sap big data forum 2013 b3 ibm

IBM Global Business Services

© Copyright IBM Corporation 2013 Bas van Dijke

Identify & realize your SAP HANA business value case

Redefine your business


© Copyright IBM Corporation 2013 Bas van Dijke 2

Agenda

Business transformations enabled by in-memory computing

SAP HANA Decision Criteria

– Functionality

– Strategic Fit

– Risk / Adoption Challenges

– Costs / Business Case Calculation

Identify and Realize your SAP HANA Use Case

The next step

Questions – Discussion



The In-Memory Opportunity What does this mean for you?

In-memory computing moves data and information sources from remote databases into local

memory so that results of analyses and transaction are available immediately

Answer Any Question Immediately

– Factor x100.000 Faster Analytics

Access Current and Complete Information

– Real-Time Access to Transactional Data

Discover Deeper Insights

– Eliminate aggregation to interrogate granular data

Manage Large Data Volumes Cost Effectively

– Groundbreaking In Memory HW Innovations

3

Speed

Scale

Flexible



Business transformations are enabled by in-memory computing

HANA‘s value is in its ability to do things which the business has wanted to do for a long time,

but the technology could not. It is also about doing things the business has not thought of yet.

HANA is transformational technology



Examples: Real-time information

Respond to uncontrolled events and business feedback faster:

Measure the response of a sales campaign as the message is

delivered and immediately make adjustments.

Monitor inventory on smart shelves and replenish faster to

reduce lost sales and inventory under or over-stocking.

Track productivity of equipment, assets, and source materials;

identify breakdowns and bottlenecks as they occur, and instantly

optimize a new plan around the missing resources.

Monitor capital markets in parallel with capital needs; identify the

optimal times to incur or repay debt.

Calculate item-level gross profit and make pricing adjustments

daily instead of monthly.



Examples: Process optimization and embedded analytics

Change processes to make decisions with a real-time big-

data perspective:

Make an offer to a customer who calls your contact center by

instantaneously comparing his or her voice responses,

emotional indicators, latest Tweets, and profile data, to success

rates with customers who had a similar state of mind.

Find nearby technicians, and re-plan their work orders instantly

when a malfunctioning valve on an oil rig sounds an alarm. Tell

the technician what the alarm means, what repairs will be

necessary, and where the closest parts and materials are kept.

While the customer is shopping, prompt retail associates or your

Web store with add-on sales opportunities by comparing a

customer’s sales, inquiry, and social media activity with the

success rates of different add-ons for similar customers.



Examples: Simulation and new business models

Run any ‘what if …’ scenario you can think of:

Simulate shipping and inventory routes given weather conditions, fuel prices,

traffic anomalies, and detours to determine optimal routings – or find last

minute options for alternatives.

Simulate customer loyalty scenarios based on attitudes, demographics,

trending, or any other input criteria to optimize churn rates.

Calculate the impact a transaction will have on your overall risk exposure.

Make a real-time decision whether to approve the transaction or not, and

how to hedge it.

Use these results to create new business models and flatten your

organization:

Change compliance checks that were historically ‘after-the-fact’ reports into a

real-time condition of accepting a transaction. Shift accountability and

authority deeper into the ranks, eliminating some approvals and

management labor.

Sell into new markets and customers who have more demanding service

levels.



The In-Memory Opportunity SAP‘s strategy with HANA

8

Min. SAP BW 7.3 SP5 & SAP HANA 1.0 SP3

*

Side by Side

• SAP HANA real-time

operational analytic

• Complete BI Suite with BI

4.0 runs on SAP HANA

• Flexible real time analysis

of operations on detail level

„Introduction“

„Innovation“

Primary Persisitence

• SAP BW powered by SAP HANA

• SAP HANA platform for in-memory

applications

• Further optimization of BI 4 Suite

for SAP HANA

• Industry and LOB Analytics

Applications

• Primary persistence and optimized

for SAP BW

One Store

• SAP Business Suite optimzed for

In-memory computing

• SAP HANA only persistence layer

for SAP Business Suite

• Reduced landscape complexity

• Value chain transformation

Capabilities

Benefits

„Transformation“

Oct ´13



Agenda



– Functionality

– Strategic Fit




The next step




SAP HANA Decision Criteria Just taking a look at possible Performance Improvements is insufficient to justify an investment in SAP HANA.

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Functionality

Strategic

Fit

Risk Costs

SAP HANA



SAP HANA Decision Criteria: Functionality Currently there are multiple options for fast information on the market

IBM (Netezza), Oracle (Exadata) und Teradata offer hard disk based Data Warehousing Appliances need to evaluated as well, as they might be better suited, depending on the needs and starting position

Research case: SAP BW powered by HANA Performance Tests proved:

– High Data Compression Rate (up to 9x),

– Increased Data Loading Speed

– Improved Query Perfomance in Reporting

Performance Optimization needed for conventional databases (indices, aggregates) are no longer necessary to the same extent

High Performance Reporting at single transaction level and efficient support of the coordination process would be possible in the project

A decrease of complexity in the SAP BW data model can be achieved

Development cooperation of SAP

with large hardware companies

ensure an integrated solution.

