openSAP Get to Know SAP’s Innovative Enterprise Solutions

WEEK 1, UNIT 1

00:00:13 Hello and welcome to this openSAP course “An Introduction to the World of SAP”.

00:00:19 My name is Michael Lamadé. I’m part of the Global SAP Business Suite on HANA Solutions

team, responsible for go-to-market across all industries. And I'm your instructor for week 1.

00:00:32 With more than 250,000 customers in a 188 countries, SAP AG – headquartered in Walldorf,

Germany – is the world leader in enterprise software and software-related services with

locations in more than a 130 countries.

00:00:47 I'd like you to explore with me our 42-year history of innovation.

00:00:52 In phase 1, the 70s – or as we call it: the early days – the founders of SAP grew up with the

technology that was available in the early 70s: mainframes and punchcards.

00:01:04 But they were driven by the vision and belief that there needed to be better solutions.

00:01:09 Solutions that process data when users need it rather than in overnight batch jobs.

00:01:16 Phase 2, which brought R/2 to light, was driven by the idea of “standard” software, which

means packaged solutions that provide out-of-the-box integration across all business functions

within an enterprise.

00:01:31 One of the highlights in this period was to reach a 1,000 customers.

00:01:35 In phase 3, SAP presented its SAP R/3 system at CeBIT in Hanover in 1991 with a highly

positive response.

00:01:45 The official launch of R/3 was in '92 to introduce the client/server architecture, which provided

unprecedented scalability.

00:01:54 R/3 was also available on the Windows operating system.

00:01:59 In 1999, mySAP.com was launched, which combined SAP's existing ERP applications with

new e-commerce solutions on the basis of cutting-edge Web technology.

00:02:11 SAP extended the core ERP solution with specific solutions, for example, Supply Chain

Management, for Customer Relationship Management, and Supplier Relationship

Management.

00:02:22 In phase 4 – from 2002 till present – saw a fast sequence of technology innovation such as the

SAP NetWeaver, the development and operation platform for SAP and non-SAP applications,

00:02:35 the service-oriented architecture to provide our customers utmost flexibility.

00:02:41 Towards the end of the decade, SAP made a few strategic acquisitions to broaden its solution

portfolio while addressing customer needs.

00:02:49 BusinessObjects – the provider of business intelligence solutions – made SAP the market

leader in business software, enterprise performance management, and business intelligence.

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00:03:00 In 2010 followed the acquisition of Sybase, the largest business software and service provider

specializing exclusively in information management and mobile data use.

00:03:10 Then followed the acquisition of SuccessFactors, giving SAP an edge in the cloud space.

00:03:17 And finally in 2011, the next technology quantum leap with the development of SAP HANA.

00:03:26 According to a McKinsey study from 2013, more than 60% of CEOs expect 15-50% of their

earnings growth in the next 5 years to come from technology-enabled business innovations.

00:03:39 Underneath these changes is a perfect storm of technology innovations: The convergence of

Cloud, Mobile, Social, and Big Data is reshaping the future of business,

00:03:51 and acting as a catalyst to empower individuals as employees, consumers, and as citizens to

increase their reach and relevance.

00:04:02 After striving for decades to standardize processes and improve efficiency, organizations

around the world are now entering a new era of business model transformation.

00:04:14 For the first time, the same set of technology innovations can be harnessed to help make

everything smarter, faster, and simpler – not only for businesses but also for individuals,

therefore help the world run better.

00:04:30 According to the same McKinsey study, 40% of executives worry that their organizations will

not keep pace with the technology change and lose their competitive edge.

00:04:41 Right now, IT dollars are keeping the lights on hardware, services, and integration; less than

1/3 are available to enable new business innovation.

00:04:52 To truly unlock the potential of these new technologies, IT must address complexity as one of

the top challenges of our times.

00:05:02 The success of Apple, Google, Amazon has proven that simplicity is winning in the market.

Simplifying the customer IT landscape will significantly reduce costs and speed of innovation

cycles.

00:05:17 However, many customers are struggling with several aspects of IT complexity, including the

proliferation of custom applications that have built up over the decades.

00:05:29 This has driven up costs for managing applications and the underpinning infrastructure – at the

expense of investments in innovations.

00:05:39 In addition, they have made it difficult for enterprises to adopt and consume new innovations;

and they have greatly limited a company’s ability to empower people through consumer-grade

user experiences.

00:05:54 By simultaneously simplifying across three axes – the technology environment with hardware,

services, applications, the consumption of software, and the end-user experience –

00:06:05 SAP can help customers dramatically reduce their expenditure on hardware and services, shift

the savings to business transformations and innovation, and empower their people to drive the

future of transformation of their businesses.

00:06:22 SAP has structured their innovations along 3 market categories: analytics, applications, and

technology platform with SAP HANA in the center.

00:06:32 First, we start by simplifying customers' core IT environment, so they can free up budgets that

are locked up in managing their legacy –

00:06:41 like redundant hardware and databases so that they can steer more of their budgets towards

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innovation.

00:06:48 The foundation of our strategy and innovation roadmap is SAP HANA.

00:06:53 With SAP HANA, we help our customers dramatically accelerate the speed of their business

while radically simplifying their IT stack by collapsing complex IT layers and reducing hardware

costs.

00:07:06 It's important to note that HANA goes way beyond a database.

00:07:11 SAP HANA is an innovation platform that allows us to rethink the world of databases and

applications.

00:07:18 How SAP HANA has evolved over the last year into a platform:

00:07:22 It provides a portfolio of services, such as database services, application services, integration

services, middleware services, and other kinds of libraries, that are integrated into HANA.

00:07:34 It leads to a dramatic simplification, not only because of the capabilities of the column store,

but because of the ability of HANA to rethink applications.

00:07:44 Just to give an example from Financials, which is now running on SAP HANA:

00:07:49 All the totals, the indices, the daily sums, the weekly and monthly sums, they can all be

removed and replaced with on-the-fly calculations.

00:07:59 That leads to a dramatic simplification in the architecture of the applications and smaller

databases.

