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SAP HANA AN INNOVATIVE PLATFORM

FOR RETAIL USE CASES

11/07/2014

Prepared by: Venu Cherupillil

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AGENDA Forrester’s Study on IT savings by

implementing SAP HANA Sources of savings with SAP HANA

implementation Today’s Enterprise Architecture Challenges HANA Architecture & Features Data Acquisition Deployment Options Innovation Usage Models Data Consumption Approaches Retail Use Cases Questions & HANA Resources

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASESForrester’s Study on HANA Implementation Savings

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FORRESTER’S STUDY ON IT SAVINGS BY IMPLEMENTING SAP HANA

Forrester evolved a Total Economic Impact™ (TEI) framework Interviews and surveys with Teams from HANA implemented organizations Industry standard software maintenance and support cost Expenses on software licenses, HANA appliance and Professional services Net Present value of Projected saving

A model Manufacturing Corporation located in US 40,000 employees Heterogeneous IT landscape Database size

• 40 TB SAP BW database system • 10 TB SAP ERP (SAP Business Suite) • 2 TB custom (homegrown) applications

Implementation Phases for HANA BW on HANA in first year Start implementing ERP on HANA in second year in parallel to ERP on existing DB Migrated fully to ERP on HANA from third year onwards

Projected Savings 37% over next 10 years of IT maintenance and operational cost

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SOURCES OF SAVINGS WITH HANA IMPLEMENTATION

Infrastructure Simplification - Savings 10-20% OLAP & OLTP in one system No need to create and maintain aggregates and Indices Reduced storage costs due to high compression ratio in the long run Simplified Database Administration

Increased Productivity of Existing Processes - Savings 20-30% Faster Development Cycles (suitable for agile methodologies like SCRUM) for Requests

& Projects Faster Loading and reporting for Business Intelligence No data latency Faster Operations No or less batch processes Simulation capabilities for alternatives

Innovative Business Processes – Savings 50-70% SAP Fiori Apps for Retail Customer Activity Repository  SAP Planning for Retail SAP Sales Analysis for Retail SAP On-Shelf Availability SAP Accelerated Trade Promotion Planning SAP Fraud Management SAP CO-PA Accelerator

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASESToday’s Enterprise Architecture Challenges

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TODAY’S CHALLENGES OF ENTERPRISE ARCHITECTURE … 1

DATA ARCHITECTURE Volume

Doubles in every 18 months (Gartner) In 2011, over 1.8 Exabyte (1,800,000 TB) of data were created By 2020, 35 Zetabyte (35,000,000,000 TB) will be created

Velocity Today’s business need Real time data Shrinking Latency acceptability window Data Latency caused by ETL into Data Warehouses or Data Marts Granular level v/s Aggregate level

Variety Structured Data Unstructured Data Social Media Data Machine generated Data Geospatial/Location Data

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TODAY’S CHALLENGES OF ENTERPRISE ARCHITECTURE … 2

APPLICATION ARCHITECTURE Several Consumption Tools

PC/Laptop Tablet Smart phone Phablet/Fablet

Several Browsers Several Operating Systems and Versions

TECHNOLGY ARCHITECTURE 3-Tier Architecture for Vertical and Horizontal Scalability

in Application Server layer Inadequate Data Transfer speed between Disk Storage

and Application Servers

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TODAY’S CHALLENGES OF ENTERPRISE ARCHITECTURE … 3

BUSINESS ARCHITECTURE

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASES

HANA Architecture & Features

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HIGH PERFORMANCE ANALYTICAL APPLIANCE (HANA) …1

HANA – Acronym for High Performance ANalytical Appliance first introduced in SAP TechEd Bangalore in Dec 2010

HANA is a successor to APO Live Cache (2001) TREX (Text Retrieval and information EXtraction)

Engine used in Portal & BI in 2004 Business Warehouse Accelerator (BWA) (2006)