Criterion SAP HANA

High-

Availability

Disaster-

Recovery

Data Storage

Optimisation

Integrity

The use of SAP HANA can lead to a reduced complexity of the SAP BW data model while at the

same time improving response time of reporting. However, bad modeling will always lead to bad

results…

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SAP HANA Decision Criteria: Strategic Fit Exemplary PoC: As a start, different Implementation Scenarios need to be explored according to the date and the kind of launch of HANA.

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Traditional Landscape:

- SAP BW

- SAP ERP

- SAP Bank Analyzer

IT Strategy

Landscape on HANA:

- SAP BW on HANA

- SAP ERP on HANA

- SAP AFI RDL Extension

on HANA

Hybrid Scenario:

- SAP BW on HANA

- SAP ERP

- SAP Bank Analyzer

traditional recommended products strategic

Scenario 1 No Implementation of SAP HANA within or outside of the project.

Scenario 2a Implementation of SAP BW on HANA in stage 1 of the transformation

Scenario 2b Implementation of SAP BW on HANA in stage 4 of the transformation

Scenario 3 Migration of the old BW onto HANA outside of the current program scope.

Overview of exemplary Scenarios:



SAP HANA Decision Criteria: Strategic Fit Organizations are using the enabling technologies to address a wider variety of application scenarios.

More coherent and integrated

technologies will come during the

next five years, which will encourage

IT organizations to adopt IMC

Most IT organizations are unaware of

the dramatic potential for

breakthrough innovation carried by in-

memory technology

Only the most leading-edge IT

organizations have dared to consider

the previously unthinkable

applications that these technologies

enable

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SAP HANA Decision Criteria: Strategic Fit In-Memory technologies will evolve to “Main-Stream” within the next 2 – 5 years and will have a huge influence on the IT of the banking industry.

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● In-Memory technologies will evolve to “Main-Stream” within the next 2 – 5 years

● In-Memory technologies will have a huge influence on the IT of the banking industry

● SAP positioned HANA as a key component of their future development (Bank Analyzer, BW, ERP)

● Contemporary build-up of skills in this technology is recommended

● The use of SAP HANA as data base for SAP BW has a high strategic fit, due to the ability of processing large amounts of data and reduction of complexity

● Potentially necessary time savings i.e. in the closing process can be realized.

Strategic Fit

Ris

ik o

f

Imp

lem

en

tati

on

High

Low

Low High

Bank Analyzer

(RDL Extension)

on HANA

SAP HANA as data base

for SAP BW

CO-PA Accelerator

on HANA

FI-CO Accelerator

on HANA

SAP HANA Solutions for the Banking Industry

Future Use Case Scenarios

Fraud Management on

HANA

Liquidity Risk Management

on HANA

Business Planning and

Consolidation on HANA



SAP HANA Decision Criteria: Risk / Adoption Challenges HANA specific deployment requires a breadth and depth of skills and IBM is a great one-stop-shop to lower implementation risk.

Data Design

Data Modeling

Data Governance

Enterprise Architecture

Sizing

Installation

Operations

Application Maintenance

Disaster Recovery

Core SAP Application Knowledge

SAP Data Model Knowledge

SQL Mobility Data Services

Development

HANA

SAP Applications

Business Analytics

Enterprise Information

Management

Infrastructure & Operations

Development

Strategy & Transformation / Domain Knowledge

Use case analysis and definition

Analytics Application Development (BOBJ, etc)

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SAP HANA Decision Criteria: Cost / Business Case Calculation An Example of a BW on HANA Business Case for one of our recent Clients.

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Some of our 50+ Assumptions with direct impact on the cost/benefit picture: – SAP BW Size is 5 TB, SAP BW on HANA Size is 2TB

– Saving through SAP HANA compared to traditional BW (derived from reference installations) • 15% of costs for implementation

• 10% of yearly maintenance and development costs

• Efficiency increase of 4,2 % for 15 Power Users and 0,6% for 200 Standard User



SAP HANA Decision Criteria: Final Examination After comparing the different scenarios with similarily weighted factors, we provide our detailed data base to our client counterparts to take the final decision.

