SAP Big Data Forum 2013 B3 IBM

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SAP Big Data Forum 2013 B3 IBM

  1. 1. IBM Global Business Services Redefine your business Identify & realize your SAP HANA business value case Bas van Dijke © Copyright IBM Corporation 2013
  2. 2. IBM Global Business Services 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 2 Bas van Dijke © Copyright IBM Corporation 2013
  3. 3. IBM Global Business Services 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 Scale Speed Flexible 3 Bas van Dijke © Copyright IBM Corporation 2013
  4. 4. IBM Global Business Services 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 4 Bas van Dijke © Copyright IBM Corporation 2013
  5. 5. IBM Global Business Services 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. 5 Bas van Dijke © Copyright IBM Corporation 2013
  6. 6. IBM Global Business Services Examples: Process optimization and embedded analytics Change processes to make decisions with a real-time bigdata 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. 6 Bas van Dijke © Copyright IBM Corporation 2013
  7. 7. IBM Global Business Services 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. 7 Bas van Dijke © Copyright IBM Corporation 2013
  8. 8. IBM Global Business Services The In-Memory Opportunity Oct ´13 SAP‘s strategy with HANA „Transformation“ „Innovation“ „Introduction“ One Store * Primary Persisitence Side by Side Capabilities • SAP HANA real-time operational analytic • Complete BI Suite with BI 4.0 runs on SAP HANA • 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 Benefits • Flexible real time analysis of operations on detail level • Primary persistence and optimized for SAP BW • SAP Business Suite optimzed for In-memory computing • SAP HANA only persistence layer for SAP Business Suite • Reduced landscape complexity • Value chain transformation Min. SAP BW 7.3 SP5 & SAP HANA 1.0 SP3 8 Bas van Dijke © Copyright IBM Corporation 2013
  9. 9. IBM Global Business Services 9 Bas van Dijke © Copyright IBM Corporation 2013
  10. 10. IBM Global Business Services 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 10 Bas van Dijke © Copyright IBM Corporation 2013
  11. 11. IBM Global Business Services SAP HANA Decision Criteria Just taking a look at possible Performance Improvements is insufficient to justify an investment in SAP HANA. Functionality Strategic Fit Costs Risk SAP HANA 11 Bas van Dijke © Copyright IBM Corporation 2013
  12. 12. IBM Global Business Services 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 Criterion 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 DisasterRecovery SAP HANA HighAvailability Data Storage Optimisation Integrity Development cooperation of SAP with large hardware companies ensure an integrated solution. 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… 12 Bas van Dijke © Copyright IBM Corporation 2013
  13. 13. IBM Global Business Services 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. IT Strategy Traditional Landscape: - SAP BW - SAP ERP - SAP Bank Analyzer Hybrid Scenario: - SAP BW on HANA - SAP ERP - SAP Bank Analyzer traditional recommended products Landscape on HANA: - SAP BW on HANA - SAP ERP on HANA - SAP AFI RDL Extension on HANA strategic Overview of exemplary Scenarios: Scenario 1 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 13 No Implementation of SAP HANA within or outside of the project. Migration of the old BW onto HANA outside of the current program scope. Bas van Dijke © Copyright IBM Corporation 2013
  14. 14. IBM Global Business Services 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 inmemory technology  Only the most leading-edge IT organizations have dared to consider the previously unthinkable applications that these technologies enable 14 Bas van Dijke © Copyright IBM Corporation 2013
  15. 15. IBM Global Business Services 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. SAP HANA Solutions for the Banking Industry  Bank Analyzer High (RDL Extension) on HANA Future Use Case Scenarios Risik of Implementation  Fraud Management on HANA  Liquidity Risk Management on HANA  FI-CO Accelerator on HANA  SAP HANA as data base  Business Planning and for SAP BW Consolidation on HANA  CO-PA Accelerator on HANA Low Low High Strategic Fit 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. ● ● ● ● ● 15 Bas van Dijke © Copyright IBM Corporation 2013
  16. 16. IBM Global Business Services 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.   Business Analytics  SAP Data Model Knowledge Use case analysis and definition  Analytics Application Development (BOBJ, etc) Core SAP Application Knowledge  Strategy & Transformation / Domain Knowledge  HANA Infrastructure & Operations  Data Modeling  Data Governance  Enterprise Information Management SAP Applications Data Design Enterprise Architecture 16 Bas van Dijke  Installation Operations  SQL Mobility Data Services Development Sizing Application Maintenance       Development Disaster Recovery © Copyright IBM Corporation 2013
  17. 17. IBM Global Business Services SAP HANA Decision Criteria: Cost / Business Case Calculation An Example of a BW on HANA Business Case for one of our recent Clients. 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) • • • 17 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 Bas van Dijke © Copyright IBM Corporation 2013
  18. 18. IBM Global Business Services 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. 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 18 Mostly negative Neutral Bas van Dijke Mostly positive Fully positive © Copyright IBM Corporation 2013
  19. 19. IBM Global Business Services 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 19 Bas van Dijke © Copyright IBM Corporation 2013
