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The evolution of finance and controlling: SAP and intelligent systems
Article in World Journal of Advanced Research and Reviews · January 2025
DOI: 10.30574/wjarr.2025.25.1.0261
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The evolution of finance and controlling: SAP and intelligent systems
Chetan Sharma 1, *, Rohini Sharma 2 and Kavita Sharma 3
1 Tractor Supply Company, 5401 Virginia Way, Brentwood, TN, USA.
2 Deloitte Consulting, USA.
3 Lecturer, Government Polytechnic College Kota, Rajasthan, India.
World Journal of Advanced Research and Reviews, 2025, 25(01), 1786-1795
Publication history: Received on 16 December 2024; revised on 22 January 2025; accepted on 25 January 2025
Article DOI: https://doi.org/10.30574/wjarr.2025.25.1.0261
Abstract
In recent years, we've witnessed a remarkable evolution in how organizations manage their finance and controlling
functions, particularly through the implementation of SAP and intelligent systems. Our research examines this
significant shift from traditional manual processes to sophisticated automated solutions, revealing how this
transformation has revolutionized financial operations. We explore not only the substantial improvements in efficiency
and accuracy but also the enhanced capability for strategic decision-making that these systems provide. Through
detailed analysis and real-world case studies, we investigate both the opportunities and complexities organizations face
when adopting these intelligent systems. By comparing conventional approaches with modern solutions, we offer
practical insights for finance professionals navigating this technological transition. Our findings demonstrate that
technological innovation isn't just reshaping financial management and control—it's fundamentally redefining what's
possible in the field.
This research contributes to the growing body of knowledge on digital transformation in finance, providing valuable
perspectives for practitioners and researchers alike who are interested in the future direction of SAP financial
management and controlling systems.
Keywords: SAP; SAP S/4HANA; ERP; Finance; Controlling; Artificial Intelligence; Intelligent Systems; Machine
Learning; Predictive Analytics; Automation; RPA; IoT
1. Introduction
The landscape of financial management and control has undergone a remarkable transformation in recent decades.
What once relied heavily on manual processes and human intervention has evolved into a sophisticated ecosystem of
automated, intelligent systems. This shift represents not just a technological upgrade, but a fundamental reimagining of
how organizations handle their financial operations.
Consider the traditional finance department of the past: professionals drowning in paperwork, wrestling with data
inconsistencies, and spending countless hours on manual reconciliations. These limitations didn't just slow operations;
they actively hindered organizations from reaching their full potential. The introduction of SAP and similar ERP systems
in the 1970s marked a turning point, offering a glimpse of what integrated, automated financial management could
achieve.
Today, we're witnessing another revolutionary wave as intelligent technologies reshape finance and controlling
functions. Artificial intelligence, machine learning, and robotic process automation aren't just buzzwords – they're
powerful tools transforming how organizations manage their financial operations. These technologies enable
Corresponding author: Chetan Sharma
Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0.
World Journal of Advanced Research and Reviews, 2025, 25(01), 1786-1795
everything from predictive analytics to automated anomaly detection, fundamentally changing how financial
professionals work and make decisions.
What's particularly fascinating is how these intelligent systems have evolved from simple automation tools to
sophisticated platforms capable of providing strategic insights. Organizations can now access real-time financial data,
predict trends, and make informed decisions with unprecedented accuracy. This evolution represents a significant
departure from the traditional approach to financial management and control.
However, this transformation brings both opportunities and challenges. While the benefits of integrated intelligent
systems are clear – improved efficiency, enhanced accuracy, and deeper analytical capabilities – organizations must
navigate implementation challenges, data security concerns, and the need for specialized expertise.
In exploring this evolution, we'll examine real-world implementations and compare traditional approaches with
modern solutions. Through this analysis, we aim to provide a comprehensive understanding of how technological
advancements are reshaping financial management and control, and what this means for the future of finance
professionals [1].
2. Methodology
Our study takes a deep dive into how finance and controlling functions have evolved over time, drawing from multiple
sources to paint a complete picture. We primarily relied on qualitative research methods, combining detailed case
studies with extensive literature analysis and comparative assessments.
To ensure a well-rounded perspective, we gathered insights from various sources. We examined scholarly publications
and industry reports, but what proved particularly valuable was the real-world data we collected from organizations
that have already implemented SAP and intelligent systems in their operations.
One of the most enlightening aspects of our research came from our conversations with finance professionals and
technology experts. Through in-depth interviews, we gained firsthand insights into both the practical challenges these
professionals face and the tangible benefits they've experienced when implementing these systems.
