KHNC - HANA-Retail Deployment Scenarios · KHNC - HANA-Retail Deployment Scenarios Raghav...

KHNC - HANA-Retail Deployment Scenarios

Raghav Jandhyala, Axel Meier – Customer Solution Adoption (CSA)

April, 2012

© 2012 SAP AG. All rights reserved. 2 Confidential

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Topics

1

BW on HANA –

Retail Scenarios and Deployments

3

POS DM on HANA

4

HANA based Retail

Scenarios and Deployments

2

HANA for Retail

Overview of HANA Deployment at a French Retailer

5

Q&A

6


Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Successful retail companies…

Deliver products and

services that drive loyalty

to the brand

Reach millions of consumers with targeted seamless cross channel

experiences

Capitalize on new sales

opportunities and

maximize margin return

Improve customer

services to increase

competitiveness

Personalizing customer

interaction

Identifying and seizing new

opportunities

Accelerating fulfillment

lifecycle

They do it by…


SAP HANA for Retail Value Proposition

Simplify and unify

business processes

Order fulfillment based on

enterprise-wide product

availability transforms customer

experience

Hourly sales and stock

information across all

organizations and channels

Access precise data to make informed decisions

Real time profitability analysis at

assortment and location helps

pinpoint performance issues

Instant calculation of vendor rebates

ensure all monies are collected on

time

Speed You Need -

Where it Impacts

Your Business

Respond with personalized and

targeted information and offers

anywhere, any time

Customer interaction provides

insight to develop new and

exciting assortments


1 Billion Store-item

quantities by zone

800% Increased

reportable detailed

sales history from 3

to 24 months

8,100x Faster reporting

speed

In-memory Computing Technology Impacts

Velocity - Volume - Value


Common Retail Scenarios relevant for In-Memory

Computing

Discontinued Items Analysis, Non-Moving Articles Analysis

Stock Balance Reports and Stock History

Out Of Stock Analysis (On-Hand Stock(RT), Goods Movement)

POS Data Analysis by Article, Store , Day

Summary Sales Reports

On Shelf Availability (Predictive)

Real Time Stock Position Analysis

Sales Analysis Reports (On-Hand , On-Transit , Sales

reports)

Inventory Scenarios

POS Analytics

Scenarios

Inventory with POS*

* New Scenario enabled by HANA


Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Retail Reporting Scenarios – Enabled by HANA

Real time visibility into Current stock situation by replicating ECC

material master and filtered stock information into HANA

• Discontinued Items Analysis, Non-Moving Articles Analysis -

Identify non-moving and discontinued items in real time so that

retailers could increase their revenue by creating promotions,

transferring to other stores, returning to vendors, making other

adjustments, etc

• Stock Balance Reports Store wise visibility into current stock

situation /stock summary

Agile stock modeling combining ECC master data and stock

information's with non-SAP forecasting information from a 3rd party system

• Stock History Identify historical stock information's in real time so

that retailers could see the trend of sales in the past and stock

forecasting information stored in 3rd party system at any point of

time

Inventory Scenarios


Retail Reporting Scenarios – Enabled by HANA

Point of Sales Analysis

by loading granular POS data (billions of records), into HANA ( billions of

records) . Sales Summary and ad-hoc analysis across multiple

dimensions like Products, Customers , Time, Stores and multiple sales

key figures like total sales, basket sales, Customer spend, etc

POS combined with Inventory

POS Analytics Scenarios

Out Of Stock Analysis (POS*, Inventory Goods

Movement)

Feeding precise POS data into HANA and combining it with the

ECC goods movement can help retailers reduce inventory carrying

costs and gain critical insight into customer buying patterns and

behavior

*Note that SAP POS DM data can also be loaded to HANA. However it is preferred to migrate to

POS DM on HANA to benefit from standard content.


