A timely dialogue on AI, APIs, and AR

In conversation with Jeanine LeFlore, VP of Product Growth, BTP Innovation, SAP - Mobile World Congress, 2024

The AI revolution powered by 5G: From hype to reality?

The presence of AI in our industry is impossible to ignore! For instance, at MWC 2024, about 20 percent of booths focused solely on AI applications. It is clear that our industry is finally embracing this tech wholeheartedly. The shift from AI as a futuristic concept to a present-day reality is transforming the operations and innovation strategies of telco service providers and their supply chains.

We are particularly invested in generative AI as a core component of our business operations. This aligns perfectly with industry trends, showcasing how AI is moving from a novelty to a necessity in business operations. But what does this mean in practice?

Generative AI is revolutionizing how our customers and partners interact with data and make decisions. For example, we can now generate detailed reports, provide predictive analytics, and even assist in complex decision-making processes.

Yet, this is not just about automating tasks: it is about augmenting human capabilities and unlocking new levels of productivity and innovation in the field, strengthened with 5G cloud-based innovation platforms.

Both SAP and Ericsson are already seeing AI making significant inroads in areas like customer service, where AI-powered chatbots and virtual assistants are providing significant efficiency improvements in handling routine queries, and freeing up human agents to focus on more complex issues. This not only improves efficiency but also enhances customer satisfaction by providing quick, accurate responses at any time of day.

However, with great power comes great responsibility!

As AI becomes more prevalent, we are also focusing on ethical AI practices, ensuring transparency, reducing bias, and maintaining data privacy. These considerations are crucial as we continue to integrate AI more deeply into our respective business processes.

API: The silent powerhouse driving innovation

One of the most exciting developments in our industry is the growing interest in APIs, provided to large developer ecosystems via new API partnerships and Vonage. These APIs are foundational elements of many telco solutions on display. And – importantly – there is a noticeable excitement about their monetization potential!

This represents a shift in thinking: APIs are no longer just tools for integration but are becoming products in their own right.

The potential of APIs goes far beyond simple data exchange. They are enabling new business models, fostering innovation, and creating entire ecosystems of interconnected telco services. For example, telecom companies are now able to expose 5G network capabilities through APIs, allowing developers to create applications that can dynamically adjust based on network conditions or user location.

Jeanine commented that SAP is embracing this “API-first approach”. They are not just creating APIs for their own services but are also working on making Vonage’s APIs  available through our SAP Business Accelerator Hub and SAP Store on top of SAP BTP. This creates a win-win situation: It gives SAP customers access to a wider range of capabilities, while also providing new revenue streams for API providers.

The monetization of APIs is particularly interesting. We are seeing companies explore various business models, from traditional pay-per-use to more innovative approaches like revenue sharing, which is based on the value generated through API usage. This is opening up new opportunities for businesses to leverage their data and capabilities in ways that were previously not possible.

However, with the proliferation of APIs comes the need for robust API management. Furthermore, security, scalability, and ease of use are paramount. We are investing heavily in tools and practices that make it easier for businesses to publish, manage, and consume APIs securely and efficiently. By leveraging SAP Integration Suite and its API Management capabilities, SAP is certain it will create a new wave of monetization opportunities for the telco ecosystem at large.

Delivering on this MWC 2024 promise, Vonage, a part of Ericsson, and SAP have joined forces to accelerate digital transformation with communications and network APIs. By bringing together Vonage’s APIs and SAP Business AI, the new collaboration aims to revolutionize enterprise intelligence, offering compelling business insights and immersive digital experiences. Together, we have a goal to deliver secure, data-driven solutions that help enhance customer experiences, streamline business operations, and enable faster, easier innovation for organizations.

AR: The evolution beyond smartphones

While Augmented Reality (AR) might not be the first thing people associate with Ericsson nor SAP, both companies are exploring – what we call – "immersive services." Notably, we are focusing on specific, value-driven use cases like the industrial metaverse.

