SAP Thought LeadershipBusiness IntelligenceSAP® In-Memory Computing TechnologyChanging the Way Business Intelligence Is Ma...
SAP In-Memory Computing technology enables real-time computing by bringing togetheronline transaction processing applicati...
CONTENT	 3	About the Authors                     	 2	 The Potential of Metadata                                           ...
Executive SummaryEnabling Real-Time ComputingSAP® In-Memory Computing technology enables real-timecomputing by bringing to...
IntroductionWhich Half of My Budget Is Working?In order to establish an effective          Where Does In-Memory Come      ...
In order to establish an effective BI strategy, IT profes-    sionals must ask themselves which half of the money    they ...
In-Memory ComputingTechnologyReplacing Traditional DatabasesIn-memory computing technology              leverages in-memor...
Business IntelligenceProviding More Than Fancy Dashboards,but How Much More?Business intelligence is more than            ...
Project Portfolio ManagementAligning IT with Corporate-WideBusiness StrategyOur world is characterized by rapid           ...
Enterprise ArchitectureDesigning the FutureEnterprise architecture emerges where          metadata and master data across ...
In-memory computing technology combines hard-    ware and software technology innovations. Hard-    ware innovations inclu...
The Potential of Metadataand Master DataProfiting from Intelligent DataIf a BI solution is to provide relevant         men...
Most companies spend a significant                                                                                        ...
People, Processes, and Structuresin Business and ITRequesting Just the Data, Please, No Reports                           ...
tions to provide single-person, end-to-end process support, thus eliminatingthe need to hand off IT responsibilitiesfrom o...
BI Data Lifecycle ManagementKeeping Data Hot or Cold?We all know that the amount of data              answers to such ques...
Comparing ArchitecturesTraditional Versus In-Memory Computing                                       Traditional architectu...
OutlookAccelerating into the FutureWe do not proclaim to know the future          on how you can shape your businessand ca...
50 104 231 (11/03)©2011 SAP AG. All rights reserved.SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,SAP BusinessObjec...
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  1. 1. SAP Thought LeadershipBusiness IntelligenceSAP® In-Memory Computing TechnologyChanging the Way Business Intelligence Is Managed
  2. 2. SAP In-Memory Computing technology enables real-time computing by bringing togetheronline transaction processing applications and online analytical processing applications ata low total cost. Combining the advances in hardware technology with SAP In-MemoryComputing empowers the entire business – from shop floor to boardroom – by givingreal-time business processes instantaneous access to data. The alliance of these twotechnologies can eliminate today’s information lag for your business.
  3. 3. CONTENT 3 About the Authors 2 The Potential of Metadata 1 and Master Data 4 Executive Summary 2 Cost Impact for Metadata and 1 Master Data 5 Introduction 13 Cost-Effective Deployment 5 Where Does In-Memory Come of In-Memory Computing into the BI Picture? 5 Business Examples That Leverage 4 People, Processes, and 1 In-Memory Computing Structures in Business and IT 14 BI Governance 7 In-Memory Computing 5 Cost Impact for People, 1 Technology Processes, Structure, and Technology 8 Business Intelligence 6 BI Data Lifecycle Management 1 9 Project Portfolio Management 6 Cost Impact for BI Data 1 9 Cost Impact for Lifecycle Management Portfolio Management 7 Comparing Architectures 1 0 Enterprise Architecture1 0 A Clean, Spare Architecture1 8 Outlook 1 1 Cost-Effective Impact of1 8 For More Information 1 Enterprise ArchitectureAbout the AuthorsErich Schneider is principal enterprise architect in the Business TransformationServices group of SAP® Consulting and has been implementing SAP solutionsfor over 20 years. He was chief architect in the internal SAP program to enabledata and business intelligence (BI) architecture using SAP In-Memory Computingtechnology across all SAP AG lines of business worldwide.Raghav Jandhyala is a solution expert in solution management for banking ana-lytics. He is an SAP In-Memory Appliance (HANA) software champion for theAmericas and provides guidance and support for HANA-related activities in finan-cial services. As a development architect for banking and retail analytic applica-tions at SAP, Jandhyala guided the integration of SAP BusinessObjects™ solutionswith price optimization software and developed the BI strategy with respect toSAP In-Memory Computing.