00:08:06 With this, we can dramatically simplify all the complexity that sits in customer landscapes, as

well as in our own portfolio.

00:08:15 And, as we look at the future with the cloud, the one big thing we did last year was to offer this

entire solution stack in a cloud infrastructure.

00:08:26 The second step: We simplify the end-user experience through a mobile-first strategy.

00:08:33 To deliver a simplified and unified user experience for our business users, we are offering

every application and analytics solution with a “mobile-first” approach based on the SAP Fiori

framework.

00:08:47 We focus on building mobile applications that are centered around people who fulfill specific

roles in a company.

00:08:54 By bringing the best of consumer-grade design into our products, we cannot only make people

more productive but turn customers and end users into fans.

00:09:05 The paradigm of SAP Fiori is to start with empathy for the end user and to design from a

perspective and mind-set of the audience.

00:09:16 Third, we are simplifying software consumption by moving our entire portfolio into the cloud.

00:09:23 As software delivery continues to evolve in the cloud, customers are experiencing the

simplicity, the speed, and economics of the cloud delivery model.

00:09:34 In order to deliver the broadest cloud experience to our customers and enable the full range of

decision-making processes, we plan to make our entire product portfolio available in the cloud

(both managed and public cloud).

00:09:51 Here's the example of SAP's managed and public cloud offering, completed by partner apps.

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00:09:58 This includes a clear roadmap to transition SAP core solutions to the cloud – with tight

integration between on-premise and cloud solutions.

00:10:07 In addition to offering cloud hosting and managed services to our customers, we can

proactively manage your upgrade cycles, drive innovation adoption, and take ownership of

your landscape simplification to drive business value.

00:10:22 To put it simply: SAP is the cloud company, powered by HANA!

00:10:29 The last simplification step, but most importantly: We don’t innovate alone! Based on our open

platform, thousands of partners and startups are bringing more innovations to you faster than

ever.

00:10:42 Our partners & ecosystems have always been an essential part of our innovation strategy. We

plan to continue to leverage an open ecosystem and our partners to bring more innovations to

you faster.

00:10:56 We are making SAP HANA the true extension platform of our customers and partners.

00:11:02 Our ecosystem can either extend our solutions or build end-to-end applications on the HANA

platform.

00:11:10 Today, we have over 1,200 startup companies innovating on the SAP HANA platform, 3,000

services partners and 4,000 resellers serving customers anywhere in the world.

00:11:25 We look at the complete solution:

00:11:27 What makes SAP truly unique is not just our cutting-edge technologies, it is our ability to

combine them with our business expertise into a complete solution to help you meet your

specific needs.

00:11:41 This includes our deep domain expertise in each of the 25 industries and 11 lines of business.

00:11:48 Our powerful “value engineering” that benchmarks your business against your industry peers

across a wide range of performance metrics to help you pinpoint areas to drive improvements.

00:12:01 We bring design-thinking to every customer, so together we can see the bigger opportunities

and needs first before offering solutions.

00:12:10 Our global services and support ensure that every customer is in good hands for life from the

moment they become an SAP customer.

00:12:19 Solution Explorer is the one self-service tool for customers, SAP employees, and partners to

browse the complete SAP solution portfolio in context of their industry,

00:12:30 area of responsibility such as Finance, Manufacturing or not to forget IT, or technology such as

Analytics, Cloud, Mobile, or Middleware.

00:12:43 The content in Solution Explorer is structured along value maps, includes the top key

messaging and materials for all solutions.

00:12:53 And last but not least, these changes are focused on business outcomes.

00:12:59 We are creating exciting opportunities for businesses to drive new innovations and growth,

specifically in four areas – all focused on direct business outcome.

00:13:10 First, an emerging middle class across geographies will create a new segment of customers

that represent extensive growth opportunities for businesses.

00:13:22 Imagine how much smarter, faster, and simpler the world can become if all of the businesses

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have the opportunity to deliver the personal touch and offer to their customers at the right time,

00:13:34 give their employees the right tools and insights to make the right call every time, and grow

and thrive when connecting to their customers and business partners.

00:13:46 As your customers become even more informed and connected, nothing is more important

than keeping customers at the center of everything you do.

00:13:55 Third, the way the information is created and consumed has changed. We are now in an

“always-on” era. Businesses will need to run in real time to facilitate personalized engagement

with customers.

00:14:08 Unlocking the secrets inside this data presents breakthrough opportunities for businesses, but

they need to find a way to manage data, generate insights, and find ways to use it to their

advantage.

00:14:24 China is one of the largest and fastest growing economies in the world and is one of the

strategic markets for SAP.

00:14:33 This led to major investments and to over 4,000 employees in China.

00:14:40 China also represents a huge customer base, so we see huge conglomerates and state-owned

enterprises one the one hand

00:14:47 and highly agile SMEs with very interesting business models.

00:14:52 This provides excellent co-innovation opportunities with benefits for the customers and for

SAP.

00:15:00 We have a large number of development resources and support resources built up in China to

support this market.

00:15:06 And we have also established the one-delivery model joining support and service

organizations.

00:15:13 With this, we conclude our course overview and move on to unit 2 “What Is the SAP Business

Suite?”.

00:15:20 Thanks for listening! I hope you gain many insights from our course and that you have a good

learning experience.

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WEEK 1, UNIT 2

00:00:14 Hello and welcome to Unit 2 “What Is the SAP Business Suite?” of the openSAP course “An

Introduction to the World of SAP".

00:00:23 My name is Michael Lamade, I’m part of the Global SAP Business Suite on HANA Solutions

team and your instructor for this unit.

00:00:34 So, here we see the description and value proposition of the SAP Business Suite at a glance.

00:00:38 Here, we want to give you an overview of the SAP Business Suite with a specific focus on the

value proposition.

00:00:45 Before we do this, we need to spend a moment on definitions.

00:00:49 There are three aspects that are relevant:

00:00:52 The SAP Business Suite consists of a defined functional scope.