We also found it crucial to compare traditional and modern systems side by side. This comparative analysis helped us
identify significant improvements in financial management and control while also highlighting areas where there's still
room for innovation.
This comprehensive approach allowed us to better understand how technological advancements are reshaping the
landscape of financial management and control in today's business environment.
3. The Emergence of SAP
The introduction of ERP systems was a game-changer for financial management. SAP, founded in 1972, led the way. Its
software allowed businesses to integrate core processes, like finance, human resources, and supply chain management,
into one system. This integration improved data consistency, allowed for real-time updates, and streamlined operations.
SAP has significantly impacted the finance and controlling sectors. With its comprehensive suite of applications, SAP
provided tools for financial accounting, controlling, asset management, and more. Companies could now automate
routine tasks, reduce errors, and gain deeper insights into their financial health through robust reporting and analytics
features [2].
4. Understanding the Conventional SAP FICO System
SAP Finance and Controlling (FICO) is a module in the SAP ERP system that helps manage financial operations,
management, and reporting. It consists of two main parts: SAP Finance (FI) and SAP Controlling (CO). SAP FI manages
financial transactions like accounts payable, accounts receivable, ledger management, and asset accounting. SAP CO
focuses on internal reporting, cost management, and profit analysis, helping organizations understand and control their
internal costs and operations [3].
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4.1. Key Features of SAP FI
• General Ledger Accounting: Provides a complete record of all business transactions, giving a comprehensive
view of financial operations [3].
• Accounts Payable and Receivable: Manages outgoing and incoming payments, ensuring streamlined cash flow
management [3].
• Asset Accounting: Tracks and manages assets throughout their lifecycle, from acquisition to disposal [3].
• Bank Accounting: Supports the management of bank transactions and reconciliations, making banking
operations more efficient [3].
4.2. Key Features of SAP CO
• Cost Center Accounting: Tracks and controls costs incurred within different parts of an organization [3].
• Profit Center Accounting: Helps analyze the profitability of different business units or segments [3].
• Internal Orders: Manages internal projects or orders that require detailed tracking and reporting [3].
• Activity-Based Costing: Provides more precise cost allocation based on activities, leading to better cost
management [3].
4.3. Challenges of the Conventional SAP FICO System
Despite its robust functionality, the conventional SAP FICO system faces several challenges that can impact its
effectiveness and efficiency [4]:
• Complexity of Implementation: Implementing SAP FICO can be highly complex and time-consuming, requiring
significant resources and expertise [4].
• High Cost: The cost of implementing and maintaining SAP FICO can be prohibitive, especially for smaller
organizations [4].
• Limited Flexibility: Traditional SAP FICO systems may lack the flexibility needed to adapt quickly to changing
business needs and regulatory requirements [4].
• Data Silos: Organizations may face challenges integrating SAP FICO with other systems, leading to data silos and
inefficiencies [4].
• User Training: The complexity of SAP FICO requires extensive user training, which can be time-consuming and
costly [4].
• Manual Processes: Conventional SAP FICO systems often rely on manual processes, which can be prone to errors
and inefficiencies [4].
5. SAP S/4HANA: The Next-Generation ERP
Figure 1 SAP S/4HANA Simple Finance [5]
SAP S/4HANA is the next-generation ERP suite designed to offer a simplified data model and enhanced performance
through the power of SAP HANA, an in-memory database. It integrates traditional ERP functions with advanced
analytics and intelligent technologies, providing a comprehensive solution for modern financial management.
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The main goal of designing SAP S/4HANA is to break down traditional barriers like transactional, analytics, and planning
systems. It aims to provide instant insights and on-the-go analysis using all levels of financial data. For decision-makers,
SAP S/4HANA Simple Finance is essential as it helps model data and create forecasts using real-time analytics across
different systems. The financial management functions are well-connected with enterprise resource planning
applications [5].
As shown in the figure 1 above, the primary objective of designing SAP S/4HANA Simple Finance was to revamp business
applications and make the most of its HANA database [5].
5.1. Key Features and Benefits of SAP S/4HANA in Finance and Controlling
• Real-Time Financial Processing: SAP S/4HANA allows for real-time financial processing, ensuring that financial
data is always up-to-date and accurate. This real-time capability supports faster financial close processes and
timely reporting [5].