  4. 4. Executive SummaryEnabling Real-Time ComputingSAP® In-Memory Computing technology enables real-timecomputing by bringing together online transaction process-ing (OLTP) applications and online analytical processing(OLAP) applications at a low total cost. Combining theadvances in hardware technology with SAP In-MemoryComputing empowers the entire business – from shopfloor to boardroom – by giving real-time business processesinstantaneous access to data. The alliance of these twotechnologies can eliminate today’s information lag foryour business.With the revolution of in-memory While non-SAP customers can inte-computing already under way, the grate in-memory technology into theirquestion isn’t if this revolution will existing software environments, SAPimpact businesses but when and, customers can transform their busi-more importantly, how. Similar to the nesses into real-time enterprises withadvance of enterprise resource plan- game-changing potential without dis-ning (ERP) software in the 1990s, rupting their existing IT computing won’t be intro- The Business Transformation Servicesduced because a company can afford group of SAP Consulting is availablethe technology. It will be brought on to help you assess the impact thisboard because a business cannot technology can have on your IT envi-afford to allow its competitors to adopt ronment and develop a strategy thatthe technology first. leverages it specifically to differentiate your business.This paper details how in-memorycomputing can change the way you The first product to leverage SAP In-manage business intelligence and the Memory Computing technology is SAPvalue your business can derive from In-Memory Appliance (SAP HANA™)the technology. For business and IT software, which is currently in use atexecutives, the paper furnishes sub- SAP and with SAP customers.stantial information and business exam-ples about what changes they can lookforward to and how those changes cancatalyze their strategic initiatives.4 SAP Thought Leadership – SAP In-Memory Computing Technology
  5. 5. IntroductionWhich Half of My Budget Is Working?In order to establish an effective Where Does In-Memory Come Business Examples That Leveragebusiness intelligence (BI) strategy, IT into the BI Picture? In-Memory Computingprofessionals must ask themselveswhich half of the money they spend on In 2010 SAP co-founder Hasso Plattner To show how compelling this technolo-BI investments is working. Within the announced in his keynote speech at gy can be, we have included a handfulmarketing organization, you probably the SAPPHIRE® NOW conference that of examples showing how in-memoryuse focus groups to determine what SAP In-Memory Computing technology computing works in real-life, real-timeworks and what does not. By using was an IT revolution that was putting situations to make business moreSAP BusinessObjects™ business intelli- the “r” for “real time” back into enter- responsive, more effective, and moregence (BI) solutions, you can get help prise resource planning solutions. SAP successful.from powerful statistics tools to focus started its pursuit of real-time data pro-your efforts quickly. Statistics can help cessing with SAP R/2® and SAP R/3® In manufacturing enterprises, in-memoryyou determine, for example, which 20% software. computing technology will connect theof the data in your data warehouse is shop floor to the boardroom, and theused by 80% of your users. When you SAP co-CEO Bill McDermott suggests shop floor associate will have instantknow this, you can focus 80% of your that the new technology will eliminate access to the same data as the boardinvestment on that fraction of the data. the BI middleman – the employee who member. The technology supports this reports data. The reason for this is by integrating on-premise, on-demand,Our experience shows that BI statistics there will no longer be any need to and on-device architectures. Once theare a good starting point for optimizing report up or down the key performance appropriate business processes are inBI spend. They can help you manage indicators (KPIs). place, empowered shop floor staff canyour BI graveyards – the reports and take immediate action based on real-data that are simply never used – and Here is just a sampling of what in- time data to make whatever adjust-maximize the usefulness of business memory computing technology can ments on the shop floor are necessary.intelligence that is in high demand. A do for you: They will then see the results of theirgreat complementary tool for optimiz- • Enable mixed workloads of analytics, actions reflected immediately in theing your BI investment is one or more operations, and performance man- relevant KPIs. You could call this trueBI focus groups that include end users. agement in a single software 360-degree BI, as it eliminates the mid- landscape dleman as well as the need to createAlthough using system statistics to • Support smarter business decisions any reports other than whatever statu-manage BI spend is available to all cus- by providing increased visibility of tory or legal reports may be required.tomers, we find that some companies very large volumes of businessdon’t perform even this basic step. information SAP BusinessObjects Event InsightAs a result, they remain unaware of • Enable users to react to business software is key. In what used to bewhat BI is available to them through events more quickly through real-time called exception reporting, the soft-their software and don’t leverage it. analysis and reporting of operational ware deals with huge amounts of real-They certainly are in no position to take data time data to determine immediate andfull advantage of the new in-memory • Provide greater flexibility by delivering appropriate action for a real-time situa-computing technology. Even the best innovative real-time analysis and tion. Product managers will still look attechnology will not help if you lack an reporting functions inventory and point-of-sale data, but ineffective BI strategy. • Support the deployment of innovative the future they will also receive, for new business applications example, notifications when customers • Help streamline the IT landscape and broadcast their dissatisfaction with a reduce total cost of ownership (TCO) product to the masses over Twitter. SAP Thought Leadership – SAP In-Memory Computing Technology 5
