Delivering Real-Time Business Value for Consumer Products

Delivering Real-Time Business Value for
Consumer Products
SAP Business Suite Powered by SAP HANA
July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
Take a chance on real time
Ever-shorter product lifecycles and increasingly
demanding consumers drive consumer goods
companies to continuously innovate ways to align
business operations with consumer needs.
 Create new and innovative products that excite consumers
 Respond rapidly to evolving trends
 Develop efficient and cost-effective business priorities

Becoming an innovation-driven enterprise
Align business operations with customer needs
Bring enticing and
relevant products
to market rapidly
• Predict trends and evolving consumer needs
• Co-innovate with customers, partners, and suppliers
• Speed global rollout of products
Drive profitable
growth with flexible
sales and revenue
models
• Develop consumer intimacy in marketing, sales, and
service
• Improve agility and speed in marketing campaigns
and trade promotions
• Simplify sales, usage, and payment across multiple
channels (retail, wholesale, Web, mobile)
Respond to market
dynamics in real
time
• Control complex multilevel supply chains
• Optimize out-sourcing, in-sourcing, near-Sourcing
• Personalize any consumer product, service, and
delivery model

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for consumer products
The consumer-driven enterprise
Consumer-Driven
Innovation
Continuous Product
and Service Innovation
Accelerated Product
Development
Embedded Product
Compliance
People and
Talent
Core Human
Resources and Payroll
Talent Management
Time and
Attendance Management
Workforce Planning
and Analytics
Finance
Brand Management
Consumer Dialogue
Enterprise Marketing
Optimization
Account and Trade
Promotion Optimization
Perfect Store
Responsive Supply
Networks
Demand-Driven
Supply Chain
Logistics and
Fulfillment Excellence
Integrated Sales and
Operations Planning and
Analytics
Perfect Plant
Efficient Manufacturing
Operations
Production Planning
and Execution
Outsourced Manufacturing
Enterprise Asset
Optimization
Collaborative
Procurement and
Supplier Management
Supplier Selection and
Qualification
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Invoice to Pay
Commodity
Management
Product Risk Mitigation
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative
Finance Operations
Enterprise Risk and
Compliance Management
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Develop-
ment and Integration

Industry value map for consumer products
The consumer-driven enterprise
Consumer-Driven
Innovation
Continuous Product
and Service Innovation
Accelerated Product
Development
Embedded Product
Compliance
People and
Talent
Core Human
Resources and Payroll
Talent Management
Time and
Attendance Management
Workforce Planning
and Analytics
Finance
Brand Management
Consumer Dialogue
Enterprise Marketing
Optimization
Account and Trade
Promotion Optimization
Perfect Store
Responsive Supply
Networks
Demand-Driven
Supply Chain
Logistics and
Fulfillment Excellence
Integrated Sales and
Operations Planning and
Analytics
Perfect Plant
Efficient Manufacturing
Operations
Production Planning
and Execution
Outsourced Manufacturing
Enterprise Asset
Optimization
Collaborative
Procurement and
Supplier Management
Supplier Selection and
Qualification
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Invoice to Pay
Commodity
Management
Product Risk Mitigation
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative
Finance Operations
Enterprise Risk and
Compliance Management
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Develop-
ment and Integration
Highest real-time
business value
for consumer products

Today
With SAP Business Suite on
SAP HANA
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Continuous product and service innovation (1/3)
Business value for portfolio management (SAP Portfolio and
Project Management)
 Fact-based go/no-go decisions
require real-time information on the
status of running projects and
project proposals. Analysis of large
portfolios in the portfolio dashboards
is time consuming, leading to
lack of transparency.
 Faster access to decision-making
information, such as status, timeline,
financials, in dashboards
 Accelerated comparison of running
projects and proposals in the
dashboards
Increase
transparency for
decision making
Improve
speed of
aggregating
financial
information
 Aggregation of financials, such as
actual or planned cost commitments
along the investment hierarchy, takes
a long time for large portfolios
 Outdated information on investments
increases efforts for reviews
 Manual editing of standard financial
KPIs such as net present value and
internal rate of return adds tools and
manual effort for portfolio managers
 Accelerated aggregation of financials
along the investment area hierarchy
 Calculation of the most important
KPIs based on values from financial
planning, removing manual
calculation