00:00:57 We have to look at it from an installation perspective, so which technical components, such as

SAP ERP or SAP CRM that need to be installed,

00:01:05 and from a licensing perspective, because customers can license the Business Suite and all

the solutions that are included in that.

00:01:12 The focus of this unit is on the functional scope, meaning the business processes that are

supported by SAP Business Suite.

00:01:21 The Business Suite supports the core business operations of an enterprise with market-leading

applications, processes, and technologies designed to work together in a fully integrated suite.

00:01:33 It provides cutting-edge technology with continuous enhancements and new functionalities that

facilitate business growth.

00:01:42 It provides role-based user experiences that match the needs and skills of different employees

– be it experts or be it occasional users,

00:01:51 and it allows access via mobile devices or via desktop.

00:01:55 It leverages industry best practices for 25 industries based on thousands of implementations.

00:02:02 And it adopts the latest technology and software innovation without disruption.

00:02:10 Let's take a look at the high-level architecture of the SAP Business Suite.

00:02:14 I'd like to start from the top, where we find the user interface, which is the access point for all

employees.

00:02:21 We provide user interfaces which leverage the SAP UI technology HTML5 or provide access

through mobile devices.

00:02:32 In the center, we see the SAP Business Suite with its components ERP, CRM, all running on

SAP NetWeaver –

00:02:39 SAP's open technology platform that enables composition, provisioning, and management

00:02:46 of SAP and non-SAP applications across heterogeneous software environments.

00:02:53 It also comes with a set of BI tools including preconfigured content for lines of business and

Industries.

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00:03:02 The SAP Business Suite runs on the SAP HANA in-memory database or on a broad range of

other relational databases.

00:03:10 In order to provide customer choice regarding deployment, it can run traditionally on premise

with customers taking care of the infrastructure,

00:03:18 the application management and maintenance; or the other option is to run either the entire

Business Suite or parts of it in the cloud.

00:03:27 In summary, SAP Business Suite is a modular enterprise software that supports end-to-end

industry processes.

00:03:35 It allows your company to effectively deliver on business and IT strategies at the same time.

00:03:43 Let's take a detailed look at the different components and products that are included in the

Business Suite.

00:03:49 So at the bottom, we see SAP ERP with its components Finance, Human Capital, Procure to

Pay, Plan to Product, Order to Cash, and Request to Service.

00:04:02 In the Finance area, the key aspects are to streamline financial operations and analysis,

00:04:09 to ensure regulatory compliance and effective risk management,

00:04:13 and to create a 360-degree view of enterprise performance.

00:04:19 In the area of People & Talent, the main focus is on increasing the HR operational efficiency,

00:04:26 optimize people performance, and build a competitive advantage.

00:04:30 In the R&D and Engineering space, the key focus is on reducing time to profit,

00:04:36 Increase revenue contribution through new and enhanced products,

00:04:40 and to decrease costs of R&D, or noncompliance, or poor quality.

00:04:46 In the Sales space, which is partially covered in ERP and partially in CRM, the main focus is

on sales force effectiveness on

00:04:54 achieving sales rev enue, and profitability objectives.

00:04:59 In the area of customer service, the main focus is on efficiency of service operations,

increasing customer satisfaction, which then also translates into service revenue.

00:05:11 In the Marketing space, the key point is to improve operational effectiveness in marketing,

00:05:16 to return on marketing investment, and to improve the brand quality.

00:05:22 In the Manufacturing space, again partially covered in ERP and partially covered in SAP SCM,

the main focus is on producing high-quality and compliant products,

00:05:32 to align global manufacturing operations to changing market conditions,

00:05:37 and to execute efficient and sustainable product operations.

00:05:41 In the Procurement space, the focus is on process efficiency, improve spend under

management, and maximize realized cost savings.

00:05:51 All these capabilities are available across 25 industries, from Aerospace & Defense at the

upper left to wholesale Distribution at the bottom right.

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00:06:07 The SAP Business Suite powered by SAP HANA putting all these capabilities described before

now on an in-memory platform.

00:06:14 So, what we see in the center is the real-time platform powered by SAP HANA, which allows

real-time interactions of the user with the system;

00:06:22 it allows real-time execution, so converting analytical insights into execution;

00:06:29 it allows real-time planning and it allows real-time reporting and analysis on operational data.

00:06:40 SAP has invested tremendously to simplify the adoption of SAP Business Suite powered by

SAP HANA through SAP Rapid Deployment Solutions.

00:06:48 SAP Rapid Deployment Solutions are offered as packages with everything you need to be up

and running quickly.

00:06:55 Standard software, support for proven best practices, step-by-step deployment instructions,

and end-to-end enablement material.

00:07:04 Furthermore, you benefit from a fixed-price service offering so your business can be up and

running in just weeks, with full control of the budget.

00:07:14 Customer examples have shown that, for example, customers can be up and running in only

eight weeks with SAP CRM rapid-deployment solutions to get real-time marketing, sales, and

service functionality.

00:07:26 How about analyzing live transactional data in real time?

00:07:30 The SAP HANA Live rapid-deployment solution enables real-time reporting on operational data

residing within SAP Business Suite and beyond.

00:07:40 This package allows you to run real-time analyses directly on top of your transactional data for

immediate insight into your operations.

00:07:49 Because of the prebuilt data models, reports, and dashboards, customers have a fully

operational real-time reporting system in only about 12 weeks.

00:08:03 Cloud is what many customers demand today and in response one of the cornerstones of the

SAP strategy.

00:08:10 For the time being and even in the future, we believe in a hybrid cloud world, and SAP is

therefore supporting all deployment scenarios from On Premise to Cloud and Hybrid in-

between.

00:08:22 We are offering cloud services for early prototyping of solutions and proof of concepts as well

as for productive systems.

00:08:31 We truly believe that SAP HANA Enterprise Cloud is the fastest way of starting any SAP

HANA-related project, independent of the final deployment mode of a customer's productive

system.

00:08:44 The power of real time plus the simplicity of the cloud allow for a faster innovation adoption

and reduced IT cost.

