1SAP NetWeaver

BI as Enterprise Data Warehouse

Platform

Jrgen HerzogHead of Competence Center

Business IntelligenceGlobal ITadidas Group

juergen.herzog@adidas-group.comTel.: +49 9132 84 4886Mobile: +49 160 884 4886

2AGENDA

History

Strategy

Organization & Processes (IT and Business)

Technical Architecture

Business Performance Management (From What & Where to Why)

3HISTORY

Local ERP and BI Systems per Country

2002

First SAP BW project, managed by consulting firm. Executed as a data mart project.

2004

Start of BI Foundation with 3 people and Order Backlog Pilot.

2005

Second pilot project Replacement of local BI Italy Solution

started in combination with R/3 rollout.

2006

Implementation of the BI Competence Center in Global IT and EMEA

Business.

2007

Start rollout of BI to Region ASIA; start of several initiatives

for Global Operations

2008

Start with Reebok, starting with US, further global projects

2009

Planned to move from project into release mode

start rollout to Latin America

BI is a journey! Each step brings new challenges and requires attention on dedicated topics!

4ADIDAS BI STRATEGY Mission and Strategy

Provide every decision-maker the information he needs to make fact based decisions. Provide the information in an easy to access

and easy to understand

way. Provide accurate, timely

and consistent

information across all business functions, geographies and also across all levels of aggregation.

Implementation of an Enterprise Business Intelligence Strategy using an Enterprise Data Warehouse Approach using One Global BI System

which contains (a) the highest level of detail of available transactional data, (b) consistent master data, (c) is used for strategic analysis as well as for (d) operational decision making. Physical represented by one Global Wholesale SAP BW

and one Global Point of Sales SAP BW

System.

Mission

Strategy

5ADIDAS BI STRATEGY Prerequisite for successful BI is ERP and Process Harmonization

1) ERP Harmonisation

2) Master and Accounting Data Harmonisation

3) Process Harmonisation

4) Business Intelligence

Harmonisation

Reduction Of Complexity

5) Business Intelligence

Decommissioning

6ORGANIZATION Overview -

Governance Framework and Organizational Setup

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Platform &Templates

Dedicated Business BI CCs

7BI Organization Evolved over time

this is the 3rd version in 30 months

BI CC

Jrgen Herzog

BI HQ Projects

Program Manager

BI Operations

Operations Manager

BI Governance

Solution Mgr.

BI Service Mgmt.

Service Manager

Scope is to provide a single point of contact to business from demand and project execution

perspective. Demand mgmt.

includes alignment on budgets,

resources, constraint mgmt

and conflict mgmt with other projects. Project execution

includes primarily

project mgmt.,

business analysis,

development & training and

transition to production.

Scope is the alignment between all executed

projects to ensure

that all design and development is done in a consistent and

reusable wa

y. Governance scope

is also to take care about 3rd leve

l incidents (e.g. data quality, data issues, progra

m aborts, etc).

One Champ and

one deputy is

defined for each

application.

Scope is Incident Management and

Problem management as well as Change

Request Manage-

ment

from an End-

to-End Perspective. Also impac

t analysis of other projects and change requests.The Serv

ice Manager reports in a dotted line to Projects as they are the One Face to the Customer.

Scope is to operate and run the BI Platforms in a stable and

performing wa

y, including the planning and

monitoring of the

business related

processes.

BI Business Performance Mgmt.

Senior Analyst

Move from past

perspective to business process performance management by

focusing on what is not as expected

and what is the root cause. Definition of Service Levels and Interdependencies between Ke

y Figures.

BI EMEA Projects

Program Manager

BI ASIA Projects

Program Manager

BI NAM Projects

Program Manager

*

*) To be setup

BI LAM Projects

Program Manager

*

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCs

8Governance Tasks -

Projects

Task DescriptionProject Preparation Involvement

Consulting the Project Initiator already during Project Preparation on existing solutions, guidelines & principles and architecture and general design proposals.

Project Blueprint Support

Supporting or completely creating the business blueprint is one of the major governance tasks. This ensures that all definitions and designs are inline with the global guidelines and definitions.

Project Blueprint Approval

In case the blueprint is not written by the IT BI Champion, it has at least to be reviewed and approved by him. All Business Blueprints have to be approved by the responsible BI Champion to ensure that we work towards one global Enterprise BI System and not into regional or functional silos. The approval of the Business Blueprint must happen via eMail

(with attached Blueprint Document) or signature of the paper document. The document or eMail

has to be archived in the project documentation.

