High-performance profitability analysis with SAP HANA CO-PA Accelerator.pdf

High-performance Profitability Analysis with HANA CO-PA

Carsten Hilker | Solution Management LOB FinanceShah Snehanshu | Senior Director, Business Analytics & Technology SolutionsBrett Miller | Sr. Solution Engineer

© 2011 SAP AG. All rights reserved. 2

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Agenda

High performance profitability

SAP HANA

HANA CO-PA Accelerator

Implementation considerations

Business Transformation service

Demo

Q&A

High performance profitability


High Performance Profitability

Profitability AnalysisAnalysis of contribution to operating income (contribution margin) of market segments such as product, customer, business units such as sales organization, regions, or any summarization of these concepts

High Performance ProfitabilityTechnology constraints are gone

Processing of massive data volumesIn basically an instantAt a cost that works

Welcome to the new realityIn-memory databases have arrivedBusiness applications are starting to leverage the power of in-memoryBusiness analytics provide business user driven instant insight

SAP HANA


?What if You Could?

Manage Large Data Volumes Cost

Effectively

Always Have Current & Complete Information

Have Immediate Answers to Any

Question

??


Cost-effective Management of Large

Data Volumes

Current and Complete Information

Immediate Answerto Any Question

Reality... Cannot Meet All 3 Requirements

???


Why Is This So Hard?

Slow Disks & CPUs

I/O Bottleneck

Expensive Memory

Optimized for Transactions

BI is an Afterthought

30 Year-Old IT Design Principles


Reporting

“Typical” Business Intelligence Today

Slow

Painful

Expensive

Operational Data Store

Data Warehouse

Indexes

Aggregates

DataBusiness Applications

Copy

ETLCalculation EngineBusiness Intelligence

Query ResultsQuery

Slow

Painful

Expensive


Data Warehouse

Indexes

Aggregates

Transactional DataBusiness Applications

Copy

ETL

Calculation EngineBusiness Intelligence

Query ResultsQuery

DataMarts

New Approach


The Power of Running In Main Memory

“By 2012, 70% of Global 1000 organizations will load detailed data into memory as the primary method to optimize BI application performance.”

- Gartner

Conventional DatabasesDisk Read5 milliseconds

In-Memory DatabasesDisk Read5 nanoseconds


Row vs. Column Databases

My Filing System

My Wife’s Filing System

Row-based Column-based

Much Faster AnalysisBetter Parallel Processing


SAP HANA Innovations …

Row and Column Store

Compression

PartitioningIn-Database Computing

No Aggregate TablesNon-Materialized Views

Real-Time ReplicationInsert Only on Delta

5x Compression1 TB Data = 200GB Memory

Column = Fast Queries

Analyze Large Data SetsComplex Computations

Flexible ModelingNo Data Duplication

Fast Data Loads

Multi-Core CPUsLarge Memory Footprint

Computational Power1m Faster Access than Disk


Reporting

“Business Intelligence with HANA”

No Data Marts

… No Aggregates …

… No Indices


DataBusiness Applications

Replicate


Customer Testimonials

Consumer and Health Products

Manufacturing

Energy

Communications and Media

Services

Technology


HANA Applications Available in H2 2011/2012

Strategic Workforce Planning Smart Grid Analytics

COPA case (includes financial line item reporting)

CRM & ECC Content (Q2 2011)

Inventory Movement

Billing Management

Smart Grid Analytics

SAP BW Powered by HANA

SAP BPC Powered by HANA

Order to Cash analysis

Trade Promotions Management

Sales Pipeline Analyzer

Banking: Bank Analyzer

Demand Signal Repository

20+ SAP Projects - H2 2011 for Ramp-up & GA Early 2012


IDC: Improved reporting drives better decisions

Sustainable growth Goes beyond just traditional cost-cutting measures and margin managementFocus on optimizing customer and product mix, set competitive pricing strategies, and embark on lucrative channel strategies

Most companies have some type of profitability reporting

Producing the information is expensiveLimitations to information and information access have a significant impact on decision making


McKinsey: Big data creates value in several ways

Big data creates value in several waysCreating transparencyEnabling experimentation to discover needs, expose variability, and improve performanceSegmenting populations to customize actionsSupporting human decision making with automated algorithmsInnovating new business models, products and services

Use of big data will become a key basis of competition and growth for individual firms

The use of big data will underpin new waves of productivity growth and consumer surplus

Big data refers to datasets whose size is beyond the ability of typical database software to capture, store, manage and analyze


