The new resilience: automating to innovate

In today's fast-paced economic environment, Jan Gilg, SAP's co-chief revenue officer and head of the Americas market, emphasizes that success isn't about evading disruption. Instead, it’s about leveraging the agility that these challenges foster to propel innovation forward. Gilg highlights the importance of distinguishing between proprietary elements of a business and standardized processes that are commonplace across industries. This concept, which he refers to as "standardizing where you don't differentiate," suggests that organizations should automate the processes that do not add unique value. Gilg poses a critical question for businesses: "Where is the innovation happening?" He believes that identifying the right areas within an enterprise's management technology stack for innovative efforts is just as vital as understanding the geographical markets they serve. Gilg explains that the innovation potential lies just above the layer of automated processes, where companies can effectively utilize their data. He advocates for an integrated suite of business applications that operate on harmonized data models and provide a cohesive user experience. This foundation is crucial for driving significant business outcomes and fostering innovation. The SAP Business Suite serves as a prime example of this operational layering, integrating core applications, data, and AI. This suite connects processes with modular business applications, allowing AI and other innovations to navigate complexities and enhance transformational efforts. Recent findings from Accenture's "Pulse of Change" report reveal that nearly 39% of C-suite executives are accelerating automation in response to economic pressures, with about 70% viewing AI as a catalyst for revenue growth. To convert the potential of AI into tangible returns on investment, Gilg and his team advocate for a cohesive, intelligent strategy that provides insights from complex data and enhances system-wide visibility. This approach is integral to the SAP Business Suite's architecture, which is designed to adapt to fast-evolving technological landscapes, including the emergence of AI agents—autonomous task managers focused on achieving specific goals. According to CB Insights, mentions of AI agents in earnings calls surged fourfold in the last quarter of 2024. Over 60% of business leaders are prioritizing AI agent deployment in the upcoming year. Gilg likens the current rise of agentic AI to the early stages of the SaaS movement, where disparate software solutions created integration challenges for IT teams. To address this, SAP designed its native AI agents for compatibility from the start. Gilg asserts that we are on the cusp of a new era of intelligent operations, where AI agents will collaborate without being hindered by organizational silos, significantly boosting productivity. The SAP Business Suite’s ability to facilitate seamless communication between agents is a notable advantage, allowing for end-to-end task management and enabling businesses to tackle more intricate scenarios. However, the future is not without uncertainties. A recent survey from the Association of International Certified Professional Accountants revealed a decline in confidence among financial leaders regarding their organizations' prospects. The global outlook has dimmed, with only 19% expressing optimism. Amid these challenges, Gilg believes that technology has evolved sufficiently to meet the demands of the moment. He encourages organizations to seize the opportunity to modernize their IT systems, optimize their operational efficiencies, and achieve remarkable productivity gains. The result of this ERP modernization will be enhanced insights and foresight, enabling companies to anticipate disruptions well ahead of time and fostering a more sustainable resilience.