Blockchain, IoT and Machine Learning in SAP Leonardo

Remaining Elements of SAP Leonardo…

The 3 remaining elements from SAP Leonardo that were not covered in our past two blogs are Blockchain, Internet of Things (IoT) and Machine Learning. This blog uncovers these 3 new technologies and how they fit into the SAP Leonardo portfolio.


Blockchain is a reliable, secure record of transactions. You might have heard of this new technology during the recent boom of cryptocurrencies which were all based on blockchain technology. It is based on a database of transactions, securely shared across a network of peer to peer computers and locations with no centralized control where each party has an identical copy of the records that are updated simultaneously as soon as any change occurs. It can cover anything of value such as identities or loans. This is a recently developed technology with a lot of reservations and discussions still being held about its security but what everyone agrees on is that it has the ability to make an enormous impact on business.

A Blockchain records data across peer to peer network and allows every user to see the data and verify or reject it through a consensus algorithm. Once the data is approved, it is logged into the ledger as a collection of “Blocks” in a chronological “chain” that cannot be altered. You get it now? (Block-chain).

Types of Blockchain

There are 4 types of blockchain networks (Consortium, Semi-private, Private and Public). The customer can choose which type he needs depending on his requirements. These types vary based on the access levels the customer wants to give to his network.

  1. Consortium network are best suited for business since a pre-selected group of corporations that make a consortium control the consensus process .They decide whether to make the ability to read blockchains and submit transactions public or restricted to the participants.
  2.  In a semi private network, blockchains are run by one company that grants access to users based on pre-set criteria which makes it appealing for business-to-business use cases and governments as it is not really decentralized.
  3. Private blockchains are controlled by one organization that determines who can read and submit transactions and participate in the consensus process. It is fully centralized and is not usually used for production but rather for testing environments.
  4. In public blockchains, every transaction is public and users can remain anonymous. A good and famous example of this would be Bitcoin.

The importance of Blockchain these days comes from the fact that with the enormous use and dependency on smart devices such as laptops, smart phones and tablets in our daily lives, more digital transactions are created from more sources.

You can check out this link of Forbes Insights to see how blockchain is becoming more and more important and what value it brings to you in today’s ever growing universe of data.

Internet of Things

The Internet of Things or IoT for short, is a network of things such as vehicles or home appliances that contain sensors or actuators and connectivity that allows them to connect, interact and exchange data. With IoT, you can run a fully connected enterprise. For example, a company can install sensors in its factory to get the exact amount of goods produced in a certain day. The company can also track its distribution trucks using GPS to confirm the delivery of its products and the drivers could use tablets to get the signature of its clients once the delivery has been done. In addition, once payment for these goods has been established, the transaction to the bank account will generate a receipt which could be captured. This way, the COO could monitor his production, distribution and payment using a report that reads data from multiple disparate sources without having to move around and visit the loading docks, his factory or following up with the clients and all of this can happen live as the transaction is entered into the system.

Another fun and recent example is football or soccer as some people like to call it. A football manager can have sensors on each of his players to monitor the distance they have travelled during the match and their fitness levels in order to make the tactical changes as he sees fit on the spot. He can track the performance and fitness of his players on a tablet that can show him how many times the player has touched the ball, how much distance he has covered, what is his heart rate, the maximum speed he sprinted and other important data for teams to be able to get an advantage over other teams.

 A team already using SAP for its live player and team data management is Manchester City, one of the toughest teams in Europe and the reigning champions of the English Premier League (some say the strongest competition in world football) and City Group (that has teams in the US, and Australia as well). The German National Team is also using a co-innovated solution called SAP Match Insights that enables the team to collect and analyze player data during training to help them improve on their latest sub-par performance in this last World Cup.

SAP’s IoT applications offer a wide range of functionality and built in security such as Predictive Maintenance and Service, In-Memory Asset Intelligence, Connected Vehicle Analytics, Sensor and Business Data Integration and more.

Machine Learning

Machine Learning is the use of algorithms and statistical models that computers use to perform a specific task based on patterns. It is a sort of Artificial Intelligence where a machine is given a certain logic to take care of a task that is usually done by people. This is useful since computers can handle enormous amounts of data and study them in a split of a second which saves time, effort and cost.

To make things simple, machine learning teaches computers how to perform tasks by learning from data instead of programming them.

Machine based neural networks can understand a billion pieces of data in seconds and place the result of a certain query at the hands of the decision maker instantly for a faster reaction. A neural network is a computer program that uses multiple layers of nodes (just like the neurons of the brain), that operate in parallel to learn, analyze, recognize and make decisions, just like a human does.

Nowadays, it is very hard to go through your day without facing machine learning. It is everywhere. From the ads you get on your Facebook page, your Youtube playlist or your fastest route on Google Maps, these are all examples of how machines learn about you from your history or location.

SAP presents ready to use services that are on the cloud and can integrate with popular messaging channels such as Twitter to answer questions for you. SAP Conversational AI is a leading bot platform with world class Natural Language Processing (NLP) technology that allows you to build bots that can quickly and easily understand humans. SAP Cash Application automates invoice matching processes that usually require a lot of time and effort. By matching criteria from your history, it automatically clears payments with its intelligent software.

Machine Learning algorithms can prioritize and automate decisions to give a faster response. It does not only depend on historical data as it can also look at real time inputs to adjust on the fly. Machines can analyze large and complex data and find insights that humans cannot, then turn these insights into action which improves efficiency. From triggering smart actions based on new opportunities and risks, to accurately predicting the results of a decision before making it, machine learning helps you run better.

All in all

In this series of three blogs concerning SAP Leonardo, we have seen how SAP has used the latest technologies such as Big Data, Data Intelligence, Analytics, IoT, Machine Learning and Blockchain and integrated them into one solution that enables its users to drive their innovation and business forward. The benefits that we have seen in this series shows how much SAP has worked to develop such a portfolio with the customer’s interest in mind, having tailored all of them for companies across several industries and with specific functionalities and features to each one of them in order to help them run the best way possible.

To take a good example of using all these tools to enhance a company’s business, we could look at transportation companies such as Taxi fleets. They would use IoT to register data from sensors in cars to keep track of their routes, get alerts in case of impact and accidents, check the performance of the cars and keep an eye on speedy drivers. This would result in a massive amount of data that could be stored using Big Data and analyzed using Data Intelligence, then presenting the results to the shot-callers through SAP Analytics reporting and dashboard tools. Machine Learning could help this company by suggesting quicker and less congested routes to get to a client on time and deliver them faster, while blockchain could help them process payments online without the hassle of using cash and getting into the problem of keeping change on the driver. All the processes of this transportation company have been solved using SAP Leonardo’s portfolio of advanced tools in a fast, efficient and exciting way.

Why should you miss out?

Contact us now to see how we, at Tyconz, can help you innovate new ways of running your business and help you run it better with SAP Leonardo.

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