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Functionality Costs Risk Strategic Fit Overall

Scenario 1 –

Trad. BW

Scenario 2a –

SAP BW on HANA

in Stage 1

Scenario 2b –

SAP BW on HANA

in Stage 4

Scenario 3 –

Migration Old BW

on HANA

Fully negative Mostly negative Neutral Mostly positive Fully positive



Agenda



– Functionality

– Strategic Fit




The next step




Identify your SAP HANA Use Case HANA can power a transformation in business processes. It is not just about speed - it lets a business think of solutions that cannot be executed today.

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SAP HANA is more expensive than traditional databases.

Business-enabling use cases are needed in order to justify it!

• A user can do ad-hoc analysis on terabytes of real-time data, without waiting for it to be loaded into BW.

• For example, gross profit calculations that typically are done at month-end, can now be done on demand, supporting immediate adjustments to pricing, and so on.

Operational decision processes

• An organization can make real-time adjustments using correct and current information in lieu of “intuition.”

• For example, routing of trucks can be changed based on real-time information from complex event processing.

Tactical response to business events

• An executive can have real-time dashboards that provide up to the second updates on data that drives the business.

• Examples: inventory levels, current and forecast utilization of plants and machinery and people, end-to-end supply chain impact of order changes and supply disruptions, and so on.

Strategic execution



Identify your SAP HANA Use Case Composition of Use Cases and Projects surveyed by PAC*.

Companies will focus more on SAP HANA projects for more advanced tasks such as

customer data analysis, which they have indicated as one of the major use cases.

More projects in the area of optimization (transports, logistics, and procurement), since they

can provide a direct business benefit for companies in terms of cost savings.

SAP HANA will be used as a database for ERP environments to be able to improve the

performance of their transactional applications.

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Some triggers for potential “new frontier” use cases

High volumes of data

Lot´s of knowledge embedded into the process – but can be captured

Time is money

The market of one

Trigger words: real time / intelligent / personalized / optimized

Visit: http://www.saphana.com/community/implement/use-cases

Enablers / Blockers

Harmonized data

Data capturing as it happens (mobile/remote)

Experience in BW (BWA) can be a jump start

Before you can process data you will have to have it…

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Identify your SAP HANA Use Case Our Award-Winning Store Stock Optimization Solution proved IBM’s capability for identifying such an SAP HANA Use Case.

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Store Stock Optimization

Process Innovation

Real Time Stock Data

Sales Forecast

Closed Loop between transactional and analytical

system

Why SAP HANA

Real Time Mass Data Integration

Advanced Analytics

Integration SAP ERP Retail / BW / POS DM

Benefits

Discount reduction

Margin increase

Sales increase

Cross Selling Potential



Identify your SAP HANA Use Case The solution can be easily integrated into current SAP Architecture.

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SAP ERP Retail

SAP HANA

Replication

SAP BW

POS DM

Persistence

Sales

Store Stock

Optimization

Store Stock Optimization with SAP HANA

Selection

Stock Optimization Workbench SAP Business Objects

Store Transfer Order Analysis

Forecast Analysis

Stock

Purchasing

Facts

100 Stores

50.000 Articles

100 Million Rows of Sales

Data

Calculation within <200

seconds



Realize your SAP HANA Use Case The Store Stock Optimization Procedure calculates the Stock Transfer Proposals.

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Sales Data

VBRP

VBPK

Stock Data

MARA, MARD, MARC

Order Data

EKKO, EKPO, EKET

Customizing Parameters

Weighting Factors

Constants for calculation

Number of Days for one Season

SAP HANA

SAP ECC

Store Stock Optimization Procedure

Selection

•Distribution centers

•Restriction on stores

of the sales division

•Restrictions on

products, product

categories, brands,

types and MRP Type

Call Procedure

Determination of

sales rates

per Store and

Article

Trend

Calculation

Determination

of Priorities

Determine Stock transfer

code for the sender and

receiver

Stock Transfer Proposals

Ranking of

assignment

between sender

and receiver stores

based on Stock

Transfer Code

Deviation of

sales rate from

the average

sales ratio across

all stores

Calculating the

calculatory stock

level

Selection Parameters:

• Stores

• Articles

• Type

• Brand

• Season

• Customizing-

Parameter



Realize your SAP HANA Use Case Natively take advantage of in-memory computing technologies with the Predictive Analysis Library.

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Realize your SAP HANA Use Case The Sales Forecast Procedure predicts the future invoiced amount and integrates it into the calculation of the Stock Transfer Proposals.

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Sales Data

VBRP

VBPK

SAP HANA

SAP ECC Sales Forecast Procedure

Selection of stores

and products from

the Stock transfer

Proposals and

Calculatory Stock

Data

Call

Parameters for the triple

exponential smoothing (eg,

trend, seasonal and smoothing

factor).