SAP HANA is a flexible, data-source-agnostic appliance that allows users to analyze large volumes of ERP data in real-time, avoiding the need to materialize transformations. It makes use of multi-core parallel processing capabilities of modern hardware architectures and is capable of querying billions of records per second

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HIGH PERFORMANCE ANALYTICAL APPLIANCE (HANA) …2 SAP HANA is a hardware and software combination that integrates a

number of SAP components SAP In-Memory Database

Acid-compliant (Atomicity, Consistency, Isolation, Durability) Hybrid Data Store (Column & Row) Data stored at transactional level without any aggregates, No indices needed High Compression ratio

HANA Studio – Tool for Modeling and Administration Data Replication Tools – (Initial & Delta Load, Real Time & Batch)

SAP HANA is delivered as an optimized appliance in conjunction with leading SAP hardware partners (IBM, CISCO, HP, Dell, Hitachi, Fujitsu, Lenovo) using latest Intel Xeon E7 processors

Operating System is Suse Linux Enterprise Server 11, 64 bit Current Version: HANA 1.0 SPS 8 (As of Oct 2014)

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SAP HANA – MUCH MORE THAN A DATABASE11/07/2014

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASESData Acquisition

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SAP HANA DATA ACQUISITION 11/07/2014

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASESDeployment Options

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HANA DEPLOYMENT OPTIONS11/07/2014

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SAP HANA A PLATFORM FOR INNOVATIONInnovation Usage Models

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SAP HANA A PLATFORM FOR INNOVATIONInnovation Usage Models

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INNOVATION USAGE MODELS Agile Data Mart – Fast and Flexible Data Marts SAP Business Suite Accelerator – Reporting from ERP with HANA

DB as a secondary database. Currently, Sales, Finance, Shipping, Purchasing and Master Data Reports are available as HANA-fied transactions .

SAP Solutions for Accelerated Applications – SAP CO-PA Accelerator, SAP Smart Meter Analytics, SAP Merchandising & Assortment Planning

SAP Business Warehouse Powered by SAP HANA – BW 7.3 onwards, option to use HANA DB, General Availability from April 2012

SAP Business Suite Powered by HANA HANA– Single HANA DB for OLAP and OLTP applications. General Availability from May 2013. 1200 customers as of October 2014.

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SAP HANA A PLATFORM FOR INNOVATIONData Consumption Approaches

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HONEYWELL CASE STUDY – WITH HANA AGILE DATAMART

Honeywell ASUG presentation on Empowered Self-service BI with SAP HANA and SAP Lumira They loaded data from various sources (SAP, Excel, Access, ETL tools) into HANA Agile Data mart to generate monthly Profitability statement from 100+ hours into couple of hours on same day.

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APPLICATION FUNCTION LIBRARY …2

Predictive Analysis Library Classification – ABC Analysis Clustering – K-Means Association Analysis – Apriori & Apriori-lite Regression Analysis

Business Function Library Internal Rate of Return Net Present Value Depreciation Models

These Analysis generates Procedures and they can be called with SQLScript internally within HANA or Externally using ABAP Procedure Proxy or ABAP Managed Database Procedure from an ABAP 740 system.

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SOCIAL MEDIA ANALYSIS WITH HANA & HADOOP

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SPATIAL DATA PROCESSING WITH HANA 

From SPS6, onwards, HANA supports spatial data types and functions Points of Interest (ST_Point), Delivery Area (ST_Polygon)etc.

This allows to store and process any spatially oriented data (e.g. latitude/longitude, etc.)

This allows users to view and visualize data revealing the relationships, patterns, and trends in the form of map

Example Applications: Transportation companies can track assets, analyze

maintenance status and real time communication of traffic jams to their vehicles

German Soccer Club (TSG Hoffenheim) uses Spatial Analysis on SAP HANA to Optimize Training

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SAP HANA AN INNOVATIVE PLATFORM FOR

RETAIL USE CASESRetail Industry Use Cases- Limitation is our own imagination!