00:08:51 So as a result, customers have the choice of deployment, whether it's on premise, the cloud,

or in a hybrid mode.

00:09:00 The business impact: It provides a faster time to value with innovations deployed as business

requires.

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00:09:08 It avoids capital expenditures for running mission-critical processes,

00:09:12 and it provides a non-disruptive approach with easy migration and deployment.

00:09:18 We look at the IT impact:

00:09:20 It accelerates deployment of new solutions and shortens innovation cycles;

00:09:25 it allows smart IT investments for high-value innovations delivered quicker to the business;

00:09:30 and it reduces the total cost of ownership with the simplicity of the cloud (e.g., no need to wait

for hardware or implementation).

00:09:40 SAP also provides a set of cloud services, like Assessment, Onboarding and Migration, Cloud

Hosting and Managed Services, and also Custom Services.

00:09:52 The last aspect, which is also important, is that customers get information about the long-term

maintenance strategy.

00:10:00 So what we see on the left is the Enhancement Packs for incremental innovations; so SAP

provides new functionality that can be activated on an as-needed basis.

00:10:12 It provides evolutionary and breakthrough innovations.

00:10:18 So evolutionary innovations are done in close collaboration with customers through the

customer connection program.

00:10:25 And breakthrough innovations (here HANA), we have a very good example.

00:10:31 The last building block – also very important – that SAP protects the investment of customers

with the extension of the maintenance window from 2015 to 2020.

00:10:41 This concludes units 2. In the next unit we will discuss the impact and value of SAP Business

Suite powered by SAP HANA to your Business

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WEEK 1, UNIT 3

00:00:14 Hello and welcome! In the last unit, we talked about the SAP Business Suite software. In this

unit we will discuss the impact and value of SAP Business Suite on HANA to your business.

00:00:23 My name is Mike Lamade, I’m part of the Global SAP Business Suite on HANA Solutions team

and your instructor for this unit.

00:00:32 If you look at this slide and the questions here like, do we have massive, do we have

processes that need massive re-work due to data latency,

00:00:40 can we respond flexibly to changing business situations, or do business users always get

timely, up-to-date, and accurate information?

00:00:49 If you don’t have good answers to these questions you are probably doing it the hard way.

00:00:56 According to an IDC survey, 60 per cent of business users seemed okay with an environment

that could not deliver timely information.

00:01:06 Your learning effort will be much lower than in week 1.

00:01:03 We wondered how this could be until we realized that this is the normal state of play in most

enterprises most of the time.

00:01:14 Business users don’t complain that information is old or incomplete because this is the way

they are used to.

00:01:20 It’s hard to imagine a fully integrated system that can apply a wealth of up-to-date information

to support decisions that they make every hour of every day.

00:01:34 What’s harder to imagine is how such capability could change even dramatically transform

current businesses processes, policies and practices.

00:01:44 Most of us confine our scheduled business events based on the readiness of our systems to

support them.

00:01:50 So when inventory is searched only immediate inventory is available.

00:01:55 Open orders are taken we wait until that data is moved to the inventory management system

before starting the actions to fulfil the order.

00:02:03 When in the acting with the customer we have no expectation of associating that customers

behavior patterns with those of thousands of others.

00:02:13 Or associating those patterns with current patterns of consumption so that we make more

informed recommendations to the customer regarding producter services that the customer

might find appealing.

00:02:28 Dynamic business processes are not achieved simply by making data bases run faster.

00:02:34 They are achieved by having a data platform that is both, unified and highly flexible.

00:02:41 This is why 14 years after R/3 Hasso Plattner decided to revisit what would an ERP system

look like if we start from scratch.

00:02:53 So what you see here is the traditional situation which we see in most enterprises from an IT

and from a business perspective.

00:03:01 From an IT perspective, we have OLTP and OLAP separated, we have disk base, the data

bases,

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00:03:07 we have a lot of batch chops, we have data replication, and we work with a lot of aggregates to

increase or improve information access.

00:03:18 On the business side, decisions are often taken by instinct, there is limited search capabilities,

tedious batch processes, and analysis is often separated from the execution in the

transactional system.

00:03:33 What we see with an in-memory platform, significant changes on both sides, on the IT and on

the business side.

00:03:41 On the IT side, OLAP and OLTP are together, we see zero latency, we see all data in-memory,

we see structured and unstructured data being processed together, and we see a real-time

business system.

00:03:55 On the business side we achieve insight to action, we can increase planning capabilities with

predictive elements, we do data-based decisions, and overall we become much more

responsive to changing business requirements.

00:04:15 What does that translate in value for business for IT and for people?

00:04:20 For the business first of all, in-memory platform provides a single source of truth which

provides real-time information for personalized insights.

00:04:31 It allows for real-time business processes so that we can react with much higher agility to

changing business requirements

00:04:39 and the ultimate step is to provide unmatched business transformation information allowing for

new business models.

00:04:48 For IT it primarily translates in lower costs, but also providing more choice with deployment

options in the cloud, on-premise or in a hybrid way for faster innovation and lower IT costs

00:05:03 and to support also the business, it provides the foundation for innovation with a

comprehensive suite of applications which all run in a single in-memory platform.

00:05:15 And last but not least, it also creates value for the people because it provides a personalized

user experience with access on any device for optimal usability.

00:05:32 If you look at these q-cards or at this list of questions you can analyze how far you are away

from a real-time operational model or a real-time business model.

00:05:43 If you look at the questions here in “Analytics and Reporting”, you can ask yourself how difficult

it was to define the “right” reporting structures or where you drilldown from reports or

transactions is missing.

00:05:58 Or we have frequent change requests from your business side for reports.

00:06:03 These are all indicators where a real-time business model may make a different, a significant

change.

00:06:10 The other example here from a business process perspective, you can see where business

process have been designed around performance bottle necks which processes are in general

to slow

00:06:21 or where you work on outdated information and rather work on exceptions than preventing

these exceptions.

00:06:31 Then you could also take a look from a business process, from a business practice perspective

where real-time information would make a significant change how you do your business today

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00:06:43 or where end users would not waste time for manual- or office tool-supported information

processes.

