AI@FRE (Part 2) - Accelerating Business AI Transformation with the FRE Value Framework

[Linh_Nguyen15]

### AI@FRE Blog Series:

AI@FRE (Part 1) - Enabling Enterprise AI Adoption through the BTP FRE Engagement Model
AI@FRE (Part 2) - Accelerating Business AI Transformation with the FRE Value Framework
AI@FRE (Part 3) – Guardrails for Enterprise AI Adoption
AI@FRE (Part 4) - Guardrail Enterprise AI Adoption – AI Architecture Guardrails
AI@FRE (Part 5) - Guardrail Enterprise AI Adoption – AI for People and Team
AI@FRE (PART 6) - Guardrail Enterprise AI Adoption – Establish AI Ethics, Security & Privacy

###

In the first part of the AI@FRE Blog Series, we discussed the challenges of Enterprise AI adoption, what are AI embedding solutions, and quick-start use-cases for integrating AI capabilities. We also highlighted how the Future Ready Enterprise (FRE) Engagement Model supports customers in their digital transformation journeys, facilitating the onboarding and maturation of AI technologies.

In this second part, we will delve into:

• FRE Values Lens for Technology Platform Domain Adoption and Expansion
• The benefits of choosing FRE for AI adoption, including expected architecture and business values derived from the FRE Engagement Model

FRE: A Structured Value Framework for SAP Business AI Adoption

The Future Ready Enterprise (#FRE) framework provides BTP customers and partners a clear structure for advancing their domain maturity: how to start, how to scale, and how to achieve platform excellence.

This engagement model aims to accelerate customers' ability to Operate at Pace, Protect Core systems, and Embrace technological and business changes.

A digital enterprise needs a robust innovation platform to drive its digital transformation journey, ensuring it can effectively leverage emerging technologies like AI to remain competitive and agile.

FRE Value Framework

The Value Framework of FRE is designed to broaden the customer's perspective on the problems that can be solved with BTP. Our goal is to shift the paradigm that BTP is primarily a bolt-on integration. This framework offers a way to better understand the flexibility of FRE and the value that BTP can unlock.

It includes several Value Lenses to customers / partners:

1.  Business Process Excellence:

This lens ensures we apply a business perspective rather than just seeing technology as a tool. It encourages us to view the customer's organization from an outside-in approach driven by business processes. This helps prioritize technology solutions that deliver the highest value. Key focus areas include the design and modeling of processes, encompassing automation, extension, optimization, acceleration, and insight to action.

As businesses grow and innovate, they must optimize processes spanning different LoBs and systems, to identify inefficiencies and ensure compliance with legal obligations. For an in-depth look at how SAP’s Intelligent Business Process Management on BTP helps organizations achieve process excellence through Process Discovery, Process Automation & Integration, and Process Monitoring, enabling digital and automated end-to-end visibility and integration of business processes, click to the related blog article

2.  Scalable Architecture:

This lens is essential for cloud transitions, focusing on creating a cloud environment that automatically adjusts resources to handle increased workloads without compromising performance.

Key focus areas include:

• Harmonize & Optimize: Aligning and refining components, processes, and resources for seamless integration and efficient utilization.
• Re-platform: Migrating or upgrading applications to a cloud platform, adjusting to leverage new platform benefits.
• Protect the Core: Minimizing complex customizations in core systems and utilizing platform capabilities for innovation and change.

To learn more about achieving scalable architecture with SAP BTP, visit this blog's content on best practices and tools for building scalable and secure applications.

3.  Architecture Readiness

This lens assesses the readiness of an organization's technology infrastructure, applications, and processes for transitioning to a cloud-based environment. It involves evaluating the current architecture, identifying necessary modifications, and ensuring alignment with cloud platform requirements.

BTP technology domains include: Intelligent Technologies, Application Architecture, UX/Mobile, Integration, Hyper Automation, Data, Analytics, Security

4.  Operate at Pace

This lens focuses on the ability to execute cloud architecture effectively.

Key focus areas include:

• Cloud Native Development: Leveraging cloud computing, microservices, containerization, DevOps, CI/CD, elasticity, resilience, API and event-first principles, statelessness, and infrastructure as code.
• Low Code and No Code: Utilizing platforms that enable rapid application creation through pre-built components (low-code) or visual interfaces (no-code) without writing code.
• Customization and Extension: Tailoring and extending application features with new modules, plugins, and integrations.