• Enhanced Financial Planning and Analysis: The system integrates advanced analytics tools that provide deeper
insights into financial performance, enabling more precise financial planning and analysis. Users can leverage
predictive analytics to forecast future financial trends and make data-driven decisions [5].
• Central Finance: SAP S/4HANA's Central Finance feature allows for the consolidation of financial data from
multiple systems into a single, centralized platform. This improves the accuracy of financial reporting and
ensures a unified view of the organization's financial health [5].
• Improved Compliance and Risk Management: The system includes built-in compliance and risk management
tools that help organizations adhere to regulatory requirements and mitigate financial risks. Automated
controls and audit trails enhance the accuracy and reliability of financial data [5].
• Cash Management: SAP S/4HANA provides comprehensive cash management capabilities, including real-time
visibility into cash positions, liquidity forecasting, and optimized cash flows. This helps organizations manage
their cash more effectively and make informed investment decisions [5].
• Accounts Receivable and Payable: The system streamlines accounts receivable and payable processes, reducing
the time and effort required for invoice processing and payment reconciliation. Automated workflows and
integrated analytics improve the efficiency and accuracy of these processes [5].
• Financial Consolidation: SAP S/4HANA simplifies the financial consolidation process, enabling organizations to
consolidate financial statements across multiple entities and currencies. This ensures accurate and timely
financial reporting at the group level [5].
5.2. Transitioning to SAP S/4HANA
The shift to SAP S/4HANA is not just a technical upgrade but a strategic transition. Organizations need to consider
factors such as [6]:
• Project Planning: Detailed project planning and resource allocation are crucial for a smooth transition [6].
• Data Migration: Ensuring data integrity during migration is essential for maintaining business continuity [6].
• Change Management: Effective change management practices help in managing user expectations and training
needs[6].
• Customization: Tailoring SAP S/4HANA to meet specific business requirements while leveraging its full
potential [6].
• Successful implementation of SAP S/4HANA can lead to significant improvements in business operations,
agility, and performance [6].
6. Introduction to Intelligent Systems
Intelligent systems use advanced technologies like artificial intelligence (AI), machine learning (ML), and automation to
enhance decision-making, efficiency, and accuracy in various business processes. These systems can analyze vast
amounts of data, recognize patterns, and provide actionable insights, transforming traditional financial management
practices [7].
6.1. Key Components of Intelligent Systems
• Artificial Intelligence: Enables systems to mimic human intelligence, facilitating tasks like data analysis,
predictive modeling, and natural language processing [7].
• Machine Learning: Algorithms learn from historical data and improve over time, providing more accurate
predictions and insights [7].
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• Automation: Streamlines repetitive tasks, reducing manual effort and improving efficiency [7].
• Big Data Analytics: Analyzes and interprets large datasets, uncovering trends and patterns that inform strategic
decisions [6].
7. The Evolution of Finance and Controlling with SAP and Intelligent Systems
As businesses evolve, so do the tools and systems that support them. The field of finance and controlling has seen
significant advancements with the integration of SAP and intelligent systems [8].
Figure 2 The Evolution of Finance and Controlling with SAP and Intelligent Systems
As shown in Figure 2, This section explores these innovations and what the future holds.
7.1. Advanced Predictive Analytics
Predictive analytics are continually advancing, with AI and ML algorithms becoming more sophisticated, enabling more
accurate forecasts and deeper insights. Businesses can anticipate market changes, optimize their strategies, and stay
ahead of the competition. SAP's HANA in-memory database enhances these predictive capabilities by allowing real-time
processing and analysis of large datasets [8] [11].
7.2. Blockchain Technology
Blockchain technology offers enhanced security, transparency, and traceability for financial transactions, paving the
way for greater trust and efficiency. Blockchain can streamline processes like supply chain finance, trade settlements,
and contract management by providing a tamper-proof ledger accessible to all authorized parties [8].
7.3. Enhanced Data Analytics
Integrating AI and ML with SAP enhances data analytics capabilities. Intelligent systems can process and analyze data
from various SAP modules, offering real-time insights and predictive analytics. This helps businesses identify trends,
detect anomalies, and make data-driven decisions with greater accuracy. SAP Analytics Cloud provides advanced
analytical and visualization tools for dynamic reports and dashboards [8].
7.4. Improved Financial Forecasting
Intelligent systems significantly enhance financial forecasting by leveraging historical data and advanced algorithms.
SAP's financial modules, combined with AI and ML, create more accurate forecasts, helping businesses plan for the
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future with greater confidence. Predictive models can simulate various scenarios, enabling better risk and opportunity
assessments [8].
