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11/8/2019 What is SAP Leonardo?

Everything you need to know about SAP’s Leonardo platform - Computerworld

NEWS TECHNOLOGY TOOLS WHITEPAPERS

What is SAP
Leonardo?
Everything you
need to know about
SAP’s Leonardo
platform
The German software giant has completely
relaunched its Leonardo platform to include
AI, machine learning, analytics, blockchain
and IoT all in one. Here’s everything you
need to know, and how to get started…

Scott Carey (Computerworld)


08 June, 2018 08:56

1 Comment

SAP relaunched its Leonardo platform


as a “digital innovation system” in June
2017 at its Sapphire conference in
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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

Orlando, marking a shift from what was


once considered an IoT platform. Featured Whitepapers
• • • • •
The idea of the new-look Leonardo is to Detect, defend
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Now SAP wants to give customers a


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emerging technologies to solve speci c
BPAY opens APIs to
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helping customers embrace IoT with a platform
cloud system and a set of templates,
SAP has expanded Leonardo to the Optus switches on 5G
mobile services
whole spectrum of enterprise problems.

Australian organisations
As Mike Flannagan, senior vice su ering ‘cyber fatigue’
president of analytics at SAP put it at
the time: “Leonardo is about ANZ cuts costs with
accelerating time to value by nding automation, IT insourcing

generalised, common business


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problems across an industry. takes tech reins at
Macquarie University

“It’s about taking a business problem,


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methodology, the technologies used to support your business.
solve that problem and package those

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

up and make them available as an Accelerating digital


accelerator for the next customers”. transformation with Edge
Computing:
How APC by Schneider Electric
Simply put, Pat Bakey, president of SAP ensures success
Industries, has described Leonardo as
"our way of packaging innovation".
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Tracking its progress so far, SAP chief EMC Together for Your Business
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that SAP has tracked 196 Leonardo Forward: How to deliver real
outcomes in the age of storage
‘scenarios’ to date, up from 15 at the
innovation
time of launch. “Probably in a year from
now we will have a four digit number of Computerworld Live Webinar |
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De ning SAP Leonardo

It can be tricky to nd a working


de nition of SAP Leonardo at this point
More Whitepapers ›
because it is an umbrella term for a
number of SAP technologies, all built on
top of its open platform-as-a-service Latest Jobs
(PaaS) o ering called SAP Cloud
Software Engineer
Platform.
Corporate Information Systems Pty Ltd
Box Hill VIC 3128
Read more
Speaking during SAP’s 2017 Sapphire
event in Orlando, Florida, cofounder and Database Administrator
chairman of the SAP supervisory board Glen Huntly VIC 3163
Read more
Dr Hasso Plattner called Leonardo a

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

“bounding box” which sits around “a set Internal IT Account Manager


Leader Computers
of objects. So this is a box around a set
Archerfield QLD 4108
of tools to build a system which then, Read more

with machine learning algorithms, nds


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Related Whitepapers
Plattner reiterated that what makes
Creating the autonomous
SAP’s approach to AI and machine business
learning unique is that customers have
all of the important business data right
there underneath them, in the SAP
transactional systems, and that keeping
the data in one place is the best way to
safeguard it.

During his Sapphire keynote, CEO Bill


McDermott said that Leonardo “is the
biggest move our company has made
since HANA” and that “it’s time for your
core systems to fuel your digital
innovation, it is time for your data to
drive a new customer experience. It is
time for machine learning to take the
work out of your work ow. It is time for
billions of devices to go from thinking to
doing.”

McDermott was keen to emphasis the


openness of Leonardo for those all-
important net new SAP customers
looking for cognitive, IoT or big data
solutions. As Leonardo is built on the
SAP Cloud Platform, customers “can
procure Leonardo and snap it into any
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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

architecture or environment you have”,


McDermott explained, because “the
SAP Cloud Platform is an open platform,
with all open standards and anybody,
including non-SAP customers, can get
started”. This includes running on the
three major public cloud infrastructure
vendors: AWS, Microsoft Azure and
Google.

READ MORE
Hasso Plattner on the
cultural shift behind SAP's
'intelligent enterprise’

Getting started with SAP


Leonardo

Mala Anand, who is now President of


Leonardo, had said on stage in 2017
that: “Leonardo is about the business,
we start with a business problem, we
apply our design thinking
methodologies to de ne the desired
solution and apply rapid prototyping to
prove how we can make the solution a
reality quickly.

"The intent is to bring together


everything from machine learning, Big
Data, analytics and IoT, all integrated
and stitched together on our cloud
platform. At the end of the day, we want
to deliver outcomes and to deliver
those outcomes to transition a business

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

outcome or business model. That


cannot be delivered with just one
technology."

SAP provides three routes to getting


started with Leonardo. First o
Leonardo capabilities are embedded in
SAP applications, such as smart insights
within SAP Ariba, Hybris and S/4HANA.

Secondly, for quick implementations,


SAP released 23 Leonardo-based
innovation kits for speci c industries
during Sapphire in 2018, for use cases
across retail, life sciences,
manufacturing and automotive.

For example, the Leonardo kit for


automotive gives quick access to eet
insights. “This cloud-based application
optimises eet operations by bringing
sensor data together with business data
to provide a global view of eet
performance for strategic decision
making, and a detailed view of each
vehicle for real-time operations
management,” the vendor says.