Today
SAP HANA
Business value for project management (SAP Portfolio and
Project Management)
 Project members experience long
waiting times when starting the
project and task dashboards. This
reduces user productivity when
people are working on several
projects and on several tasks
across projects.
 Updates on multiple tasks are
inefficient and time consuming as
project team members must confirm
tasks one-by-one to reduce waiting
times
 Searching for documents across
projects takes a long time for large
project portfolios
 The process of finding projects,
tasks, and phases by responsible
project member is slow
 Faster access to tasks and projects
 Accelerated access to project, task,
and checklist dashboards
 Ability of project team members to
confirm times, status, and dates, and
to attach documents for several
tasks at once
 Increased user productivity
 Accelerated search for documents
 Accelerated ability to find projects or
tasks by responsible project member
Increase
user productivity
Reduce
Improve
time for task
confirmation
Search for
documents and
project elements

Today
SAP HANA
Business value for project management
 Long wait and locking times along
business processes hinder project
execution and impact flexibility to
react on deviations.
 Reduced user acceptance due to
affected usability in handling large
project data
 Reduced waiting and locking times of
critical transactions along the end-to-
end process, resulting in higher
process efficiency and improved
employee productivity
Increase
user productivity
and end-to-end
process efficiency
Improve
transparency and
decision support to
take appropriate
corrective
measures in time
 Real-time analysis of high volumes of
data for complex, long-lasting
projects or cross-project monitoring
is challenging due to high data
volumes
 Due to missing 3600degree real-time
transparency across applications,
deviations in costs, time, resources,
or quality are seen too late in the
process
 Acceleration of project information
system reporting and new project line-
item reporting delivering faster insights
 Early insight into deviations and risks,
enabling timely corrective measures
 Planned: Project execution cockpit to
enable project managers and staff to
analyze status and progress of one or
more projects end-to-end with real-
time data

Today
SAP HANA
Production planning and execution
Business value for material requirements planning (MRP)
 Decisions are often based on
outdated information from periodic
MRP runs. The process is done in
batches.
 There is no ability to replan quickly if
conditions change due to long run
times.
 Prediction of inventory coverage for
critical parts is difficult
 There is no ability to replan if
conditions change during the
planning horizon due to long run
times
 Faster replanning allowing more
frequent MRP runs in shorter cycles
 Faster reaction to demand changes
and updates to the supplier
 Faster propagation of demand
information through the supply chain
 More frequent MRP runs, allowing
reduction in inventory and safety
stock levels
 Faster information flow toward
suppliers, enabling them to react
faster to changed planning conditions
 Better-synchronized material
demand and supply planning with
reduced bullwhip effect
Reduce
out of stocks by
36%
Reduce
Limit
inventory and
safety stocks by
29%
Bullwhip effect

Today
SAP HANA
Enterprise asset optimization
Business value for asset planning and scheduling
 Maintenance scheduling consumes a
great deal of time.
 High amount of master data
influences performance of data
maintenance.
 Manual process of preselecting
maintenance plans is error prone.
 There is a potential to miss
necessary objects for maintenance
calls.
 The high number of maintenance
plans that need to be scheduled
frequently requires a weekly
scheduling scheme.
 Accelerated mass transactions
 Speedy analysis on top of
transactions
 Preselection of due plans, which
speeds up the process significantly
 Real-time analytics on all data,
including machine sensor information
 Scheduling of all maintenance plans
within a specific time frame
 Planning of maintenance operations
several times a day (instead of once a
week), resulting in up-to-date
scheduling information
 Faster response times, leading to
more accurate maintenance
scheduling
Increase
asset utilization
and reduce
unplanned asset
downtime
Maximize
Gain
asset uptime using
assets with better
OEE
up-to-date scheduling
information on
maintenance
operations

Today
SAP HANA
Demand-driven supply chain
Business value for supply chain monitoring
 Accessing and effectively using
timely demand information from the
supply network is becoming more
and more difficult
incomplete, inaccurate, and often
outdated information
 There is no sub-daily planning and
analysis of jobs because of long data
preparation times
 The inability to respond fast to ad
hoc queries may result in lost sales
orders
 Increased business/expert user
productivity with faster planning
processes, improved user
experience, and rapid consensus
across the supply chain network
 Near real-time reporting with
increased speed of information
analysis leading to better supply
chain visibility and decision
making
 Optimized reporting of supply chain
planning data thanks to the
advanced data retrieving and
computing functionalities of
SAP HANA
Reduce
planning cycle
times by
36%
Increase
Increase
supply chain
performance by
18%
customer service
level by
13%