  6. 6. In order to establish an effective BI strategy, IT profes- sionals must ask themselves which half of the money they spend on BI investments is working. Within the marketing organization, you probably use focus groups to determine what works and what does not. By using SAP BusinessObjects BI solutions, you can get help from powerful statistics tools to focus your efforts quickly.Or they might be alerted to a negative reels, changes in technology – both dis- the following few hours. Consumersproduct review released online that ruptive and accelerated – will surge then have the option to save money byhighlights some unpleasant product through other industries besides IT. modifying their immediate consumptionfeatures requiring immediate action. patterns, perhaps by switching off theFrom the other side, small businesses Another example worth mentioning power at their residence and goingrunning real-time inventory reports will harks back to McDermott’s middleman: to a movie. By giving consumers anbe able to announce to their Facebook It will no longer be good enough to informed choice and an incentive, utili-and Twitter communities that a high- have the weekend numbers ready ties companies have a chance to mod-demand product is available, how to for executives on Monday morning. erate peaks in energy consumption.order it, and where to pick it up. Executives will run their own reports on This advantage will become much more revenue, Twitter their reviews over the dramatic when we switch to electricAn excellent example comes from weekend, and by Monday morning cars; predictably, those cars are goingtoday’s entertainment companies. Con- have acted on their decisions. to be recharged the minute the ownersventionally, bad movies have been able return home from work, which could beto enjoy a great opening weekend Our final example is from the utilities within a very short period of time.before crashing the second weekend industry: The most expensive energywhen negative word-of-mouth feedback that a utilities company provides ishas cooled off the initial enthusiasm. energy to meet unexpected demandThat week-long grace period is about to during peak periods of consumption. Indisappear for silver screen flops. In the those cases, the provider may have tofuture, consumer feedback won’t take a buy additional energy to support theweek, a day, or an hour. The very sec- power grid, which can get expensive.ond showing of a movie could suffer However, if the company could analyzefrom a noticeable falloff in attendance trends in electrical power consumptiondue to consumer criticism piped instan- based on real-time meter reading, ittaneously through the new technolo- could offer its consumers – in real timegies. Since such rapid response is not – extra low rates for the week or monthpossible with old-fashioned movie if they reduce their consumption during6 SAP Thought Leadership – SAP In-Memory Computing Technology
  7. 7. In-Memory ComputingTechnologyReplacing Traditional DatabasesIn-memory computing technology leverages in-memory computing tech-combines hardware and software tech- nology. The accelerated version ofnology innovations. Hardware innova- SAP BusinessObjects Explorer™tions include blade servers and CPUs software makes use of the technol-with multicore architecture and memory ogy for data provided by the SAPcapacities measured in terabytes for NetWeaver Business Warehousemassive parallel scaling. Software inno- (SAP NetWeaver BW) component andvations include an in-memory database SAP BusinessObjects Data Serviceswith highly compressible row and col- software. However, in-memory comput-umn storage specifically designed by ing will not eliminate the need for dataSAP to maximize in-memory computing warehousing. A real-time reportingtechnology. Parallel processing takes function will solve old challenges andplace in the database layer rather than create new opportunities, but new chal-in the application layer as we know it lenges will arise.from the client-server architecture. In manufacturing enterprises,Total cost is expected to be 30% lower SAP HANA 1.0 software supports real-than traditional relational database time database access to data from the in-memory computing tech-technology due to: SAP applications that support OLTP. In nology will connect the• Leaner hardware and less system a parallel environment, updates of data capacity required, as mixed work- in real time utilize database replication shop floor to the board- loads of analytics, operations, and developed by Sybase. The first SAP room, and the shop floor performance management are han- application to run on an in-memory data- dled within a single system, which base is SAP NetWeaver BW 7.30 using associate will have instant also reduces redundant data storage SAP HANA 1.5. This advance has elimi- access to the same data as• Reduced extract, transform, and load nated the need for separate hardware to (ETL) processes between systems run SAP NetWeaver BW Accelerator. the board member. The tech- and fewer prebuilt reports, reducing nology supports this by the support effort required to run the Both versions of the appliance soft- software ware can be accessed with the SAP integrating on-premise, BusinessObjects Business Intelligence on-demand, and on-deviceReplacing traditional databases in SAP platform. The platform provides aapplications with in-memory computing shared semantic data layer for SAP architectures. Once thetechnology resulted in report runtime BusinessObjects BI solutions and SAP appropriate business pro-improvements of up to a factor of 1000 BusinessObjects enterprise perfor-and compression rates of up to a factor mance management (EPM) solutions. It cesses are in place, em-of 10. Performance improvements are allows optimized BI applications to take powered shop-floor staffexpected to be even higher in SAP full advantage of the in-memory com-applications natively developed for in- puting technology. can take immediate actionmemory databases, with initial results based on real-time data toshowing a reduction of computing timefrom several hours to a few seconds. make whatever adjustmentsCurrently SAP NetWeaver® Business on the shop floor areWarehouse Accelerator (SAPNetWeaver BW Accelerator) software necessary. SAP Thought Leadership – SAP In-Memory Computing Technology 7
