SAP’s AI-powered sales transformation revolutionized its approach to small and medium enterprises, slashing sales cycles from 12-18 months to just 3-6 months.
The adoption of generative AI (gen AI) and large language models (LLMs) has become a billion-dollar industry, with many companies investing heavily in these technologies. Despite the significant investment, however, driving business impact through gen AI remains a challenge.
SAP‘s Successful Experiment: Scaling AI for SME Sales
A notable exception to this trend is SAP, which successfully leveraged AI tools to expand its customer base into the small and medium enterprises (SMEs) market. The company’s in-person sales approach had previously been uneconomical for this segment, but by mapping the customer journey and deploying over 40 AI tools, SAP transformed its sales process.
SAP stands for Systems, Applications, and Products in Data Processing.
It is a leading enterprise software company that develops enterprise resource planning (ERP) software to manage business operations and processes.
Founded in 1972 by five former IBM employees, SAP has grown to become one of the largest software companies worldwide.
Its flagship product, SAP ERP, helps organizations streamline their financials, supply chain management, human resources, and more.
The Impact of AI on Sales Cycles
By implementing these AI-powered solutions, SAP was able to significantly reduce the sales cycle from ’12-18 months’ to just ‘3-6 months’. This marked a substantial improvement in efficiency, allowing the company to support over 22,000 new customer opportunities in 2024.
A Framework for Thoughtful AI Scaling
This case study highlights the potential of thoughtful AI scaling to add significant revenue to large businesses. As companies continue to explore the benefits of gen AI, it is essential to develop frameworks that ensure these technologies are deployed effectively and efficiently.
- hbr.org | How One Company Used AI to Broaden Its Customer Base
- ramaonhealthcare.com | How One Company Used AI to Broaden Its Customer Base ...