READ MORE
Everything you need to
know about SAP’s new
CRM product: C/4HANA

Then at the more bespoke level


customers can either invite SAP on site
or visit a global design centre (the rst
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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

ve are in New York, Paris, Bangalore,


Sao Leopoldo and Singapore, with
seven more to be added soon, in:
Silicon Valley, Berlin, Moscow, Shanghai,
Seoul and Tokyo) for a day of "design
thinking" sessions meant to identify the
key use cases customers want to bring
Leonardo to, and ending with a working
prototype using SAP's Build tool. SAP
then provides access to this prototype
for employees to o er immediate
feedback.

In 2018 SAP also announced that it had


doubled the number of solutions
available to customers under the
new SAP Leonardo Partner Medallion
Initiative.

“The SAP Leonardo Partner Medallion


initiative expands the number of
solutions and teams available to
organisations seeking to innovate with
SAP-certi ed technology from a global
network of trusted providers,” the
vendor stated in a press release. “It is
designed for system integrators and
technology providers, and includes
both global and regional organisations
to serve SAP customers worldwide.”

The initial members of the programme


include Accenture, Capgemini, Deloitte,
EY, HCL, Hitachi Consulting, Mindtree’s
SAP practice Blue n, PWC and Wipro,
to name just a few.
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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

Early solutions from the initiative


include scenarios for connected
shelves and inventories for retailers,
derailment prevention for railway
operators, and cold chain logistics for
pharmaceutical, food and beverage,
and medical device industries.

Case study: BASF

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system Pluto over budget,
un nished

One example of a company working


with SAP to solve a problem using the
Leonardo model is German chemicals
giant BASF, which built an email routing
bot using Leonardo Machine Learning
capabilities.

Speaking to Computerworld UK during


Sapphire in 2018, Pedro Miguel Ahlers,
digital growth manager at BASF’s
performance chemicals division
explained: "We went with a problem
and working through design thinking, so
understanding what the problem we
have is and talking openly and then
designing a potential solution."

The problem BASF wanted to solve was


the way incoming customer request
emails were routed, saving employees

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

time forwarding misrouted emails to the


right people in the organisation.

So BASF spent ve months prototyping


a machine learning-powered solution
called CuRT (customer request
tracking) before spending ten weeks on
implementation, going live on March 1.

Now CuRT is routing 2,200 emails a


week - that could be a pricing request
or a complaint, for example - for BASF’s
performance chemicals division, and is
expanding rapidly into new geographies
at the company.

There are more Leonardo case studies


available on the SAP website, under the
success stories header.

Read more: Demystifying the new SAP


ERP pricing model

Competitors

When asked how Leonardo can stand


out in a crowded market, with rival
vendors like IBM Watson and Microsoft
Azure o ering cognitive services, head
of products and innovation at SAP
Bernd Leukert said in 2017: “I agree
there are a tonne of platforms out in the
market, but these platforms are living in
a silo.

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

“So by opening up our core system,


they can access any physical asset
data, HR data, any information they
have built up over the years within their
ERP system, and connect this with
sensor data and even marry this with
external market data.

"So if you then want to get intelligence


and insight into it, other companies use
machine learning to push that
information into a dedicated other
system, we will call it batch processing,
getting insight and then throwing it
back.

"We are working with APIs to have real-


time connectivity into the execution
system and we o er that over 25
industries. I am not aware of any
company on the planet that can o er
that connectivity and that
comprehensiveness.”

So Leonardo sounds like it will be


competing with the Microsoft Azure
cloud platform or IBM Watson, in that
customers can pick and choose which
cloud-based technology it wants to
leverage to solve a business problem.

READ MORE
Teradata sues SAP over
alleged IP theft

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11/8/2019 What is SAP Leonardo? Everything you need to know about SAP’s Leonardo platform - Computerworld

Rather than something more packaged


like Salesforce Einstein, which is baked
into its software-as-a-service (SaaS)
applications to make suggestions and
surface insights for users. SAP already
does this within its cloud applications,
like smart CV matching in Fieldglass or
automated service ticketing in Hybris
Cloud, but in a less obviously branded
way.

As a side note, SAP has taken a


partnership approach to developing
machine learning capabilities, instead of
doing it all in-house. It uses Google
open-source project TensorFlow for its
machine learning algorithms and Nvidia
for the hardware to train these
algorithms.

Pricing

Naturally pricing for a product like


Leonardo will be pretty bespoke as it
comprises of various cloud software
components, bundled together with
services like the design thinking
process.

According to SAP’s Anand, “Customers


will not have to assemble pieces and
parts to solve a business problem. We
will use included services that tailor
prede ned software elements for the
speci c customer implementation.

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Everything will come at a prede ned


price and our engagement is time-
bound, so every customer has an
accelerated time-to-value.”

Anand has also said that the more


packaged solutions will come at "a xed
price within a xed time period”.

When asked what this pricing will look


like now that SAP has released its rst
batch of industry innovation kits Anand
said: “We worked really hard on this
because we had a lot of feedback from
several customers wanting to consume
these pre-integrated capabilities it is
really important for us to simplify the
licensing model, the contract and the
pricing, so that is a key di erentiator for
us as well.”

“So it is one contract, one single price


and very easy to transact and make it
the right subscription model,” she
added.

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