The goalofthispresentationistoexplorehowyourfinanceorganizationcanbenefitfrom SAP HANA, the innovative platformtodriveyourbusiness in real-time.Itshouldprovide a goodunderstandingofwhat SAP HANA (in-memory computingtechnology) is, andthebusinessvaluethatcanbeachievedwith innovative - yet non-disruptive - real-time solutionspoweredby SAP HANA, helpingyou create sustainable value
We will briefly discuss current trends in the light of the latest mega-trend – big data – and look at the challenges and opportunities this phenomenon presents for the Finance LoB.We will then introduce SAP HANA, a breakthrough innovation leveraging the power of in-memory computing technology, and subsequently take a closer look at the solutions powered by SAP HANA - highlighting the particular business needs they address in addition to their respective capabilities and benefits for your organization.We will conclude this presentation with examples of how customers can use and take advantage of SAP HANA (and the solutions SAP is delivering on top of the platform) and finish off with a brief summary.
So let’s start with the latest trends and their impact on today’s businesses. We shall discover that these trends not only present companies with tough challenges, but - as leading analysts suggest – they may also be a means to increase overall profitability.
When looking at global trends and their impact on finance, there are six major trends to consider:Volatility in markets, commodity prices and stocksWhich effectsRevenues and profitability, with companies having to re-evaluate target markets Financial flexibility and cash flow Increasing GlobalizationCompanies are challenged to manage Price pressureOperational costs across multiple channels and geographies (i.e. online and virtual business and the trend to offshoring/outsourcing)Higher focus on risks Which means a balancing act between Taking controlled risks, whilst Improving financial resultsPressure on MarginsWhich meansIdentifying opportunities to save costsEnabling smarter decision-makingNew RegulationsWhich meansComplying with a growing number of governmental regulationsAdhering to global business practicesNew –potentially disruptive - technologiesWhich puts companies under pressure toInvest into relevant new technologiesLeverage the potential of innovations to transform the business and create value
And if these trends aren’t challenging enough, there is also an explosion of ‘Big Data’, flooding data into every area of the global economy.In 2005, mankind created 150 exabytes (1 exabyte = 1B gigabytes = 10B copies of The Economist). In 2011, 1,200 exabytes will be created. Social platforms like Facebookhave over 800 million users, many interacting with products and servicesThe number of consumers with access to mobile devices exceeds the number of people with access to clean drinking waterWal-Mart handles 1M customer transactions every hour, feeding 2.5 petabytes of data, the equivalent of 167 times the books in the Library of Congress.Facebook houses 40B photographs.Google processes 1 petabyte of search data every hour. Decoding the human genome took 10 years when it was done initially in 2003. Now, it can be done in one week.
To increase stakeholder value and drive profitability, companies are constantly looking for ways to:gain better business insights into an ever increasing volume of data (and do it faster)maximize business process efficiencyempower their employees. When we talk about “Big Data”, we mean:increasing volumes of data from enterprise systems, mobile phones, web and social platformsthe variety of data, especially the growth of unstructured data, andthe velocity by which it needs to be processed and presented for business decision making on the most appropriate device. Considering that data is one of a company’s most strategic assets, the value to an organization in addressing these business trends and getting it right is enormous. Analyzing these large data sets “Big Data” will drive innovation and growth in companies.
Current relational database technology based on disk is proving to be a big bottleneck, withslow access speeds and programming constraints. It is not conduciveto handling today’s volume, velocity and variety of data processing requirements, especially regarding analytics and emerging applications
Even though the business environment may change, the key objectives and KPIs for Finance remain more or less the same:Ensure regulatory compliance and effective risk management by embedding controls from transaction processing to financial reportingDeliver superior service at a reduced cost by streamlining financial functions and analysisOutperform financial objectives and create sustainable value for stakeholders by delivering a 360° view of enterprise performanceThe achievement of these objectives is very dependent on IT departments and IT tools.So the key question is, how well is your organization equipped to meet its financial objectives, and what are the bottlenecks?
