case study: lessons from animal health international's sap netweaver bw to sap hana migration...
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Case Study: Lessons from Animal Health International's SAP NetWeaver BW to SAP HANA Migration Project. Tim Hays Dr. Berg Animal Health International, Inc . Comerit Inc. What We’ll Cover …. Introduction to Animal Health International - PowerPoint PPT PresentationTRANSCRIPT
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Case Study: Lessons from Animal Health International's SAP NetWeaver BW to SAP HANA Migration Project
Tim Hays Dr. BergAnimal Health International, Inc. Comerit Inc.
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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Animal Health International
Animal Health International, headquartered in Greeley, Colorado, is the premier animal health company and a leading distributor of production and companion animal health products
85 locations; Over 500 sales representatives
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Animal Health International
• 80,000 Customers Large and Small Animal Veterinarians, Producers and Retailers Companion Animal, Equine, Beef, Dairy, Poultry and Swine
• 85,000 SKUs sourced from over 2,000 Manufacturers Pharmaceuticals, vaccines, diagnostics, equipment, software,
pet foods, devices and other animal health supplies• Call Centers, Distribution Centers, Retail Stores, Mobile Stores
(Trucks), B2B E-Commerce
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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2013 Infrastructure before HANA
2013 Landscape before SAP HANA• SAP ERP 6.0 EhP6 • SAP BW 7.3• Virtualized on HP-UX, DB2 v9.7
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Next generation SAP Real-time Data Platform
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Installation of SAP Hana
June 2013 – Go-Life with BW 7.30 on Hana Actual migration of environment took 5 weeks Prepping the BW on DB2 system took 3 month Rolled out SAP HANA Studio and Data services
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BW 7.3 on HANA Landscape
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Reducing the layers and complexity
SAP HANARow/Column store
OLAPOLTP
Structured Unstructured
Real-time Replication Batch ETL/ELT
Planning Predictive/Statistical
Application Services UI Development tools
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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AHI’s Stratification Vision
Customer Stratification:
Method of stratifying customers into key groups to improve process and relationships.
Example: Silver, Gold, Platinum customer status (hotel, airline industry)
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AHI’s Stratification Vision
Common Practice
1. No defined customer stratification 2. Customer groups based on market type or product line3. Top customers based on revenue or gross profit
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AHI’s Stratification Vision (cont.)
Good PracticeBased on more than one factor
1. Volume [sales $] based2. Gross margin3. Business potential4. Includes lagging and leading
indicators
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AHI’s Stratification Vision (cont.)
Best PracticeBased on many factors
1. Business potential2. Profitability3. Customer loyalty 4. Cost to serve
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AHI’s Stratification Vision (cont.)
The vision is defined by the questions being asked
CEOHow can I increase Profit Company wide ?
Salesrep.
Which Customer should I pursue?
Salesmanager
Which Customer
s are most
profitable?
Plant manage
r
How much
should I purchase? When?
Marketing
manager
How can I increase
brand loyalty?
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AHI’s Stratification Vision on HANA
Why Hana ?1. The first time we are able to analyze the
necessary data volume needed for stratification (e.g. 700.000 records daily for stock data married up with Copa data)
2. Gives us the flexibility to have near real-time reporting if necessary
3. Reduced reporting response time by over 30 % allowing us to include larger user community
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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Lagging and Leading Indicators
Important indicatorsYou decide which ones are most importantto you and concentrate on those
Customer Loyalty
Buying Power
Cost to Serve
Customer Rebates
Profitability
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Customer Ranking
define your ranking criteria
Status Rank % of CustomersElite Customer A 8%
Premium Customer B 20%
Core Customer C 44%
Base Customer D 20%
Casual Customer E 8%
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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SAP Data Sources
MM
ERP Data
SD
3rd Party
Government, Social
CRM
COPA
FinancialBPC
Initiate a data reconnaissance effort • Data you have in ERP but not yet available in Data Warehouse• Data ready to report on in Data warehouse (might need some
remodeling)• Data coming from entirely external data sources (in our case
governmental websites containing Agriculture statistics)
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Opportunity Data
find data relevant to you
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Data Challenges
• Multiple sources of Internal data More than one ERP system More than one CRM platform
• Data is not collected congruently Rebates, chargebacks, net-downs impact sales revenue and
profitability calculations• 3rd party data is hard to correlate
No common key between internal and external data• Dataset is too large to process with available tools
85,000 products * 80,000 customers * 400 plants
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It Starts with the Data
Data
Analytics
Stratification Views
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Stratification Views
DataInventory
COPAExternal Statistics
Customer ranking
view
Inventory Ranking
view
Profitability View
Sales Penetratio
n view
Inventory, Copa and external statistics data are the building blocks of AHI’s Stratification solution
Based on this data we have Customer ranking reports, Inventory ranking reports, Sales Penetration reports and Profitability reports
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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Example: AHI’s Inventory Stratification
Inventory Stratification:
Method of stratifying inventory (items/SKUs) into high and low performing groups.
Example: A B C D
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Inventory Stratification
Sales Revenue
Hits
GMRIO
Average Inventory____________________________________
Gross Margin
Count of Order Lines
Sales as % of Total Sales
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Inventory Ranking
define your ranking criteria
Rank % of TotalA 60%
B 20%
C 10%
D 10%
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Inventory Stratification
Stage Inventory snapshot data for amount and value on hand per plant
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Inventory Stratification (cont.)
COPA data staged
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Inventory Stratification (cont.)
Combine Inventory Snap Shot with COPA data
InventorySnapshot
COPA Invoice
level
Inventory Stratification Reporting Level
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Customer Stratification
Apply algorithms to basic data and populate Stratification staging DSO
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Inventory Stratification
• Inventory Stratification Demo Using HANA
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Business Adoption
• Education Sessions for Business and IT
• Executive sponsorship This cannot be an IT or Marketing project, it must have high-
level support• Create a cross-functional project team
Marketing IT Sales
• Tie to incentive programs• Make it a game
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Customer Stratification
Predictive Analytics
HANA R – K MeansHANA R – Decision Trees
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What We’ll Cover …
Introduction to Animal Health International Animal Health International goes to HANA Animal Health International’s vision for Customer and Inventory
Stratification on HANA Defining KPIs Identifying Data Designing the Solution Wrap-Up
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7 Key Points to Take Home
• Stratification is critical to understanding customer and inventory performance over time
• Customer and inventory stratification methodology will require business adoption to be useful
• Available data will determine starting point for ranking criteria• Acquiring quality data can be a challenge• Ranking customers and inventory with limited data set is better
than no ranking at all• Stratification can be a big data problem requiring tools like HANA• Business adoption will require education and an implementation
plan
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Where to Find More Information
• www.naw.org/publications/pubs_item_view.php?pubs_itemid=145 Customer Stratification Overview
• http://id.tamu.edu/intensive-customer-stratification-program Texas A&M University Education
• http://events.sap.com/sapphirenow/en/session/2371 Gray Bar utilizing HANA for Customer Stratification
• www.sap.com/asset/index.epx?id=aaff7f67-7400-490e-a800-ad08f4f1eb09 SAP Customer Value Intelligence Overview
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Your Turn!
How to contact us:Tim Hays
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