McKinsey: The value of big data

60%potential increase in operating margin with big data

source: McKinsey Global Institute – Big Data: The next frontier for innovation, competition and productivity May 2011

HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database

Today

ERP

Traditional DBTraditional DB

CO-PAProfitability Analysis


Today tens of thousands of SAP customers use the CO-PA module for multi-dimensional profitability in ERP

Profitability Analysis is a key management tool for companies that are actively managing their bottom-line and outperform their competitors


Today

ERP




CO-PAReport Writer

CO-PAReport Writer

CO-PA data is stored in the traditional ERP database ... which the Report Writer accesses for multi-dimensional profitability reporting


Today

ERP




CO-PAReport Writer

CO-PAReport Writer

BW

BWBW

optional

BW reportingBW reportingMany SAP customers also use the reporting tools of the BW suite for the analysis of profitability

To achieve that, data is being transferred from the traditional database onto BW for subsequent processing

In both reporting scenarios, ERP- and BW-based reporting, pre-defined data aggregation levels are broadly used to improve reporting performance


Today … there are challenges

ERP




Report WriterReport WriterMonth-end closing

CO-PA reporting response timesAllocation performance

ReportingIT maintained data aggregation levelsReport Writer-based ERP reporting

ResultsComplete and current data

InsightAccess to relevant analysis dimensions

Incompletedata

Allocationsperformance

Responsetime

BW

BWBW

optional

BW reportingBW reporting


The solution

HANA

HANA 1.0HANA 1.0

~30x compression100x faster


HANA - SAP’s in-memory technology innovation – is at the core of our CO-PA Accelerator solution

Through a combination of compression, column-architecture and other nifty ideas, HANA allows for super-fast processing of massive data quantities in basically an instant


The solution

HANA

HANA 1.0HANA 1.0



ERP




The CO-PA Accelerator uses HANA as a secondary database …

we continue to gather and process all CO-PA relevant data in the traditional database and replicate the data onto HANA


The solution

HANA

HANA 1.0HANA 1.0



ERP




Unabridged Unabridged data

Archived dataArchived data

A key function of the CO-PA Accelerator is the ability to re-load archived CO-PA line items onto HANA

The data is loaded directly onto HANA without impacting the ERP system load and without increases to CO-PA table-space sizes

The result is a complete and current set of data for comprehensive profitability analysis


The solution

HANA

HANA 1.0HANA 1.0



ERP




Report WriterReport Writer

Fasterallocations

Allocations – from cost centers to CO-PA as well as CO-PA top-down allocations - are redirected to now process data directly from HANA instead of the much slower traditional database

As a results allocations can be accelerated by as much as 50% … in one case from 16 to less than 9 hours


The solution

HANA

HANA 1.0HANA 1.0



ERP





Fasterreporting

Existing ERP Report Writer reports will experience dramatic performance improvements as well

… reports that took hours to run … can run now in seconds

The CO-PA Accelerator provides instant insight into your profitability data


The solution

HANA

HANA 1.0HANA 1.0



ERP





BOBJ BI

BOBJ BI 4.0BOBJ BI 4.0

Flexible reporting

Last but not least with Business Objects BI 4.0 tools, end-users have access to a number of flexible reporting options

Explorer for example allows for interactive analysis of all available CO-PA dimensions !No more jumping from report to report … all information in one window … processing millions of records in sub-seconds


The solution

HANA

HANA 1.0HANA 1.0



ERP





BOBJ BI

BOBJ BI 4.0BOBJ BI 4.0

Flexible reporting

Unabridged Unabridged data

Archived dataArchived data

Fasterallocations

Fasterreporting

Accelerated month-end closing Accelerated CO-PA ReportingAccelerated ERP CO-PA Allocations

Improved ReportingBusiness user driven data analysisInstant response times

Eliminated data boundariesNo pre-defined data aggregation levelsComplete life-time, line-item analysis

Deeper InsightHigh-volume and ad-hoc data queriesNo limitations to reporting dimensions



Reporting Example

Scenario120 Mio. line items, report on product-related dimensions for a single company

HANA reporting

Less than 1 sec (runtime for specific scenario, no general statement)

Directly on line item level, no pre-calculated data aggregation levels required

No limit on drill-downs and details

Data immediately available for reporting, no waiting on data load processes to data warehouse

ERP reporting

Several minutes(runtime for specific scenario, no general statement)

Pre-calculated data aggregation levels

Processing time for next navigation step depends on whether aggregate exists

Parallel drill-down to multiple dimensions may not be possible anymore



Allocation Example

Scenario85 Mio. line items, allocation of overhead cost to single products based on sales qty