  8. 8. Business IntelligenceProviding More Than Fancy Dashboards,but How Much More?Business intelligence is more than software, and cost management simula-fancy dashboards – at least most BI tion tools. Add to the BI category statis-professionals agree with that. At first, tical applications that perform predictivecomputer-generated data was simply analysis and SAP BusinessObjectsreferred to as reports. Over time new Event Insight – which is based on infor-terminology was introduced: executive mation streams issuing from an eventinformation system (EIS) in the early grid – and two things happen. It be-1990s, enterprise information manage- comes almost impossible to agree onment (EIM), and strategic information an industry-wide definition of businessmanagement (SIM, see Figure 1), to intelligence, and it becomes impossiblename a few. to separate BI from other IT data processing.Business intelligence can be complexand, depending on its definition, could For that reason, we do not focus onbe understood to cover functionality traditional BI definitions in this thoughtoffered by SAP BusinessObjects EPM leadership paper. We focus our atten-solutions. This would include financial tion instead on analyzing the overallplanning and consolidation applications, impact of in-memory computingstrategy management and profitability technology. On premise Competitive differentiation Fact-based Organizational decision making readiness On demand Value On device Governance Strategic management information management Organizational Enterprise data change management management Predictive analytics and business intelligence Enterprise Enterprise architecture performance alignment managementFigure 1: Strategic Information Management8 SAP Thought Leadership – SAP In-Memory Computing Technology
  9. 9. Project Portfolio ManagementAligning IT with Corporate-WideBusiness StrategyOur world is characterized by rapid zations, achieve business objectives, that transaction processing functionalitychanges, disruptive technologies, and keep lines of business profitable. will have to be aligned much more closelyand strong competition. Clearly, no with the integrated BI can afford to waste its limited The objectives for IT portfolio manage-resources on duplicate efforts; on ment include: SAP BusinessObjects Event Insight,freewheeling short-term, throwaway • Establishing clear guidelines for which uses in-memory computing,development; or on shadow IT efforts – gathering and prioritizing require- requires a tightly woven network ofstopgap, maverick IT work performed ments, executing project work, and data processes and data exploration tooutside the official corporate IT stra- maintaining budget accountability identify specific thresholds of perfor-tegy. Nor will the biggest corporate • Aligning existing and planned projects mance measures. Reaching a thresholdspenders necessarily be tomorrow’s with these guidelines then triggers additional steps in one orleaders. That role will go to the compa- • Prohibiting all IT and business initia- more business processes. In order tonies with IT strategies that enable their tives not aligned with the guidelines implement an end-to-end business pro-enterprise architects to align the IT of the IT portfolio cess with embedded BI, both business-infrastructure with business strategy process effort and IT effort must beacross business units. If a company intends to leverage in- carefully orchestrated. memory computing technology, its ITThat is the reason why IT portfolio portfolio management becomes even Cost Impact formanagement is a top priority for com- more important. We give two examples Portfolio Managementpanies today. However, to put that in that illustrate, you must understand your busi- The lion’s share of IT spend is tied up inness strategy, then establish an IT Formerly, operational reporting function- operations and maintenance efforts,portfolio that reinforces that strategy ality was transferred from OLTP appli- with less IT spend available for busi-with every IT decision made (see cations to a data warehouse. With ness innovation. If potential for innova-Figure 2). In doing so, your IT can help in-memory computing technology, this tion is to be significantly increased,align company priorities across lines of functionality is integrated back into the organizations need mature portfoliobusiness and corporate support organi- transaction system. The consequence is management processes and capabili- ties to optimize spend without creating too many parallel developments, which Strategy Strategic direction could entail even higher IT support • Sets strategic direction for the spend. For most companies this will organization mean new governance structures that • Defines objectives Strategy and objectives span silos. • Drives all further organizational actions Planning and management Operations Project portfolio Establishes appropriate actions required to meet strategic objectives Execution Ongoing Authorized • Manages the organization’s operations operations programs and portfolios and projects • Enables efficient and effective execution Organizational resourcesFigure 2: Portfolio Management SAP Thought Leadership – SAP In-Memory Computing Technology 9
  10. 10. Enterprise ArchitectureDesigning the FutureEnterprise architecture emerges where metadata and master data across busi- implemented. The technical specifica-business requirements are formally and ness processes. Some of the most tions of the hardware making up therigorously sustained by IT. In advanced salient shifts and trends in future enter- landscape also play a role. Another fac-enterprise architectural processes, no prise architectures will be: tor is whether a company’s data centertechnology is implemented that has not • A shift to BI self-service application- is committed to a single vendor’s tech-been vetted and approved by the enter- like data exploration, instead of rolling nology or is prepared to incorporateprise architecture office with regard to out static report solutions for struc- technology from a range of vendors.strategic viability and medium- to long- tured and unstructured dataterm benefit for the enterprise. How- • Full integration of planning business It is most