November 22, 2023

Recently, SAP announced the expansion of SAP S/4HANA Cloud with vector databases managing unstructured data.  

But what does this mean in practice? First, we need to understand what unstructured data is. These are pieces of information that lack a predefined format or specific organization, such as texts, images, emails, PDF documents, etc.  

Unlike structured data, which is organized in tables and databases with clear fields and defined relationships, unstructured data does not follow a rigid format and can exist more freely. The analysis of unstructured data poses a challenge because traditional relational database techniques are not as effective in this context.  

However, with the advancement of artificial intelligence, machine learning, and natural language processing, organizations are developing more sophisticated methods to extract valuable information from such data types, allowing for a more comprehensive understanding of the informational environment they are in. 

Vector databases, on the other hand, are systems that store and manipulate data represented in the form of vectors. In contrast to traditional databases dealing with structured data in tables, vector databases are designed to store multidimensional and complex information, often used in areas such as machine learning, natural language processing, and computer vision. 

Expansion of SAP S/4HANA Cloud: Practical Gains 

The recent announcement regarding the expansion of SAP S/4HANA Cloud is a significant advancement for the SAP community. By now encompassing vector databases managing unstructured data, it will facilitate the rapid identification and retrieval of similar objects. 

Vendor or customer searches can be conducted based on contract language, for instance, easing the examination of payment histories or individualized order tracking. 

These new features of vector databases will enhance the interaction between the so-called Large Language Models (LLMs) and the critical data of companies. 

Large Language Models refer to natural language processing algorithms trained on extensive datasets to understand and generate text more sophisticatedly. These models use deep learning techniques, such as neural networks, to grasp complex patterns and semantic representations of language. 

LLMs have a variety of applications, from virtual assistants and chatbots to automatic text generation in translation, summarization, and content creation. They play a significant role in the evolution of artificial intelligence and the ability of machines to handle the complexity of human language more naturally and contextually. 

A vector engine is very important in the context of LLMs because they all have a cut-off date. They don’t have the latest data and don’t know anything more specific about the company. The vector database can provide more context about, for example, financial data, supply chain, quality, logistics, HR, procurement, customer experience. With this announcement, we combine the strength of LLMs with real-time company data,”

explains Juergen Mueller, CTO of SAP. 

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Origen Tech’s Solution as a Service (SOLaaS) goes beyond the simple software-as-a-service model. It represents a complete and efficient business model, offering a comprehensive package that includes value delivery through the licensing architecture of the SAP platform, software and hardware from the cloud environment, as well as implementation and services provided throughout the contract. 

More than just a solution, SOLaaS allows companies to adopt unique scenarios in fundamental pillars that drive growth and transition to new corporate models. These pillars include governance, accelerated implementation/activation, cost reduction, and business scalability. 

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In the age of digital transformation, companies are constantly looking for ways to optimize processes, improve operational efficiency and drive innovation. 

Artificial Intelligence in SAP – One of the most impactful approaches has been the integration of Artificial Intelligence (AI) in SAP to transform business management. With technology, companies can leverage their systems, making them smarter and more agile. 

One of the greatest advantages of this integration is the increased capacity to analyze large volumes of data in real time. This allows companies to make more informed decisions based on precise insights.  

Advanced algorithms identify patterns, trends and anomalies, providing managers with an in-depth view of operational performance. 

Main Advantages for Business

We know that SAP is one of the world’s leading business management software platforms, used by organizations in all sectors to manage operations, finance, supply chain and human resources.  

Within this vast universe, the application of AI is particularly impactful in supply chain management. Predictive algorithms analyse historical data, market conditions and other factors to forecast future demand, thus optimizing stock levels and reducing costs. 

Logistics are improved, ensuring more efficient deliveries and customer satisfaction. 

With technology, companies can also personalize the customer experience more effectively. Predictive analysis helps to understand customer behavior, anticipating their needs and offering relevant products or services. This creates a more personalized experience and strengthens the bond between the company and its customers. 

Automation is another structural axis of operational efficiency. With Artificial Intelligence in SAP, repetitive and routine tasks can be automated, freeing up human resources for more strategic activities. This not only speeds up processes, but also reduces errors and increases consistency. 

Artificial Intelligence in SAP is Helping Small and Medium-Sized Companies 

AI is expected to contribute around $ 15.7 trillion USD to the global economic development by 2030. This data comes from a PwC study. 

Following this trend, SAP has been investing heavily in Artificial Intelligence, adding the technology holistically to SaaS solutions, including S/4HANA Cloud. 

In this model, technology is helping companies to scale results in much less time, with special emphasis on small and medium-sized companies, which are able to achieve a more competitive position without having to commit large financial investments. 

With the cloud, the dynamics of data infrastructure have been completely reshaped, allowing customers to keep up with innovation while respecting the fluctuations in demand specific to their business. 

This level of data complexity requires innovations in AI technology, so as to be able to help interpret the information circulating in the different sectors of companies. Simple automation, without robust intelligence behind it, is not enough to extract the maximum potential from business management systems. 

Exclusive Origen Tech Technology Optomizes Business with AI 

Technological advances have broadened companies’ vision, making them understand that dynamic, multidimensional systems are part of a much larger economic ecosystem, rather than merely static, isolated aggregations of information. 

Taking full advantage of the potential of Artificial Intelligence in SAP can require highly complex technical knowledge.  

For this reason, Origen Tech applies a unique AI algorithm capable of overcoming a series of challenges that hinder business progress. 

By combining Artificial Intelligence with Machine Learning and Big Data Analytics, Origen Tech offers a complete platform of software solutions that, in a simple and secure way, can optimize the entire value chain of companies, from production to sales. 

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