Read about the "Operate at Pace" story from Hitachi High-Tech on their successful implementation of a 2-Tier S/4HANA Cloud with Clean Core using SAP BTP, significantly reducing add-ons from over 9,000 to fewer than 600.

 5.  Reimagine Business Process

This lens involves fundamentally rethinking and redesigning traditional business processes using the platform as an innovation tool. It aims to make processes more efficient, agile, customer-centric, and aligned with strategic goals. This lens challenges conventional norms and seeks innovative ways to create value, optimize operations, and gain a competitive edge.

This approach helps shift the perception of BTP from being merely a gateway to SAP to a pathway for sustainable innovation and competitive differentiation.

Discover how to Future-Proof your business and "Reimagine Business Processes" with SAP BTP, featuring innovations across entire application landscape: in integration, process insights, low-code automation, and a new open data offering in partnership with Google.

As previously mentioned, the FRE Framework encapsulates the capabilities, opportunities, domains, and outcomes achievable through leveraging SAP BTP in your landscape. It also forms the foundation of the FRE Engagement Approach, aimed at helping customers become future-ready and realize value by increasing the maturity of relevant BTP domains.

What Are the Expected Values from the FRE Engagement Model in AI Adoption Journey?

The FRE Engagement Model offers significant value through two primary lenses: Architecture Values and Business Values.

Architecture Values: Through the architecture values lens, we emphasize the importance of standardization in data, UX, and security. This standardization is expected to provide a robust foundation for scalable and efficient AI adoption.

Business Values: Here we focus on business process excellence, encouraging organizations to reimagine processes for greater efficiency. This approach ensures continuous improvement and sustainable growth.

FRE Value Framework for Business AI Adoption

1.  Business Process Excellence:

• Definition: Leveraging SAP Business AI to accelerate, automate, and optimize business processes.
• Expected Values: Empower your organization by streamlining operations, enhancing collaboration, and driving growth.

Discover how FC Bayern achieves "Business Process Excellence" in SuccessFactors by embedding SAP AI capabilities in talent management and recruitment refinement, to enhance HR functions and processes.

2.  Scalable Architecture:

• Definition: Utilizing SAP Business AI to protect core systems and prepare your landscape for the future.
• Expected Values: Modernize your landscape by embracing agility, efficiency, and cost-effectiveness.

3.  Architecture Readiness:

• Definition: Simplifying architecture across the enterprise to reduce costs and prepare the organization for the future.
• Expected Values: Achieve strategic alignment by simplifying solutions, enhancing efficiency, and strengthening security.

Discover how Heartland Dental attains UX standardization with Build Work Zone, preparing them to embed AI innovation and enhance efficiency, job satisfaction, and patient experience.

4.  Operate at Pace:

• Definition: Using SAP BTP to develop generative AI-powered business applications and extensions in a cloud-native environment.
• Expected Values: Enable agile business processes with simplified upgrade cycles, end-to-end transparency, and the ability to embrace change.

Discover how Foodstuffs South Island prepares for future AI adoption with SAP S/4 HANA RISE, driving operational efficiencies, transforming member and supplier experiences, and meeting customer demand for fresh and affordable groceries; while also planning to leverage SAP’s embedded AI capabilities within SAP BTP Core for improved forecasting and inventory management.

5.  Reimagine Business Processes:

• Definition: Empowering new business models, facilitating data-driven decision-making, and preparing your workforce for the future with high-quality business data supported by state-of-the-art SAP Business AI functionality.
• Expected Values: Foster innovation by embracing agility, creating a composable enterprise, and enhancing strategic planning.

Discover how Komplett Group ASA, a pioneering electronic retailer in Norway, reimagines its business processes with SAP Integration Suite, enabling real-time event-driven architecture and ensuring responsiveness to customer needs, while reshaping its IT landscape to keep up with market changes.

By focusing on these dimensions, the FRE Engagement Model provides a comprehensive approach to maximizing the benefits of AI adoption in your digital transformation journey.

For more information on BTP FRE Engagement Model and how FRE can establish foundational capabilities for customer's AI Adoption, please feel free to reach out to our team at BTPFRE@sap.com