Project Design Reviews and Approvals

After the (physical) design of the project is complete a review and approval through the BI Champ has to happen. If changes have to be performed another review and approval is needed. The result has to be documented and archived in the project documentation.

Project Implementation (Code) Reviews and Approvals

After the realization of a project is done and before the transport to Acceptance Test happens, a code and design review and approval has to be done by the BI Champion. The result has to be documented and archived in the project documentation.

BI Governance

Solution Mgr.

Scope is the alignment between all executed

projects to ensure

that all design and development is done in a consistent and

reusable wa

y. Governance scope

is also to take care about 3rd leve

l incidents (e.g. data quality, data issues, progra

m aborts, etc).

One Champ and

one deputy is

defined for each

functional area. All projects are also

listed per area.

This is valid for all projects or Change Requests executed on PWG and POS, independent of the Competence Center or the Region which is executing the project or implementing the Change Request..

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCs

9One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCsORGANIZATION

Dedicated Business BI Competence Centers

Reebok

TaylorMade

adidas

REGIONS

EMEA ASIA NAM LAM

B

r

a

n

d

s

CC

Global

Operations

Global

Finance

Global

GIT

Global

HR

Global

Marketing

G

l

o

b

a

l

F

u

n

c

t

i

o

n

s

CC

Comes

2009

CC

Comes

2009

Definition and Alignment of Business Requirements and Priorities

Alignment and Harmonization of Business Processes & Definitions (KPIs, Master Data Attributes, Hierarchies)

Business Communication and

Change Management

User Acceptance Testing and Data Quality Assurance (Business)

User Support (on Business Topics)

Global

Retail CC

10

Project Portfolio Management Roadmap Definition Overall Priority Setting Conflict Management Change / Impact Management Responsibility Setting for KPI-

Definitions, IT and Business Processes

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCsORGANIZATION

BI Steering Board

CFO adidas

(SB Lead)

Head of CC BI(Global IT)

CFO adidas(EMEA)

COO adidas & Rbk(ASIA)

Performance Mgmt.

(Global Logistics)

Senior Executives manage the project portfolio and decide on priorities, conflicts and project scope changes which affect other projects and initiatives. Result is an aligned BI Roadmap with all projects, priorities timelines and dependencies, fitting into the overall Business, IT and BI Strategy and the budget.

*) Other Stakeholder with no current direct involvement in BI are informed on Steering Board decisions (e.g. Reebok)

Reebok

TaylorMade

adidas

REGIONS

EMEA ASIA NAM LAM

B

r

a

n

d

s

CC

GlobalOperations

GlobalFinance

GlobalGIT

GlobalHR

GlobalMarketing

G

l

o

b

a

l

F

u

n

c

t

i

o

n

s

CC

Comes2009

CC

Comes2009

GlobalRetail CC

11

2

GUIDING PRINCIPLESTechnology - 1 of 3

Data Extraction: If a data object (table) is extracted and loaded into the BI Foundation all its columns are loaded. No selection is made. Only denormalized information can be excluded. This ensures flexibility in case of upcoming new requirements without touching the source systems again.

Audit Trail: Each data source attribute is stored as it is in the Staging ODS without any transformation. If additional calculations have to be made during extraction, the calculated information is stored in an additional attribute and all the underlying and for the calculation used fields are transported without any modification to the Staging Layer.

Normalization: Data is stored in the Staging ODS in a normalized, non-aggregated form. Data which is already delivered from source systems in a denormalized form (e.g. Bank Account Code and Bank Name in Customer Master Data) is stored as it is and not normalized if there is no reference point available.

Reliability: Only consistent and reliable data is populated and shown to the user. Only if the test case execution has been successful the data is is made available to the users.

1

2

3

4

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCsORGANIZATION

Guiding Principles

Organizational Guiding Principles Platform Projects Support People

Technology Guiding Principles Data Extraction Audit Trail Normalization Reliability Hierarchy Summaries Standard Business Content Data Models Dimensional Models KPIs Existing BW Projects / Objects: No Business Logic Outside BW Logical Partitioning

4

GUIDING PRINCIPLESOrganizational Responsibil ities

Strategic TacticalPlatform

Strategic Solutions (e.g. adidas SAP BW) and Global Solutions (e.g. GDWH, ISIS) are in the responsibility of the BI CC. Every IT CC which receives BI Demand for a Strategic Platform has to align the implementation approach upfront with the BI CC and Architecture.