Inventory and POS Data Analysis Scenarios –

Deployment with HANA

Pure Inventory Scenarios with SAP ECC

SAP HANA

SAP ERP

SAP BO Clients

Reporting SQL / BICS

Sourc

e

Syste

m

Inventory,

Master Data Stock Analysis

Models

SLT/

real-time

Current

Stock

Article

Mvmt. …

Master Data HANA-

View

Inventory and POS Combined - SAP & Non–SAP

Source Systems

SAP HANA

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data Stock Analysis

Models

SLT/

real-time

Non SAP / DW

Inventory

Data Services

SAP BO Clients Stock

history

Sales

Analysis.

Master Data

HANA-

View

POS

Sales Data as Flat

Files Data Services


Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Retail Reporting Scenarios – Enabled by BW on HANA

Inventory BW Content

• Inventory value monitoring

• Returns analysis for supplier/ customer returns

• ABC classification

• Cross selling / substitutions analysis

Near real-time Custom Content :

• On-Hand , On-Stock report provide an overview by site

showing on hand sales units, on hand dollars, on order units,

on order dollars. Provides stores with a snapshot of relevant

inventory data for making present and future ordering

decisions

• Stock Balance Reports Store wise visibility into current

stock situation (stock summary)

Inventory Analytic Scenarios

Value Proposition:

Revenue due to managed inventory (promotion, sales, return to vendors, etc)



Near Real-time Basket Analysis.

• Customer Loyalty Analysis becomes supercharged with total customer

attributes and behaviors by combining customer data with POS data

• Replenishment quantity Analysis by merging sales data with real

consumption data from non-SAP sources, will provide the ability to plan

correct replenishment quantities

• Sales and Forecast Analysis down to the lowest level of detail to identify

key value items while integrating customer buying patterns to drive

profitable promotions

• EDW Reporting Services provided by the Global Retail Hub

POS Data Analytic Scenarios

Value Proposition

SLA to process POS sales data within agreed processing windows

https://portal.wdf.sap.corp/irj/go/km/navigation?Uri=/GCP_Content/GCP_Documents/Services/Service_Repository/FS_Global_2010/Industry_Solutions/Trading_Industries/Retail/10_Onepager&StartUri=/GCP_Content/GCP_Documents/Services/Service_Repository/FS_Global_2010/Industry_Solutions/Trading_Industries/Retail/10_Onepager



Near Real-time Stock position

• Stock Trend Analysis (POS Data, Inventory Goods

Movement) Feeding NON SAP POS data into BW on HANA and

combining it with the ECC goods movement or NON SAP goods

movement help retailers to reduce inventory carrying costs and

gain critical insight into customer buying patterns and behavior

• Out Of Stock Analysis (POS Data, Inventory Goods

Movement) Feeding NON SAP POS data into BW on HANA and

combining it with NON SAP goods movement help retailers to

monitor stock Level and active promotions to optimize Material

Store availability and Level of Stock value

Inventory + POS Data Analytic Scenarios

Value Proposition

Monitoring of Stock Level and active Promotions to optimize Material Store availability and Level of Stock value


Inventory Analysis – Deployment with BW on HANA at a

glance

SAP HANA SP3

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data

SAP BW 7.3 SP5

ETL /

Extractors

Inventory

(Snapshot) ETL

SAP BO Clients On Hand

Stock

Stock

Balance …

Master Data Multi-

Provider

Inventory

Non SAP / DW

Inventory

SAP HANA SP3

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data

SAP BW 7.3 SP7

ETL /

Extractors

SLT

(Real-time)


Stock

Stock

Balance …

Master Data Multi-

Provider

Inventory

Inventory

Table

Analytic

View

Virtual

Provider

Non SAP / DW

Inventory

SLT

(Real-time)

1. Extracting ECC master data and real-time snapshot stock information from SAP or non-SAP to BW on HANA

by utilizing SAP SLT (Real-time) or Direct Extractor Connection (DXC).

2. Inventory data stored within BW-Objects or utililizing a BW virtual Provider to connect to HANA Analytical Objects linked to HANA tables.