Financedepartmentstodayoften lack sufficientsupporttoeffectivelytacklemajorpainpoints, namely:Theydon‘thavetherightvisualisationandanalyticaltoolstoimprovedecisionmakingandeffectivelyleveragetheavailable (and relevant) dataThe sheervolumeofdatamakesitdifficulttoaccessinformationasandwhenneededTheyaretypically not empoweredtoperform flexible analyticsanddeliver fast reportsThis cansignificantlyimpactthefinancialperformanceandpreventfinancialorganizationsfrom:meetingandexceedinggoalsandcreatingsuperiorstakeholdervaluecomplyingwithregualtoryrequirementsandminimizingrisksofferingsuperiorservices in time
These inhibitors can lead to suboptimal strategic, operational, and tactical decisions, which in turn negatively affect the downstream actions taken by employees executing their organization's strategy. If you manage to get the most out of your data, you can significantly improve financial performance.In a recent IDC study, more than half of the 1,000+ respondents stated that improved access to the right information would positively impact planning processes. But there is also a significant opportunity to improve all major decision support and decision automation activities including: reporting, forecasting, predictive modeling and ad hoc analysis.
If you manage to get the most out of your data, you can actually turn a challenge into an opportunity. According to a recent study from IDC, companies that can rapidly analyze data to make fact-based, strategic decisions and continuous re-evaluations and re-assessments are more likely to be industry leaders.A further advantage of leveraging Big Data as a key asset is highlighted in a 2011 McKinsey report.The report states that “big data” is in fact the new source for competitive differentiation.When leveraged appropriately, it can create value in several ways:provide transparency at an unprecedented level.allow specific, customized activities (from targeted market segments to the individual customer).Algorithms that mine these large data sets can support - and in some cases even replace - human decision making.Provide predictive modeling – using data in various scenarios to test possible outcomes.In addition to the above, big data enables the creation of new business models, products and services.(for more info: http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Big_data_The_next_frontier_for_innovation)
A 2011 McKinsey report says, you could achieve up to a 60% increase in operating margin by effectively untapping big data.When leveraged appropriately, it can create value in several ways:provide transparency at an unprecedented level.allow specific, customized activities (from targeted market segments to the individual customer).Algorithms that mine these large data sets can support - and in some cases even replace - human decision making.Provide predictive modeling – using data in various scenarios to test possible outcomes.In addition to the above, big data enables the creation of new business models, products and services.(for more info: http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Big_data_The_next_frontier_for_innovation)
Whatdoesittaketobecome a data-drivenfinanceorganizationtoaddvaluetothebusinessandachieveyourgoals ?In essence, financemanagersneed:tohave instant, preferably real-time, accessto all relevant dataandexploredetaileddataeasilytomake all necessaryanalysis, calculationsandsimulationsasandwhenneededandperformfasterfinancialanalysisandreportsgaindeepinsightsinto all existinglatestdataandbeasuredthatthedataistrustedandcomplete.Can you do thattoday? If not, wecanshowyouhow ...
At SAP, we are well aware of the challenges our customers are facing and are committed to helping them to be a best run company. In-memory technology and SAP HANA enables our customers to take a giant step forward when it comes to leveraging data, fundamentally transforming the way companies do business.