00:06:53 As we learnt in a previous unit, the SAP Business Suite represents our core applications, with

applications such as ERP, CRM, supporting end-to-end business processes, for finance,

human recourses, manufacturing, procurement, and so on.

00:07:09 Each of these applications has been introduced in an incremental way based on market

demand and technology readiness.

00:07:17 At each shift in business computing, SAP has responded, converting technology into practical,

every-day business use, enabling end-to-end business processes management across 26

industries.

00:07:31 From the first ERP of the market are three in 1972 to the client-server technology with SAP R/3

in the nineties

00:07:40 allowing global business process management to the first full in-memory platform SAP HANA

until the cloud today.

00:07:48 Through all these technology battles like mainframe versus client-server using the internet of

business and now in-memory, SAP has always reacted to technology shifts in a way that result

in value for our customers.

00:08:04 The SAP Business Suite powered by SAP HANA currently completely redefines the notion of

real-time which was the “R” in R/1, R/2, and R/3 to not only rethink businesses but effectively

drive real-time business transformation across the industries.

00:08:20 Suite on HANA brings together transactions and analytics into a single in-memory platform

allowing our customers to now drive the entire business in real-time and create new value for

IT, for business and for the people.

00:08:38 SAP Business Suite powered by HANA is designed for business innovation and higher

business value.

00:08:43 The merge of transactional and analytical processes on one platform offers a new dimension

to run classical business processes and to enrich those with innovations,

00:08:56 connects the world of classical ERP systems with new data like machine-to-machine

communication, social media or any other type of unstructured information.

00:09:07 Because of the incredible computing power, the way application are designed and the way

users interact with application changes fundamentally.

00:09:16 For example, in an MRP run where planning of the MRP and simulation are done in parallel.

00:09:23 Furthermore, with SAP Fiori user experience business users can now get a personalized yet

simple access to real-time application on any device for optimal usability.

00:09:36 The real-time platform not only generates new insights for the user it also allows them to react

immediately on the information and trigger transactions.

00:09:49 On this slide we discuss a few new possibilities that come from this in-memory platform. HR

businesses appeal to customers by leveraging smarter business models and processes.

00:10:03 Suite on HANA can help customers become innovation driven by allowing them to rethink

business processes or even enable formally impossible processes and invent new business

models.

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00:10:15 This is possible because SAP HANA enables these business processes with innovative

capabilities such as predictive, analytics, unstructured data and on the fly insights.

00:10:28 For example, customers can gain insights into more granular customer segments and new

formats of data such as machine sensors and social data.

00:10:39 In traditional systems tons of data contain information that are basically unused – a typical big

data problem – as the process of identifying relevant information sets is cumbersome and

almost impossible.

00:10:55 Costly exception processes are triggered as a consequence to cover up for the lack of

information use.

00:11:01 With SAP HANA automatic pattern recognition information deriving a feasible work set for

users enables new preventive scenarios

00:11:11 such as predictive maintenance in a production environment, warranty claims for finance or

predictive analysis to manage the financial performance.

00:11:21 Another example for unstructured data, data reciting in unstructured way cannot be used in

business process without human interaction.

00:11:32 Massive usage of unstructured information can allow new business processes such as

sentiment analysis not only driven by experts but by an employee being now empowered with

new and unlimited knowledge.

00:11:46 Customers can also act on the segment of one, meaning to react to a single post on Facebook

about their product and then engage directly with each customer digitally delivering a real new

experience.

00:12:00 Take another example from the asset intensive industry.

00:11:04 Scheduling maintenance on critical production asset is today a very time-intensive and long-

lasting process.

00:12:11 With Suite on HANA we are changing this in two ways:

00:12:15 We are streamlining this process by removing all long-running batch jobs around scheduling of

asset maintenance and making these real-time interactive steps.

00:12:25 In addition, we are revolutionizing the process as such by directly including machine data from

the assets into the Suite and using this information to come up with a much more tailored and

optimized schedule of maintenance for each individual machine.

00:12:41 Avoiding machine break down on the one side but also reducing maintenance cost by

cancelling unnecessary maintenance.

00:12:48 Examples of these new possibilities like one-to-one marketing, fan engagement, predictive

maintenance,

00:12:56 personalized health care, real-time engine testing and customer engagement or real-time ATP

retail, just to name a few.

00:13:06 The SAP Business Suite powered by SAP HANA enables true market differentiation by

inventing new data-driven business models for increased market share.

00:13:18 Alignment is a key prerequisite for any real-time organization.

00:13:23 An organization can only act in real-time if everyone is sitting in the same boat, rowing in the

same direction.

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00:13:30 In our context this means that everyone is working from a common set of information provided

by a single source of truth.

00:13:39 Such a single source of truth comprises three major elements: First, it provides seamless

access to all data, not only financial data from a single access point.

00:13:50 HANA Life, a virtual semantic data model on top of SAP HANA is providing this capability.

00:13:58 Second, it’s about ensuring data consistency across all solutions.

00:14:03 This consistency is being provided by SAP HANA as the single repository of shared data and

shared methods across all finance solutions.

00:14:12 And last but not least in order to ensure data consistency, finance solutions have to support all

personalized analytics within the system of record.

00:14:22 Otherwise, user will continue to extract and maintain data in local spreadsheets. We all are

aware of that.

00:14:30 This change requires an unprecedented flexibility and adoptability in reporting as provided by

SAP, empowered by SAP HANA.

00:14:40 Thanks for attending today's session. In the next unit the added value SAP Business Suite,

powered by SAP HANA brings to IT.

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WEEK 1, UNIT 4

00:00:15 Hello and welcome to unit 4. Here we'll discuss the impact and value of SAP HANA for IT.

00:00:24 My name is Mike Lamade, I’m part of the Global SAP Suite on HANA Solution team and your

instructor for this unit.

00:00:33 Our 42 years of innovations include three major turning points that have one thing in common:

00:00:40 Major technology advances coincide with changes in business needs and practices.

