connecting to the evolving customer - car webinar - · pdf file•...

Connecting with the Evolving Customer SAP’s Customer Activity Repository

Brian Cederborg, VP Consulting Adesh Daryapurkar, Solution ArchitectJune 5, 2015

A Rizing Company

© 2015 /N SPRO. All rights reserved. 2Confidential

Agenda

What is CAR?3

CAR Case Studies & Use Cases4

CAR Roadmap5

Recommended Next Steps6

/N SPRO – who we are2

About our hosts1


About our hosts

Adesh Daryapurkar Solutions Architect, Retail

Adesh is an SAP expert specializing in SAP Retail implementations, with

operational experience at multiple retail chains (Loblaw Companies Ltd.,

Grainger, Chico's, TravelCenters of America, and Goodyear).

Brian Cederborg VP, Retail and Wholesale Consulting

Brian has led retail transformation programs at organizations across North

America including BJ’s Wholesale Club, Loblaw Companies Ltd., and

Brookshire Grocery Company. Brian has developed an innovative approach

to leveraging technology to better drive retail business value.


/N SPRO - Who we are

More than 300 Retail & SAP…professionals worldwide

With office locations WORLDWIDE..and an aggressive geographical expansion plan 17

YEARS

of SAP Implementationexperience…

OUR EMPLOYEES:

5%IN Q1 OF 2015

Turnoverof less than

30COUNTRIES

Completed over SAP implementations…

100

…in more than

…with more than

1OYEARS

experience specific to SAP Retail solutions for…

…certified service provider in North America for SAP’s Forecasting & Replenishment (F&R), sitting in on multiple industry consortiums

…service provider priming multiple CAR implementations with large ($1+ billion USD in annual revenue) North American retailers

is one of THE TOP product development and consulting service providers across all of SAP’s Retail and Wholesale software suite and the ‘GO-TO’ expert in the market

KEY PARTNER of the SAP Industry Business Unit, advising SAP and Retailers across the entire breadth of the

SAP Retail software suite

FINANCE MERCHANDISING SUPPLY CHAIN


??What is CAR?

An operational reporting and analytics platform• HANA database software suiteA Retail-specific toolkit for enterprise data management• POS Data Management (SAP tool for collecting and auditing all inbound POS data prior to financial posting)

• Forecasting and analytics framework (DDF/UDF)• Pre-built HANA views (semantic and calculation layers) and database schema• SAP Landscape Transformation (SLT) for data replication• Pre-built dashboardsAn enterprise planning platform• Database for all ‘consuming’ planning applications;; current applications include:

o Promotion Planningo Assortment Planningo hybris Marketingo Additional 3rd Party

• Forecasting and other algorithms (e.g., real-time inventory)

?


??What CAR is NOT?

A historical reporting platform• BW still required in most environments• BW and CAR ‘white listed’ to leverage the same HANA instance• When to use CAR vs. BW for reporting is use case driven

A reporting (visualization) product• An SAP or non-SAP product required to ‘see’ the data for most use cases

?


Why Consider CAR?

Speed• Sub-second response on most queries, regardless of data size

One data source for operational reporting and planning• Disaggregated• No replication of sales required

Attractive 3rd option for buy vs. build• Pre-built content• Flexible to extend

Relatively simple to use and administerCustomer and multi-channel data foundation


CAR Requirements

SAP ERP (IS-Retail)• Master data• Sales• Inventory

Unique HANA instance for CAR• Whitelisted to be deployed on same instance as BW

Installation of CAR / HANA suite of softwareRecommended (for forecasting / analytics):• 1-2 years sales (can be daily aggregated;; TLOG not necessary)


Active CAR Customers

PGA TOUR Superstores

Brooks Brothers

Brookshire Grocery Company

Jo-Ann Stores

Loblaw Companies

North American Retailers in Realization or Live on CAR:


CAR Current Use Cases

LoyaltyMulti-Channel Promotion Planning & ExecutionAssortment PlanningOperational ReportingCustomer SegmentationSocial Media AnalyticsShrink Analytics…and many more


CAR Loyalty Process Flow

Insight & AnalyticsSAP hybrisMarketing

Targeted Marketing Campaign

SAP CRM, Loyalty Mgmt

Events & OffersSAP Promotion Management

for Retail

Communicate Targeted Offers

SAP CRM, Loyalty Mgmt

Multi-‐Channel Offer RepositorySAP CAR

Rules Engine

HANA Offer View

Point of PurchasePOS, Web Channel

• General Offer Outbound• Existing ERP Interface• Marketing Content Export

Shopper

• Email Blast• Mobile

Validate and Enrich Member

Selected Targeted Offers

Best Offers

• Find the Customer to Engage • Campaign: Drive Customer Loyalty and Increase Monthly Spend

• Targeted Offer• Buy any Tide Product and Get 10% off and Earn 100 Points


3rd Party Applications – Loyalty

hybris Marketing Third Party Offer Management System

CRM

Digital Publishing

POS

CAR

PMR

Target Group Tables

Offer Enhancements

Load to Card Function

Loyalty Offer View

FM to Read View

Target Groups

Target Groups Offers Offers

Member ID

Customer Offers + Point Balances

Member Activity

Campaigns + Events + Target Groups


CAR Near-Term Roadmap

Consuming Applications• Functional enhancements for Assortment Planning, Promotion Planning and Planning for Retail

