delivering real-time business value for consumer products

Delivering Real-Time Business Value for

Consumer Products SAP Business Suite Powered by SAP HANA July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

Take a chance on real time

Ever-shorter product lifecycles and increasingly

demanding consumers drive consumer goods

companies to continuously innovate ways to align

business operations with consumer needs.

Create new and innovative products that excite consumers

Respond rapidly to evolving trends

Develop efficient and cost-effective business priorities


Becoming an innovation-driven enterprise Align business operations with customer needs

Bring enticing and

relevant products

to market rapidly

• Predict trends and evolving consumer needs

• Co-innovate with customers, partners, and suppliers

• Speed global rollout of products

Drive profitable

growth with flexible

sales and revenue

models

• Develop consumer intimacy in marketing, sales, and

service

• Improve agility and speed in marketing campaigns

and trade promotions

• Simplify sales, usage, and payment across multiple

channels (retail, wholesale, Web, mobile)

Respond to market

dynamics in real

time

• Control complex multilevel supply chains

• Optimize out-sourcing, in-sourcing, near-Sourcing

• Personalize any consumer product, service, and

delivery model


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for consumer products The consumer-driven enterprise

Consumer-Driven

Innovation

Continuous Product

and Service Innovation

Accelerated Product

Development

Embedded Product

Compliance

People and

Talent Core Human

Resources and Payroll Talent Management

Time and

Attendance Management

Workforce Planning

and Analytics

Finance

Brand Management

Consumer Dialogue

Enterprise Marketing

Optimization

Account and Trade

Promotion Optimization

Perfect Store

Responsive Supply

Networks

Demand-Driven

Supply Chain

Logistics and

Fulfillment Excellence

Integrated Sales and

Operations Planning and

Analytics

Perfect Plant

Efficient Manufacturing

Operations

Production Planning

and Execution

Outsourced Manufacturing

Enterprise Asset

Optimization

Collaborative

Procurement and

Supplier Management

Supplier Selection and

Qualification

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Invoice to Pay

Commodity

Management

Product Risk Mitigation

Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative

Finance Operations

Enterprise Risk and

Compliance Management

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Develop-

ment and Integration


Industry value map for consumer products The consumer-driven enterprise

Consumer-Driven

Innovation

Continuous Product

and Service Innovation

Accelerated Product

Development

Embedded Product

Compliance

People and

Talent Core Human

Resources and Payroll Talent Management

Time and

Attendance Management

Workforce Planning

and Analytics

Finance

Brand Management

Consumer Dialogue

Enterprise Marketing

Optimization

Account and Trade

Promotion Optimization

Perfect Store

Responsive Supply

Networks

Demand-Driven

Supply Chain

Logistics and

Fulfillment Excellence

Integrated Sales and

Operations Planning and

Analytics

Perfect Plant

Efficient Manufacturing

Operations

Production Planning

and Execution

Outsourced Manufacturing

Enterprise Asset

Optimization

Collaborative

Procurement and

Supplier Management

Supplier Selection and

Qualification

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Invoice to Pay

Commodity

Management

Product Risk Mitigation

Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative

Finance Operations

Enterprise Risk and

Compliance Management

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Develop-

ment and Integration

Highest real-time

business value

for consumer products


Today With SAP Business Suite on

SAP HANA

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Continuous product and service innovation (1/3) Business value for portfolio management (SAP Portfolio and

Project Management)

Fact-based go/no-go decisions require real-time information on the status of running projects and project proposals. Analysis of large portfolios in the portfolio dashboards is time consuming, leading to lack of transparency.

Faster access to decision-making

information, such as status, timeline,

financials, in dashboards

Accelerated comparison of running

projects and proposals in the

dashboards

Increase transparency for

decision making

Improve speed of

aggregating

financial

information

Aggregation of financials, such as actual or planned cost commitments along the investment hierarchy, takes a long time for large portfolios

Outdated information on investments increases efforts for reviews

Manual editing of standard financial KPIs such as net present value and internal rate of return adds tools and manual effort for portfolio managers

Accelerated aggregation of financials

along the investment area hierarchy

Calculation of the most important

KPIs based on values from financial

planning, removing manual

calculation



SAP HANA


Continuous product and service innovation (2/3) Business value for project management (SAP Portfolio and

Project Management)

Project members experience long waiting times when starting the project and task dashboards. This reduces user productivity when people are working on several projects and on several tasks across projects.