Technology trends like growth in computing capability with multi-core processors, dramatically lower cost of main memory. Massively parallel processing technology and advancement in predictive data science with more sophisticated algorithms (e.g. automated trading, real-time behavior and recommendation analysis algorithms) are applying pressure on older data management technologies. The ability to ask any question (without knowing it in advance) on any data (without knowing the data format in advance) is now the edge the companies need from their technology infrastructure. Current relational database technology based on disk has emerged as a big bottleneck, with slow access speeds and programming constraints, and it is not conducive to handling today’s volume, velocity and variety of data processing requirements in analytics and emerging applications. SAP in-memory computing is a breakthrough technology that enables analysis of very large, non-aggregated data at unprecedented speed in local memory (vs. disk-based database). The primary capabilities of this technology are to store information in primarily columnar format (note - it also has the row store for certain data types) that can compress and store massive amounts of information in main memory, utilize parallel processing on multiple cores on the Intel architecture and move data intensive calculations from the applications layer into the database layer for even faster processing. Since all the detailed data is available in main memory and processed on the fly, there is no need for aggregated information and materialized views, fundamentally simplifying the architecture and hence reducing latency, complexity and cost. In business terms, this means that complex analyses, plans and simulations can be done based on real-time data and made available immediately. Previously, people had to decide between speed versus a more granular picture of their business. Now customers can look at information in any level of detail and in real-time. This technology serves as the foundation for the SAP HANA platform. This breakthrough innovation will allow you to change the way you do business today.Imagine:What if you could explore data and make decisions on data that reflects the current state of your business in real-time? (no more delays between recording and availability of data for analysis)What if every employee can plan and work with instant answers to complex questions?For instance What if you could analyze information about your each and every customers, products, suppliers, partners to gain insight into key indicators such as profitability, spend and quality?What if you could take a process that takes a week and shrink it so that it only takes an hour?Or What if you could take an activity which takes an hour and shrink it so it only takes a second?Imagine how you could use this insight to steer and guide your business processes for e.g. for new products or service offerings
SAP HANA is the perfect starting point for organizations that need to analyze high volumes of transactional and historical data in real-time. It enables organization to analyze business operations based on large volume and variety of detailed data in real-time, as it happens. By running in parallel to SAP Business Suite Applications, SAP HANA allows users to query large volumes of data in real-time without having to wait for scheduled reports to run or traditional data warehouses to be populated with aggregated data. With SAP HANA you get:Speed and power of in-memory processing - Real-time insight into business operations without the delayFlexible and detail data to answer any question - Lower TCO by reducing IT complexity Flexible modeling and calculation capabilities - Complete insight based on huge volumes of detailed informationFor Explanation in case speaker is asked - What is an appliance:Answer: SAP HANA appliance is a flexible, multi-purpose, data-source-agonistic in-memory appliance that combines SAP software components optimized to run on Intel-based hardware delivered by SAP’s leading partners such as Dell, Cisco, IBM, HP, Fujitsu and Hitachi Data Systems. It includes a number of integrated SAP software componentsincluding the SAP HANA database, real-time replication services, data services, data and lifecycle management, support for multiple interfaces based on industry standards and easy to use data modeling tool called SAP HANA studio.
SAP is delivering a new class of solutions on top of the SAP HANA platform that provide real-time insights on big data and state-of-the-art analysis. such as machine learning, pattern recognition, and predictive capabilities. These solutions can empower companies to transform the way they run their business, from enabling rapid, sense-and-respond processes and targeted actions, to even rethinking their business models. We distinguish between,Applications, powered by SAP HANA which provide a rich set of functionalities that addresses a company’s existing business processes and enables innovations in processes and business models (e.g. SAP Smart Meter Analytics powered by SAP HANA); applications provide business logic, user interface, workflow, and other capabilities and are optimally designed to run natively on the SAP HANA platform to fully utilize its in-memory computing capabilities (e.g., business logic executed in the database layer).In addition there are accelerators and analytic content available. Accelerators are software that utilizes the power of SAP HANA to dramatically improve the performance of existing SAP Business Suite functionality in small, well-defined areas that bring immediate value to customers. The Customer Segmentation Accelerator that we are focusing on today is such an example and follows the SAP CO-PA Accelerator powered by SAP HANA. Analytic Content is complementary software that complements SAP applications and supports the customer’s integration, implementation, and configuration activities. Analytic content provides pre-built reporting, dashboards, and data models that run natively on the SAP HANA platform (e.g. Operational Reporting powered by SAP HANA).In the near future, SAP plans to provide unrestricted SAP HANA powered applications, accelerators and analytic content for Lines of Business that improve enterprise planning and performance management, business planning and consolidation as well as customer planning and intelligence. In addition, several industry applications, especially for Banking, Retail, Consumer Products and Utilities, are planned to bring real-time processing on Big Data to key industry specific processes.In order to ensure quicker time to value some of these solutions, including the SAP Financial and Controlling Acceleratorare also delivered as rapid-deployment solutions. The SAP Rapid Deploymentsolutions provide maximum predictability with a fixedcost and scope.