ProjectsProjects on Strategic and Global Solutions are executed under the responsibility of the BI CC.

SupportSupport (Change Requests and KSR-Activities) for Strategic and Global Solutions are within the BI CC Responsibility.

PeoplePeople working pr imarily on Strategic / Global Projects or are Supporting Strategic / Global Solutions are part of the BI CC Team.

PlatformTactical Solutions (e.g. aRENA, SOFY, Reebok BW) are within the responsibility of the Region/Area. If a Tactical Solution is migrated to or replaced by a Strategic Solution the responsibility goes to the BI CC.

ProjectsProjects on Tactical Solutions are executed under the responsibility of the Region/Area..

SupportSupport (Change Requests and KSR-Activities) for Tactical Solutions is provided by the Region/Area.

PeoplePeople working primarily on Tactical Projects or Supporting Tactical Solutions are reporting into the Region/Area. If they change their Scope towards Strategic Solutions they become part of the BI CC.

Guiding Principles for Organization, Processes, Responsibilities and Technology ensure clear communication and expectations.

12

GUIDING PRINCIPLES Organizational Responsibilities

Strategic TacticalPlatform

Strategic Solutions (e.g. adidas SAP BW) and Global Solutions (e.g. GDWH, ISIS) are in the responsibility of the BI CC. Every IT CC

which receives BI Demand for a Strategic Platform has to align the implementation approach upfront with the BI CC and Architecture.

ProjectsProjects on Strategic and Global Solutions are executed under the Governance responsibility of the Global BI CC. Budget-, Demand and Project Management responsibility is in the Regions. Staffing can be combined from Region and HQ.

SupportSupport (Change Requests and KSR-Activities) for Strategic and

Global Solutions are within the Global BI CC Governance Responsibility.

PeoplePeople working primarily on Strategic / Global Projects or are Supporting Strategic / Global Solutions are part of the BI CC Team.

PlatformTactical Solutions (e.g. aRENA, SOFY, Reebok BW) are within the responsibility of the Region/Area. If a Tactical Solution is migrated to or replaced by a Strategic Solution the responsibility goes to the BI CC.

ProjectsProjects on Tactical Solutions are executed under the responsibility of the Region/Area..

SupportSupport (Change Requests and KSR-Activities) for Tactical Solutions is provided by the Region/Area.

PeoplePeople working primarily on Tactical Projects or Supporting Tactical Solutions are reporting into the Region/Area. If they change their Scope towards Strategic Solutions they become part of the BI CC.

13

One Global IT

BI CCBI

Steering Board

Guiding Principles

Global Templates

Dedicated Business BI CCsORGANIZATION

Global TemplatesPROJECT PLANASAP based MS Project Template

KPI DocumentationDedicated Business Owner per KPI

Report SpecificationLogic and Layout

Testing

14

ACTUALS PLAN

TECHNICAL ARCHITECTURE adidas BI / Group Reporting System Landscape

Legal & management reporting on Group/Brand level

supporting strategic and tactical performance management

Management & operational reportingand analysis for variousstakeholders on region, countryor department level

ERP

& other source systems to run the daily business SAP Navision RMA APO

BI FOUNDATION

(SAP BI)

GRAPE IPSGroup

Brand

Region

Area/ Subsidiary

15

SAP BI System Landscape We are not proud about the 14TB in PWG, but that we kept it at 13TB for more than 6 months

BI Systems

ERP Systems

SAP AFSadiraceAS400

(Korea)

Retail

Systems

RBO 3.7 SAP RetailaJapan

(RetailWorks)US

(NSB)

ERP

BW

(PWG)

PoS

BW

(POS)

GRAPE (PFI)

Group Reporting

Legal and

Management

Regional and

Area Managementand Operational

Reporting

Operational Retail Reporting

Purpose & Scope of the Majo

r Business Area

Content and Level of Detail of the corresponding BI

System and the Data Flows

Source Systems with Level of Detail

Data Feeds

SAP Portal

BIA BIABIA

16

Data Integration Keep it simple stupid!