Updates on multiple tasks are

inefficient and time consuming as

project team members must confirm

tasks one-by-one to reduce waiting

times

Searching for documents across

projects takes a long time for large

project portfolios

The process of finding projects,

tasks, and phases by responsible

project member is slow

Faster access to tasks and projects

Accelerated access to project, task,

and checklist dashboards

Ability of project team members to

confirm times, status, and dates, and

to attach documents for several

tasks at once

Increased user productivity

Accelerated search for documents

Accelerated ability to find projects or

tasks by responsible project member

Increase user productivity

Reduce

Improve

time for task

confirmation

Search for

documents and

project elements



SAP HANA


Continuous product and service innovation (3/3) Business value for project management

Long wait and locking times along

business processes hinder project

execution and impact flexibility to

react on deviations.

Reduced user acceptance due to

affected usability in handling large

project data

Reduced waiting and locking times of

critical transactions along the end-to-

end process, resulting in higher

process efficiency and improved

employee productivity

Increase user productivity

and end-to-end

process efficiency

Improve transparency and

decision support to

take appropriate

corrective

measures in time

Real-time analysis of high volumes of

data for complex, long-lasting

projects or cross-project monitoring

is challenging due to high data

volumes

Due to missing 3600degree real-time

transparency across applications,

deviations in costs, time, resources,

or quality are seen too late in the

process

Acceleration of project information system reporting and new project line-item reporting delivering faster insights

Early insight into deviations and risks, enabling timely corrective measures

Planned: Project execution cockpit to enable project managers and staff to analyze status and progress of one or more projects end-to-end with real-time data



SAP HANA


Production planning and execution Business value for material requirements planning (MRP)

Decisions are often based on

outdated information from periodic

MRP runs. The process is done in

batches.

There is no ability to replan quickly if

conditions change due to long run

times.

Prediction of inventory coverage for

critical parts is difficult

There is no ability to replan if

conditions change during the

planning horizon due to long run

times

Faster replanning allowing more

frequent MRP runs in shorter cycles

Faster reaction to demand changes

and updates to the supplier

Faster propagation of demand

information through the supply chain

More frequent MRP runs, allowing

reduction in inventory and safety

stock levels

Faster information flow toward

suppliers, enabling them to react

faster to changed planning conditions

Better-synchronized material

demand and supply planning with

reduced bullwhip effect

Reduce out of stocks by

36%

Reduce

Limit

inventory and

safety stocks by

29%

Bullwhip effect



SAP HANA


Enterprise asset optimization Business value for asset planning and scheduling

Maintenance scheduling consumes a

great deal of time.

High amount of master data

influences performance of data

maintenance.

Manual process of preselecting

maintenance plans is error prone.

There is a potential to miss

necessary objects for maintenance

calls.

The high number of maintenance

plans that need to be scheduled

frequently requires a weekly

scheduling scheme.

Accelerated mass transactions

Speedy analysis on top of

transactions

Preselection of due plans, which

speeds up the process significantly

Real-time analytics on all data,

including machine sensor information

Scheduling of all maintenance plans

within a specific time frame

Planning of maintenance operations several times a day (instead of once a week), resulting in up-to-date scheduling information

Faster response times, leading to more accurate maintenance scheduling

Increase asset utilization

and reduce

unplanned asset

downtime

Maximize

Gain

asset uptime using

assets with better

OEE

up-to-date scheduling

information on

maintenance

operations



SAP HANA


Demand-driven supply chain Business value for supply chain monitoring

Accessing and effectively using

timely demand information from the

supply network is becoming more

and more difficult


incomplete, inaccurate, and often

outdated information

There is no sub-daily planning and

analysis of jobs because of long data

preparation times

The inability to respond fast to ad

hoc queries may result in lost sales

orders

Increased business/expert user

productivity with faster planning

processes, improved user

experience, and rapid consensus

across the supply chain network

Near real-time reporting with

increased speed of information

analysis leading to better supply

chain visibility and decision

making

Optimized reporting of supply chain

planning data thanks to the

advanced data retrieving and

computing functionalities of

SAP HANA

Reduce planning cycle

times by

36%

Increase

Increase

supply chain

performance by

18%

customer service

level by

13%



SAP HANA


Logistics and fulfillment excellence Business value for warehouse management

No up-to-date view of the inventory

situation

Need for accurate display of actual

stock to react quickly to stock

shortfall

Time-consuming inventory

management reporting

Real-time access to complex

inventory management data

Real-time stock insight and inventory

monitoring

High-performance inventory

management with large volumes of

documents

Higher process efficiency in adjacent

procurement processes

Reduce inventory levels

Minimize

Optimize

out of stocks

working capital



SAP HANA


Consumer dialogue Business value for contact management with interaction center

To successfully resolve customer

issues, companies need to quickly

locate the right experts or resources

within the organization, whether

those experts reside inside the

contact center or elsewhere.