So let’s see how SAP HANA and the in-memory technology can impact your business and help you to create value for your organization.
SAP HANA can help you:Gain deep insights into large volumes of financial dataEasy access to large volumes of financial data from the entire organizationSlice and dice into financial data at any level of granularity and in any dimension Support for different types of dataState of the art analyticsAccess real-time financial informationInstant availability of all relevant financial dataAnalysis in real-time dataSeamless synchronization of financial data On the fly calculations and aggregations as and when neededPerform fast and flexible analytics and reportingUser-driven, flexible reporting and analytics modelsFast financial analysis and reporting on large volumes of data Rapid exploration of detailed financial dataComplete view of all relevant financial information
This is a summaryslideof all solutionspoweredby SAP HANA relevant fortheFinanceLoBavailabletodayorplanned.
Measuring cost/profitability performance at granular level is often a key pain point as collating and evaluating all the relevant variables can be data and time intensive. Complex enterprise planning and data hierarchies can furtheradd to the problems.What companies need are deep and broad insights into large amounts of ERP data and the ability to analyze and simulate business scenarios in real time.
Key capabilities and benefits of SAP CO-PA AcceleratorExplore huge data volumes and analyze complex data combinationsfor cost and profitability on multiple levelsCustomer benefits include:Powerful insights to unlock opportunities and maximize profitabilitySpeed of profitability reporting drives financial performance and efficiencyEmpowering users with access to trusted data supports more profitable business decision-making
The SAP Finance and Controlling Accelerator covers 4 implementation scenarios (as a RDS)Financial AccountingControllingMaterial LedgerProduction Cost AnalysisWhile the Financial Accelerator comes with all 4 scenarios, customers can choose to implement one, all, or any combination of scenarios based on requirements.Financial AccountingReporting in Profit-Center Accounting (EC-PCA)Reporting in Asset Accounting (FI-AA)Reporting in General Ledger Accounting (new) Reporting in Special Purpose Ledger (FI-SL)Direct BI access to SAP ERP / SAP HANA data via data sourcesControllingAccelerated and enhanced CO line item reporting (CO-OM-CCA) In Memory based CO Partner Object Reporting (CO-OM-OPA) Accelerated overhead and accrual calculationActive Availability Control Monitor for investment programsMaterial LedgerAccelerated Material Ledger ReportingMaterial Ledger Period End ClosingDirect BI access to SAP ERP / SAP HANA data via virtual Info ProviderAccelerated BW ExtractionProduction Cost AnalysisProduct Cost Controlling Reports
Key capabilities and benefits of SAP Finance and Controlling AcceleratorAccelerate access to large data volumes and run-times for essential reports; enable deep drill downs and support flexible analyticsCustomer benefits include:Powerful insights to better control costsFaster reports for increased productivity and efficiencyImproved decision making with faster deeper access to crucial data and ledgers
The sheer volume of financial data can lead to performance and decision-making delays.The SAP ERP rapid-deployment solution for operational reporting with SAP HANA™ provides a set of reports, views and dashboards from the business area of Sales, Financial, Shipping, Purchasing, and Master Data,enabling access and complete views of relevant figures in real-time.
Key capabilities and benefits of SAP ERP RDS for operational reportingThe SAP ERP rapid-deployment solution for operational reporting with SAP HANA enables decision making in real-time, increases productivity, and improves insight into key processes. Designed to accelerate reporting and analysis of SAP ERP data, the solution contains over twenty important reports and dashboards for sales, financial, purchasing, shipping and master data. SAP HANA business models are also provided to ensure the information shown in the reports is made available in real-time and supports large data volumes. Reports are deployed with SAP BusinessObjects business intelligence and can easily be extended and customized as needs evolve.The SAP ERP rapid-deployment solution for operational reporting with SAP HANA includes real-time analysis and reporting of:Sales volume with top customers, top products, by distribution channel, order fulfillment rates, order item, order time schedule, credit memo, and billing list analysisFinancials with revenue trend, EBIT trend, operational expenses, overdue and DSO analysis, revenue account detail, due A/R items, top GL transactions, open items (customer and vendor), overdue items and flexible customer analysisPurchasing vendor spend, finance spend per vendor, top vendors, purchase orders, goods movement, order history analysisShipping stock overview analysisMaster data vendor, material, and customer listsDelivered as a rapid-deployment solution and in association with SAP consulting you also benefit from fast time to value with implementation times from as little as six weeks with pre-determined fees and clearly outlined deliverables.