00:00:46 First, R/3 and R/2 business leverage mainframe technology to support standardization of

information.

00:00:54 R/3 global processes become the major driver for software.

00:00:58 R/3 with client-server technology made it possible that global companies could run processes

efficiently with integration and automation across 25 industries.

00:01:09 And third, SAP HANA was developed as a technology innovation to not only rethink data

bases but also rethink the concept of real-time.

00:01:20 We are at the brink of a technology/business revolution again.

00:01:26 In early January 2014 we announced SAP Business Suite being now powered by HANA and

shortly after it’s Sapphire and made in 2013, we declared general availability across 25

industries

00:01:40 just 5 months after successful ramp-up.

00:01:42 This is the SAP product launch of the decade. It marks the beginning of a new era.

00:01:49 This launch was a special day in SAP’s history for our customers and partners, comparable

with the R/3 launch.

00:01:58 Let me explain you why. The power of “One”.

00:02:04 This section provides concrete examples on the type of entrance information enabled by new

technologies today.

00:02:11 Sophisticated technologies brought together can help support very complex requirements

while delivering highly innovative yet simple and unified experience.

00:02:21 The first ERP launched in the market more than 4 decades ago was already good example of

these conversions through one system of record to entirely run an enterprise.

00:02:32 Whatever the complexity, size, or industry which generate it massive business transformation

in the eighties and nineties.

00:02:41 Today examples of one R/3 tree printers making a three-dimensional solid object of virtually

any shape from a digital model,

00:02:50 all with one machine despite the complexity of multiple parameters to create an object.

00:02:57 Another example are smart phones. Not only just a phone but also providing new experience

to buy, sell, book, play, browse, chat, take pictures,

00:03:07 all with one device despite the complexity to deal with different applications.

00:03:08 Third example would be augmented reality.

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00:03:16 Google class is the perfect example here of augmented reality opening avenues for completely

new usage for business and consumers.

00:03:25 This also requires to get instant access to real-time information which is the perfect transition

to our topic,

00:03:32 the power of “One” in in-memory technology.

00:03:36 The data base is not only used for transaction or analytics but can now be used to transact,

analyze, predict, simulate, and sense in real-time,

00:03:47 all with one data base despite the complexity of data, volume, warranty, and velocity and

business processes.

00:03:56 Or as one of our board members used to say: SAP is in the business of solving complex

business problems and we are proud of it.

00:04:05 This world of new possibilities is now, real, thanks to new technologies such as in-memory

technology, cloud, and mobile allowing real-time data processing and much more as you will

see.

00:04:21 The key needs from an IT today.

00:04:25 To improve business users’ productivity and satisfaction through timely and accurate insight,

create value through faster delivery of relevant innovations to the business, reduce total cost of

ownership through dramatic simplification of IT,

00:04:41 however, you’re facing significant challenges to meet your needs.

00:04:45 Here we see the key results from the IDC report and survey, outlining the key business and IT

issues for having separate systems for transactional analytics.

00:04:55 For decades separate platforms have been accepted approached to ensure good performance

for transactions and analytics, given the different requirements for capturing data versus

analyzing data.

00:05:07 In practice however, the requirements to transfer data between the two platforms causes

information delays and reduces the ability to connect insight to action because of a disconnect

from analytics to source data.

00:05:24 This leaves the enterprise at risk when decision makers are forced to rely on outdated or

insufficient data or when they cannot connect analytic insights to the source transactional data.

00:05:36 Performance issues because of slow disc access, slow response times, the speed of business

processes is confined to the performance characteristics of the transactional data base.

00:05:47 If some analytics are introduced into the process then the performance of the analytical data

base and of the data movement can further slow down business processes.

00:05:58 Without the integration of analytics into transactional applications there is little opportunity to

adjust to shifting business circumstances, for example, during planning processes.

00:06:11 Latency issues because of multiple data transfer requirements, old data being used especially

for analysis, 70 per cent of the effort in the analytics project is dedicated to preparing the data

for analysis.

00:06:25 More than 50 per cent of the survey indicates that the estimate time to process data and to

make it available for analysis to the business user requires more than on average.

00:06:37 60 per cent of business users don’t expect to have the data they need to make decisions in a

17

timely manner.

00:06:44 And last but not least, innovation issue because of single focus of current data bases,

limitations the change of business.

00:06:52 40 per cent of the IT poll said that users could not use predictive analysis or simulations to

work with real-time data because of these limitations.

00:07:02 Big data workloads and diving down into more granular data than is routinely available were

also off the table for almost as many respondents.

00:07:15 50 per cent of business users surveyed did see the possibility that access to the right

information at the right time could have a transformative effect on business process making

them more dynamic.

00:07:28 IT cost issue because of complexity to manage different systems of records, OLTP and

systems of decisions OLAP which leads to higher cost of ownership.

00:07:41 Complex and costly IT is the top issue that organizations face with regard to their current

transactions and analytic systems.

00:07:49 Heavy dependence on IT and lack of flexibility for business users to create reports and or

analyze the activity represents the second top issue.

00:08:00 Difficult to manage the growing size of data bases and handle different types of data like

unstructured and structured is a major concern with the explosion of data.

00:08:10 This report and survey simply shows that the disc based data base technology that we have

been using for decades has now achieved its limits to meet today’s requirements –

00:08:20 big data, mobile experience, social media, sensors and predictive.

00:08:26 Running an enterprise application suite and reporting applications on this single data base

management platform, the concept of “One” is now possible, providing complete insights into

all data from the moment the transaction is captured.

00:08:42 You have seen this slide in a previous sections before. If you are responsive to this questions,

may be a strong indicator that you are doing things still the hard way.

00:08:56 The SAP Business Suite powered by SAP HANA was developed following these principles.

00:09:01 Only Suite on HANA is natively designed for real-time business, foundation of innovation, a

comprehensive suite of applications on a single in-memory platform

00:09:11 for unlimited business innovation, new applications, new business processes, and even new

business models.

