Performance tuning SAP BI

If, when, why, and how to use SAP NetWeaver BI analytical content to assess and improve sales anddistribution processes Dr. Bjarne BergDirector SAP BIMyITgroup - A VIP consulting company 2008 Wellesley Information Services. All rights reserved.15BPM on a NetWeaver Business Process PlatformSAP NetWeaver is also a platform for developing and integrating value added business processes. BI can be used to support complex scenarios that increases sales and profits through process innovation and tighter SCM integration.

B2BNon SAP

BPM increasingly being used to manage processes that bridge multiple packaged applications.

BPM is not only XI integration and data movement, but also how the data is being used.

This session focuses on the CRM process, usage and BPM integration, Not on XI.Source: SAP AG, 20086NetWeaver BPM toolsSAP NetWeaver has process and rules composer tools that is used to define & implement complex business processes.In this session we will cover many new & innovative CRM processes you should consider as prime candidates to integrate with SAP BI and these tools.

In the current release of BPM these features are pre-delivered:

1. Human Workflow Patterns:Task management (claim, complete)Sequence flow (including data flow)Decisions (XOR)Parallel branch & merge (AND)Deferred choice (eventing)Exception handlingNested (sub-)processesServiceProcesses2. Service OrchestrationEnterprise service consumptionSequencing of automated activitiesException handlingEventing (intermediate events)Event correlation

Source: SAP AG, 2008

7BPM on SAP NetWeaverBusiness processes are becoming increasingly complex, integrated and comprised of more and more partners.

Intelligent Process Automation must therefore be developed to provide a close link between the analytical (SAP BI) & the transaction systemsSource: SAP AG, 20088What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

What can SAP BI do for my Sales BPM?: Pre-Sales Activities

Before the sales meeting, the SAP BI system provides a Customer overview file(s):Customer's profile & financial informationPast due paymentsCustomer complaints logged in the systemPrevious period shipping problemsThe customer's orders in progressCancelled ordersReturned items in the past,Unearned discounts takenTarget salesSuggestive products, prices & 'deals'

The basic data is inside SAP BI and a set of process rules determine what is needed, who have access and how/when it is delivered (pdf, web, print, portal etc).

What can SAP BI do for my Sales BPM? - Order management

The sales staff are pushed customer's order activities. BEx Broadcasters sends email notifications about unusual events or series of events I.e.: Unusual orders (high volume, low price, short delivery time)Cancelled ordersTracking special customer's ordersTracking contracted salesIndividual sales rep requests for order notificationsEarly demand shifts: Increased order volume for particular items.

What can SAP BI do for my Sales BPM? - Inventory

Dashboards for workers & SCM leadersImproved transportation & logistics planning with SAP Advanced Planning & Optimization (APO)Web tracking of all inventory movements available to customers & partners (UPS, FedEx & Amazon)Instant mobile access to inventory data by sales reps in the field Dynamic pricing based on aging inventory & demand spikes - Done by airlines, car rental and hotels why not you?

What can SAP BI do for my Sales BPM? - Inventory

Proactive delivery management using SAP BINotify customers about delivery problems before they contact you - BEx BroadcasterManage shippers and their on-time, on-cost, delivery performance - SAP BI scorecardsImprove on-time delivery by predictive modeling based on past performance - SAP BI Analysis Process Designer (APD)Create external facing dashboards for your key customers and partners, providing them insights into the supply chain - SAP BI Visual Composer & Web Application Designer

What can SAP BI do for my Sales BPM? - Billing

Externalize billings and provide insights Customer can manage their own accounts (SAP Portal) Invoiced electronically - no paper, email/fax (SAP Portal)Access old statements and invoices (SAP BI)Dispute billings electronically (X-Apps)We can do detailed profit analysis on billing condition data (SAP BI)We can do statistical analysis & data mining on detailed billing information (BI-analysis process designer - APD)

What can SAP BI do for my Sales BPM? - PaymentAllow customers to set up accounts, credit lines, banker's letter of acceptance, letters of credits, electronic payments cards, automatic drafts, check payments and pre-payments on-line.Use SAP Portals to give customers secure access and SAP BI for all account statements, reports and loyalty programs.