likely that future deploymentsever, those organizations wanting a processes with instant BI provision- of SAP NetWeaver BW will not requirehead-start in in-memory computing ing from the source applications, separate hardware to run SAPmust deploy at least one in-memory replacing data warehouses for opera- NetWeaver BW Accelerator. However,computing project as soon as possible tional data and near-real-time data to what extent existing hardware com-to develop know-how, resources, and a transfers ponents can be reused for SAPfeel for how the new technology will • Substitution of traditional ETL archi- NetWeaver BW Accelerator willimpact their unique situation. tecture and expansive data cleansing depend on how that hardware exploits and harmonization processes with the in-memory computing technologyObviously, it will take some time before real-time data validation during all of the application.the first applications developed specifi- manual and automated data inputcally to exploit in-memory computing processes Real-time in-memory computing technol-affect the enterprise application archi- • Central metadata and master-data ogy will most probably cause a declinetecture. Yet in-memory computing tech- repositories that define the data in sheer numbers of Structured Querynology will have a major impact on BI architecture, allowing data stewards Language (SQL) satellite databases.and data warehouse application archi- to work effectively across all busi- The purpose of those databases as flex-tecture as well as on OLTP applications. ness units and all architecture ible, ad hoc, more business-oriented,This is something enterprise architects platforms less IT-static tools might still be required,should take stock of earlier rather than • Instantaneous analysis of real-time but their offline status will be too muchlater. Real-time data access to BI infor- trending algorithms with direct impact of a disadvantage and will delay datamation and the repurposing of data on live execution of business updates. Some might argue that satellitewarehouses will be key to orchestrating processes systems equipped with in-memory com-their on-premise, on-device, and on- • Offline long-term historic trending puting technology will take over fromdemand architecture successfully. And that can impact future execution of satellite SQL databases. For limitedthey will find that in-memory computing business processes sandbox purposes, that is a possibility.will open up new avenues and change • Construction of an event insight grid However, because in-memory comput-the way they regard three-tier architec- architecture combining live business ing technology can process massiveture for data processing. applications across on-premise, on- quantities of real-time data to provide device, and on-demand architectures instantaneous results, traditional satel-A Clean, Spare Architecture for proactive use of BI instead of ana- lite architectures will always be at least lyzing historic events after the fact one step behind. They are also likely toAdopting in-memory computing results inherit undesired transformations madein an uncluttered architecture based on What specific changes are introduced during the ETL process.a few, tightly aligned core systems to existing landscapes depend on howenabled by service-oriented architec- functional requirements, such as highture (SOA) to provide harmonized, valid availability or disaster recovery, were10 SAP Thought Leadership – SAP In-Memory Computing Technology
  11. 11. In-memory computing technology combines hard- ware and software technology innovations. Hard- ware innovations include blade servers and CPUs with multicore architecture and memory capacities measured in terabytes for massive parallel scaling. Software innovations include an in-memory data- base with highly compressible row and column stor- age specifically designed by SAP to maximize in- memory computing technology. Parallel processing takes place in the database layer rather than in the application layer.Cost-Effective Impact of incrementally, and compatibility with cur-Enterprise Architecture rent and legacy landscapes. In-memory computing technology provides scalingWhen enterprise architecture plays a and flexibility of hardware for higher per-role in setting up and maintaining BI proj- formance. On-the-fly aggregationsects, it helps reduce costs by consider- relieve IT staff from manual query tuninging the overall context of the project. It and data aggregation tasks. In casesexamines business needs, IT landscape, where an enterprise data warehouse isperformance requirements, data model not in place, SAP HANA providescomplexity, and the tools and software instant access to real-time data via repli-required to meet reporting demands. In cation from ERP software from SAPseeing that these requirements are met, with no need for complex ETLit helps establish a unified BI platform processes.that supports administration, therebysignificantly trimming the TCO for a BI By contrast, in traditional data ware-project. house environments, ever higher per- formance and functional requirementsAnalytics based on in-memory comput- lead to the acquisition of additionaling also contribute to lower TCO of hardware, software, and performance-both new and existing landscapes. tuning tasks. In highly heterogeneousSome huge cost benefits for IT include environments, multiple BI solution setsreduced hardware costs, higher perfor- require additional independent lifecyclemance and business agility, faster management, which adds to solutiondeployment, the opportunity to adopt maintenance efforts. SAP Thought Leadership – SAP In-Memory Computing Technology 11
