26
Varian Medical Systems – Our Suite on HANA journey
Varian Medical Systems – Our Suite on HANA journey
• Overview – Varian Medical Systems
• Business Challenges & Driver for HANA
• Proof of Concept
• SI selection & H/W challenges
• Project Scope
• Timeline & Resources
• Go-live & Lessons learned
• Benchmark Results
• Post Implementation Roadmap
• What’s next for Varian?
IBM HANA appliances being installed at Varian20th December 2013
TO HELP SAVEMILLIONS OF LIVES EVERY YEAR, EVERYWHERE
OUR GOAL:
Varian Medical Systems• World leader in radiotherapy
• All forms of radiotherapy• >55% global market, $3.2bn orders• Over 7,500 machines installed• 100,000 patients treated per day • 35 million treatments globally
• Silicon Valley pioneer• HQ in Palo Alto, California• Specialists in High Energy X-rays• 6,700 employees (230 in UK)• 70 offices globally
Our journey with SAPModules: MM, PP, WM, PM, QM, SD, PS, FI/CO, HR, SM, PLM, CRM, BI/BW, EP, ME, MII, PPM, BPC
2014
Today
Full Suite on HANA, BPC
Eng. Chg, CAD Integration, PPM
GTS
SF, PLM, GRC, ME, MII
ECC 6.0
R/3 3.1h
R/32.1d
CRM/CIC
1995 1998 2009 20122000
Y2KVarian Spin off
2006
Single ControllingArea
Euro
1999
BW, EP
BO
Single Worldwide instance.6000+ end-users
Why were we interested in HANA?
Speed – ECC was too slow in many areas, and for majority of our ECC systems. We needed performance improvement!
Platform - Our SAP H/W was due to be replaced in 2014.
Cost - We saw an opportunity to reduce Oracle db costs to offset new HANA costs.
Drivers for HANA - multiple Challenges• Order Processing: Low volume, but large, highly complex
order structures.
• Backlog: Significant sales order backlog, and historical data.
• Archive: No historical data archiving. Steady growth in DB size.
• Poor performance: Key Management reporting processes taking hours to run. Regular Transactions slow.
• Others… such as enabling mobility for analytics
Few Suite on HANA (SOH) reference customers, so we clearly needed to do a POC!
POC Use Case – Revenue ForecastingRevenue Forecasting Process: Varian uses key milestone dates from Project Systems for Delivery and Acceptance Revenue Recognition and pulls those dates into BI to Forecast Revenue.
Pain Points:• Job Duration: On average >3 hrs. Runtime, during which
users were locked out. Runs twice every day.
• Global Users: No good time to run the job – someone, somewhere was always negatively impacted.
Goal: Reduce the batch job run time and give the Revenue Forecasting team more productive time.
HANA Proof of Concept - ConclusionResults: Reduced Varian’s most complex Batch Job from…
3 hours to 4 minutes.
Business Value: The Revenue Forecasting Team can operate in a truly global fashion, with real-time data from ECC flowing into BIwithout anyone being locked out.
Why Full Suite on HANA?• BI on HANA: In isolation, there wasn’t a compelling case for BI
on HANA.
• Side Car Option: Considered. Following the POC, we saw greater value on improving performance of key processes.
• Full Suite on HANA: All things considered, there were multiple drivers for us to move to Full Suite on HANA: • General poor performance of ECC. Business demands better.• Confidence from completing the POC.• Existing plans for an EHP7 upgrade & full-validation in 2014.• Existing plans to replace ECC hardware in 2014.• If not now, then next opportunity would be in 3-5 years.• Risks vs Benefits of being an early adopter.
Varian’s Journey - SOH Migration
Business Case
Revenue Forecasting
(~3 hours to 4 min)
Strategy and Partner
Selections
• Hardware
• Migration and Validation
Migration
• HANA-tize code
• Upgrade: v6.0 v7.0
• DB Migration: Oracle HANA.
• Validation: IQ, OQ, PQ
Performance
Strategy - Hardware
Landscapes
• Removed four systems (Project, Training etc.) - That reduced the cost by 30%
ER6 ER8 ERD ERQ ERP
ER7 ER9 ERT ER1 ERH
EHD, EH6 and EH7
EHQ EHP EHH
80 core,4 TB
80 core, 2 TB
80 core, 2 TB
80 core, 2 TB
Strategy: Defining hardware strategy and configuration was critical.