00:09:18 Provide simpler IT with choice, a simpler IT landscape with OLTP and OLAP together, a choice

of deployment options with cloud on-premise and hybrid for faster innovation adoption and

lower IT cost,

00:09:33 and last but not least a personalized user experience which is yet simple but provides access

to real-time applications on any device for optimal usability.

00:09:47 Cloud is one of the corner stones of the SAP strategy.

00:09:50 SAP strongly believes in a hybrid cloud world and SAP is therefore supporting all deployment

scenarios from on-premise to cloud and hybrid and in between.

00:10:01 SAP provides cloud services such as assessment, on-boarding, and migration, cloud hosting,

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and managed services, and also custom services.

00:10:12 Additionally, we are offering cloud services for early prototyping of solutions and proof of

concepts as well as productive systems.

00:10:20 We truly believe that SAP HANA enterprise cloud is the fastest way of starting any SAP HANA

related project independent on the final deployment mode of a customer’s productive system.

00:10:33 So jump-start your HANA project quickly with SAP HANA enterprise cloud and then choose

your preferred productive scenario.

00:10:41 The power of real-time plus the simplicity of the cloud for a faster innovation adoption in a

reduced IT cost.

00:10:48 Let’s look at the impact for IT.

00:10:50 Accelerate deployment of new solutions and shorten innovation cycles allows smart IT

investments for high-value innovations delivered quicker to the business

00:11:00 and last but not least reduce total cost of ownership with the simplicity of the cloud.

00:11:07 You can also choose your integration scenario.

00:11:12 So at the moment, SAP supports multiple integration scenarios, on-premise to on-premise,

cloud to cloud, or on-premise to cloud, for very simple to also very complex landscapes.

00:11:26 And as you can see from all the light bulbs going on on this slide,

00:11:30 we are simply declaring the end of long-running transactions and batch processes to now

allowing customers run all their business processes in real-time.

00:11:41 This is possible because SAP HANA is able to eliminate latency in data movement by unifying

the date store in a single platform

00:11:50 by moving CPU intensive processing in-memory like push down of calculation to the data

base, SAP HANA significantly improves transactional performance for many key processes.

00:12:03 Reduced data layer and processing also significantly simplifies the operational and

maintenance of data management of infrastructure.

00:12:11 As an example, we know that some batches can only be executed in particular batch windows

like MRP or billing runs at night.

00:12:19 This usually triggers process delays.

00:12:22 The ability to now update information on an as-needed bases helps drive processes earlier

and with higher accuracy while reducing buffers,

00:12:32 for example more frequent use of billing run will improve cash flow.

00:12:36 Take another example with inventory cost, one of the main cost drivers in manufacturing

industries:

00:12:43 With MRP planning on HANA, we can now much more flexibly and accurately plan demand

and supply and react instantly on changing requirements

00:12:52 instead of using the result of an hours running MRP run for more than a week.

00:12:58 This improved agility in the business helps to optimize inventory usage so safely levels can be

reduced,

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00:13:05 as a result real-time business processes, much better performance, and high availability of

system resources

00:13:13 plus as IT value, less IT resources are required while getting high availability from the system

to perform more runs.

00:13:23 Reduced data layer and processing are also significantly simplifying the operational

maintenance of data management infrastructure.

00:13:32 All the points that we have discussed so far, implicitly bring more value also for the

employees.In the next unit we will discuss these benefits more in detail.

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WEEK 1, UNIT 5

00:00:14 Hello and welcome to our last unit “Impact and value for people”.

00:00:23 My name is Mike Lamade. I am part of the Global SAP Business Suite on HANA Solutions

team and your instructor for this unit.

00:00:31 There is no doubt that today’s business users are under a lot of pressure.

00:00:36 On the one hand, they have to deal with the challenges of the infamous three V’s of big data:

volume, velocity and variety.

00:00:44 Volume caused by a massive increase in the amount of traditional data such as transactional

data but also new data types

00:00:53 Variety comes in the form of web logs, wirelessly connected sensors, unstructured textual

information from social networks as well as other data types

00:01:05 Velocity: Fast-changing data that needs to be captured, stored and analyzed to reap its full

value

00:01:13 At the same time, business users are being asked to make flexible long-term plans that can

mitigate future uncertainty through scenario planning,

00:01:21 make fact-based decisions that is based on up-to-date information rather than rely on their gut

instincts,

00:01:27 offer personalized recommendations to their customers and stakeholders,

00:01:33 respond to deviations and alerts in real time and within the window of opportunity.

00:01:39 Addressing these challenges requires a fundamental change in both, the underlying enterprise

software architecture

00:01:46 as well as the user experience that business users can rely on to interact with traditional

transactional and analytical enterprise applications.

00:01:57 SAP has a user experience strategy that is fairly straight-forward.

00:02:02 Going forward, its intent is upon providing consumer-grade better usability to business users

00:02:09 anywhere and anytime, which means prolific use of mobile devices, and the use of HANA to

deliver real-time insight.

00:02:20 A key requirement here is the responsiveness of the system. Business users need immediate

answers to very precise questions, otherwise, they simply skip.

00:02:31 By combining analytics with transactions, business users can now get a unified access to

information within context.

00:02:38 They have 360 degree views of real-time information at their fingertips on any device across

the Business Suite applications and even beyond, like information from sensors and social

media.

00:02:51 Suite on HANA returns both, structured data like business objects, and unstructured data,

HTML files, presentations, documents from SAP systems and other search providers.

00:03:02 It also allows direct access to associated applications and actions.

00:03:07 Combined with people-centric interfaces and Google-like search functionality, this new

approach brings much more flexibility, speed and powerful information to users.

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00:03:19 As an example, business users usually only enter data when finally required, at the latest point

in time in the system to avoid repeated waiting times.

00:03:29 This drives wrong decisions as data can be required by other departments sooner.

00:03:35 Suite on HANA means less waiting times and higher user satisfaction through the use of

interactive dashboards as an example, leading to higher responsiveness and process

compliance

00:03:45 This is the beauty of SAP Fiori.

