SAP launched a new digital innovation system, called SAP Leonardo, in June 2017.  It’s a design thinking service that allows the user to create a future digital enterprise. This digital system was designed keeping some goals in mind such as:

•             To scale innovations in need to increase the value

•             To incorporate the innovation into the stuff of business

•             To support the companies to innovate effectively as well as quickly

SAP Leonardo is much more than what we think. Therefore, there is a need to explore and understand how this digital innovation system can support businesses and why SAP Leonardo is the future of intelligent Enterprise Resource Planning (ERP).

WHAT IS SAP LEONARDO?

SAP LEONARDO is a holistic system that successfully integrates future facing technologies as well as capabilities into SAP Cloud Platform, using design thinking services. Such a powerful portfolio allows the user to rapidly scale and innovate new models and redefine business.

It is designed to bring innovation at scale in every industry. According to the needs of a business, this approach can help to build a specific solution.                                                               

Innovate:

SAP Leonardo brings new capabilities to Analytics, IoT, machine learning and big data. It can reimagine and redefine overall processes to set off a truly digital business.

Integrate:

SAP Leonardo permits the learning and innovation greater than the sum of its parts. This digital innovation system is extendable and ready to be taken into every facet of business starting from cloud platforms to all the other applications.

Scale:

SAP Leonardo enables rapid implementation coupled with seamless scaling using existing SAP platforms along with application portfolio. It powers new business models by developing new applications, automating existing processes and making third-party applications more intelligent.

 

IDEAL MIX OF SAP LEONARDO INTELLIGENT TECHNOLOGIES

SAP LEONARDO provides software support along with micro-services, enabling the clients to make use of future-oriented technologies like Machine Learning, Analytics, Internet of Things, Big Data, Data Intelligence, Design Thinking and Blockchain.

1. Machine Learning: Intelligence enabled by learnings from data

Includes intelligence rooted into enterprise applications, integrated intelligence for solving business challenges, and to deploy deep learning models.

2. Analytics: Insight that enables transformative actions

It comprises of all analytics across the business, embedded machine learning, and new applications that are based on insights.

3. Big Data: Manage vast amounts of big data

Deals with distributed storage and computing, real-time insight discovery and insights embedded in business processes.

According to the TechSci Research, Global Big Data and Data Engineering Services Market, By Service Type (Data Modelling, Data Integration, Analytics and Data Quality), By Organization Size (Small & Medium-Sized Enterprises and Large Enterprises), By Business Function (Finance, Marketing & Sales, Others), By Industry (Media & Telecom, and Others), By Company and By Geography, Forecast & Opportunities, 2014-2024, the global big data and data engineering services market is projected to reach USD77.99 billion by 2024, by witnessing a CAGR of over 17% during the forecast period. Rising volumes of unstructured data, growing demand for cost-effective services, cutting-edge expertise and increasing need for complying with stringent regulations drives the global big data and data engineering services market. Based on service type, the market has been segmented into data modelling, data integration, analytics and data quality.

1. Blockchain: Blockchain services embedded into business applications

This is to enhance trust in peer-to-peer transactions, complete view of goods provenance and history of ownership and most importantly to decrease fraud and increase auditability.

According to the TechSci Research, Global Blockchain Market By Type (Private, Public, & Hybrid), By Application (Financial Vs. Non-Financial), By Enterprise (Large Vs. Small), By End User (BFSI, Corporate, Government, and Others), Competition Forecast & Opportunities, 2012 – 2022, the global blockchain market stood at around $ 215 million in 2016, and is forecast to grow at a robust CAGR of more than 43% to reach $ 4.2 billion by 2022 on account of widespread implementation of blockchain across numerous areas such as Internet of Things (IoT), banking & financial institutions, healthcare, media & entertainment, energy, retail, etc. In addition, rapid increase in Fintech spending, predominantly on the technologies used in the financial services sector, is expected to further propel market growth in the coming future.

2. Design Thinking: Engaging methodology used to uncover opportunities for digital transformation

This is to lay the foundation for a customized SAP Leonardo system, reimagine a shared vision of the future digital enterprise and to use SAP BUILD for creating rapid and interactive prototypes.

 3. Internet of Things (IoT): Connect things with people and processes

 It tends to connect assets, products and fleets in order to drive Industrial IoT, connect infrastructures, markets and people to support the Internet of Everything (IoE).