Managers and supervisors lack

actionable reporting and visibility into

the workload of their teams

The high volume of customer records

and interactions results in increased

search times and greater difficulty

locating specific customer records

With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the best suited employee roles

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees

Searches in the interaction center,

including account searches,

interaction history, and the customer

fact sheet, are significantly faster

Decrease average handling

time

Improve

Reduce

service-level

agreement

compliance

service cost



SAP HANA


Enterprise marketing optimization Business value for marketing

Improve profitability

Optimize

Increase

return on marketing

investments

customer

satisfaction

Missed market opportunities due to lack of visibility and inefficient processes

Data explosion, driven by new level

of connectivity resulting from

consumers using mobile devices and

social networks

Data in disparate data sources,

which prevents a true 360-degree

view of the customer

Agile marketing to respond faster to

changing market dynamics and

opportunities

New analytical data mining

functionalities on Big Data

(social media, predictive)

Near real-time monitoring and

reporting on marketing performance

One central place for collecting all

customer data leading to a 360-

degree view of customers in real time

Precision marketing to personalize

every interaction with the customer



SAP HANA


Account and trade promotion optimization Business value for promotion planning

Exploding data leading to latency

and slow planning

Inability to reach consumers with

compelling offers

Difficulty planning tailored

promotions for retailers

Run any size of promotion instantly

with high performance

Glean insights from working with

granular product and stock-keeping

unit data instead of overall product

category

Allocate promotion spend on a

granular day level instead of by week

or month

Reduce latency in

promotion planning

Improve

Reduce

reach of consumers

with tailored offerings

time to forecast by

14%



SAP HANA


Perfect store Business value for sales

Difficult to identify profitable

customers from customer pool

Inability to identify gaps in sales

pipeline leading to missed targets

Inability to extract actionable information from the enterprise-wide customer data to maximize the chance of a sale

Minimal insight into buying preferences of customers in social data context

Easier identification of profitable

customers with account intelligence

analytics

Faster transaction search

functionalities

Complete transparency into sales

pipeline based on real-time

information with unlimited drill-down

functionalities

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data including social/sales data

Increase profitability

Increase

Improve

percentage of sales

reps achieving quota

offer win rate



SAP HANA


Core human resources and payroll (1/2) Business value for payroll processing

Responses to ad hoc inquiries from

management about trends of high-

volume payroll information cause

significant costs to HR IT

Business users have a very limited

ability to analyze payroll results

Addressing employee inquiries about payroll is time consuming and expensive, and HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services

Free HR IT resources to focus on the

execution of organizational

strategic tasks

Leverage thresholds as a steering

mechanism to optimize business

performance

Simplify payroll data analysis with optimized representation of data

Slash time needed to access and analyze critical payroll information with SAP HANA-based high-speed read access

Increase employee productivity and

satisfaction with faster response

times to employees

Increase productivity of users

responsible for

payroll management

Improve

Reduce

employee

satisfaction

overall costs of

payroll processing



SAP HANA


Core human resources and payroll (2/2) Business value for effective shared services delivery

Employees direct queries into the

shared services organization (SSO)

and expect to get prompt, accurate

answers

SSO agents spend time searching

for employee data using employee

identification

SSO agents are under constant

pressure both to improve the quality

of service provided to employees and

to lower the costs of providing those

services

SAP HANA-based acceleration of

inbox performance speeds

navigation within the inbox, allowing

the SSO agents to review and

prioritize their work more efficiently

Faster employee identification allows

the agent to provide more responsive

service, which leads to improved

employee satisfaction

Reduced costs and faster response

times allow the SSO to meet its

service level agreements and budget

objectives and to improve KPIs

Increase productivity for

shared services

agents

Improve

Reduce

employee

satisfaction

overall costs of

delivering services



SAP HANA


Time and attendance management Business value for time and absence calculation

Responses to ad hoc inquiries from

management about trends of high-

volume payroll information cause

significant costs to HR IT

Business users have a very limited

ability to analyze payroll results

Addressing employee inquiries about payroll is time consuming and expensive, and HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services