7.5. Automated Compliance and Reporting
Compliance and reporting are crucial in finance and controlling. Intelligent systems automate these processes, ensuring
companies meet regulatory requirements and generate accurate reports. SAP's integration with RPA tools streamlines
compliance workflows, reducing risks and enhancing efficiency. Automated compliance checks continuously monitor
transactions and flag any discrepancies for review [8].
7.6. Robotic Process Automation (RPA)
Robotic Process Automation (RPA) is a key development in intelligent systems. RPA uses software robots to automate
repetitive tasks. In finance and controlling, RPA handles tasks like invoice processing, data entry, and compliance
reporting, freeing human resources for strategic activities. RPA bots work around the clock, ensuring routine tasks are
completed promptly and accurately [8].
7.7. Internet of Things (IoT)
The Internet of Things (IoT) revolutionizes finance and controlling by connecting devices and systems to the internet,
enabling real-time data collection and analysis. IoT enhances financial operations by providing accurate, up-to-date
information on assets, transactions, and processes, leading to better decision-making and efficiency. IoT-enabled
sensors track asset conditions and locations, improving asset management and maintenance planning [8].
8. Zero Touch Finance – Revolutionizing Financial Processes with Intelligent Automation
We're have started seeing significant development and changes due to COVID-19 and ongoing economic challenges.
Companies need to rethink strategies to create sustainable value for all stakeholders. One major change is shifting from
manual finance processes to fully automated ones, termed "Zero Touch Finance" (ZTF).
Figure 3 Intelligent Technologies supporting Zero Touch Finance [9]
ZTF aims for minimal human interaction by using the latest technologies and high process standardization in finance.
To navigate the future of finance, embracing automation and innovation is crucial. As markets evolve and regulations
become more complex, traditional financial planning is no longer sufficient. Businesses are now using real-time
predictive models and automated processes to stay ahead.
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Streamlined regulatory compliance, new revenue models, and increased automation lead to significant cost savings and
improved efficiency. Assessing current finance processes is essential for creating a roadmap to achieve transformation
goals [9].
As shown in above Figure 3, Key technologies driving ZTF include AI Business Services that boost productivity, reduce
costs, and provide valuable insights. Process Intelligence helps optimize operations by identifying bottlenecks.
Intelligent Applications analyze large datasets and adapt to user behavior for process optimization. Intelligent RPA
(Robotic Process Automation) streamlines repetitive tasks and enables end-to-end process automation. Situation
Handling detects, diagnoses, and resolves process issues in real-time.
These technologies support ZTF by enhancing efficiency and sustainability in finance operations [9].
9. Comparative Analysis
The table 1 below shows how organizations around the world are currently using embedded AI in their business
processes, and highlights those who plan to start using it in the next 12 months.[10]
Table 1 Embedding AI in Business Processes [10]
Worldwide Currently using Not currently using, but planning to use in the next 12 months
Financial close 79% 82% 63%
Balance sheet 77% 80% 63%
Working capital 77% 81% 60%
Plan to perform 76% 78% 67%
Quote to cash 75% 78% 57%
Budget to plan 75% 78% 62%
Book to bill 75% 78% 63%
Procure to pay 75% 78% 62%
The table 2 below highlights the key differences between conventional SAP FICO systems and SAP with intelligent
systems. While traditional SAP FICO systems are robust, they face challenges related to complexity, cost, flexibility, and
manual processes. On the other hand, SAP with intelligent systems offers enhanced capabilities through automation, AI,
and real-time data analysis, leading to improved efficiency, scalability, and decision-making.
Table 2 Key differences between conventional SAP FICO systems and SAP with intelligent systems
Aspect Conventional SAP FICO Systems SAP with Intelligent Systems
Implementation Complex and time-consuming Enhanced with automation and AI for quicker setup
Cost High implementation and maintenance Potentially lower costs due to automation and
costs efficiency
Flexibility Limited flexibility to adapt to changes Highly adaptable to changing needs and regulations
Data Prone to data silos Integrated data for seamless information flow
Management
User Training Extensive and costly training required More intuitive interfaces reduce training needs
Processes Reliance on manual processes Automated processes reduce errors and increase
efficiency
Decision-Making Based on historical data and manual Enhanced with real-time insights and predictive
analysis analytics
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10. Case Studies
10.1. Case Study: IDC Research Inc
According to IDC Research Inc., by mid-2025, around 50% of end users will be using AI-powered applications. This shift
will move from old systems of record to new systems of intelligent planning, enabling better outcomes. Additionally, by
early 2025, organizations still using outdated systems will need to quickly update their applications to keep up and
compete in the fast-evolving digital world.[10]
• The following figure 4 highlights the significance of an AI strategy as acknowledged by Finance and Accounting.
