consultants, have emerged as a valuable resource in navigating the SAP skills gap. Here's how they bridge the divide:

1. Flexibility: Contract engineers offer the flexibility to address specific project needs. Organizations can hire SAP experts with the precise skills required for a particular task, eliminating the need for long-term commitments.

2. Specialized Expertise: Contract SAP professionals often come with deep, specialized knowledge. They bring experience from working on a variety of projects and can quickly adapt to new challenges.

3. Cost-Effective: Contract engineers are cost-effective, as organizations pay for their services on a project or hourly basis. This can be more budget-friendly than hiring full-time staff, especially for short-term or intermittent projects.

4. Immediate Availability: Contract SAP consultants are readily available. This means organizations can quickly assemble a team of experts to address urgent needs or project timelines.

5. Reduced Training Overhead: Contract engineers require minimal training, if any, as they are already equipped with the necessary SAP skills and expertise. This saves organizations both time and resources.

6. Knowledge Transfer: In addition to their project-specific contributions, contract engineers can facilitate knowledge transfer. They can train existing employees, impart best practices, and help build internal SAP capabilities.

The SAP skills gap is a persistent challenge for organizations striving to leverage SAP solutions effectively. However, with the flexibility, specialized expertise, and cost-effectiveness that contract engineers bring to the table, businesses can bridge this gap and continue to harness the power of SAP for their digital transformation initiatives. As SAP technologies continue to advance, contract engineers will remain a vital resource for organizations looking to stay ahead in the ever-evolving world of enterprise technology.