Cloud Wars CEO Outlook 2025 with SAP's Christian Klein

Jan 23, 2025

Christian Klein, CEO of SAP, shares his insights on cloud and AI-driven transformations. He discusses how generative AI is enhancing productivity and reshaping business models for 2025. Klein emphasizes the importance of proving AI investments' value, particularly in optimizing processes like quote-to-cash. He highlights SAP's focus on end-to-end business integration and a customer-centric approach, stressing how technology investments can drive tangible business benefits and foster comprehensive transformations in organizations.

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INSIGHT

AI At The Center Of C-Level Agendas

CEOs now place AI at the center of every C-level discussion and expect embedded language capabilities in software.
Christian Klein says customers want GenAI to steer companies and orchestrate end-to-end business processes.

INSIGHT

From Backward-Looking To Business-Model Change

Leaders are shifting from reconciling past actions to transforming business models and optimizing future outcomes.
Klein highlights agentic AI and SAP Business AI as enablers for orchestrating new business models.

ADVICE

Prove AI Value Through End-To-End Use Cases

Prove AI outcomes before expecting broader buy-in, especially when budgets are tight.
Klein recommends embedding SAP Business AI in end-to-end processes like quote-to-cash to demonstrate measurable productivity gains.

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Generative AI and Business Transformation (00:57)

Klein discusses the increasing adoption of GenAI among SAP's customers. They see it as a way to improve productivity and business processes. Additionally, SAP software now integrates human language capabilities, enhancing user experience and efficiency. Customers' focus for 2025 and beyond is using GenAI and SAP Business AI to solve complex business challenges and orchestrate end-to-end business processes.

Technology Investments and Business Outcomes (02:37)

Among customers, there's been a shift from reconciling past actions to optimizing future planning and growth opportunities. "Now we are talking about business model transformation but also, how can agentic AI and Joule . . . help me to orchestrate my new business model." He explains how SAP's offerings help customers bring all business elements to the table for comprehensive transformation.

AI's Tangible Benefits (04:10)

Proving the outcomes of AI investments is critical in times of financial pressure. SAP's Business AI offerings are designed to demonstrate tangible business benefits, such as improving the quote-to-cash process. "We make sure that you can quote more intelligent, that you can sell more, that you can price more effectively, and that you can run all the fulfillment processes in the back end way more productive. Then the customers [says], 'Absolutely, I'm all in for buying more AI units from SAP'."

End-to-End Processes and Customer-Centric Approach (06:39)

Klein discusses the cultural shift towards end-to-end processes that meet customer needs and explains how SAP's AI Foundation and tools are agnostic to various large language models. SAP's suite of offerings provides a unified approach, avoiding the silos created by working with multiple tech companies.

The Rise of Agents (08:24)

Agents are ascendant and playing a significant role in driving better business outcomes. Klein provides a concrete example of how agents will collaborate in demand, supply chain, and procurement processes. He explains how agents collaborate, to "[make] sure the customer gets an extremely valuable output end to end."

Orchestration and Collaboration of Agents (10:59)

Klein describes how SAP's generative AI assistant, Joule, can help orchestrate agents across different end-to-end processes. "Joule can help you to predict demand with our sales agent and Joule orchestrates to work with the supply chain agents on the inventory side, and then Joule helps, you know, to orchestrate the work, you know, with the procurement agent."

SAP's Growth and Future Vision (12:44)

SAP has had significant growth in applications, outpacing competitors. Klein attributes this to SAP's suite approach, which provides a comprehensive solution for core business processes. He talks about the importance of integration and extensibility, allowing customers to choose the best solutions for their needs.

Under Klein's leadership, SAP has transformed into a cloud and AI-focused company. Klein discusses SAP's vision as an end-to-end solution provider, delivering continuous innovation and enabling holistic business transformation. He explains, "The perception is yes, SAP is really delivering end-to-end solutions to me, but they [are] also helping me because they have a ton of industry knowledge, they have a ton of business process knowledge, and they are by far more than only a technology partner, they are also helping me with RISE and GROW, a kind of a methodology on how to transform my business."

SAP Management Team and Final Thoughts (19:56)

SAP has a strong management team, including new executives from Microsoft and other top companies. Klein expresses confidence in SAP's ability to continue delivering value to customers and partners. The conversation concludes with his encouraging everyone to embrace the new year with enthusiasm in particular for the opportunities of agentic AI and Joule to drive business outcomes.

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