  12. 12. The Potential of Metadataand Master DataProfiting from Intelligent DataIf a BI solution is to provide relevant ments, strict data governance must be In-memory computing tech-information, high data quality is essen- in place to maintain the high quality oftial. But real-time analytics allow no real-time data based on company-wide nology provides scaling andtime for data cleansing processes. To data standards and controls. If current flexibility of hardware fortackle this issue, it is sound strategy to data management processes are in-establish the formal role of chief data sufficient, in-memory computing tech- higher performance. On-officer in a company, as SAP has done. nology will only make existing issues the-fly aggregations relieveThis step is an effective way to stan- worse.dardize data processes across the IT staff from manual queryenterprise and achieve the highest pos- Cost Impact for Metadata and tuning and data aggregationsible data quality at the time the data is Master Datacreated. tasks. In cases where an Reporting in real time based on in- enterprise data warehouseConsidering the number of data fields memory computing requires readingin SAP Business Suite software, it directly from analytics data pools in is not in place, SAP HANAwould be a herculean task to define the original source system. Because provides instant access toprocesses and standards for them all. the data is consumed before traditionalSince the functionality in SAP Business data cleansing processes can be real-time data via replicationSuite is designed to take care of this, performed, data validation must be from ERP software fromthere is no need to. This is not the case performed upstream. From a TCOin a heterogeneous environment that perspective, that might sound like more SAP with no need for com-brings together legacy systems from effort than conventional reporting plex ETL processes.different vendors, systems inherited methods require. We would like to sug-from mergers and acquisitions, and gest that every dollar a companybusiness processes reflecting different spends on data quality upstream elimi-levels of maturity. For such environ- nates two dollars spent downstream.Negative Business Impact from Poorly Managed Master DataLine of businessFinancials IT Sales Supply chainChief financial officer Chief information officer Head of sales and marketing Head of supply chain or manufacturingChallengesCompliance TCO and Flexibility Opportunities Optimization• Manual efforts to update • High master-data • Lack of consolidated view • Lack of transparency relating financial master data in local maintenance costs of customer data across all to suppliers and products financial systems • Need for multiple systems channels • Unused benefits from• Slow group closes to manage master data in • Compromise of customer discounts, conditions,• Risk of not complying different domains transactions due to limited and central contracts with International Financial • Lack of flexibility in dynamic view of the facts • Limited availability of up-to-date Reporting Standards or business environments master data in business network the Sarbanes-Oxley Act12 SAP Thought Leadership – SAP In-Memory Computing Technology
  13. 13. Most companies spend a significant amount of time and effort manually Incomplete address cleansing master data after transac- in new account... tions have been created in OLTP appli- cations. Excessive effort mounts for other reasons: Data validation must be developed in the ETL processes. Multiple sources of truth must be har- monized for multiple BI applications. Meetings must be held in which staff members discuss which data is the right data. Often, these meetings kick off another round of data validation automatically efforts. By contrast, in-memory com- filled in. puting technology provides support for improved data storage, search, and analysis to enhance data consistency. Cost-Effective DeploymentFigure 3: Real-Time Data Entry Quality Check of In-Memory Computing To deploy in-memory computing cost- effectively, it is critical to link data-quality tools such as SAP BusinessObjects Data Services software directly to both manual and automatic data entry (see Figures 3 and 4). These tools help curb invalid data coming from OLTP applications into the data warehouse through traditional ETL processes or as periodic batch processes. Other ways to reduce TCO include identifying the right data sources with proper data gov- User has option ernance processes and choosing the to resolve the cleansing case right integration platform, such as SAP by merging now BusinessObjects Data Services. or later.Figure 4: Real-Time Data Entry Duplication Check SAP Thought Leadership – SAP In-Memory Computing Technology 13
  14. 14. People, Processes, and Structuresin Business and ITRequesting Just the Data, Please, No Reports To fully enable BI governance, support of business processes end to end is Today, SAP NetWeaver BW can store high-demand required. The SAP Business Process data using SAP NetWeaver BW Accelerator, medium- Management service offers this kind of support based on a business process– demand data with relational database management centric approach. On the IT side, a pro- systems, and low-demand data with near-line storage cess information owner is responsible for an entire business process. From solutions on optical discs. These different storage the business side, a business process strategies remain invisible to users. Using in-memory owner is given responsibility for the business process. computing, the database can manage cold, lukewarm, and hot spaces and move data automatically between An example from forecasting – a typical cross-function business process – the areas based on parameter values. illustrates how this works. The parties involved could be marketing, sales, and the finance and controlling function.Frustrated by limited BI, today’s gener- nance is ineffective. In these contexts, Depending on the type of industry, aation of users wants to bypass prefab- under-the-desk SQL databases and delivery business unit like manufacturingricated reports and get right to the data freewheeling Microsoft Excel spread- or mining or a supply chain unit could beitself. We hear it often during our BI sheets compete for executive attention. involved. From the business side, thereview sessions with customers, and business process owner of forecastingwe have an answer: BI tools in SAP BI Governance is responsible for aligning the forecast-software can satisfy this need. The ing processes across business reduce the dependence of busi- BI governance as we understand the How well this is done can be measuredness users on IT and increase BI term does not strive to control the num- in process performance indicatorsself-service. ber of new reports created by users, but (PPIs). The business process owner it strives to base data interpretation on a also serves as the central point of