Today
SAP HANA
Logistics and fulfillment excellence
Business value for warehouse management
 No up-to-date view of the inventory
situation
 Need for accurate display of actual
stock to react quickly to stock
shortfall
 Time-consuming inventory
management reporting
 Real-time access to complex
inventory management data
 Real-time stock insight and inventory
monitoring
 High-performance inventory
management with large volumes of
documents
 Higher process efficiency in adjacent
procurement processes
Reduce
inventory levels
Minimize
Optimize
out of stocks
working capital

Today
SAP HANA
Consumer dialogue
Business value for contact management with interaction center
 To successfully resolve customer
issues, companies need to quickly
locate the right experts or resources
within the organization, whether
those experts reside inside the
contact center or elsewhere.
 Managers and supervisors lack
actionable reporting and visibility into
the workload of their teams
 The high volume of customer records
and interactions results in increased
search times and greater difficulty
locating specific customer records
 With the new SAP HANA-based
agent inbox, users can more easily
search for relevant experts – whether
in their own team or elsewhere in the
organization – in order to
dispatch/escalate issues to the best
suited employee roles
 A new interactive work distribution
dashboard provides supervisors with
actionable insights into the workload
of their teams and employees
 Searches in the interaction center,
including account searches,
interaction history, and the customer
fact sheet, are significantly faster
Decrease
average handling
time
Improve
Reduce
service-level
agreement
compliance
service cost

Today
SAP HANA
Enterprise marketing optimization
Business value for marketing
Improve
profitability
Optimize
Increase
return on marketing
investments
customer
satisfaction
 Missed market opportunities due to
lack of visibility and inefficient
processes
 Data explosion, driven by new level
of connectivity resulting from
consumers using mobile devices and
social networks
 Data in disparate data sources,
which prevents a true 360-degree
view of the customer
 Agile marketing to respond faster to
changing market dynamics and
opportunities
 New analytical data mining
functionalities on Big Data
(social media, predictive)
 Near real-time monitoring and
reporting on marketing performance
 One central place for collecting all
customer data leading to a 360-
degree view of customers in real time
 Precision marketing to personalize
every interaction with the customer

Today
SAP HANA
Account and trade promotion optimization
Business value for promotion planning
 Exploding data leading to latency
and slow planning
 Inability to reach consumers with
compelling offers
 Difficulty planning tailored
promotions for retailers
 Run any size of promotion instantly
with high performance
 Glean insights from working with
granular product and stock-keeping
unit data instead of overall product
category
 Allocate promotion spend on a
granular day level instead of by week
or month
Reduce
latency in
promotion planning
Improve
Reduce
reach of consumers
with tailored offerings
time to forecast by
14%

Today
SAP HANA
Perfect store
Business value for sales
 Difficult to identify profitable
customers from customer pool
 Inability to identify gaps in sales
pipeline leading to missed targets
 Inability to extract actionable
information from the enterprise-wide
customer data to maximize the
chance of a sale
 Minimal insight into buying
preferences of customers in social
data context
 Easier identification of profitable
customers with account intelligence
analytics
 Faster transaction search
functionalities
 Complete transparency into sales
pipeline based on real-time
information with unlimited drill-down
functionalities
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data including social/sales data
Increase
profitability
Increase
Improve
percentage of sales
reps achieving quota
offer win rate

Today
SAP HANA
Core human resources and payroll (1/2)
Business value for payroll processing
 Responses to ad hoc inquiries from
management about trends of high-
volume payroll information cause
significant costs to HR IT
 Business users have a very limited
ability to analyze payroll results
 Addressing employee inquiries about
payroll is time consuming and
expensive, and HR is under pressure
to increase the quality of service
provided to employees and to lower
the costs of providing those services
 Free HR IT resources to focus on the
execution of organizational
strategic tasks
 Leverage thresholds as a steering
mechanism to optimize business
performance
 Simplify payroll data analysis with
optimized representation of data
 Slash time needed to access and
analyze critical payroll information with
SAP HANA-based high-speed read
access
 Increase employee productivity and
satisfaction with faster response
times to employees
Increase
productivity of users
responsible for
payroll management
Improve
Reduce
employee
satisfaction
overall costs of
payroll processing

Today
SAP HANA
Core human resources and payroll (2/2)
Business value for effective shared services delivery
 Employees direct queries into the
shared services organization (SSO)
and expect to get prompt, accurate
answers
 SSO agents spend time searching
for employee data using employee
identification
 SSO agents are under constant
pressure both to improve the quality
of service provided to employees and
to lower the costs of providing those
services
 SAP HANA-based acceleration of
inbox performance speeds
navigation within the inbox, allowing
the SSO agents to review and
prioritize their work more efficiently
 Faster employee identification allows
the agent to provide more responsive
service, which leads to improved
employee satisfaction
 Reduced costs and faster response
times allow the SSO to meet its
service level agreements and budget
objectives and to improve KPIs
Increase
productivity for
shared services
agents
Improve
Reduce
employee
satisfaction
overall costs of
delivering services