15Available Standard CRM and SD Content SAP BI content for SD and CRM has been developed over the last 10 years and now have data stores for most content areas used in sales processesDon't start a multi-year SAP BI project for SD BPM. Instead do a quick project that leverages standard content

16Most of what your sales representatives are looking for (orders, deliveries and billing) are in InfoCube SD_C03 - "Sales Overview"There are 127 InfoCubes for user access with data extraction programs and 108 Data Store Objects (DSOs) for CRM in SAP BI version 7.0. Use these and focus on the process models & presentation to end users.

Available Standard CRM Content (continued)

17What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

18 Key Inputs to real Sales Forecasts -Determine Customer Lifetime ValueAre you using customer life-time value, retention & attrition analysis processes in your sales forecast?

I.e. a major US phone company, has determined that the lifetime value of a customer is so high, that it can afford to give incentives (such as checks up to $100) if key private customer is willing to switch companies.Do you know what a new customer is really worth long-term?

SAP BI can be used to determine the total Customer Lifetime value (CLV) and build this dynamically into the forecasting process.19 Key Inputs to real Sales Forecasts - What should you charge?SAP BI is also used to track the price sensitivity of certain geographical regions and customer groups. This type of analysis, called price elasticity analysis, is often performed against the historical data in SAP BI in order to determine the best price to charge for a certain product.

SAP BI models can also be built to monitor the effect of changes in pricing strategies, i.e.. did we sell more widgets in France after we reduced the price by 10%, or did a "clearance sale" have the intended effect.

This is often done in the food industry, where the same product may be packaged, labeled & priced differently,while being sold in the same store.

BPM is a prime resource to help answer such price analysis processes

Image Source: SAP AG, 200820 Key Inputs to real Sales Forecasts - What must you charge?From the other side, SAP BI can provide a unified cost picture of all activities related to a sale.SAP BI can be used to evaluating minimum sales price of each product, in each region, and to designated customer groups. BPM and SAP BI can answer complex analysis processes dynamically

This is frequently done at construction projects such as road and bridge building, construction of utilities plants, as well as in sales of commodity goods, where large overheads directly related to sales have to be evaluated.

21Key Inputs to real Sales Forecasts - Predict Customer BehaviorIf we know which customers are likely to leave us for a competitive offering, we can flag them for improved customer service or target them for a promotional marketing campaign designed to keep them as a customer. The key is that SAP BI have the data to support analysis of complex purchasing patterns over time. If we know that a man under the age of 25, with an income less than $35,000 who buys a Mercedes, is 1.8% more likely to default on his loan than a woman in the same customer group, why should the creditor not increase the interest rate by 1.8% to reflect the increased risk?

SAP BI is the enabler of this type of analysis(Hint: look at SAP BI Analysis Process Designer).22Complex scenarios can be built for structured analysis such as risk modeling, customer segmentation, market basket analysis, predictive modeling and much more

Analysis Process Designer (APD)

New data based on the findings can be loaded back into data targets and used by others for reporting i.e.. CRM analysis.23SAP BI & BPM - a Natural choice for Category ManagementCategory Management is the process of managing a category of similar products across suppliers. 'Category Captains' (CM) are responsible for everything from the product mix to the store layout. SAP BI Information needed for category management includes:Efficient Assortment, Efficient Promotion, Competitive Pricing Analysis, Product Profitability Analysis, Shelf Presentation, ScorecardWith SAP BI, you can empower a CM with full responsibility for assortment decisions, inventory levels, shelf-space allocation, promotions & buying. With the SAP BI, authority & responsibility, the CM may be able to judge more accurately the consumer buying patterns, product sales & market trends of that category. By emphasizing profits & sales for entire product groups instead of individual items, CM encourage a longer-term, joint retailer-supplier focus without being confounded by the complexity of analyzing 1000s of different SKUs.24What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