con-SAP Business Explorer tools that use single source of truth. True business- tact between business and IT and isin-memory computing technology rep- user empowerment should not restrict explicitly invested by the board withresent a paradigm shift. Instead of wait- freedom to use available resources but decision power. (It should be noted thating for IT to work on a long queue of provide a framework for: the business process owner is notsupport tickets to create new reports, • Standards to achieve consistent qual- responsible for getting actual revenuebusiness users can access large data ity data to meet the forecast data. Instead, thesets for data exploration and defining • Access to controls to minimize risk business process owner’s role is to con-reports on the fly. and support compliance trol, optimize, or reinforce the process.) • BI architecture where analytics doesThe key to success lies not in the tech- not impair business process To maximize the effect of the businessnological support the BI tools provide, performance process owner’s efforts, the companybut in the effective governance sup- • Training and education to maximize should designate an IT counterpart: aporting the BI self-service with regard user potential single point of contact responsible forto processes, structures, and people. supporting the forecasting businessIn-memory computing technology only process from the IT side. To realizeincreases negative impact when gover- this, IT must be able to adjust its opera-14 SAP Thought Leadership – SAP In-Memory Computing Technology
  15. 15. tions to provide single-person, end-to-end process support, thus eliminatingthe need to hand off IT responsibilitiesfrom one IT group to another for a sin-gle business process. This dramaticallyincreases the likelihood of handlingbusiness processes effectively.We saw a case where a number of ITteams were assigned to perform differ-ent stages in handing off an externaldata load-interface task to the SAPERP Central Component component.One team was responsible for theETL stage from SAP ERP CentralComponent to the data warehouse,data harmonization, and data validation.Another team took over data modelingin the data warehouse. A third teamwas responsible for the BI front-endapplications. Other IT teams supportedSQL satellite data warehouses forother BI front-end applications. Al-though splitting up support resourcesthis way is cumbersome and costly, weare aware of cases where seven ormore handovers occurred between ITgroups, at times across continents. business savvy, they can provide ever reports. Unfortunately, this is precisely better support for business processes the time in the project when the ITIn-memory computing technology pro- end to end. group members must focus on stabiliz-vides a major opportunity for IT to ing the new environment. Their tasksrealign itself as a business process– Cost Impact for People, Processes, may include fine-tuning the data ware-centric organization based on orches- Structure, and Technology house design, preparing and deployingtration of an on-premise, on-demand, prebuilt reports running on predefinedon-device architecture. This would do At the start of a BI implementation aggregates, or defining processes toaway with a fragmented support model, project, implementation teams may be warm up limited memory caches. Withwhich only intensifies shadow IT efforts presented with thousands of legacy valuable IT resources tied up with over-by the business. As the organization reports they are to rebuild in the new head functions, the business cannotchanges, so will the people. The more environment. It is not uncommon, how- wait for its new reports, so it startstech-savvy business users become and ever, that once the teams have rebuilt building SQL databases. This situationthe easier BI products are to use, the those reports and after the new soft- presents a tremendous opportunity toless business will have to rely on IT to ware goes live, they are inundated with reduce capital and operational expendi-produce reports and dashboards. Simi- new report requests because nobody tures while increasing user experience.larly, as IT personnel become more in the user community used the old SAP Thought Leadership – SAP In-Memory Computing Technology 15
  16. 16. BI Data Lifecycle ManagementKeeping Data Hot or Cold?We all know that the amount of data answers to such questions as: Why spaces. Only high-demand data shouldpacking this planet is growing. Just keep pushing marketing dollars for a be stored in the “hot” spaces. “Hot”reflecting on how much information from product version when its reviews are refers to storing data in a dynamicsocial media networks we sift through under par? Should we accelerate the state, which allows frequent data loadsevery day can make us feel slightly ill at release of a new version and start pro- for high availability and split-secondease about it. We also feel quite keenly motions to push the old product out of response time despite access by manythat the rate at which that data is accu- the retail shelves and out of the Internet users. “Cold” refers to the storage ofmulating is increasing. What’s worse, warehouses instead of replacing the nonoperational static data infrequentlywe neither can nor should ignore it. inventory? There’s a very real possibility accessed and causing no additional that unstructured data might render tra- data loads. Data for long-term analyticsCompanies are in a far worse quandary: ditional forecasting methods obsolete. or multiyear trending is an example oftheir business depends on it. One day cold data.unstructured data might render tradi- Cost Impact for BI Datational forecast methods obsolete. Prod- Lifecycle Management Today, SAP NetWeaver BW canuct reviews posted on the Internet may store high-demand data using SAPhave greater impact on forecasts, sales The majority of databases and data NetWeaver BW Accelerator, medium-pipelines, profit margins, and product marts could be consolidated into a demand data with relational databaselifecycles than actual sales from point- single, integrated enterprise data management systems, and low-demandof-sale data. It is no mystery why more warehouse, and it would make sense data with near-line storage solutionsSAP customers spend as much money to do so. Most of