Figure 4 Finance and Accounting Recognize[10]
• The figure 5 below shows that over the next 18 months, organizations are expecting significant changes in their
business processes due to the adoption of GenAI-powered applications. These advanced technologies are
anticipated to transform business operations, making them more efficient and innovative.[10]
Figure 5 Organizations Are Expecting Business Process[10]
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11. Future Trends
The evolution of finance and controlling continues, with several key trends expected to shape these areas:
• Growing Use of AI and ML: The utilization of artificial intelligence (AI) and machine learning (ML) is set to
expand, providing organizations with sophisticated analytical tools and improved decision-making capabilities.
Innovations like natural language processing (NLP), AI-driven chatbots, and predictive analytics will further
streamline financial operations, automate routine tasks, and enhance customer service. These technologies will
allow for real-time data analysis, better risk management, and personalized financial services [12] [13] [14].
• Increased Adoption of Blockchain Technology: Blockchain is expected to become more widespread in financial
transactions and record-keeping, enhancing security, transparency, and efficiency. This technology will support
new business models like decentralized finance (DeFi), peer-to-peer lending, and smart contracts that execute
automatically without intermediaries. Blockchain will also facilitate cross-border payments, reduce fraud, and
ensure the accuracy of financial records [12].
• Heightened Focus on Cybersecurity: As financial systems become more digital, the need for robust
cybersecurity measures will increase to protect sensitive data and defend against cyber threats. Organizations
will invest in advanced security technologies like biometric authentication, multi-factor authentication (MFA),
encryption, and AI-driven threat detection. Implementing comprehensive cybersecurity frameworks and
conducting regular security audits will help maintain compliance and resilience.
• Ongoing Innovation in ERP Solutions: Enterprise Resource Planning (ERP) providers such as SAP will continue
to innovate by incorporating new technologies and features to meet the evolving needs of organizations. Future
ERP systems will offer improved user experiences, advanced data analytics, mobile capabilities, and seamless
integration with other applications like Customer Relationship Management (CRM) and Supply Chain
Management (SCM). These systems will support real-time decision-making, collaboration, and process
automation across various departments [12 [13] [14].
• Increased Focus on Sustainability: Companies will place greater emphasis on integrating sustainable practices
into their financial and controlling functions. This includes adopting green financing, sustainable investing
strategies, and reporting on environmental, social, and governance (ESG) criteria. Organizations will strive for
transparency in their sustainability efforts and work to reduce their carbon footprint [12] [13] [14.
• Strengthened Regulatory Compliance: As financial regulations evolve, companies will need to enhance their
compliance frameworks. This involves staying updated with new regulations, conducting regular compliance
audits, and implementing automated compliance management systems. Ensuring adherence to regulations will
be crucial to avoid legal penalties and maintain stakeholder trust [15].
Rise of Digital Currencies: The emergence of digital currencies, including central bank digital currencies (CBDCs) and
cryptocurrencies, will significantly influence the financial sector. These currencies will offer new opportunities for
transactions, investments, and financial inclusion while also presenting challenges related to regulation, security, and
volatility [16]
12. Conclusion
The journey of finance and controlling has come a long way, powered by technological advancements and the need for
better financial management. We’ve moved from manual operations to the smart, efficient SAP systems we use today.
This transformation has allowed organizations to be more accurate, efficient, and strategic in their operations,
enhancing overall decision-making.
Today’s finance and controlling landscape is heavily influenced by advancements in technologies like Artificial
Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), and blockchain. AI and ML help predict
trends, detect anomalies, and automate routine tasks, which reduces human error and saves time. RPA takes over
repetitive processes, freeing up staff for more strategic work, while blockchain provides exceptional security and
transparency for financial transactions, making data tracking and verification simpler.
Looking ahead, the future of SAP finance and controlling holds even more promise. We can expect continuous
improvements in technology integration, boosting accuracy, efficiency, and strategic insights. These advancements will
empower organizations to handle financial complexities more effectively, fostering sustainable growth and maintaining
a competitive advantage.
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Compliance with ethical standards
Disclosure of conflict of interest
No conflict of interest to be disclosed.
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