3. Data integration of ECC master data and Inventory data to be handled via BW-Multi-provider.

(a)

(b)

or (a)

(b)

or

Extraction Based Near Real Time

(a) – SAP Inv : Use Standard BW

Content

(b) - Non SAP Inv : Create BW Inventory

Cubes/DSO


SAP HANA SP3

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data

SAP BW 7.3 SP5

ETL /

Extractors

Non SAP

POS Data

ETL

SAP BO Clients Sales

Analysis …

Master Data Multi-

Provider

POS Data DSO

(In Memory)

• Extracting ECC master data and non-SAP POS data information

in BW on HANA.

• POS data to be stored in BW In-Memory DSO.

• Data integration of ECC master data and non-SAP POS data to

be handled via BW-Multi-provider

SAP HANA SP3

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data

SAP BW 7.3 SP7

ETL /

Extractors

BW Virtual

Provider Non SAP

POS Data SLT

(Real-Time)

SAP BO Clients Replenish

ment Qty

Sales

and Fcs …

Master Data Multi-

Provider

TLOGF Analytic

View

• Extracting ECC master data in BW on HANA and real-time

replication of non-SAP POS data to HANA table.

• HANA Analytic Model to be created on top of HANA table.

• BW virtual Provider to be connected to HANA Analytic model.

• Data integration of ECC master data and BW virtual-Provider

handled via BW-Multi provider

Extraction Based Near Real Time

Basket Analysis – Deployment with BW on HANA at a

glance

Note: POS data in SAP ERP can also be extracted / replicated to BW on HANA


Stock Position – Deployment options with BW on HANA at

a glance

SAP & Non–SAP

SAP HANA SP3

SAP ERP

SAP Business Objects

Clients


Sourc

e

Sys

tem

Master Data

SAP BW 7.3 SP5

ETL /

Extractors

Non SAP

POS Data ETL

SAP BO Clients

On Hand

Stock Out Of

Stock …

Master Data Multi-

Provider

POS DSO

Inventory Inventory DSO

SAP HANA SP3

SAP ERP

SAP Business

Objects Clients


Sourc

e

Syste

m

Master Data

SAP BW 7.3 SP5

BW Virtual

Provider

ETL /

Extractors

Non SAP

POS Data ETL


Stock

Out Of

Stock …

Master Data Multi-

Provider

TLOGF Analytic

View

Inventory

BW Inventory

Content

SAP & Non–SAP

SAP HANA SP3

SAP ERP

SAP Business Objects

Clients

Reportin

g SQL /

BICS

Sourc

e

Sys

tem

Master Data

SAP BW 7.3 SP7

ETL /

Extractors

Non SAP

POS Data SLT

SAP BO Clients On

Hand

Stock

Out Of

Stock …

Master Data Multi-

Provider

Inventory

Inventory*

TLOGF

Analytic

View

BW Virtual

Provider

SAP BW Inventory + Real time POS Extraction Based

Near Real Time

* Inventory data from SAP ERP can also be replicated realtime to HANA data marts


Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Scenarios possible with POS DM on HANA

Sales Analysis

•Access and analyze vast amount of

granular data to identify sales

performance and real time promote

low performing items.

•Key KPIs Tracked include : Total

Sales, Gross Margin, Avg

Transactino $, Lost Sales, Out of

Stock Rate, Return ($), Basket Avg.

On granular real-time Sales data

Strategic relevance: Insight into

Store Operations, higher

adaptability to customer needs

• Customer Segmentation

• Customer Profitability

• Cross channel Customer Analytics

Shopper Behavior

EDW Service

• Manage near-time view of Retail

Inventory integrated with real-time

POS data.

• Direct tracking of stock reduction in the

store as soon as POS data is loaded.

Be prepared for the future

Real Time Stock Position

Strategic relevance: Optimize flow of

merchandize and react on customer

demand.

Minimize opportunities of lost sales

On Shelf Availability

Strategic relevance: Higher

profitability and customer

loyalty.