The potential of AR in business is enormous. Imagine a factory floor where workers can see real-time data overlaid on the machinery they are operating, or a warehouse where picking and packing instructions are displayed directly in the worker's field of vision.

These aren't futuristic AR concepts: they are applications both companies are actively researching and advancing.

One particularly exciting area we are exploring is what we call "hybrid business steering." This involves using AR to visualize complex data sets in three dimensions, allowing managers to interact with their business data in entirely new ways. For example, a supply chain manager could use an AR headset to visualize their entire global supply network, identifying bottlenecks, and optimizing routes in real-time.

Another promising application is in training and employee onboarding. AR can provide immersive, interactive training experiences that are more engaging and effective than traditional methods. New employees can practice complex procedures in a safe, virtual environment before applying their skills in the real world.

However, we have learned that success in AR is really not about creating flashy demos! It is about solving real business problems. This is the reason we are – at this point – focusing on these types of specific use cases that deliver tangible value and working closely with our customers to understand their needs and develop innovations on top of SAP BTP and 5G as foundations to help seamlessly integrate into their existing workflows.

The synergy of the 3As: Creating a new paradigm

What is truly exciting is how these three areas – AI, APIs, and AR – are converging to create a new technological paradigm. We are seeing AI creating content and providing insights, APIs facilitating access to infrastructure and fostering developer ecosystems, and AR offering new, immersive ways to consume and interact with the environment.

This convergence is opening up new business opportunities rather than just solving old problems more efficiently. For example, consider a scenario where AI analyzes vast amounts of business data, APIs make this analysis available to various systems and applications, and AR provides an intuitive interface for decision-makers to interact with this information. This combination can lead to faster, more informed decision-making and ultimately drive business growth.

Moreover, this synergy is enabling entirely new business models. Companies can now offer "intelligence as a service," combining their domain expertise with AI capabilities and delivering insights through easy-to-use APIs. These insights can then be consumed through API interfaces, making complex data accessible and actionable for users across the organization.

Looking ahead toward a collaborative future

As we look to the future, the partnership between Vonage and SAP will accelerate innovation. We are committed to a structured approach, moving from inspiration and ideation to validation and incubation. Our goal is to bring specific, value-driven use cases to market that leverage the strengths of our companies. To this end, we will be focusing on the following in the coming year:

1. Developing targeted use cases that address real market needs: Every solution we develop will be rooted in solving real business problems and delivering measurable value.
2. Integrating Vonage’s  APIs into SAP's ecosystem: This includes making Vonage's powerful network APIs available through the SAP Business Accelerator Hub and SAP Store on top of SAP BTP. This integration will allow our mutual customers to leverage advanced networking capabilities in their business applications seamlessly.
3. Validating our concepts with end-users and customers: We believe in rapid prototyping and iterative development. We will be working closely with selected customers to test and refine our solutions in simulated and real-world environments.
4. Iterating on our designs based on real-world feedback: We understand that the first version is rarely the best version. We are thus committed to continuously improving our solutions based on user feedback and changing market needs.
5. Exploring new frontiers in AI, API, and AR: As these technologies evolve, we will be at the forefront, exploring new applications and use cases. This includes advancements in natural language processing, computer vision, and spatial computing.

We believe that by combining SAP's expertise in business processes and data management with Vonage's world-class expertise in connectivity and network solutions, we can create transformative solutions that drive both top-line growth and operational efficiencies for our customers.

However, we also recognize the challenges ahead. Issues around data privacy, security, and ethical AI use will be at the forefront of our minds as we develop these new solutions. We are committed to being responsible custodians of this technology, ensuring that our innovations benefit not just businesses but society as a whole.

We invite you to join us on this journey as we shape the future of 5G-connected consumers and enterprises.

Whether you are a business leader looking to leverage these technologies, a developer interested in creating new applications, or simply someone fascinated by the potential of technology to transform our world, there has never been a more exciting time to be involved in this field.

The 5G future is here, and it's being shaped by AI, API, and AR!

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