Free HR IT resources to focus on the

execution of organizational strategic

tasks

Leverage thresholds as a steering

mechanism to optimize business

performance

Simplify payroll data analysis with

optimized representation of data

Slash time needed to access and

analyze critical payroll information

with SAP HANA-based high-speed

read access

Increase employee productivity and

satisfaction with faster response

times to employees

Increase productivity of users

responsible for

payroll management

Improve

Reduce

employee

satisfaction

overall costs of

payroll processing



SAP HANA


* Visualizations will be delivered as part of HR renewal.

Workforce planning and analytics Business value for transactional analytics

Translation of organizational strategy

into HR metrics requires significant

effort or special expertise.


hunches.

It is difficult to zero in on underlying

transactions from high-level key

performance indicators (KPIs).

It is time consuming to analyze data

loads in traditional reporting tools.

Integrated and personalized cockpits

that provide insight into metrics that

matter most*

Leveraging of thresholds as a

steering mechanism to optimize

business performance*

Powerful predefined workforce and

time management KPIs, so

managers can navigate into details

Embedded analytics inside business

transactions

Prebuilt virtual data models for real-

time transactional analytics

Simplified architecture

Increase revenue per employee

by using analytics to

identify strategic

advantages

Optimize

Reduce

business with

reliable real-time

HR data

time and costs of

operational

reporting



SAP HANA


Financial performance management (1/3) Business value for planning, budgeting, and forecasting

Planning performance limited to

OLAP, staged cubes for transactional

and master data

Data load performance is driven by

the amount of data extracted

Reporting, loading, and retraction

performance limits planning iterations

Drilldown within OLAP cube, and

drill-through to SAP Business Suite

and OLTP data within standard times

Seamless replication of master and

transactional data from SAP

Business Suite

Availability of more granular data to

support planning

Big Data challenge negated, allowing

for faster extract and DSO activation

times

Iterative planning and real-time

simulation supported through

improved performance

Improved performance for drilldown

(expand) and consolidation

(collapse)

Fast drill-through and live view of

transactional data in SAP Business

Suite

Improve service level

performance

Reduce

Minimize

cycle times and

manual effort

operating costs



SAP HANA


Financial performance management (2/3) Business value for profitability and cost analysis

Data latencies and process delays

impact the ability to react to issues

and opportunities

Lack of data depth and user self-

service affect internal decision

making

Long-running processes

Time-intensive data queries

Mostly manual data analysis

Substantial amount of time and effort on processes that do not directly add value

Suboptimal resource efficiency and effectiveness

Timely execution of critical business

processes supports decision making

and increases the ability to act swiftly

(insight-to-action) in dynamic market

environments

Critical transactions and calculations

run quickly

Response times on queries are quick

Prebuilt analytics automates the data

analysis process

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support


performance

Reduce

Minimize

cycle times and

manual effort

operating costs



SAP HANA


Financial performance management (3/3) Business value for financial and managerial reporting

Risk of noncompliance due to

unfulfilled (overruns in) audits

A lot of data; decision-relevant

information not readily available

Data analysis not supported or

automated

Long-running batch jobs/reports

Time-intensive data analysis

Large number of time-consuming, and non-value-added processes required to access and provide accurate, up-to-date information

Timely execution of compliance-

relevant validation tasks

Increased end-user satisfaction

(accurate, detailed, visualized, timely,

and actionable information)