In-Memory Accelerated< 30 sec reading time for reference data!(runtime for specific scenario, no general statement)

< 1 sec search time for data w/o product assignment (to be allocated)

No data aggregation levels required, any allocation anytime

Classic DB>1h reading time for reference data(runtime for specific scenario, no general statement)

Search only possible with index support or further “tricks”

Time-consuming optimization of pre-calculated data aggregation levels depending on allocation needs

Implementation considerations



Implementation

Consumable componentsERP CO-PA add-on ABAP codeHANA data model generator for CO-PABusiness transformation session

… non-disruptive, instant value

Plug-And-PlayInstallation via support package / noteActivation via customizingData load through automated procedures

… no implementation project required



Data replication

The HANA CO-PA Accelerator allows for a number of implementation scenarios

HANA-based reportingMaster data replication (like material description etc.) via SLTSLT can also be used for CO-PA Line Items replicationRequires SLT setup and SLT license

Accelerated ERP reporting and allocations onlyMaster data replication not required (already in ERP)Replication of CO-PA Line Items via HANA CO-PA Accelerator program (or SLT)Program access via SAP GUI / no training required - SLT scenario requires setup / license

In addition to SLT as preferred data replication mechanism, Data Services and Sybase Replicator can also be used



Implementation Services

HANA CO-PA Accelerator will be free-of-charge for ERP/HANA customers

ServicesPre-defined Service for new HANA Customers

HANA software installation

Rapid Deployment Solution* strongly recommended by SAP !!!HANA CO-PA documentationHANA CO-PA installationHANA CO-PA business transformation

* components are available as separate items of any combination thereof



Implementation components


HardwareSold separately

Engine

SAP HANA(standard / extended)

Implementation Service*

+ + +

Provided by certified SAP Hardware partners

Standard HANA pricingNon-discountable

Shipped via support package / OSS noteActivation key via SAP CSN

HANA installationHANA CO-PA implementation contentHANA CO-PA ImplementationHANA CO-PA Business Transformation workshop

* components are available as separate items of any combination thereof

Pre-requisites:Business Suite Software license, CO-PA up and runningHANA hardware Available through certified SAP HANA hardware partnersHANA Software license, up and running, connected to ERP system



Software requirements

Application Release Comment

ERP ERP 6.0 and higher CO-PA

NetWeaver NW 7.03 and higher Installation of ADBC classes + domain values for 7.00 – 7.02

Kernel 7.20 Upgrade 7.00 / 7.01 to downward-compatible 7.20 (AKK*)

Operating System

(Application Server)

SLES 11, SLES 10, Windows 2008, AIX

6.1, HP-UX 11.31 (IA64), SunOS 5.10

(Sparc und X86)

Requires installation of DB client for In-Memory DB

HANA HANA 1.0 and higher

* AKK will be GA October 15th 2011; access before October 15th can be arranged with Product Management

HANA CO-PA Business Transformation



Business Transformation with HANA CO-PA

SAP HANATM

Processing of vast amounts of profitability data in basically an instantUnprecedented opportunity to turn improved insight into competitive differentiation

Business PotentialIncrease revenue, reduce costOptimize operational productivity

Business TransformationRevert failed business practicesChange existing profitability management processesIntroduce new profitability analysis processes

get better… get healthy… get great



Business Transformation: In Detail

Revert Failed Business PracticesEliminate Data Aggregation levelsCorrect CO-PA data structure compromisesOptimize CO-PA Data Structure …

Changes to profitability management processesAllocationsCost assignmentsArchiving …

New profitability analysis processesLifecycle profitabilityTransaction analysisPattern analysis …

get better… get healthy… get great


Business Transformation with HANA CO-PA

HANA NOW session

What2 day onsite workshopConducted by key SAP system integratorReduced, flat-fee

HowPre-workshop assessmentKnowledge transfer clinicExecutive summary presentation“Top 10 to do” list as leave-behind

WhyProper implementationBusiness improvementSpeed to business results


Reporting with HANA CO-PA Accelerator and Explorer

All entities; all periods / multi-year / lifetime analysis; optional re-load of archived recordsMillions of records in sub-second; instant drill-down into all dimensions

Add-hoc drill downs

Add calculation

Instant results

Sub-second accessAll available CO-PA dimensions

Thank You!

Contact information:

Carsten Hilker [email protected] Snehanshu [email protected] Miller [email protected]

High-performance profitability analysis with SAP HANA CO-PA Accelerator.pdf

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