With SAP Software, SAP Rapid Deployment solutions provide a ready-to-use bundle of SAP predefined services, pre-configured content, and enablement content to accelerate implementation time and lower risk. Implementation is supported by standardized methodology and proven best practices. An optimal mix of global resources, remote support, and onsite consulting ensure that the solution is implemented on time and on budget, and at a predictable price, effectively eliminating cost overruns and project delays. Each of these solutions includes educational material and training scripts for the most important functionality so that users can start right away, without the delays associated with customized training.
Portfolio AreaService Delivery by SAP or qualified partner
Because SAP Consulting uses preconfigured content, customersget what they need out of the box, delivered fast.Preconfigured content accelerates projects due to the clearly defined scope, knowledge transfer for users, and fast-track methodology, which facilitate go live in just few weeks. A combination of flexible software pricing and fixed priced, low cost services ensures that yourproject will be cost effective, both in terms of price and Business and IT resources. …
This section will address the main benefits of solutions powered by SAP HANA and present selected customer experiences.
SAP HANA addresses key Financial pain points with real time, non-disruptive innovations that enable businesses to improve decision-making with deep insights into massive dataincrease revenues and reduce costs with real-time access to relevant informationincrease business user productivity with fast and flexible analytics and reporting The following slides will highlight additional customer benefits in more detail
SAP HANA can help Finance to make smarter financial and managerial decision, resulting in:improved marginsnew revenue opportunitiesincreased overall financial performance
SAP HANA can empower Finance with true real-time to: improve bottom line gain a competitive edge reduce risks
SAP HANA can help accelerate key financial processes, resulting in:empowered usersoptimized cash flowmore efficient financial processes
Let the customers speak for themselves (click on the pictures to see the video testimonials)Colgate maximizes business impact with brand and customer profitability analysis performed at unparalleled speed. With SAP CO-PA Accelerator, powered by SAP HANA, Colgate analyzes high volumes of data and benefits from faster month-end close - going live in just eight weeks.Provimiempowers controllers with real-time insight into massive volumes of financial data. SAP CO-PA Accelerator, powered by SAP HANA, enables smarter and faster business decisions to optimize profits after going live in just three weeks.BASF, a German-based chemical company, uses SAP HANA to speed response times from minutes to seconds, and improve data reliability to optimize their business.
Let the customers speak for themselves (click on the pictures to see the video testimonials)P&G, the world’s largest consumer product company, will use SAP HANA to build the next generation of financial planning and reporting applications, with speed that completely transforms what is possible today.Deloitte is gaining clear and immediate insight into its current liquidity and cash flow information using SAP HANA. BSH is using SAP HANA to better adapt to customer needs. BSH, with SAP In-Memory Computing, can now perform simulations and create business forecasts in seconds rather than days.
Let the customers speak for themselves (click on the pictures to see the video testimonials)Infosys utilizes SAP HANA to understand profitability by project, conduct “what-if” analysis on the fly with granular revenue and cost data. The company was able to explore and interact with key variables that affected a project’s profitability at all levels within the company.
So, to conclude, here are the key take aways.Use SAP HANA for Line of Business Finance to: Improve your financial performance with deeper and broader insights into financial data Mitigate risks with real-time access to all relevant data Increase business user productivity with fast and flexibleanalytics and reporting
There are of course more reasons for an organization to choose SAP HANA.Just browse the Top 10 reasons and get more insights into how your organization can benefit.Leveraging solutions powered by SAP HANA can support the transformation of your business and help you to become a truly data-driven finance organization. Turn challenges into opportunities and create sustainable value for your internal customers and external stakeholders
Financial Transformation using SAP HANAand In-Memory TechnologyKaruna Mukherjea, Solutions MarketingCarsten Hilker, Solutions ManagementJanuary 27, 2012