Business Case for SAP HANA , SAP S/4 HANA , BW on HANA

Ajay Kumar Uppal

• Oracle 11 • Self-tuning database components, • Sophisticated partitioning schemes calling for skilled resources, • Limited data compression• Licencing by number of cores rather than compute capacity. Core count can go up and down in line with demand.• Even non-production environments have to be licenced

• Oracle 12c • Oracle 12c is Columnar, compressed, high-speed, in-memory database to directly compete with SAP Hana is what is promised in the next release

of Oracle 12c database.• Customer needs to purchase, integrate and manage a variety of Oracle products: 12c database, Exadata software and hardware, TimesTen

database, Oracle Clusterware, ASM etc.• Licencing by core rather than compute capacity. Core count can go up and down in line with demand.• Even non-production environments have to be licenced

• HANA – is the best bet and is the solution fit for future• Enables new „real-time“ use cases for customers with up to x100000 performance boost and response times Best performance guarantee using

the appliance model• Future SAP Business Suite optimized for HANA and all new functionality being built leveraging HANA.• HANA appliance model reduces operational costs by simplifying classic datacenter layers (no separate efforts needed for server, operating system,

storage, network)• Licensing by capacity as opposed number of cores and no licences for non-production environments

Way Forward – Oracle/RDBMS or HANA/In-Memory?

Moving to HANA can cut down customisation Growth, Mergers and Acquisitions have created a custom code nightmare

70%90%12%

of the custom code objects have not been used within the last 4 weeks

of the custom code objects are identical or very similar to each other (clones)

60%20%

of all custom code objects contain code inspection messages

of the system resources are attributed to the execution of custom code

of perceived functionality Gaps are available in newer version of standard SAP

Increased risk of business disruption

Unnecessary custom code increases TCO ($8k per object and $500 annual maintenance per object)

Roadblocks for adoption of SAP innovation

Source: SAP Value Management Survey

SAP Suite On HANA

Business Benefits* $ 28.63 M$ 14.61 M Conservative ANNUAL BENEFITS

Likely ANNUAL BENEFITS

Capital Spend Effectiveness $ 3.60M

$ 1.90M

Value Driver (VD) % Improvement

Potential Benefit

Reduce Discounts Lost from Suppliers 2% - 3% $0.40 M - $0.60 M

Reduce Maverick Spend - Indirect Materials 10% - 20% $0.50 M - $1.00 M

Reduce Maverick Spend - Services 10% - 20% $1.00 M - $2.00 M

Supply Chain$ 1.71M

$ 0.92M

$ 10.89M

$ 5.45M

Value Driver (VD) % Improvement

Potential Benefit

Increase Cross-sell / Up-sell Effectiveness 5% - 10% $0.44 M - $0.88 M

Reduce Marketing Cost 0.01% - 0.02% $0.01 M - $0.01 M

Reduce Revenue Loss Due To Stock-outs 0.01% - 0.02% $0.00 M - $0.00 M

Improve Sales Margin (Petroleum Products) 0.005% - 0.01% $5.00 M - $10.00 M

Reduce Planning and Scheduling Function Cost 1% - 2% $0.25 M - $0.50 M

Reduce Transportation Spend (for O&G) 0.5% - 1% $0.50 M - $1.00 M

Reduce Storage Costs (for O&G)2% - 3% $0.50 M - $0.75 M

Value Driver (VD) % Improvement

Potential Benefit

Reduce Service and Maintenance Costs 0.5% - 1% $0.50 M - $1.00 M

Reduce Un-Planned Downtime Or Outages 3% - 5% $0.42 M - $0.71 M

$ 3.13M

$ 1.57M

Value Driver (VD) %Improvement

Potential Benefit

Reduce Audit Cost 10% - 20% $0.50 M - $1.00 M

Reduce Days to Close Annual Books 5% - 10% $1.07 M - $2.13 M

Reduce Days Sales Outstanding (ONE TIME) 0.05% - 0.1% $1.61 M - $3.22 M

Finance

Operational Integrity

* Average Benefits from SAP Suite On Hana

$ 7.05M

$ 3.53M

Value Driver (VD) %Improvement

Potential Benefit

Increase Employee Productivity 0.5% - 1% $3.53 M - $7.05 M

People & Talent

Conservative ONE TIME BENEFIT $ 1.61 M

PROVIDER & SAP will help you in building Business Case for HANA

SAP S/4HANA Innovation Analysis

• Interactive Presentation of Detailed Results enable fact-based Value Estimates

System Scan Analysis Interactive Report

Inter-pretation

Business Value

Rating of ERP on HANA Scenarios

Bottleneck Map

Business Case

Simulation

x. x.Supported by detailed data on Performance, Users, Transactions, Programs, Tables etc.