Common SAP BW Server

Source System TypesSAP AFS

SAP BW Schema

SAP BW

Oracle Integration Layer

Data Integration can be divided into thefollowing groups:

SAP:

Data which is extracted from SAP Systems will loaded directly to SAP BW using the standard interfaces types provided by SAP. BW is initiating the data extraction process (Pull)

q Standard Extractors from R/3q Generic Extractors from R/3q Export Data from other BWs

Non SAP:

Data from all non SAP Source Systems will be loaded into a common

Integration Layer first. This Integration Layer is part of the SAP BW Oracle Database. The source systems are initiating the data extraction process (Push), because the batch schedules of the local systems cannot be controlled.

q RDBMS (two options available!)q Flat Filesq Tibco

PSA

ODS

Pull

SAP BW

Standard

Generic

Export

Data

DB Conn.

adiRaceRDBMS Flat File

Push

17

TECHNICAL ARCHITECTURE Layer Architecture enables Flexibility and Growth Control

Common SAP BW

The InfoCube

Layer is a data mart layer, containing requirement specific Cubes with conformed dimensions. It serves 80-90% of the Frontend requests. Data is aggregated on the time dimension (current planning is on month, for retail probably on calendar week).

The normalized DWH layer is a transactional layer, containing

harmonized information objects across all source systems & interfaces (e.g. harmonized customer). It contains only the reporting relevant attributes (~20% of the attributes in the Staging ODS Layer).

The staging ODS layer is a transactional layer, containing consistent information within each data source (1:1 copy of data source. It

contains all (100%!) attributes of the source object. This allows flexibility in case of new upcoming requirements.

The persistent Staging Area is a one-to-one copy of the data in the operational system. It does not contain any harmonized or modified data.

Physical InfoCube

Layer

Normalized DWH Layer

Staging ODS Layer

Persistent Staging Area (PSA)

Query Layer Queries are logical objects which can contain calculations and predefined filters and access one Object in the Logical InfoCube

Layer.

Logical InfoCube

Layer The Logical InfoCube

Layer is the access layer provided to the Queries. An Object in this layer can be the one to one representation of a physical Object or combine several physical objects.

18

TECHNICAL ARCHITECTURE Partitioning enables Localization and Performance

SAP BW

PhysicalInfoCubes

DWH

StagingODS

(PSA)

QueryLayer

Logical InfoCubes

EMEA1 EMEA2 EMEA3 EMEA4 EMEA5 AP1 AP2 AP3 US1 US2 US3

Global

EMEA AP US

Depending on the Extraction

Capabilities Extraction is done into One or More PSA Objects.

Logical Cubes (Multiproviders) are created to show only one Object to the User.The same Concept is used for Historical Data Integration.

The Data from each Region is stored in different Physical Objects (e.g. Region EMEA Cube 1

5). to Reduce Object Size. For Region EMEA a split similar to the Area Structure is made.Better Performance

through parallel data-flow execution (in this example 11 processes).Local Adjustments

per Region in the Processing Logic are possible.Consideration of different Time Zones.

19

BUSINESS PERFORMANCE MANAGEMENT Top-Down Approach with Balanced Scorecard Dashboard

20

BUSINESS PERFORMANCE MANAGEMENT Standard Reports, Root-Cause-Analysis support Performance Management

Order Backlog Root-Cause-Analysis

Flexible & Detailed Standard Reporting for SalesCustomer Delivery Performance -

OTIF

Overall Performance Management

21

BUSINESS PERFORMANCE MANAGEMENT BI Tools Aim

To Support Improvement

Delayed

OutputEarly

Intake

Stock Turn

Drivers are key to understanding & influencing stock turn

BI KPIs

Driver Pull Forwards

On Time In Full (OTIF)

Blocked Stock

Credit Blocks

Reservation

s & Contracts

Other Blocks

Supply chain Buffers

Purchase Buffers

IB Lead Time

Early availability

Clearance Activities

Aged Stock

Slow Movers

Small Quantities

Excess Stock

SC Input

Sales Forecast Accuracy

Sales FC Accuracy

22

BUSINESS PERFORMANCE MANAGEMENT Overall KPI-Tree is pre-requisite for Structured Root-Cause-Analysis

23

QUESTIONS AND ANSWERS

SAP 2008 / Page 24

Copyright 2008 SAP AG All Rights Reserved

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge

and other SAP products and services mentioned herein as well as

their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. Business Objects and

the Business Objects

logo,

BusinessObjects,

Crystal Reports, Crystal Decisions, Web Intelligence,

Xcelsius

and other Business Objects products and services mentioned herein

as well as their respective logos are trademarks or registered trademarks of Business Objects