Customizing of Forecast Analysis

Divide the amount

of data analysis

Stock Transfer Proposals

Input parameters:

•Time interval for the

historical analysis of

the data by th PAL

•Sequence number

from the Stock

Transfer Proposals

Call

Call

Stock Transfer

Proposals

Determination of

the predicted

invoiced amount

Adjustment of the

predictions with the

calculatory inventory

Call



IBM Mobility Retail CRM HANA Loyalty Management App

Each bubble

represents a user

in the store.

He/she is

identified by the

NFC/RF Reader

signal



Customer Examples: Potential Roadmap for Oil & Gas industry SAP HANA Value Driver vs. Client fitment matrix

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2. Improved Timeliness & Effectiveness through Real-time Data Access

3. Real-time complex calculations and “what if” scenarios

1. Highly Efficient Operational Reporting

4. Daily Business Operations in Real-time

•BW on HANA

•ECC real time feed to HANA using SLT

•HANA on ECC and other source Systems

“ECC on HANA”

•HANA on ECC

1. Improved/Efficient Business Warehouse:

• Data Load performance

Optimisation

• Enhanced Reporting efficiency

2. Financial Close Activities through quicker

data acquisition and reconciliation

3. Compressed DB size

4. Shipping & Inventory Analytics

1. IBM Real time Profitability Analysis

2. POS Data Management

3. Joint Venture Revenue Optimisation

1. Complex ‘What If’ Analysis

2. Trade Performance Analytics

3. Margin and Profit Simulation

Future Vision (Not applicable immediately)

•Integration of SAP and Non-SAP data

Client Value Realization Deployment

Scenario Relevant Use Cases



Customer Examples: IBM Smart Meter Real Time App

Overview:

– Analyze the information coming from smart meters to:

• Detect theft as it happens

• Monitor the electricity grid for line losses in distribution

• Analyze consumption patterns to optimize production

• Provide energy efficiency bench marking to customers

• Provide self service access to customers

Benefits:

– Detects the number of customers

who went over budget.

– Predicts the consumption pattern

of customers who are about to go

over budget in Real Time using HANA

– Prescribes customers with tips to

prevent over consumption and detect

Unusual patterns of consumption



Agenda



– Functionality

– Strategic Fit




The next step




Lab for SAP Solutions

• Full SAP Business Objects, Enterprise HANA, BW on HANA, and SAP Mobility Integration

• Real-time analytics and feeds from SAP ECC

• Production level, multi-node infrastructure based on IBM Smart Cloud

• Ongoing collaboration with IBM Research

• 16 Use Cases Available today

• European Client Centers: Berlin and La Gaude



SAP HANA Forward Engineering Roadmap

Discovery Workshop HANA Business

Assessment HANA Business Case

Roadmap and

Transformation

Duration: 3 days

Identification of customer

interest areas

Use cases Identification

Scope – Objectives definition

for the HANA Business

assessment

Duration: 3 to 5 days

Business Strategic

Analysis

Business Workshops

The IBM Key

Performance Indicators

Analysis Industry Tool.

HANA Business Case

Scope Definition

Duration: 10 Days.

Detail Use Case Definition

Identification of Use Cases

at the Report Level.

Data Transformation Logic

and Data Sources.

Definition of the IBM-SAP

HANA Road Map.

Value Justification

What is your Return on

Investment

Go decision for a Pilot

Program and

implementation of the

IBM-SAP HANA Road

Map

Duration: 5 to 10 Days.

Delivery of detailed

Roadmap and

implementation plan for

identified and prioritized

use cases.

Solution & Architecture

Design

Planning of Roll-Outs.

Discover

Evaluate

Business Case

Roadmap

1 2 3 4



Final Remarks Excerpt from Vijay Vijayasankar (Ex-IBMer) on carrying out a HANA Project

Do not jump into a POC (Proof-of-Concept) just to prove loading/ reporting works faster in a

data mart. SAP or IBM can easily show you how quickly their systems can report and load

data.

Spend a lot of time refining your use case offline before you start the project. An important

part of this step is to accurately define success up front. This helps reduce wasteful scoping

efforts during the project, and it will help the project team focus on specific targets.

Check SAP HANA performance under a variety of situations — reporting performance while

heavy loads happen, while multiple people are working on system, logging on from different

parts of network, etc.

Engage closely with SAP while the project is going on. SAP HANA is fairly new, and it will

probably need a few workarounds.

If you are going to migrate to SAP NetWeaver Business Warehouse on SAP HANA, test as

you go when migrating objects to their in-memory versions so that you can spot challenges

sooner. Definitely consider re-engineering the design of SAP BW to take advantage of SAP

HANA and avoid doing only an en-masse migration and leaving it at that.

Last but not least — poor data quality is even more damaging when the data come at you in

“lightning speed.” Garbage In/Garbage Out still applies. Profile the data, and fix them at the

source or as close to the source as possible before sending them to SAP HANA.

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