High-performance Profitability Analysis with HANA CO-PA Carsten Hilker | Solution Management LOB Finance Shah Snehanshu | Senior Director, Business Analytics & Technology Solutions Brett Miller | Sr. Solution Engineer
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
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Legal disclaimer
© 2011 SAP AG. All rights reserved. 3
Agenda
High performance profitability
SAP HANA
HANA CO-PA Accelerator
Implementation considerations
Business Transformation service
Demo
Q&A
High performance profitability
© 2011 SAP AG. All rights reserved. 5
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
© 2011 SAP AG. All rights reserved. 7
?What if You Could?
Manage Large Data Volumes Cost
Effectively
Always Have Current & Complete Information
Have Immediate Answers to Any
Question
??
© 2011 SAP AG. All rights reserved. 8
Cost-effective Management of Large
Data Volumes
Current and Complete Information
Immediate Answerto Any Question
Reality... Cannot Meet All 3 Requirements
???
© 2011 SAP AG. All rights reserved. 9
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
© 2011 SAP AG. All rights reserved. 10
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
Operational Data Store
Data Warehouse
Indexes
Aggregates
Transactional DataBusiness Applications
Copy
ETL
Calculation EngineBusiness Intelligence
Query ResultsQuery
DataMarts
New Approach
© 2011 SAP AG. All rights reserved. 12
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
© 2011 SAP AG. All rights reserved. 13
Row vs. Column Databases
My Filing System
My Wife’s Filing System
Row-based Column-based
Much Faster AnalysisBetter Parallel Processing
© 2011 SAP AG. All rights reserved. 14
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
© 2011 SAP AG. All rights reserved. 15
Reporting
“Business Intelligence with HANA”
No Data Marts
… No Aggregates …
… No Indices
Operational Data Store
DataBusiness Applications
Replicate
© 2011 SAP AG. All rights reserved. 16
Customer Testimonials
Consumer and Health Products
Manufacturing
Energy
Communications and Media
Services
Technology
© 2011 SAP AG. All rights reserved. 17
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
HANA CO-PA Accelerator
© 2011 SAP AG. All rights reserved. 19
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
© 2011 SAP AG. All rights reserved. 20
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
© 2011 SAP AG. All rights reserved. 21
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
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
Today
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
Today
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
Today … there are challenges
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
Report WriterReport Writer
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
Report WriterReport Writer
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
HANA CO-PA AcceleratorERP CO-PA with HANA as secondary database
The solution
HANA
HANA 1.0HANA 1.0
~30x compression100x faster
~30x compression100x faster
ERP
Traditional DBTraditional DB
CO-PAProfitability Analysis
CO-PAProfitability Analysis
Report WriterReport Writer
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
© 2011 SAP AG. All rights reserved. 33
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 34
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 36
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 37
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 38
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 39
HANA CO-PA Accelerator
Implementation components
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 40
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 42
HANA CO-PA Accelerator
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
© 2011 SAP AG. All rights reserved. 43
HANA CO-PA Accelerator
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
HANA CO-PA Accelerator
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
Demo
© 2011 SAP AG. All rights reserved. 46
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
Q&A
Thank You!
Contact information:
Carsten Hilker [email protected] Snehanshu [email protected] Miller [email protected]