Acceleration of key critical-path

processes and reports

Instant response times on most data

analysis queries

Elimination of workarounds and data

latencies

End-user data analysis through self-

service means


performance

Reduce

Minimize

month-end

closing time

operating costs



SAP HANA


Accounting and financial close Business value for entity close

Long running processes

Time-intensive reconciliations

Limited time for analysis

Inefficiencies due to manual

processes and low automation

Missing financial excellence

resulting in higher cost of equity

at the capital markets

Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios

More time for analysis, less overtime,

and earlier publishing of financial

results through faster

period-end processes and better

reconciliations

Increased efficiency through smarter

reconciliations and reporting,

reducing operating costs and

improving stakeholder satisfaction

Real-time analytics down to the

lowest level of detail – delivering

quality at source, transparency, and

process efficiencies

Improve service-level

performance

Reduce

Minimize

month-end closing

time

operating costs



SAP HANA


Collaborative finance operations (1/3) Business value for receivables management

More time spent preparing data; less

time for analysis

Collaboration beyond finance team

hindered by perceived system

complexity

Limitations in analysis capabilities

and dimensions because of reliance

on finance aggregates

Large data volumes that lead to

batch processing and reporting

latency

Difficulty in identifying exceptions in

thousands of pages of reports

Instant portfolio overview that lets

managers focus team efforts on

tactical wins

Ability to involve sales executives and

other business partners to accelerate

collections and dispute resolution

More accurate document-level

calculation of DSO that allows

identification of root causes of

changes to DSO

Real-time reporting on all accounts

receivable data including credit,

collections, and disputes

Anywhere, anytime access to key

receivables status

Increase cash collections and

accelerate dispute

resolution

Optimize

Gain

working capital

up-to-date and

instant overview of

receivables

portfolio



SAP HANA


Collaborative finance operations (2/3) Business value for payables management

Expensive and error-prone manual

process steps

High cost per invoice due to large

numbers of tasks

Need to improve compliance and

audit turnaround time

Inability to determine exact moment

of payment

Inability to influence cash position

Inability to understand where control

over invoice-to-pay cycle is lost

Inability to make use of cash

discounts

Risk of supply chain interruptions

with key suppliers

Loss of supplier loyalty affecting

contract renewals

Scalable automation of invoice-to-

pay reconciliation process

Actionable insight with live access to

items in process and

multidimensional insight to AP

process performance

Extensive control over factors that

influence DPO

Optimization of cash position through

precise timing of supplier payments

DPO lower than net payment terms

allows strategic decision making on

payment along cash position

Additional dynamic discounts can be

offered or leveraged

Decrease days payables

outstanding

Optimize

Reduce

working capital

lost supplier

discounts



SAP HANA


Collaborative financial operations (3/3) Business value for SAP Shared Service Framework for finance

Vendor, customer, and employee

queries generate a high load on the

Shared Services Organization

(SSO). This requires an extremely

efficient working environment for

agents in the SSO.

SSO agents spend a lot of time

searching for vendor, customer, and

employee data

SSO is under constant pressure to improve the quality of service and to lower the costs of providing those services

SAP HANA-based acceleration of

inbox performance speeds

navigation within the inbox. It allows

the SSO agents to review and

prioritize their work more efficiently.

Faster identification of vendors,

customers, and employees allows

the agent to provide more responsive

service, which leads to improved

satisfaction of the agents and the

clients of the SSO

Reduced costs and faster response

times allow the SSO to meet its

service level agreements and

budget objectives and to improve its

KPIs

Increase productivity for

shared services

agents

Improve

Reduce

employee

satisfaction

overall costs of

delivering services



SAP HANA


Enterprise risk and compliance Business value for access control role analytics

Most companies face a high volume and ongoing increase of unused and orphaned roles

Scheduled batch jobs are required to analyze a transaction log with millions of records (such batch jobs usually take hours to complete)

The cost of ongoing role

maintenance can be high – one

customer estimated active ERP role

maintenance costs at about

US$4,000 annually

Unused roles and orphaned roles constitute unneeded access risk to the organization (and possible compliance issues)

Conflicts associated with segregation of duties arise from continuous monitoring of access risks

Accelerated analysis of role usage to

isolate unused and orphan roles

Deeper insight into roles for

uncovering any potential risk for the

organization

Role usage and assignment

information provide valuable insight

to business executives during

business reengineering and

reorganization.

Trigger the assigned workflow

directly from the analysis to remove

unused roles assigned to users

Expose orphaned roles across the

system landscape quickly to begin

the decommission process

Identify unused and

orphaned roles

Consolidate

Reduce

most-frequently

used (active) roles

noncompliance and

overall access risk


Customer cases

Benefit over

five years

US$20 million

Annual

benefit

€38 million

Five-year net

value

US$65 million

APJ food company

• SAP HANA products and SAP Business

Suite on SAP HANA

• Automated reporting

• Inventory optimization

• Predictive analytics

• Inventory visibility

European durables

company

• SAP Business Suite on SAP HANA

• Real-time inventory

• Real-time material planning

• Marketing and sales

• Fast financial close

U.S. high-

performance

computing

company

• SAP HANA Platform and SAP Business

Suite on SAP HANA

• Variable margin analysis

• Customer service excellence

• Opportunity order analysis

• Predictive analytics

• Supplier network traceability

• Predictive scoring


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As a starting point, we recommend a performance

and usage analysis of your current software

system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Appendix with detailed customer cases


Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

Perfect store**

Suite on

SAP HANA

SAP HANA

products

SAP HANA

Platform

Phase ‒ deployment road map Annual revenue: US$1.76 billion

SAP HANA platform: customer specific

SAP HANA products: SAP NetWeaver BW on SAP HANA , high-

performance applications (HPAs), apps powered by SAP HANA

SAP Business Suite on SAP HANA

SAP HANA

use case

Accounting and

financial close

Account and trade

promotion

effectiveness**

Logistics and

fulfillment

excellence **

Note ** Included in business case

1 Short term

CRM Perfect store:

Pricing sensitivity analysis: Collaborative order to

cash: better informed pricing and rebate decisions

SCM Logistics and fulfillment excellence:

Order fill rate: Take corrective actions and engage with

supply chain/distribution colleagues; now manual and

long process

FIN Accounting and financial close: Automatic

reconciliation with automated real-time matching

2 Medium term

CRM Perfect store

Sales visibility: Support sales strategy and decision

making: critical retailer growth rate and contribution,

privilege club contribution, network expansion planning,

clustering, sales planning

CRM Account and trade promotion effectiveness: Provide

drilldown functionality and what-if analysis on large data

volumes; plan and optimize marketing initiatives and

promotions

SCM Logistics and fulfillment excellence:

Inventory optimization: Production planning and

execution: decide when to expedite and when to stop,

especially for packaging: currently only every 8 hours

SAP HANA use cases mapped to industry value map end-to-end solutions

APJ consumer products company Summary validated scenarios


APJ consumer products company SAP HANA Platform

2,6

4,36 4,36

6,25 6,25

0

2

4

6

8

10

12

2013 Phase 1 Phase 2 Phase 3

Costs SoH Applications Platform

Anything built on the platform that is customer specific ‒ new business processes and business models

SAP NetWeaver BW on SAP HANA, HPAs, apps powered by SAP HANA

Currently available functionalities (SP0, 1, 2)

Based on actual SAP

customer engagement

Annual benefits, SAP HANA

Platform: TBD

Annual benefits, SAP HANA

products: US$6.25 million

Annual benefits, SAP Business Suite

on SAP HANA: US$4.36 million

Estimated deployment costs

Total transition cost: TBD

SAP HANA Platform

SAP HANA products

SAP Business Suite on

SAP HANA

Annual revenue: US$1.76 billion $m

SoH = SAP Business Suite on SAP HANA


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

A food producer Suggested order by SAP HANA

Innovation scope

SAP HANA products (HPAs, apps)

End-to-end (E2E) solution

Consumer products - consumer dialogue

Value potential 5

Feasibility 4

Low High

1 5

Low High

1 5

Business context and goals

Identify additional sales opportunities with analysis and cross-buying behavior, region, channel, and

so on

Business challenges

Support growth plan, maximize profitability, and enable quick actions to protect market

Process innovations

Suggest to sales team the most suitable and profitable product mix at the time of sale

Contribution of SAP HANA

Fast analysis and high volume of data combination for near real-time sales offering

Value drivers/KPIs

Increase sales and profitability through higher number of items per sale




A food producer Tax management framework

Innovation scope


(now and future)

E2E solution

Consumer products ‒ accounting and

financial close

Value potential 4

Feasibility 3

Low High

1 5

Low High

1 5


Efficiency in the calculation and reporting of taxes to minimize exposure to tax authorities and the

need for future adjustments

Business challenges

High complexity and granularity of tax calculation and reporting in Brazil

Process innovations

Determination and reporting of taxes directly form transactional base


Capture, integration, and consolidation of high volume of information in real time

Value drivers/KPIs

Reduce opportunity cost due to tax overpayments; reduce uncollectable credits due to tax

overpayments; reduce fines and interest payments due to the tax underpayments; reduce time

needed for auditing




Innovation scope


E2E solution

Consumer products ‒ enterprise marketing

optimization

Value potential 5

Feasibility 5

A distributor of alcoholic beverages Real-time offer management

High

1 5

Low High

1 5


Enable sales rep to add value to client through sales insights based on heat maps and social

networks, and help activate sales. Enable sales rep to become a value-added resource to the

retailer owner and improve quality of client interactions.