25Incentive & Commission Process ManagementAccurate and complete commission reporting is critical to build trust in agency relationships.SAP offers a package known as Incentive and Commission Management (ICM) for CRM. In SAP BI it is supported by the standard InfoCubes: ICM - (0CRM_ICO1) Remuneration and Liability (0CRM_ICO1)Jump-targets to show detailed BI analysis on how the commission was calculated can be added in any SAP BI query. T-Mobile Deutschland processes over 2 million commission checks each month with SAP ICM (whitepapers.techrepublic.com.com/abstract.aspx?docid=273253)

26What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

27Market basket Analysis with SAP BI & BPMThis is a type of analysis where the user is attempting to find out which products are bought in combination, where should they be positioned within the store, catalog or web site, and how much space they should they have in your store, catalog, web site, marketing campaign etc.

Your analysis should also be designed to find:SAP BPM can help you answer product mix questions dynamically & continuously better than guessing and intuition can

The appropriate product breath (the number of products offered) The optimal product depth (the number of items within the product breath) The best product line extension (product variety)

28Using Market-Basket Analysis: Cross, Upgrade & Suggestive SellingThe world's largest on-line bookstore, Amazon.com, uses active market basket analysis to suggest what you should also buy (suggestive selling).

They can also offer special deals to customers that are generated automatically in sales processing

The banks are also good at cross-selling products such as VISA cards to high saving account holders, & car loans to good mortgage customers. Do you know what your customers are likely to also buy.Do you know what to suggest to a customer that buys any product?Are you good at spotting new demand trends & can price dynamically?29 Using BI for Cross-SellingDelta is an airline, but through market basket analysis, they cross sell many other products:

- Hotel rooms- Rental cars- Activities

SAP BPM models can track what customers are searching for and what products are logical compliments.

Cross selling and suggestive selling works, but composite applications are needed to make it executionable30 Suggestive SellingSuggestive selling started with waiters suggesting what to order to the customer and have moved into mainstream marketing rapidly, because it works

Some banks in the US are already experimented with pre-approving car loans, and sending out vouchers to its prime customers a few months before their current loan has been paid off (no application needed).Does your SAP BI system tell you when your customer are likely to make their next purchase and what you should suggest? - BPM rules can be created to take advantage of existing data & knowledge

The bank has the customer's payment history and the customer's personal information, and can, therefore, cross-sell its product through a push-strategy.

The bank does not have to compete for that same customer every time the customer is making a new financial decision.31What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

32Customer Segmentation with SAP BI and BPMSAP BI provides significant insights to your customer behaviors and what drives profits. BPM can analyze segmentation by Sales volumeSales amountsTotal sales (-returns and complaint costs)Total profitabilitySales growth and potentialLong-term customer valueCustomer behavior such as reference customers, early product adaptors and marketing customers

33What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

34Integrate on-line access to formatted statements in your BPM processesCustomizable font styles (i.e.. bold, italic), colors, etc.Group-level changes with individual formattingLayout options, e.g.: Height of rows, width of columnsMulti-line column headersFlexible field positioningMerging cellsSupport for hierarchiesRules for the presentation of special characteristic valuesIntegration of text, pictures, and chartsHeader & footer for reports

BEx Report Designer 7.1, (last release in 2008) will be available under maximum maintenance until 2016 and will bereplaced with the Crystal Light product.

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BEx Report Designer In SAP BIThis SAP BI tool was created to simplify the formatting of reports and fix printing issues in previous versions.

Use it to externalize customer & partner information.

Source: SAP AG

You have color control, header-footer control and many new features such as location control of cells and integration of pictures, charts and fixed text.36Crystal Report a SAP BI tool to support BPMWith BW you get access to Crystal reports. In fact you have many pre-developed reports that comes with SAP-BW. Currently, you can modify, or develop and deploy a few Crystal reports without additional licensing cost.Crystal is a great tool for batch reporting of "pixel controlled' formatted reports.