  20. 20. IBM Global Business Services 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. Operational decision processes • 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. Tactical response to business events • 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. Strategic execution • 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. SAP HANA is more expensive than traditional databases. Business-enabling use cases are needed in order to justify it! 20 Bas van Dijke © Copyright IBM Corporation 2013
  21. 21. IBM Global Business Services 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. 21 Bas van Dijke © Copyright IBM Corporation 2013
  22. 22. IBM Global Business Services 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… 22 Bas van Dijke © Copyright IBM Corporation 2013
  23. 23. IBM Global Business Services 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. 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 23 Bas van Dijke © Copyright IBM Corporation 2013
  24. 24. IBM Global Business Services Identify your SAP HANA Use Case The solution can be easily integrated into current SAP Architecture. Store Stock Optimization with SAP HANA SAP ERP Retail Facts Stock Optimization Workbench  100 Stores Store Transfer Order Analysis  50.000 Articles  100 Million Rows of Sales Data  Calculation within <200 seconds SAP Business Objects Stock Purchasing Selection Sales SAP HANA Store Stock Optimization SAP BW Forecast Analysis Replication POS DM Persistence 24 Bas van Dijke © Copyright IBM Corporation 2013
  25. 25. IBM Global Business Services Realize your SAP HANA Use Case The Store Stock Optimization Procedure calculates the Stock Transfer Proposals. SAP HANA Stock Data MARA, MARD, MARC Sales Data VBRP VBPK Order Data EKKO, EKPO, EKET Store Stock Optimization Procedure SAP ECC Selection Selection Parameters: • Stores • Articles • Type • Brand Call • Season Procedure • CustomizingParameter •Distribution centers •Restriction on stores of the sales division •Restrictions on products, product categories, brands, types and MRP Type Determination of sales rates per Store and Article Trend Calculation Deviation of sales rate from the average sales ratio across all stores Determination of Priorities Calculating the calculatory stock level Stock Transfer Proposals Ranking of assignment between sender and receiver stores based on Stock Transfer Code Determine Stock transfer code for the sender and receiver Customizing Parameters Weighting Factors Constants for calculation Number of Days for one Season 25 Bas van Dijke © Copyright IBM Corporation 2013
  26. 26. IBM Global Business Services Realize your SAP HANA Use Case Natively take advantage of in-memory computing technologies with the Predictive Analysis Library. 26 Bas van Dijke © Copyright IBM Corporation 2013
  27. 27. IBM Global Business Services 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. SAP HANA Sales Data VBRP VBPK Stock Transfer Proposals Sales Forecast Procedure SAP ECC Input parameters: •Time interval for the historical analysis of the data by th PAL •Sequence number from the Stock Transfer Proposals Stock Transfer Proposals Call Call Call Call Selection of stores and products from the Stock transfer Proposals and Calculatory Stock Data Divide the amount of data analysis Determination of the predicted invoiced amount Adjustment of the predictions with the calculatory inventory Parameters for the triple exponential smoothing (eg, trend, seasonal and smoothing factor). Customizing of Forecast Analysis 27 Bas van Dijke © Copyright IBM Corporation 2013
  28. 28. IBM Global Business Services 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 Bas van Dijke © Copyright IBM Corporation 2013
  29. 29. IBM Global Business Services Customer Examples: Potential Roadmap for Oil & Gas industry SAP HANA Value Driver vs. Client fitment matrix Client Value Realization Deployment Scenario Relevant Use Cases •Integration of SAP and NonSAP data 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 2. Improved Timeliness & Effectiveness through Real-time Data Access •ECC real time feed to HANA using SLT 1. IBM Real time Profitability Analysis 2. POS Data Management 3. Joint Venture Revenue Optimisation 3. Real-time complex calculations and “what if” scenarios •HANA on ECC and other source Systems 1. Complex ‘What If’ Analysis 2. Trade Performance Analytics 3. Margin and Profit Simulation 4. Daily Business Operations in Realtime “ECC on HANA” Future Vision (Not applicable immediately) •BW on HANA 1. Highly Efficient Operational Reporting 29 •HANA on ECC Bas van Dijke © Copyright IBM Corporation 2013
  30. 30. IBM Global Business Services 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 30 Bas van Dijke © Copyright IBM Corporation 2013
  31. 31. IBM Global Business Services 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 31 Bas van Dijke © Copyright IBM Corporation 2013
  32. 32. IBM Global Business Services 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 Bas van Dijke © Copyright IBM Corporation 2013
  33. 33. IBM Global Business Services SAP HANA Forward Engineering Roadmap 1 Discovery Workshop     Duration: 3 days Identification of customer interest areas Use cases Identification Scope – Objectives definition for the HANA Business assessment 3 2 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 HANA Business Case         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 4 Roadmap and Transformation     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. Roadmap Business Case Evaluate Discover Bas van Dijke © Copyright IBM Corporation 2013
  34. 34. IBM Global Business Services 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. 34 Bas van Dijke © Copyright IBM Corporation 2013
  35. 35. IBM Global Business Services Questions / Open Discussion 35 Bas van Dijke / IBM © Copyright IBM Corporation 2013.
  36. 36. IBM Global Business Services Thank You Bas van Dijke Managing Consultant BeNeLux SAP team IBM Global Business Services bas.van.dijke@nl.ibm.com 36 Bas van Dijke / IBM © Copyright IBM Corporation 2013.
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