S.A. in the United States and in several other countries. Business Objects

is an SAP Company. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may

vary.The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and

not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP

product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document

is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that

you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte knnen Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge

und andere in diesem Dokument erwhnte SAP-Produkte und Services sowie die dazugehrigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Lndern weltweit. Business Objects

und das Business-Objects-Logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius

und andere im Text erwhnte Business-Objects-Produkte

und -Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der Business Objects

S. A. in den USA und anderen Lndern weltweit. Business Objects

ist ein Unternehmen der SAP. Alle anderen in diesem Dokument erwhnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte knnen lnderspezifische Unterschiede aufweisen.Die in dieser Publikation enthaltene Information ist Eigentum der SAP. Weitergabe und Vervielfltigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, nur mit ausdrcklicher schriftlicher Genehmigung durch SAP AG gestattet. Bei dieser Publikation handelt es sich um eine vorlufige Version, die nicht Ihrem gltigen Lizenzvertrag oder anderen Vereinbarungen mit SAP unterliegt. Diese Publikation enthlt nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP-Produkts. SAP entsteht aus dieser Publikation keine Verpflichtung zu einer bestimmten Geschfts-

oder Produktstrategie und/oder bestimmten Entwicklungen. Diese Publikation kann von SAP jederzeit ohne vorherige Ankndigung gendert werden.SAP bernimmt keine Haftung fr Fehler oder Auslassungen in dieser Publikation. Des Weiteren bernimmt SAP keine Garantie fr die Exaktheit oder Vollstndigkeit der Informationen, Texte, Grafiken, Links und sonstigen in dieser Publikation enthaltenen Elementen. Diese Publikation wird ohne jegliche Gewhr, weder ausdrcklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschlielich, hinsichtlich der Gewhrleistung der Marktgngigkeit und der Eignung fr einen bestimmten Zweck sowie fr die Gewhrleistung der Nichtverletzung geltenden Rechts. SAP haftet nicht fr entstandene Schden. Dies gilt u.

a. und uneingeschrnkt fr konkrete, besondere und mittelbare Schden oder Folgeschden, die aus der Nutzung dieser Materialien entstehen knnen. Diese Einschrnkung gilt nicht bei Vorsatz oder grober Fahrlssigkeit.Die gesetzliche Haftung bei Personenschden oder Produkthaftung bleibt unberhrt. Die Informationen, auf die Sie mglicherweise ber die in diesem Material enthaltenen Hotlinks

zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP untersttzt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewhrleistungen oder Zusagen ber Internetseiten Dritter ab. Alle Rechte vorbehalten.

SAP NetWeaver BI as Enterprise Data WarehousePlatformAGENDA HISTORYADIDAS BI STRATEGYMission and StrategyADIDAS BI STRATEGYPrerequisite for successful BI is ERP and Process HarmonizationORGANIZATIONOverview - Governance Framework and Organizational SetupBI OrganizationEvolved over time this is the 3rd version in 30 monthsGovernanceTasks - ProjectsORGANIZATIONDedicated Business BI Competence CentersORGANIZATIONBI Steering BoardORGANIZATIONGuiding PrinciplesGUIDING PRINCIPLESOrganizational ResponsibilitiesORGANIZATIONGlobal TemplatesTECHNICAL ARCHITECTUREadidas BI / Group Reporting System LandscapeSAP BI System LandscapeWe are not proud about the 14TB in PWG, but that we kept it at 13TB for more than 6 monthsData IntegrationKeep it simple stupid!TECHNICAL ARCHITECTURELayer Architecture enables Flexibility and Growth ControlTECHNICAL ARCHITECTUREPartitioning enables Localization and PerformanceBUSINESS PERFORMANCE MANAGEMENTTop-Down Approach with Balanced Scorecard DashboardBUSINESS PERFORMANCE MANAGEMENTStandard Reports, Root-Cause-Analysis support Performance ManagementBUSINESS PERFORMANCE MANAGEMENT BI Tools Aim To Support ImprovementBUSINESS PERFORMANCE MANAGEMENTOverall KPI-Tree is pre-requisite for Structured Root-Cause-AnalysisQUESTIONS AND ANSWERS Copyright 2008 SAP AGAll Rights Reserved