Today
SAP HANA
Time and attendance management
Business value for time and absence calculation
 Responses to ad hoc inquiries from
management about trends of high-
volume payroll information cause
significant costs to HR IT
 Business users have a very limited
ability to analyze payroll results
 Addressing employee inquiries about
payroll is time consuming and
expensive, and HR is under pressure
to increase the quality of service
provided to employees and to lower
the costs of providing those services
 Free HR IT resources to focus on the
execution of organizational strategic
tasks
 Leverage thresholds as a steering
mechanism to optimize business
performance
 Simplify payroll data analysis with
optimized representation of data
 Slash time needed to access and
analyze critical payroll information
with SAP HANA-based high-speed
read access
 Increase employee productivity and
satisfaction with faster response
times to employees
Increase
productivity of users
responsible for
payroll management
Improve
Reduce
employee
satisfaction
overall costs of
payroll processing

Today
SAP HANA
* Visualizations will be delivered as part of HR renewal.
Workforce planning and analytics
Business value for transactional analytics
 Translation of organizational strategy
into HR metrics requires significant
effort or special expertise.
hunches.
 It is difficult to zero in on underlying
transactions from high-level key
performance indicators (KPIs).
 It is time consuming to analyze data
loads in traditional reporting tools.
 Integrated and personalized cockpits
that provide insight into metrics that
matter most*
 Leveraging of thresholds as a
steering mechanism to optimize
business performance*
 Powerful predefined workforce and
time management KPIs, so
managers can navigate into details
 Embedded analytics inside business
transactions
 Prebuilt virtual data models for real-
time transactional analytics
 Simplified architecture
Increase
revenue per employee
by using analytics to
identify strategic
advantages
Optimize
Reduce
business with
reliable real-time
HR data
time and costs of
operational
reporting

Today
SAP HANA
Financial performance management (1/3)
Business value for planning, budgeting, and forecasting
 Planning performance limited to
OLAP, staged cubes for transactional
and master data
 Data load performance is driven by
the amount of data extracted
 Reporting, loading, and retraction
performance limits planning iterations
 Drilldown within OLAP cube, and
drill-through to SAP Business Suite
and OLTP data within standard times
 Seamless replication of master and
transactional data from SAP
Business Suite
 Availability of more granular data to
support planning
 Big Data challenge negated, allowing
for faster extract and DSO activation
times
 Iterative planning and real-time
simulation supported through
improved performance
 Improved performance for drilldown
(expand) and consolidation
(collapse)
 Fast drill-through and live view of
transactional data in SAP Business
Suite
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs

Today
SAP HANA
Business value for profitability and cost analysis
 Data latencies and process delays
impact the ability to react to issues
and opportunities
 Lack of data depth and user self-
service affect internal decision
making
 Long-running processes
 Time-intensive data queries
 Mostly manual data analysis
 Substantial amount of time and effort
on processes that do not directly
add value
 Suboptimal resource efficiency and
effectiveness
 Timely execution of critical business
processes supports decision making
and increases the ability to act swiftly
(insight-to-action) in dynamic market
environments
 Critical transactions and calculations
run quickly
 Response times on queries are quick
 Prebuilt analytics automates the data
analysis process
 Leaner processes from data capture
through data analysis
 Increased productivity through
process-optimized analytics and
mobile support
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs

Today
SAP HANA
Business value for financial and managerial reporting
 Risk of noncompliance due to
unfulfilled (overruns in) audits
 A lot of data; decision-relevant
information not readily available
 Data analysis not supported or
automated
 Long-running batch jobs/reports
 Time-intensive data analysis
 Large number of time-consuming,
and non-value-added processes
required to access and provide
accurate, up-to-date information
 Timely execution of compliance-
relevant validation tasks
 Increased end-user satisfaction
(accurate, detailed, visualized, timely,
and actionable information)
 Acceleration of key critical-path
processes and reports
 Instant response times on most data
analysis queries
 Elimination of workarounds and data
latencies
 End-user data analysis through self-
service means
Improve
service level
performance
Reduce
Minimize
month-end
closing time
operating costs