Rating of SAP Fiori Apps

Confidential 6

SAP HANA Business Case Customer InteractionBased on Customer Objectives, Actual System Usage and SAP Innovations

TechnicalAspects

FunctionalAspects

Confidential 7

SAP HANA Business Case Customer InteractionBased on Customer Objectives, Actual System Usage and SAP Innovations

TechnicalAspects

FunctionalAspects

Confidential 8

S/4HANA / SAP Fiori Potential by business processBusiness Process per Application Area

Summary about active processes per application area

Number of active executables differentiated by Fiori / SAPGUI

High level overview about active processes

Detailed view including KPIs

Lab Preview

Confidential 9

S/4HANA DB Simplification – Impact AssessmentConsidering used SAP standard as well as custom programs, views and appends

Confidential 10

S/4HANA Maturity AssessmentIdentify usage of transactions which will be obsolete in S/4HANA to check migration effort

Lab Preview

Impact Analysis of S/4HANA Simplifications on current business

processes

Detailed usage information

Confidential 11

Custom Code AssessmentPowered by smartShift • Requires additional Scan ABAP in the same round of scanning• Customer has to agree

Confidential 12

Data AgingIdentification of large tables with and without archiving objects and allows to evaluate strategies for hot/cold storage

Detailed information created entries per month/year in last 5Y

Visualization of data aging as Heatmap per SAP module

Lab Preview

13

Various options

Purpose • Prepare for or decide on SAP S/4HANA, SoH focus areas and transformation

• Assess maturity and quality of current Application Management Processes

• Large analysis scope covering application management and business processes

• Provides business process structure for upload to SAP Solution Manager

• Business case simulations• ERP on HANA scenarios rating• SAP S/4HANA Best practice processes• Performance aspects• Bottleneck analysis• Productivity improvements w/ SAP Fiori

• Covers all RICEFWs (reports (R), interface (I), conversion (C), enhancements (E), forms (F) and workflow (W),

• Usage of interfaces, batch jobs, workflows, custom code,

• Information on user & time distribution of usage

• Scorecards with exceptions & hints• Action item list

• Business Process High Level Flow Charts• Scorecards with exceptions & hints, detailed

data accessible • KPIs based on industry best practices• Includes majority of the application

management aspects too (RICEFWs, user, custom code)

• Industry benchmarks• Action item list

• Covers >50% standard SAP transactions vs. SAP Solution Manager Solution Documentation Assistant

• Includes mapping of custom code• Includes process variances• Can adjust to customer specific process

descriptions• Customer documents can be included in upload

Results • HANA-powered, interactive online tool• Personal presentation (2 hours)

• RBE Plus Browser (local installation)• Personal presentation (2 hours)

• RBE Plus Browser (local installation)• Personal presentation (4 times 2 hours)

• 2 days Custom Code Assignment Workshop• XML Upload file for SAP Solution Manager

Duration 2 weeks (Requires 1 scan only) 2 weeks (Requires 1 scan only) 4-10 weeks (Requires two scans) 4-10 weeks (Requires two scans)

SAP S/4HANA Innovation Analysis PROVIDER Solution Operation Analysis PROVIDER Usage Analysis SAP Solution Manager Integration

SAP S/4HANA Innovation Analysis (ECC/CRM/SRM) Realization Steps

Confidential 14

Results Interpretation

The results are interpreted and prepared by PROVIDER, tailored to the needs of the Client

Step 4Strategic

Goal Definition

Strategic goals are defined and selected amongst a list from the PROVIDER SSA Questionnaire

Step 1

SCAN1 ABAP Import

The SCAN1 ABAP program is imported and executed in the Client SAP Production System. Report is extracted and uploaded to the RBETM Portal

Step 2Results

Handover Workshop

The Client is invited to a two-hour workshop to present the results of the S/4HANA Innovation Analysis and define value realization approach

Step 5

Value Realization

The defined approach and steps based on PROVIDER’s recommendations are realized

Step 6Results

Processing / Analysis

S/4HANA Innovation Analysis is run on the extracts and all results are loaded into a VPC for 3 months

Step 3

S/4HANA Innovation Analysis Results in less 4 weeks

Activity WeeksSTART 1 2 3 4

Strategic Goal DefinitionImportant prerequisite: ST03N workload monitor has to have at least three months of performance data, and completion of the check list + questionnaire SCAN1 ABAP Import and ExecutionSCAN1 of productive system dependent on Release to Production time for the SCAN1 ABAPs and their execution (HP can get engaged for this activity); Results: extract files provided to PROVIDER

Customer

Results Processing / AnalysisThe extract is processed and packaged into the S/4HANA Innovation Analysis

PROVIDER

Results InterpretationResults are interpreted and collated in a PPT and initially aligned with the customer

PROVIDER

Results Handover WorkshopHandover Results: 1 x 2hr workshop

PROVIDER

Value RealizationThe S/4HANA Innovation Analysis results are available for three months following the handover

Confidential 15

Customer and

PROVIDER

Confidential 16

Calculating the Acceleration PotentialAssuming DB Read Time gets 10x faster:

SAP HANA Time needed in % Example Z2SE Example ZF19

Before Response Time 100% 100%

DB Time 90% 81%

DB Read Time 89.6% 81%

After DB Read Time (10% of before) 8.96% 8.1%

DB Time 9.36% 8.2%

Response Time 19.36% 27.2%

Roughly how many times faster? 5 3.7%