the data in data ware- on optical discs. These different stor-and time analyzing unstructured data as houses is hardly used, with only a frac- age strategies remain invisible to users.they do analyzing traditional structured tion accessed on a daily basis. Data Using in-memory computing, theBI data. volume maintenance is one of the database can manage cold, lukewarm, major recurring costs and activities and hot spaces and move data auto-Analysis of unstructured data may of IT. To minimize these costs, infre- matically between the areas based onbecome essential in determining prod- quently used data should be off-loaded parameter values.uct lifecycles by giving companies to “cold” hardware and database Unstructured enterprise content... changing in two fundamental ways... ...creating strategic business challenges Growth of data and documents Business process inefficiency accelerates while regulatory oversight • Breakdown of ad hoc processes continually increases • Lost productivity searching for content • Emergence of siloed solutions TRI PSR Paper/Physical; Graphics; Video; E-mail SOX EUROPA Regulatory risk exposure HIPPA EC1085 • Legal requirement of storing complete S-296 FISMA record of processes • Unmanaged content “lost in the Corporate GLBA UCC-1 RCRA haystack” documents OSHA EEO EC 2003 • Longer-than-necessary retention of content 1990 2000 2010 • Growth of e-discovery costsFigure 5: Business Challenges of Unstructured Data16 SAP Thought Leadership – SAP In-Memory Computing Technology
  17. 17. Comparing ArchitecturesTraditional Versus In-Memory Computing Traditional architecture In-memory computingPortfolio management Parallel programs to address process and Overarching portfolio management for analytical requirements in separate projects redundant data and business intelligence (BI) effortsEnterprise architecture • Layered approach: transactional system layer, • Streamlined IT landscape with analytics, enterprise data warehouse layer, and regional operations, and performance management and business satellite data warehouse layers combined in one system • BI based on 24-hour-old data • Real-time enterpriseMetadata and master-data support • Fragmented data governance • Enterprise-wide data governance • Downstream data management, such as • Upstream data validation, with data harmonization and validation consumption occurring before data management processes can be performedPeople, processes, and structures in • High dependence of business on IT • High degree of BI self-servicebusiness and IT • Shadow IT in competition with enterprise IT • Enterprise-wide governance, with business • Business silos process owners crossing business units in partnership with process-centric ITBI data lifecycle management • Focus on structured data • Structured and unstructured data • Growing data volume is not proactively • Growing data volume distributed across managed by actual usage and only segre- different storage media determined by user gated by multiple online and offline solutions needs and managed by a single database SAP Thought Leadership – SAP In-Memory Computing Technology 17
  18. 18. OutlookAccelerating into the FutureWe do not proclaim to know the future on how you can shape your businessand cannot know for certain where the opportunities with SAP In-Memory Com-in-memory computing revolution will puting. The Business Transformationlead us. What we can say is that the Services group from SAP Consulting isrevolution is under way, and for a busi- skilled at bringing business and IT intoness to succeed, it must consider the alignment. The SAP experts can workpossibilities opening up and prepare for with you to create a strategy to leveragethe transformation now. technology, deliver value, and differenti- ate your business in the marketplace.In-memory computing technology willalter existing IT processes more quickly For More Informationthan ever before. At the same time,business is pursuing disruptive busi- To learn more about the software andness ideas at an unprecedented rate. tools that can help you manage TCOIn-memory computing will be able to for BI, call an SAP representative todayconnect the dots between existing or go to For more infor-application platforms, new mobile mation on the Business Transformationcommunity technologies, and nascent Services group, see /services/consulting/bts/index.epx. For the latest information on the SAPAlthough some of the business exam- product road map and release informa-ples provided in this paper might not tion, visit the SAP Developer Networkrelate to your unique situation, we trust site at have provided you with some ideas18 SAP Thought Leadership – SAP In-Memory Computing Technology
  19. 19. 50 104 231 (11/03)©2011 SAP AG. All rights reserved.SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,SAP BusinessObjects Explorer, StreamWork, and other SAP productsand services mentioned herein as well as their respective logos aretrademarks or registered trademarks of SAP AG in Germany andother countries.Business Objects and the Business Objects logo, BusinessObjects,Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, andother Business Objects products and services mentioned herein as wellas their respective logos are trademarks or registered trademarks ofBusiness Objects Software Ltd. Business Objects is an SAP company.Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere,and other Sybase products and services mentioned herein as wellas their respective logos are trademarks or registered trademarks ofSybase, Inc. Sybase is an SAP company.All other product and service names mentioned are the trademarksof their respective companies. Data contained in this document servesinformational purposes only. National product specifications may vary.These materials are subject to change without notice. These materialsare provided by SAP AG and its affiliated companies (“SAP Group”)for informational purposes only, without representation or warranty ofany kind, and SAP Group shall not be liable for errors or omissions withrespect to the materials. The only warranties for SAP Group productsand services are those that are set forth in the express warrantystatements accompanying such products and services, if any. Nothingherein should be construed as constituting an additional warranty. /contactsap