Today
SAP HANA
Accounting and financial close
Business value for entity close
 Long running processes
 Time-intensive reconciliations
 Limited time for analysis
 Inefficiencies due to manual
processes and low automation
 Missing financial excellence
resulting in higher cost of equity
at the capital markets
 Difficulties in supporting parallel
financial reporting standards on a
global basis and in simulation of
scenarios
 More time for analysis, less overtime,
and earlier publishing of financial
results through faster
period-end processes and better
reconciliations
 Increased efficiency through smarter
reconciliations and reporting,
reducing operating costs and
improving stakeholder satisfaction
 Real-time analytics down to the
lowest level of detail – delivering
quality at source, transparency, and
process efficiencies
Improve
service-level
performance
Reduce
Minimize
month-end closing
time
operating costs

Today
SAP HANA
Collaborative finance operations (1/3)
Business value for receivables management
 More time spent preparing data; less
time for analysis
 Collaboration beyond finance team
hindered by perceived system
complexity
 Limitations in analysis capabilities
and dimensions because of reliance
on finance aggregates
 Large data volumes that lead to
batch processing and reporting
latency
 Difficulty in identifying exceptions in
thousands of pages of reports
 Instant portfolio overview that lets
managers focus team efforts on
tactical wins
 Ability to involve sales executives and
other business partners to accelerate
collections and dispute resolution
 More accurate document-level
calculation of DSO that allows
identification of root causes of
changes to DSO
 Real-time reporting on all accounts
receivable data including credit,
collections, and disputes
 Anywhere, anytime access to key
receivables status
Increase
cash collections and
accelerate dispute
resolution
Optimize
Gain
working capital
up-to-date and
instant overview of
receivables
portfolio

Today
SAP HANA
Collaborative finance operations (2/3)
Business value for payables management
 Expensive and error-prone manual
process steps
 High cost per invoice due to large
numbers of tasks
 Need to improve compliance and
audit turnaround time
 Inability to determine exact moment
of payment
 Inability to influence cash position
 Inability to understand where control
over invoice-to-pay cycle is lost
 Inability to make use of cash
discounts
 Risk of supply chain interruptions
with key suppliers
 Loss of supplier loyalty affecting
contract renewals
 Scalable automation of invoice-to-
pay reconciliation process
 Actionable insight with live access to
items in process and
multidimensional insight to AP
process performance
 Extensive control over factors that
influence DPO
 Optimization of cash position through
precise timing of supplier payments
 DPO lower than net payment terms
allows strategic decision making on
payment along cash position
 Additional dynamic discounts can be
offered or leveraged
Decrease
days payables
outstanding
Optimize
Reduce
working capital
lost supplier
discounts

Today
SAP HANA
Collaborative financial operations (3/3)
Business value for SAP Shared Service Framework for finance
 Vendor, customer, and employee
queries generate a high load on the
Shared Services Organization
(SSO). This requires an extremely
efficient working environment for
agents in the SSO.
 SSO agents spend a lot of time
searching for vendor, customer, and
employee data
 SSO is under constant pressure to
improve the quality of service and to
lower the costs of providing those
services
 SAP HANA-based acceleration of
inbox performance speeds
navigation within the inbox. It allows
the SSO agents to review and
prioritize their work more efficiently.
 Faster identification of vendors,
customers, and employees allows
the agent to provide more responsive
service, which leads to improved
satisfaction of the agents and the
clients of the SSO
 Reduced costs and faster response
times allow the SSO to meet its
service level agreements and
budget objectives and to improve its
KPIs
Increase
productivity for
shared services
agents
Improve
Reduce
employee
satisfaction
overall costs of
delivering services

Today
SAP HANA
Enterprise risk and compliance
Business value for access control role analytics
 Most companies face a high volume
and ongoing increase of unused and
orphaned roles
 Scheduled batch jobs are required to
analyze a transaction log with
millions of records (such batch jobs
usually take hours to complete)
 The cost of ongoing role
maintenance can be high – one
customer estimated active ERP role
maintenance costs at about
US$4,000 annually
 Unused roles and orphaned roles
constitute unneeded access risk to
the organization (and possible
compliance issues)
 Conflicts associated with segregation
of duties arise from continuous
monitoring of access risks
 Accelerated analysis of role usage to
isolate unused and orphan roles
 Deeper insight into roles for
uncovering any potential risk for the
organization
 Role usage and assignment
information provide valuable insight
to business executives during
business reengineering and
reorganization.
 Trigger the assigned workflow
directly from the analysis to remove
unused roles assigned to users
 Expose orphaned roles across the
system landscape quickly to begin
the decommission process
Identify
unused and
orphaned roles
Consolidate
Reduce
most-frequently
used (active) roles
noncompliance and
overall access risk

