Martin Heinig heads new ventures and technologies at SAP, a group of scientists and technologists working in labs to future-proof the German enterprise software maker via new product incubations and technology innovation. “We look at the technologies that have the potential to disrupt the market; right now, we are focused on generative AI (GenAI) and artificial intelligence. These technologies are not just disruptive but also transformative,” says Heinig, as he discusses with Sudhir Chowdhary some of the mega tech trends and SAP’s key priorities. Excerpts:
How do you see India contributing towards SAP’s overall growth?
From a development standpoint, India is SAP’s second-largest R&D hub, and the skill pool for development is enormous, making a significant contribution to our global growth strategy. On the other hand, by 2030, India’s economy is also expected to become the third largest in the world. There’s a huge potential as most businesses would require SAP software. That’s why India is a critical market for us.
For the Indian market, SAP has offerings for large enterprises, while also catering to SMBs. We are modernising our systems to better suit our customer needs by providing a Business Technology Platform for extensions and integration. We believe this will make it easier for our customers to consume our solutions, irrespective of their size.
SAP was an ERP software company and then you migrated to the cloud. What is the next big technology you are looking at?
SAP’s migration to the cloud maintains its core value proposition of optimising business processes. The company is now focused on the next technology cycle: Generative AI (Gen AI) and artificial intelligence. These technologies are not just disruptive but also transformative, reshaping entire industries and fundamentally altering the creation and functionality of enterprise software.
Is digital enterprise a reality today, or are companies still struggling to transform into data-driven businesses?
Cloud transition varies by country and company, with digital natives and paper-dependent entities facing distinct challenges. For those reliant on paper, digitisation precedes cloud migration, adding complexity. Genuine data-driven companies are scarce, requiring not just data possession but informed decision-making. Gen AI opens new possibilities by transforming data into accessible insights within business processes.
Another buzzword these days is quantum computing. When do you think quantum computing would be made practical for business use?
Quantum computing is yet to mature to the desired level. Many companies have outlined roadmaps for hardware advancements, like doubling qubit sizes. If these roadmaps are reliable, quantum computing could be applied to real enterprise problems in optimisation within the next 3-5 years.
Talk to us about SAP’s strategic roadmap for 2024 from a tech standpoint, including major areas of investment.
SAP’s strategy rests on two pillars: the “clean core” focusing on ERP, and the SAP Business Technology Platform (SAP BTP) for integrating functionality into business processes. By 2024, the goal is to extend this across all applications, automating or augmenting user functions. The primary focus is Gen AI, aiming for accessibility within the SAP domain. We are also monitoring emerging technologies like quantum computing, virtual reality, augmented reality, and Web 3 tech, preparing to integrate these into our products.
What are the hidden dangers in the cloud?
SAP prioritises cybersecurity amid the cloud shift, emphasising security and reliability in private, managed, and public cloud environments. The emergence of Gen AI introduces both challenges and opportunities in security. We are leveraging Gen AI to enhance security, recognising its potential for breaches and safeguards.