• Predictive capabilities to assess

current risk of out of stock or out of

shelf situations from analysis of real

time sales information

• Real time transparency of potential

out-of-stock and service level

issues creates the opportunity to

react rapidly and solve issues.

Key Enablers

1. In-memory database for fast

data processing and analysis

2. Availability of granular T-Log

data that was not possible

before due to high storage

costs and poor performance.

3. Real-Time analysis of POS

Data

Customer

Insight

Strategic relevance: Effective

marketing spend, Shopper lifetime

value


POS DM on HANA Target Landscape

SAP POS DM – BW on HANA

BW POS

Content

TLOG PIPE/

POS DM

Integration

OSA Ipad App, Sales

Analysis Dashboards

Key Benefits

Increased performance driving user

adoption

Non Disruption to existing landscape by

choosing RDBMS or HANA option

Receipt-level POS data management, for a

time horizon of 2 years+

Data available in real-time, providing low

cost ad-hoc query capability

New technology eliminates the need for

storing POS data in large, specialized data

warehouses that are costly to maintain and

expand

Extend the physical limits for inbound

performance, data volumes and reporting

flexibility/performance for a POS data

warehouse and the related analytics and

reporting


Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Case Study French Retailer - Scope

From POS-DM on BW 7.30 to Customer Activity Report on Hana

Context

- POS-Data up and running on near real time basis (every 15 min) on BW 7.30

- Daily stock position for each store available in SAP BW (coming from

ALLDATA GOLD ERP)

Objective :

- Calculate Store stock level in real time

- Detect Out of shelf, Missed sales

- Option : Include stock valuation & calculate real time margin

Implementation :

- Real-time replication of POS-DM to HANA 1.0 SP3 :

- Full BW on top of HANA 1.0 SP3 completed by Real-time replication of POS-

DM


Real Time Stock Position Analysis - Inventory & Sales Data

RDBMS

DB Schema

SAP Netweaver

SAP ERP

Master Data

RDBMS

DB Schema

SAP Netweaver

SAP POS-DM

(Point-of-Sale Data

Management)

PIPE

So

urc

e S

yste

ms

RDBMS

DB Schema

non-SAP(Alldata)

Inventory

SAP HANA SP3

HANA 2nd Database Schema

TLOGF Analytical View

HANA BW Database Schema

SAP Netwever BW

BW 7.3 on HANA

Inventory

DSO

Virtual Provider

Multi-Provider Master Data

ET

L /

Real-T

ime

Data

Sourc

e

2nd D

B-C

onnection /

Real-T

ime

SAP BO Clients

Real Time Stock Position …


Real Time Stock Position Analysis - Inventory & Sales Data

New Scenario enabled with POS DM and BW HANA

BW as technical foundation for Inventory

combined with replicated POS data

Addressed Challenges

• Analysis of large volume of stock

with millions of articles in multiple

stores.

• Bottleneck as multiple user

queries lead to overhead on ECC

systems.

• Real-time availability of granular

TLOG data of about 2 years.

• Integration of Inventory Data with

POS data

Achieved Benefits

• Reduction in storage costs

and opportunity cost of lost

sales.

• Insight into stock planning and

analysis for Financial, Sales

and Retail End Users.

• Intra– day analysis of Sales

• Increased Customer

Satisfaction because of Real

Time Stock Visibility



Topics

1

BW on HANA –


3

POS DM on HANA

4

HANA based Retail


2

HANA for Retail


5

Q&A

6


Your Questions ?

Thank You!

Raghav Jandhyala

Solution Expert HANA Application I Customer Solution Adoption (CSA)

SAP Labs I M +1 480 522 0632 I mailto:[email protected]

Axel Meier

Solution Expert HANA Application I Customer Solution Adoption (CSA)

SAP AG I M +49 160 88 96 486 I mailto:[email protected]

mailto:[email protected]

mailto:[email protected]


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