00:03:50 Let’s look at some of the key Fiori design principles. SAP Fiori design represents the new SAP

user experience paradigm.

00:03:59 It offers various business roles in a personalized and simple experience, for SAP software

functions and works seamlessly on desktops, tablets or smartphones.

00:04:10 It’s role-based, focus on developing simple apps, and break up complex processes into simple

steps which can be handled with these simple apps and UIs.

00:04:20 It’s responsive, designed and developed for a consistent experience on many devices.

00:04:26 Supporting multiple form factors, like phone, tablet, desktop, multiple interaction styles like

touch or keyboard, multiple technologies and all in a single code line.

00:04:38 It’s simple, focused on user experience outcomes over features and functions, provides a 1-1-

3 paradigm, meaning one use case for one user with maximum three screens.

00:04:51 Make the important things really easy to use and to learn. Little apps combine into a swarm of

functions.

00:05:00 It’s coherent. Assortment of apps that speak the same language; apps that feel familiar by

embracing best practices and purposeful effects and intelligence visualizations.

00:05:13 Content is in the essence. Design information for as balanced consistency and best fit to use

case.

00:05:19 Provides instant value with a low barrier to adoption, no upgrades, works on releases with

largest installed base and on HANA.

00:05:28 Easy to adapt without simple learning. Easy to deploy, no footprint, little administration.

00:05:36 Easy in to introduce with no additional training required. And, can easily be extended, either

from SAP or from partners.

00:05:49 The latest shipment has 190+ applications supporting a large variety of roles in more Lines of

Business, incl. HR, Finance, Manufacturing, Procurement and Sales.

00:06:01 The apps offer users the ability to conduct transactions, get insight and take action as well as

view fact sheets and contextual information.

00:06:11 Provides an enhanced look and feel including SAP Fiori launch pad, a single entry point for

SAP business functions, contextual, role-based, personalized and search-enabled.

00:06:23 Provides SAP Fiori active tiles which provide the most impactful real-time information and KPIs

as a glance.

00:06:32 Let’s take a look of one of these interaction paradigms: the search and contextual navigation.

00:06:39 So, in this example, we see a user looking for a material and the associated suppliers.

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00:06:46 So, he keys in the first letters of that material description and gets a whole list of objects where

these materials are used

00:06:56 being the material master record, being purchasing agreements, being suppliers that can

supply that material.

00:07:02 Then he can look up the material fact sheet, and from there navigate to the material info

record.So, here he sees all the details about the supplier

00:07:11 and all the data that are shown on that screen, whether it’s inventory levels, whether it’s

supplier evaluation records are all calculated on the fly without any preaggregation.

00:07:24 This provides a complete new interaction paradigm for users which makes them more

productive and generate higher user satisfaction.

00:07:35 Take a. Let’s take a closer look at the Smart Business Cockpits which apply the SAP Fiori

design principles.

00:07:42 Today, as a business user in Finance, Sales or Procurement, getting the information you need

at the right time is tough.

00:07:49 You have to wait, as opposed to responsive. You use old data, as opposed to real-time.

00:07:56 You leverage generic UX, as opposed to the one that is adapted to your role.

00:08:01 And you deal with information that is provided in multiple places, as opposed to single source

of truth.

00:08:08 The result is: You struggle connecting analysis with execution, as opposed to instant insight to

action.

00:08:15 This is where Smart Business Cockpits come into play. They are the new cockpits to help you

drive your business through fact-based information versus gut feel.

00:08:25 They include tailored KPIs and graphical visualization, designed for instant insight to action in

the context of the SAP Business Suite powered by SAP HANA.

00:08:37 The SAP Smart Business Cockpits leverage SAP Fiori design principles for a simplified, yet

beautiful UX.

00:08:45 SAP Smart Business Cockpits are responsive, bringing together transactions and analytics to

close the gap between insight and action.

00:08:55 They are individualized, offering personalized, role-based, tailored KPIs, actionable insights,

news feeds and tasks.

00:09:03 They are seamless, delivering the same real-time insight and user experience across desktop,

mobile and tablets, and they are beautiful.

00:09:17 Smart Business Cockpits are tailored to key roles across the organization so business users

can always stay on top of their business by deciding and acting in real time.

00:09:28 More accurately, more interactively, more collaboratively and simpler.

00:09:34 Supporting insight-to-action scenarios, a business user can analyze strategic or operational

KPIs on a single source of real-time information available anywhere and anytime for easy

access to personalized insight.

00:09:48 Evaluate the situation in case of deviations and trigger follow-up actions immediately.

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00:09:54 Examples would be that, for example, during the MRP calculation, simulations suggest

examples how to address production shortages.

00:10:07 On the slide, you see examples of how Smart Business Cockpits have been tailored to

business user roles such as a Transportation Manager that wants to reduce his average delay

time,

00:10:18 a Purchasing Manager that wants to figure out how he consume from his current contract, an

Inventory Officer that wants to decrease the opportunity cost of his slow-moving inventory,

00:10:29 and a Cash Manager that wants to keep track on her cash on hand.

00:10:37 SAP Smart Business Cockpits have been designed to work seamlessly across different

devices enabling Line of Business users to keep the hand on the pulse of their business and

take action anytime and anywhere.

00:10:50 Let me take you on a tour through the history of SAP’s ERP solutions, or to be more precise, of

the UIs of these applications.

00:11:00 You see here SAP R/3 1.0, 3.1 still similar layout despite a different background

00:11:09 Then we see the SAP mySAP.com colorful style guide but still a lot of information.

00:11:19 We see the mySAP ERP 2004 version, again different colors, different style guides but still a

lot of information on the screen.

00:11:28 And finally, we see the SAP Smart Business Cockpits. I hope you agree that SAP Fiori design

principle and user interaction represents a break-through in SAP’s user experience.

00:11:40 This concludes week 1 of our openSAP course SAP Business Suite powered by SAP HANA.

00:11:47 This concludes the first week of our openSAP course. Thank you for attending. In the next

week my colleagues will give you an overview of SAP Analytics. Stay tuned!

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