Customer cases
Benefit over
five years
US$20 million
Annual
benefit
€38 million
Five-year net
value
US$65 million
APJ food company
• SAP HANA products and SAP Business
Suite on SAP HANA
• Automated reporting
• Inventory optimization
• Predictive analytics
• Inventory visibility
European durables
company
• SAP Business Suite on SAP HANA
• Real-time inventory
• Real-time material planning
• Marketing and sales
• Fast financial close
U.S. high-
performance
computing
company
• SAP HANA Platform and SAP Business
Suite on SAP HANA
• Variable margin analysis
• Customer service excellence
• Opportunity order analysis
• Predictive analytics
• Supplier network traceability
• Predictive scoring

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As a starting point, we recommend a performance
and usage analysis of your current software
system.

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Feasibility
Businessvalue
Legend
LowHigh
Low High
Perfect store**
Suite on
SAP HANA
SAP HANA
products
SAP HANA
Platform
Phase ‒ deployment road map
Annual revenue: US$1.76 billion
SAP HANA platform: customer specific
SAP HANA products: SAP NetWeaver BW on SAP HANA , high-
performance applications (HPAs), apps powered by SAP HANA
SAP Business Suite on SAP HANA
SAP HANA
use case
Accounting and
financial close
Account and trade
promotion
effectiveness**
Logistics and
fulfillment
excellence **
Note ** Included in business case
1 Short term
CRM Perfect store:
Pricing sensitivity analysis: Collaborative order to
cash: better informed pricing and rebate decisions
SCM Logistics and fulfillment excellence:
Order fill rate: Take corrective actions and engage with
supply chain/distribution colleagues; now manual and
long process
FIN Accounting and financial close: Automatic
reconciliation with automated real-time matching
2 Medium term
CRM Perfect store
Sales visibility: Support sales strategy and decision
making: critical retailer growth rate and contribution,
privilege club contribution, network expansion planning,
clustering, sales planning
CRM Account and trade promotion effectiveness: Provide
drilldown functionality and what-if analysis on large data
volumes; plan and optimize marketing initiatives and
promotions
SCM Logistics and fulfillment excellence:
Inventory optimization: Production planning and
execution: decide when to expedite and when to stop,
especially for packaging: currently only every 8 hours
SAP HANA use cases mapped to
industry value map end-to-end solutions
APJ consumer products company
Summary validated scenarios

APJ consumer products company
SAP HANA Platform
2,6
4,36 4,36
6,25 6,25
0
2
4
6
8
10
12
2013 Phase 1 Phase 2 Phase 3
Costs SoH Applications Platform
Anything built on the platform that is customer specific ‒ new business processes and business models
SAP NetWeaver BW on SAP HANA, HPAs, apps powered by SAP HANA
Currently available functionalities (SP0, 1, 2)
Based on actual SAP
customer engagement
Annual benefits, SAP HANA
Platform: TBD
Annual benefits, SAP HANA
products: US$6.25 million
Annual benefits, SAP Business Suite
on SAP HANA: US$4.36 million
Estimated deployment costs
Total transition cost: TBD
SAP HANA Platform
SAP HANA products
SAP Business Suite on
SAP HANA
Annual revenue: US$1.76 billion$m
SoH = SAP Business Suite on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
A food producer
Suggested order by SAP HANA
Innovation scope
SAP HANA products (HPAs, apps)
End-to-end (E2E) solution
Consumer products - consumer dialogue
Value potential 5
Feasibility 4
Low High
1 5
Low High
1 5
Business context and goals
 Identify additional sales opportunities with analysis and cross-buying behavior, region, channel, and
so on
Business challenges
 Support growth plan, maximize profitability, and enable quick actions to protect market
Process innovations
 Suggest to sales team the most suitable and profitable product mix at the time of sale
Contribution of SAP HANA
 Fast analysis and high volume of data combination for near real-time sales offering
Value drivers/KPIs
 Increase sales and profitability through higher number of items per sale

A food producer
Tax management framework
Innovation scope
(now and future)
E2E solution
Consumer products ‒ accounting and
financial close
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5
 Efficiency in the calculation and reporting of taxes to minimize exposure to tax authorities and the
need for future adjustments
Business challenges
 High complexity and granularity of tax calculation and reporting in Brazil
Process innovations
 Determination and reporting of taxes directly form transactional base
 Capture, integration, and consolidation of high volume of information in real time
Value drivers/KPIs
 Reduce opportunity cost due to tax overpayments; reduce uncollectable credits due to tax
overpayments; reduce fines and interest payments due to the tax underpayments; reduce time
needed for auditing