Technical Enhancements• Multiple ERP systems connected to CAR (ways to distinguish data from various ERP systems if data are not harmonized)

• Support for dynamic tiering (to be able to store CAR data in non-HANA environments for use cases that require long historical periods)

• More extensions to TLOG-FFunctional / Content Enhancements• SAP Sales Insights (aka Affinity Insights)• Fiori dashboards and extensions• Lumira reporting• Extensions for SAP Fashion Management (FMS)• Omni-channel enhancements

o Pricing repositoryo Available-to-sell for online purchasing

2 Feature Packs planned in 2015


CAR Longer-Term Roadmap

Consuming Applications• Merchandise Financial Planning• Demand Planning• Replenishment• Allocations

Non-SAP ERP Support

QUESTIONS


Recommended Next Steps

Additional research:• http://www.n-spro.com/solutions/retail/car-customer-activity-repository/• https://help.sap.com/car• http://events.sap.com/sapphirenow/en/session/15988

On-site demonstrationProof of conceptTalk with active customers

Thank You!

A Rizing Company

Brian Cederborg VP, Retail & Wholesale Consultingbrian.cederborg@n-spro.com

Adesh DaryapurkarSolution Architect, Retail & Wholesaleadesh.daryapurkar@n-spro.com


HANA

Database• In-memory (removes I/O bottleneck from traditional disk)• Columnar vs. row-based data storage for faster queries• Compressed (5-7X)• Data stored at source level (no aggregrates);; no indexes requiredHardware• Separate cost from software licensing• Can leverage any vendor on preferred list (includes all common enterprise hardware providers)• More expensive than ‘traditional’ database hardware (4-8X)Enterprise cloud option (HEC)• License software• Managed services separate – several providers, including SAPRun-time vs. Enterprise license• Run-time – application specific, lower cost, some limitations (e.g., cannot create fully custom tables in HANA)

• Enterprise – more expensive, only really required when need to make modification inside the HANA layer

Support requirements• HANA Studio training for creating HANA views• For development:

o SQLScript to build / access HANA stored procedureso XML to modify delivered CAR / HANA views


POSDM

Sales audit application (POSDM Workbench)• Verify / fix transaction errors / anomalies

o Incorrect master data (e.g., UPCs)o Missing transactions

• Essentially the same product as contained in POSDM 1.0

TLOG-F• Flat structure for holding transaction-level data• Single source for all sales;; extensible and scalable

Channel and customer-specific (as applicable)Inbound interface from POS• Standard if using GK or SAP POS• Custom interface can be built for other POS systems (very common)• Existing POSDM interface can be migrated if no changes

Data enrichment can be performed (as required)


Demand Data Foundation (DDF) andUnified Demand Forecast (UDF)

Pre-built integration to SAP IS-Retail to receive master data and costDDF is the ABAP-based master data layer;; UDF is the analytics framework consuming the DDF dataDemand modelling• Biggest consumer of CPUs• Can model daily, but driven by business requirementsDemand forecasting:• Characteristics:

o Unique forecasted demand value plus accompanying info (e.g., prediction intervals, baseline, lifts) for an object (e.g., product / location), scenario (date, price, offer, DIF), given configuration, based on a demand source (e.g., sales)

o Causal plus time series forecastingo Forecasts persisted to the database at the product / location / day / channel levelo What-if scenario analysiso Can build HANA views of the UDF forecast values to include into reporting


Demand Data Foundation (DDF) andUnified Demand Forecast (UDF)

Demand forecasting continued:• Promotions:

o Promotional Causal Datao Hierarchical Priorso Holiday Ramp-Up and Ramp-Down

• Assortment Planning:o Reference Product Locationo Placeholder Producto Location Clusteringo Historical Inventory Informationo Pre-Season Projection

• Forecast Management Toolkit:o Holdout Forecasto Forecast Confidence Indexo UDF visualization dashboard

On-shelf availability algorithm


CAR Virtual Data Models (VDMs)

Delivered VDMs / HANA views:• Sales Transactions (Customer & Channel-Specific)• Current Inventory Position• Cross Company Stock In Transit

SQLScript and XML-Based• Flexible platform for modifications

VDM templates (reuse views)• Can be copied and modified


CAR Data Replication

Data replication framework• SLT – application-based replication (included in HANA suite)• DRF Out – application-based replication for consuming applications, like PMR (included in CAR suite)

• Data Services – data warehouse-based replication (included in Business Objects suite)

Unlimited z-tables / fields replicated to CAR with simple configurationTime-series data enabled through configurationRequires unique server for each SLT and Data ServicesSLT / Data Services can replicate SAP and non-SAP data through simple configuration (e.g., JDA Intactix, Manugistics)


Pre-Built Dashboards

Multi-channel sales analytics dashboards• Fiori-based

o Net Saleso Gross Margin

More coming from SAP…• Large focus for further development


SAP Visualization Suite

Dashboarding• Business Objects (BOBJ) Dashboards (former Xcelsius product)Reporting• Web Intelligence (WEBI)• Crystal Reporting (higher pixilation / print properties)Mobility• Fiori (reporting and applications)Data Discovery and Analysis• BOBJ Explorer• Lumira (more info-graphics based;; can enrich data)Statistical Modelling and Data Mining• Predictive Analytics (create stored procedures)• Infinite Insights (ad hoc data mining;; former KXEN product)Can connect non-SAP reporting platform if required

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