37What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

38SAP NetWeaver Mobile 7.1With SAP NetWeaver 7.1 users of mobile devices can carry out their tasks without a connection to a back-end system. The required applications and the user interface exist on the mobile device. Data is exchanged with the back end during the synchronization. Supported SD & CRM scenarios include:

Track customer information remotelyCreate and display orders in real timeUpdate new opportunities instantlyImprove pipeline visibilityAccount ManagementSales order managementOpportunity managementActivity and task managementProduct and Price InformationSurveys on handheldService FunctionalityWhat was cool 5-10 years ago are now expected by many customer & employees Source: SAP AG, 2008

39A SAP Mobile Application Example Book a flightThis is accessing the backend system using a handheld device and searching the products catalog.

The available products can be stored in ECC or in SAP NetWeaver BI.

For a sales application, you can add many search features and also allow for pick-lists (drop-downs). But the trick to fast processing is to keep it simple.Source: SAP AG, 2007

40A SAP Mobile Application Example Look up productsAfter the search results is returned, you can allow the users to access more product information.

Since these screens are used frequently, you should keep them free for graphs, images and other high bandwidth features.Source: SAP AG, 2007

41A SAP Mobile Application Data Entry & confirmationFor rapid data entry, keep the required fields to a minimum.

You should pre-fill as much as possible based on:

User log-on Previous navigation Previous purchasesPre-defined user preferencesSince External users cannot print from the PDA and Mobile phones you should also offer to email confirmations on the last process screenSource: SAP AG, 2008

42What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

43What Is BEx Information Broadcasting ?Its a standard part of SAP NetWeaver. It lets you send reports, BEx queries, Workbooks, and Web Applications to a variety of recipients i.e.:Email addresses, BW users, BW rolesSAP Enterprise Portal Knowledge Management foldersSAP Enterprise Portal

Image: SAP AG

BEx Broadcaster: Exception Reporting integration in BPMYou can make BEx Broadcaster send you an exception report when an exception occurs or if the system reaches a certain levelWe can make a query and define any exception.In this example we are tracking the returned items by customers. If they return many items we want to be proactive and call them to ask why

Making Alerts text based and IntuitiveUsing the Central Alert Server, by selecting the distribution type Create Alert and selecting the" Alert Category, you can also insert text from BEx Broadcaster into the alerts to make them more relevant to the recipient.

46What Well Cover Introduction How to use BI in SD Business Process Management Core Analytics Sales forecasting Commission reporting Market-basket analysis & cross-selling Customer segmentation Standardized formatted reporting Mobile Analytics Broadcasting and Alerts Wrap-up

477 Key Points to Take HomeYou need to be proactive and provide advanced services in SD and CRM before your competitors act.You should plan for composite applications and dont feel restricted by the system boundaries and current capabilities.SAP BI is an integral part of the external facing partner community and business processed, not just a reporting tool.Advanced analytics should be integrated in every step of the Order-to-Cash scenario to push target information, instead of relying on users to log-on and pull reports every day.Mobile computing is a key component of sales force automation. Data should be available everywhere487 Key Points to Take HomeIntegration and BPM can take place in composite applications inside the portal so that data transparency is enforced (users dont care which system provided the data).BPM is not just another way of linking the same old processes, but instead BPM allows companies to provide new innovate processes that adds value to the SD and the CRM experience -benefits to seller & buyersThe key to success in BPM is to re-examine the old process scenarios, decide on new capabilities, and creating a strategy for new technology enabled processes.Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. Sun Tzu, The Art of War49 Dr. Bjarne Berg's web page -- 80+ presentations, tutorials & articles http://csc-studentweb.lrc.edu/swp/Berg/BB_index_main.htm

The SAP Business Process Expert Communitybpx.sap.com

SAP Global: Next-Generation BPM on an Open Business Process Platform presentation (need free registration)http://www.sap.com/community/showdetail.epx?itemID=11665

SAP Global: Road Map for BPM and Event-Driven Architecture (need free registration)http://www.sap.com/community/showdetail.epx?itemID=8960Resources

50Your Turn!How to contact me:Dr. Bjarne Bergbberg@myitgroup.com

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