Innovation scope
E2E solution
Consumer products ‒ enterprise marketing
optimization
Value potential 5
Feasibility 5
A distributor of alcoholic beverages
Real-time offer management
High
1 5
Low High
1 5
 Enable sales rep to add value to client through sales insights based on heat maps and social
networks, and help activate sales. Enable sales rep to become a value-added resource to the
retailer owner and improve quality of client interactions.
Business challenges
 Mobility is the key component required as analysis needs to be put in the field to generate value.
Currently, the Charmer Sunbelt Group is mobilizing this solution in the Florida market.
Process innovations
 Analyze past sales, suggest bundles based on similar customer profiles and consumption
patterns. Mobilize insights on an iPad to make the salesperson more effective with the customer.
 Generate real-time offers/suggestions. Suggest buying quantities based on consumption patterns
(frequently-ordered items). Up-sell orders based on discount levels/promotions.
Value drivers/KPIs
 Improve number of sales transactions where cross-sell or up-sell is offered
Low

A food producer
Cost and profitability analysis
Innovation scope
E2E solution
Consumer products ‒ collaborative
finance operations
Value potential 5
Feasibility 5
 Cost and profitability analysis
Business challenges
 The company was able to do sales analysis based on promotional prices being offered only on a
weekly basis. Since this was a manual process that was prone to erroneous entries it would not
catch mistakes till the end of the week and hence was losing revenue.
Process innovations
 Now it can run analyses during the day and protect margin on promotions.
 Used as the real-time engine
Value drivers/KPIs
 Operational margin
High
1 5
Low High
1 5
Low

An international brewer
Integrated commercial strategy
Innovation scope
E2E solution
Consumer products ‒ consumer dialogue
Value potential 5
Feasibility 5
 Integrated commercial strategy
Business challenges
 Weak commercial execution is costing market share. Two-step distribution leaves customer with
limited understanding of consumer sentiment and response to its products and promotions.
Distribution is through large distributors and retail chains.
Process innovations
 Improve commercial performance by integrating all information for product, category, trade
promotion, and advertising into a single, coherent execution cycle based on robust data
(including social). Gain an integrated, self-reinforcing commercial excellence cycle.
 SAP HANA will tie together multiple data sets and enable full granularity of insights.
Value drivers/KPIs
 Trade promotion management spend, revenue
High
1 5
Low High
1 5
Low

An appliance manufacturer
Audience discovery and targeting
Innovation scope
E2E solution
Consumer products ‒ enterprise asset
optimization
Value potential 5
Feasibility 3
 In a competitive environment, it becomes more and more important to position customer-tailored
marketing campaigns. The goal is to position the right offer for the right target group at the right
time through the preferred channel.
Business challenges
 Ad hoc analysis of large data volumes, fast reaction to events, proper visualization of analytics
results, and support of predictive analysis
Process innovations
 Visual generation of large-scale segmentation models (hierarchical network); intuitive visual
analysis and iterative charts; ad hoc analysis with data mining and predictive functionalities; high
degree of flexibility and performance of the analytics tools
 Customer segmentation analysis for any data source and any granularity; fast response time on
large data volume requests; ad hoc data aggregation and calculation of scores, KPIs, attributes,
and so on; flexible segmentation on any data object
Value drivers/KPIs
 Trade promotion spend as a percentage of revenue (for which trade promotions are conducted)
High
1 5
Low High
1 5
Low

Business process steering and control
Innovation scope
E2E solution
Consumer products – financial
performance management
Value potential 3
Feasibility 5
 To steer and control its business processes (finance, sales, planning, and so on), the company
generates and analyzes large volumes of data from different sources.
Business challenges
 Data volume, velocity, and variety are increasing, leading to control performance issues.
Process innovations
 Fast delivery and processing of real-time data in and within a data warehouse; fast response
times for complex process data analysis; drill-down on any level
 Increased performance of data loading and processing; reduced reporting development efforts;
fast response times of analysis on large data volumes and any granular level
Value drivers/KPIs
 Reduction of IT operational costs; reduction of reporting development costs
High
1 5
Low High
1 5
Low