According to the TechSci Research, Australia Internet of Things (IoT) Market By Platform (Network Management, Application Management & Others), By Component (Hardware, Services & Software), By Application (Consumer Electronics, Building & Home Automation, etc.), Competition, Forecast & Opportunities, 2024, the Australia internet of things (IoT) market stood at $ 7.9 billion in 2018 and is projected to grow at a CAGR of 21% to cross $ 25 billion by 2024 on account of rising demand for smart devices, growing government initiatives and rise in demand for analytics. Moreover, increasing penetration of IoT in various applications like consumer electronics, building & home automation, connected logistics etc., is further propelling its demand in the country. Additionally, surge in cloud platform adoption, advent of advanced data analytics and development of wireless networking technologies is anticipated to boost Australia Internet of Things (IoT) market through 2024.

4. Data Intelligence: Put data into business context

Comprises of trusted, real-time benchmarks, data asset monetization and decision-making scenarios.

The major advantage of SAP Leonardo is that it enables the user to integrate numerous SAP products with evolving technologies. For instance, Fiori apps can be created on the SAP Cloud Platform which uses IoT services. When it gets integrated into the business processes, the end users won’t be aware that there is machine learning behind the scenes and will not see anything different but will experience recommendations or automatic decision-making.

SAP Leonardo will add an enormous value to a company’s digital journey by unlocking new skills in future-forward technologies. In addition to this, it is even more effective because it’s built on SAP HANA, which is an in-memory database for supporting real-time business.

Moreover, SAP Leonardo is more intelligent, capable and powerful as it operates with every SAP application from SAP Ariba to SAP S/4HANA.

 

LEONARDO’S VALUE

SAP Leonardo becomes a must have for the customers, when it comes to integrating solutions in an ERP system in which the value is generated by a combination of ERP, IoT, supply chain and blockchain and not by technology alone.

For industries such as life sciences, automotive, manufacturing, retail and so on, SAP offers innovation packages based on Leonardo, when customers need to utilize modern technologies with their existing solutions.

Since the beginning of 2018, this cloud platform has been operating as the backbone of integration with a multi-cloud offer.  Even by understanding comprehensive IT solutions, SAP would not get started with Leonardo on its own. The digital evolution will not progress without the partner community. Accenture was the first partner to be eligible for SAP Model Company.

WHAT CAN SAP LEONARDO DO?

Applications of Leonardo are mostly based on SAP Cloud Platform. The most developed Leonardo applications concern the IoT and machine learning.  However, SAP introduced the SAP Leonardo IoT Foundation, which can be described as a reasonable and sustainable strategy with new acquisitions and developments taking place.

Leonardo IoT Foundation contains several different products such as gateway services, IoT services and application enablement. These products are likely to be built on each other and help customers orchestrate the steady stream of sensor data. Using the gateway, the information is relocated to IoT services and then through application enablement, it becomes accessible to all subsequent applications. To achieve this, digital thing model is built, which exemplifies the real physical objects. Here, the major goal is to provide solution to the users ensuring operation, integration, and maintenance of sensor networks along with enabling an asynchronous data processing.

 

SAP LEONARDO IoT HELPS SHAPE THE INTELLIGENT ENTERPRISE

Using operational context and data-driven intelligence from products, machines, supply chains and consumers, SAP Leonardo IoT enables customers to innovate and enhance business processes. SAP Leonardo IoT purposes three pathways for innovation based on specific business requirements, that includes:

•      IoT data to be combined with business process data in order to permit IoT-embedded business applications with quick adoption, in turn giving customers the capability to innovate swiftly from within business applications such as SAP C/4HANA suite, SAP S/4HANA, SAP SuccessFactors solutions, SAP Digital Supply Chain portfolio and SAP Ariba solutions.

•          Broadening existing SAP IoT applications for improved business value.

•          Developing new intelligent IoT solutions to produce differentiated and unique offerings with the help of SAP Leonardo IoT.

 

MARKET SCENARIO

SAP is trying hard with a huge marketing budget to build its ground in the areas of machine learning, IoT, blockchain and big data. SAP is focusing on its research and development investment as SAP Leonardo is the top priority for now. There are a lot of ERP software’s in the market such as Microsoft Dynamics AX 2012, Oracle JD Edwards EnterpriseOne, SAP Business ByDesign, IFS Full Suite ERP and so on. IBM Watson and Microsoft Azure are the top competitors of SAP Leonardo in the market.