How block chain is implemented in SAP

SAP integrates blockchain technology primarily to enhance data management, streamline business workflows, and improve interoperability between enterprise systems. Instead of creating its own proprietary blockchain network, SAP focuses on providing tools and services that allow businesses to connect their existing SAP platforms with leading blockchain networks.

Here's how blockchain is implemented in SAP:

1. SAP Business Technology Platform (SAP BTP) and Blockchain-as-a-Service (BaaS):

• Central Hub for Innovation: SAP BTP is a comprehensive platform that integrates various technologies, including blockchain. It allows businesses to develop, integrate, and extend applications, leveraging advanced technologies like blockchain, AI, and RPA.
• Blockchain-as-a-Service (BaaS): SAP offers blockchain capabilities as a BaaS. This means that companies don't need to build and maintain the entire blockchain infrastructure themselves. Instead, they can consume blockchain services provided by SAP, which often leverage underlying platforms like Hyperledger Fabric, MultiChain, or Quorum. This simplifies the adoption process and reduces the need for extensive infrastructure setup.
• Integration with Existing Systems: SAP BTP enables seamless integration of blockchain networks with existing SAP applications like SAP S/4HANA, SAP Leonardo, and SAP HANA.

2. Key Components and Services:

• SAP HANA Blockchain Adapter: This component facilitates smooth integration between SAP HANA databases and blockchain networks. It acts as a bridge, allowing businesses to connect and interact with blockchain technology directly within their SAP HANA environment. This enables two-way data flow between the blockchain and SAP HANA for analysis and processing.
• SAP HANA Blockchain Service: This is a cloud service deployed within SAP BTP (formerly SAP Cloud Platform) that acts as a bridge, not a blockchain platform itself. Its key benefit is its ability to combine and analyze data from both blockchain networks and internal SAP data (master and transactional data).
• SAP Leonardo Blockchain: While SAP Leonardo as a brand has evolved, its blockchain capabilities focused on simplifying the building of blockchain networks within existing business systems. It provided integration with other SAP cloud services and made it easier for businesses to access Hyperledger Fabric networks through the SAP Cloud Platform.

3. Focus on Integration, Not Creation:

• SAP's strategy is to enable its customers to connect their enterprise systems to external blockchain networks rather than to establish a separate SAP-based blockchain. This allows businesses to leverage the benefits of distributed ledger technology without having to build and manage a new, independent blockchain.

4. Common Use Cases and Benefits:

• Supply Chain Management:
  • End-to-end visibility and traceability: Tracking products from origin to delivery, enhancing transparency and reducing counterfeits. Examples include tracking produce from farm to shelf (e.g., Walmart's initiative) and ensuring the authenticity of parts in industries like oil & gas.
  • Tamper-proof data logs: Immutability of records ensures data integrity.
  • Automation through smart contracts: Automating compliance checks, logging supplier performance, and triggering automatic payments upon delivery, reducing manual interventions and disputes.
• Financial Transactions and Auditing:
  • Enhanced security and transparency of financial transactions.
  • Tamper-proof financial records for streamlined auditing and compliance.
• Asset Tracking and Management:
  • Providing a transparent and immutable record of assets, ensuring optimal utilization.
• Product Provenance and Authentication:
  • Verifying the origin of products and combating counterfeit goods (e.g., in pharmaceuticals).
• Energy Certificate Management:
  • Creating and transferring digital energy certificates and verifying the origin of renewable energy.

In essence, SAP implements blockchain by offering a robust platform (SAP BTP) that provides BaaS capabilities and connectors (like the SAP HANA Blockchain Adapter) to seamlessly integrate existing SAP systems with various enterprise blockchain networks. This approach allows businesses to leverage the security, transparency, and immutability of blockchain for real-world business challenges, particularly in areas like supply chain, finance, and asset management.