Business challenges

Mobility is the key component required as analysis needs to be put in the field to generate value.

Currently, the Charmer Sunbelt Group is mobilizing this solution in the Florida market.

Process innovations

Analyze past sales, suggest bundles based on similar customer profiles and consumption

patterns. Mobilize insights on an iPad to make the salesperson more effective with the customer.


Generate real-time offers/suggestions. Suggest buying quantities based on consumption patterns

(frequently-ordered items). Up-sell orders based on discount levels/promotions.

Value drivers/KPIs

Improve number of sales transactions where cross-sell or up-sell is offered Low




A food producer Cost and profitability analysis

Innovation scope


E2E solution

Consumer products ‒ collaborative

finance operations

Value potential 5

Feasibility 5


Cost and profitability analysis

Business challenges

The company was able to do sales analysis based on promotional prices being offered only on a

weekly basis. Since this was a manual process that was prone to erroneous entries it would not

catch mistakes till the end of the week and hence was losing revenue.

Process innovations

Now it can run analyses during the day and protect margin on promotions.


Used as the real-time engine

Value drivers/KPIs

Operational margin

High

1 5

Low High

1 5

Low




An international brewer Integrated commercial strategy

Innovation scope


E2E solution

Consumer products ‒ consumer dialogue

Value potential 5

Feasibility 5


Integrated commercial strategy

Business challenges

Weak commercial execution is costing market share. Two-step distribution leaves customer with

limited understanding of consumer sentiment and response to its products and promotions.

Distribution is through large distributors and retail chains.

Process innovations

Improve commercial performance by integrating all information for product, category, trade

promotion, and advertising into a single, coherent execution cycle based on robust data

(including social). Gain an integrated, self-reinforcing commercial excellence cycle.


SAP HANA will tie together multiple data sets and enable full granularity of insights.

Value drivers/KPIs

Trade promotion management spend, revenue

High

1 5

Low High

1 5

Low




An appliance manufacturer Audience discovery and targeting

Innovation scope


E2E solution

Consumer products ‒ enterprise asset

optimization

Value potential 5

Feasibility 3


In a competitive environment, it becomes more and more important to position customer-tailored

marketing campaigns. The goal is to position the right offer for the right target group at the right

time through the preferred channel.

Business challenges

Ad hoc analysis of large data volumes, fast reaction to events, proper visualization of analytics

results, and support of predictive analysis

Process innovations

Visual generation of large-scale segmentation models (hierarchical network); intuitive visual

analysis and iterative charts; ad hoc analysis with data mining and predictive functionalities; high

degree of flexibility and performance of the analytics tools


Customer segmentation analysis for any data source and any granularity; fast response time on

large data volume requests; ad hoc data aggregation and calculation of scores, KPIs, attributes,

and so on; flexible segmentation on any data object

Value drivers/KPIs

Trade promotion spend as a percentage of revenue (for which trade promotions are conducted)

High

1 5

Low High

1 5

Low




An appliance manufacturer Business process steering and control

Innovation scope


E2E solution

Consumer products – financial

performance management

Value potential 3

Feasibility 5


To steer and control its business processes (finance, sales, planning, and so on), the company

generates and analyzes large volumes of data from different sources.

Business challenges

Data volume, velocity, and variety are increasing, leading to control performance issues.

Process innovations

Fast delivery and processing of real-time data in and within a data warehouse; fast response

times for complex process data analysis; drill-down on any level


Increased performance of data loading and processing; reduced reporting development efforts;

fast response times of analysis on large data volumes and any granular level

Value drivers/KPIs

Reduction of IT operational costs; reduction of reporting development costs

High

1 5

Low High

1 5

Low




An appliance manufacturer Cash management

Innovation scope


E2E solution

Consumer products – treasury and

financial risk management

Value potential 3

Feasibility 5


Company needs transparency into its current liquidity and plan data for all its branches in order to

execute a rolling 12-month plan

Business challenges

Incomplete and not current transparency into cash liquidity; missing flexibility of liquidity forecast runs

Process innovations

Enhanced and optimized methods for liquidity forecasts; visualized tools for analysis