Cash management
Innovation scope
E2E solution
Consumer products – treasury and
financial risk management
Value potential 3
Feasibility 5
 Company needs transparency into its current liquidity and plan data for all its branches in order to
execute a rolling 12-month plan
Business challenges
 Incomplete and not current transparency into cash liquidity; missing flexibility of liquidity forecast runs
Process innovations
 Enhanced and optimized methods for liquidity forecasts; visualized tools for analysis
 Real-time analysis of cash liquidity and bad debts; what-if analysis including foraging currency risks
Value drivers/KPIs
 Reduction of financial consolidation efforts across branches; optimization of central planning
efforts; improvements of business investments
High
1 5
Low High
1 5
Low

Collections insight
Innovation scope
(now and future)
E2E solution
Consumer products – accounting and
financial close
Value potential 3
Feasibility 4
 Insight into customer-centric receivables management process for evaluation, identification, and
prioritization of accounts from both a risk and customer relationship perspective
Business challenges
 Actual data of open bills, payment behavior, and so on not available; customer info records not
optimally displayed
Process innovations
 Interactive layout to visualize relevant and current customer information; mobile access to data at
any time; ad hoc analysis of trends and paying behaviors
 Fast generation of customer fact sheets based on real-time data; drill-down to any detailed data
Value drivers/KPIs
 DSO reduction
High
1 5
Low High
1 5
Low

Customer interaction center
Innovation scope
(now and future)
E2E solution
Consumer products – SAP HANA Platform
x
Value potential 2
Feasibility 4
 A best-in-class customer service becomes more and more a key differentiator in the market.
Efficient complaint management, fast spare parts checks, and effective technician resource
planning increase the customer satisfaction and reduce service costs.
Business challenges
 Increasing volumes of data around customers lead to time-intensive search requests.
Process innovations
 Fast identification of a 360-degree customer profile based on real-time data from different
sources (CRM software, social media, and so on)
 Accelerated "Google-like" search; fast provisioning of a 360-degree customer view based on
real-time data; integrated rules engine that automatically routes service requests to service
technicians
Value drivers/KPIs
 Reduction of call handle time
High
1 5
Low High
1 5
Low

Dealer bonus calculation
Innovation scope
SAP HANA Platform (customer specific)
E2E solution
Consumer products – SAP HANA Platform
Value potential 5
Feasibility 2
 Company holds more than 40,000 contracts with sales partners, which include bonus payments.
Those payments need to be forecasted on a monthly basis and liquidity reserves need to be set
aside.
Business challenges
 Due to complex bonus analysis and a wide range of influencing factors (ad hoc marketing
campaigns, price reductions, currency conversions, and so on), the bonus payout is often higher
than needed.
Process innovations
 Ad hoc bonus calculations and liquidity reserves forecasting and simulation
 Calculation of current and forecasted bonus payments based on real-time data in any granularity;
reserves simulations based on currency, interest rate trends, and so on
Value drivers/KPIs
 Reduce sales rebate overpayments; reduce unauthorized invoice deductions; increase revenue
from higher effectiveness of sales rebate programs; reduce bonus credit note error rate
High
1 5
Low High
1 5
Low

Planning and scheduling
 Due to ever-changing planning situations and demand changes, production planners need to analyze
and optimize the planning, solve upcoming problems, and manage interactive planning tasks.
Business challenges
 Fast view on current planning situation; fast analysis of large volumes of data (planned orders,
purchase orders, stock transfer orders)
Process innovations
 Fast interactive planning in short cycles; insight into real-time planning data
 Accelerated view into actual planning situation based on real-time data; fast planning on large
data volumes
Value drivers/KPIs
 Reduce days in inventory; reduce throughput for primary products; reduce overhead costs of
production costs
Innovation scope
(now and future)
E2E solution
Consumer products ‒ production planning and
execution
Value potential 4
Feasibility 5
Low High
1 5
Low High
1 5

Transport optimization
 With an integrated inbound and outbound transport management concept, companies are able to
optimize transportation routes and flights and their downstream processes.
Business challenges
 Complex transport and supplier network; high data volumes in shipments and receipts;
increasing energy and transport costs; worldwide transport logistics
Process innovations
 Step 1: Optimize transport analysis processes (flight control, receipt management). Step 2: Gain
insight into end-to-end inbound and outbound logistics processes.
 Real-time transport process analysis and transport optimization through simulation runs; handling
of large data volumes; route optimization and simulation
Value drivers/KPIs
 Reduction of transport costs; reduction of transport planning and process costs; optimization of
sustainability processes (for example, CO2 reporting)
Innovation scope
(now and future)
E2E solution
Consumer products ‒ efficient manufacturing
operations
Value potential 4
Feasibility 4
Low High
1 5
Low High
1 5

Delivering Real-Time Business Value for Consumer Products

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