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RETAIL INDUSTRY USE CASES 1 Store Operations

100% Adoption of Fiori Apps for Retail with consumer grade interfaces on any device, any OS, any browser: Customer support, Associate ordering, Inventory lookup, Store Receipts, Adjustments, Physical Inventory/Cycle Counts, Store Analytics, etc.

Marketing: Capturing of sales at POS receipt level and customer level – The lowest level of data

granularity without any aggregates Association Analysis (Apriori algorithm to determine which products are sold together Targeted Offers and Campaigns through segmentation of Stores and Customers using

Predictive Analysis (Clustering, Regression Analysis) Social Media Analytics such as Text Analysis & Sentiment Analysis etc. Smarter Dunning job runs for Accounts Receivables

Real Estate: In site selection for new store openings, Retailers can look for hidden revenue

opportunities based on location with Spatial Data Analysis, integration with ESRI, Google maps etc.

Preventative & Predictive Maintenance of Technical Assets

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http://www.saphana.com/community/implement/use-cases

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RETAIL INDUSTRY USE CASES 2 Loss Prevention

Early detection of insights into losses and implement preventive measures in early phases

Merchandising: Real time Analysis of Promotional Events to make adjustments on

the fly Markdown Planning & Optimization

Planning & Replenishment Resolve the biggest bottleneck in daily IT operations: Replenishment in minutes

rather than hours Push One Time buys or seasonal products based on ABC classification at category

level on real time Integrated Planning powered by HANA at Company level, Store level, Category level ,

SKU & Attribute level with budget linkages and actionable with order proposals Logistics

Real time Tracking of deliveries Dynamic route adjustments based on real time spatial data such as

Traffic

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RETAIL INDUSTRY USE CASES 3 Business Intelligence– Strategic Reporting

Business Warehouse powered by HANA Consumption of HANA models in BW and consumption of BW models in HANA Reporting real time from source system without replicating into BW as remote cubes

Business Intelligence – Operational Reporting HANA Live

Reporting directly from transactional tables using pre-delivered calculation views Tailoring capability of standard HANA Live views

Agile BI Self Service Capability with Lumira Cloud Information Composer with local file data Real time reporting with Social Media data

Various Departments: Real Time transactional visibility such as Inventory to Corporate staff, Stores and Customers. Adoption of Fiori Apps in all lines of Business Activities Expose any HANA data as Odata service is very easy With XS Engine capability, modern Business applications can be built natively with HANA data

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RETAIL INDUSTRY USE CASES 4 IS Team

Several Code optimization Tools like SQL Monitor, ABAP Test Cockpit, SQL Performance Tuning Work list

Advanced OpenSQL to push Data intensive calculations to the database

SQL Script - Data, Functional and Procedural Extensions Web applications development with SAPUI5(Enhanced HTML5)

and SAP Web IDE Single Eclipse based Development Environment Scripting languages like JAVA Script, Python, Ruby, .Net RIVER (RDL - River Definition Language) – Newest language

launched in Dec 2013 describing data models, business methods, access controls, automatic Odata services in a single coherent SQL like language

PMO Team Agile Methodology can be adopted for proto typing and

implementation Business Suite Functions can be activated as part of a sprint of an

Agile Project

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HANA RESOURCES HANA Resources

Customer Success Stories: http://www.saphana.com/community/learn/customer-stories/

eBay's Early Signal Detection System runs Machine Learning & Predictive Powered by SAP HANA: http://www.youtube.com/watch?v=hS-0ZadT6so

German Soccer Club uses Spatial Analysis on SAP HANA to Optimize Training http://www.youtube.com/watch?v=eEFaxJ6iaXE

Transform Your Big Data into Big Value Retail Industry http://global.sap.com/community/ebook/2013_08_27544/enUS/index.html#/page/1

SAP Help Portal http://help.sap.com/hana_platform SAP HANA http://www.saphana.com/welcome HANA Academy http://www.saphana.com/community/hana-academy openSAP https://open.sap.com/

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