Real-time analysis of cash liquidity and bad debts; what-if analysis including foraging currency risks

Value drivers/KPIs

Reduction of financial consolidation efforts across branches; optimization of central planning

efforts; improvements of business investments

High

1 5

Low High

1 5

Low




An appliance manufacturer Collections insight

Innovation scope


(now and future)

E2E solution

Consumer products – accounting and

financial close

Value potential 3

Feasibility 4


Insight into customer-centric receivables management process for evaluation, identification, and

prioritization of accounts from both a risk and customer relationship perspective

Business challenges

Actual data of open bills, payment behavior, and so on not available; customer info records not

optimally displayed

Process innovations

Interactive layout to visualize relevant and current customer information; mobile access to data at

any time; ad hoc analysis of trends and paying behaviors


Fast generation of customer fact sheets based on real-time data; drill-down to any detailed data

Value drivers/KPIs

DSO reduction

High

1 5

Low High

1 5

Low




An appliance manufacturer Customer interaction center

Innovation scope


(now and future)

E2E solution

Consumer products – SAP HANA Platform

x

Value potential 2

Feasibility 4


A best-in-class customer service becomes more and more a key differentiator in the market.

Efficient complaint management, fast spare parts checks, and effective technician resource

planning increase the customer satisfaction and reduce service costs.

Business challenges

Increasing volumes of data around customers lead to time-intensive search requests.

Process innovations

Fast identification of a 360-degree customer profile based on real-time data from different

sources (CRM software, social media, and so on)


Accelerated "Google-like" search; fast provisioning of a 360-degree customer view based on

real-time data; integrated rules engine that automatically routes service requests to service

technicians

Value drivers/KPIs

Reduction of call handle time High

1 5

Low High

1 5

Low




An appliance manufacturer Dealer bonus calculation

Innovation scope

SAP HANA Platform (customer specific)

E2E solution

Consumer products – SAP HANA Platform

Value potential 5

Feasibility 2


Company holds more than 40,000 contracts with sales partners, which include bonus payments.

Those payments need to be forecasted on a monthly basis and liquidity reserves need to be set

aside.

Business challenges

Due to complex bonus analysis and a wide range of influencing factors (ad hoc marketing

campaigns, price reductions, currency conversions, and so on), the bonus payout is often higher

than needed.

Process innovations

Ad hoc bonus calculations and liquidity reserves forecasting and simulation


Calculation of current and forecasted bonus payments based on real-time data in any granularity;

reserves simulations based on currency, interest rate trends, and so on

Value drivers/KPIs

Reduce sales rebate overpayments; reduce unauthorized invoice deductions; increase revenue

from higher effectiveness of sales rebate programs; reduce bonus credit note error rate High

1 5

Low High

1 5

Low




An appliance manufacturer Planning and scheduling


Due to ever-changing planning situations and demand changes, production planners need to analyze

and optimize the planning, solve upcoming problems, and manage interactive planning tasks.

Business challenges

Fast view on current planning situation; fast analysis of large volumes of data (planned orders,

purchase orders, stock transfer orders)

Process innovations

Fast interactive planning in short cycles; insight into real-time planning data


Accelerated view into actual planning situation based on real-time data; fast planning on large

data volumes

Value drivers/KPIs

Reduce days in inventory; reduce throughput for primary products; reduce overhead costs of

production costs

Innovation scope


(now and future)

E2E solution

Consumer products ‒ production planning and

execution

Value potential 4

Feasibility 5

Low High

1 5

Low High

1 5




An appliance manufacturer Transport optimization


With an integrated inbound and outbound transport management concept, companies are able to

optimize transportation routes and flights and their downstream processes.

Business challenges

Complex transport and supplier network; high data volumes in shipments and receipts;

increasing energy and transport costs; worldwide transport logistics

Process innovations

Step 1: Optimize transport analysis processes (flight control, receipt management). Step 2: Gain

insight into end-to-end inbound and outbound logistics processes.


Real-time transport process analysis and transport optimization through simulation runs; handling

of large data volumes; route optimization and simulation

Value drivers/KPIs

Reduction of transport costs; reduction of transport planning and process costs; optimization of

sustainability processes (for example, CO2 reporting)

Innovation scope


(now and future)

E2E solution

Consumer products ‒ efficient manufacturing

operations

Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5

delivering real-time business value for consumer products

Technology

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