Performance
Hardware Challenges• Hardware Costs: The cost for an In-Memory HANA appliance
is (or was) 2x more expensive than standard SAP servers.
• No Virtualization: SAP did not support “Virtualization” for HANA increasing hardware costs.
• Vendors: There were limited h/w vendors who could support a 2TB system.
• Ivy Bridge Technology: Was not available in current line of Intel based servers (when we needed to place our h/w orders)
Strategy - Partner Selections
Options • Four potential Partners were invited for RFP process
RFQ • Oracle HANA (6.0 to 7.0), fix all SAP ABAP code, optimize performance challenged codes, Training Varian Internal team
PartnerSelection
• Parameters:
Technical Analysis Resource Model & Mix
Proposal Presentation
Migration Cost
Result Selected: Sparta (KPIT Company): a. Quality of Resources b. KPIT IP & HANA ToolKit. c. Relationship with SAP and d. HANA Project Experience
Risk: As an early adopter of new technology, we were pretty apprehensive about partner selection.
A rigorous selection process resulted in the right partner selection.
Performance
Partner Selection
The Challenge: Finding truly knowledgeable Vendors. HANA is new technology with limited ‘Full Suite on HANA’ implementations.
We set prospective vendors a challenge:
With a full database export of our ECC system:1. Import Varian’s ECC environment into your HANA Lab.2. Conduct a successful migration from Oracle to HANA.3. Evaluate all custom objects that need to be ‘HANA-tized’.4. Present a detailed project plan with named resources for
our HANA implementation.
The results were varied and helpful for selection
Financial Considerations
• Oracle DB Maintenance Fee: Cannot eliminate Oracle Runtime Maintenance fees until all SAP products are off of Oracle.
• Need to pay maintenance to both Oracle and SAP (for HANA).
• Need a clear Exit Strategy and Roadmap to move CRM, BI, PLM, GRC etc. to a non-Oracle DB.
• Hardware Costs: HANA Hardware Appliances are (very) expensive and there are strict configuration requirements.
Project Scope
Upgrade: • ECC EHP 6.0 to 7.0
DB Migration: • Oracle to HANA
HANA-tize code: • Clean-up ABAP code not
supported on HANA.
Timeline, Cycles & ResourcesSchedule: Kick Off: Oct 2013
Go-Live: May 2014
IT Participation: 25 Enterprise Applications , 8 IT Infrastructure, 2 Security & 1 Validation
Business Participation: 25 Part time resources (from Mfg, Eng., Order Mgt., Service, Accounting etc.)
Executed 10 mock DB migrations
Executed 4 Test cycles: Unit Test, Integration Testing x 2 & UAT
Go-live & lessons learned• Went live on time, budget and full scope.• Cut-over Drama - One early migration issue
needed escalation.• Released the system 7 hours ahead of
schedule – very little biz. downtime.• Overall - very smooth migration
Lessons Learned: • Production system was much faster than QA system. • GRC required an unplanned upgrade.• Strong relationship with SAP Mgmt. crucial.• Value of engaging a strong & experienced Partner• Testing & Validation took significantly more resources (and time)
than expected.
Post Go-Live FeedbackFinancial Controller – “The GL account display used to take 10 excruciating minutes to run, now it takes only 15 seconds.”
Program Manager – “All of the Backlog Report batch jobs are now running at lease twice as fast – down from 4 hours to 2 hours.”
Process Analyst - “The ECC component of the Revenue Forecasting Report used to take 90 minutes, now it takes 15 minutes.”
Design Drafting Manager - “Simple every day DMS transactions that used to take minutes now take seconds.”
Performance Benchmark: Results • Selected 61 key transactions - Combination of standard
transactions, custom transactions and Batch jobs.Improvemen
t
Count Improvement Count
Slower 2 10x Plus 4
No change 10 20x Plus 1
1.5x 1 30x Plus 2
2x 7 50x Plus 1
3x 8 60x Plus 2
4x 3 100x Plus 1
5x 5 150x Plus 1
7x 2 200x Plus 1
8x 1 300x Plus 1
1500x Plus 1
Post Implementation Roadmap
Use SAP’s Pre-Optimized
Transactions
‘HANA Only’ Functionality
Varian Custom Code
Optimization
Elimination of Oracle
Runtime Licences
Varian HANA Roadmap
• ECC Suite on HANA: May 2014• BI & EP Migration to HANA: Nov 2014• ECC SP02->SP05 Upgrade Nov 2014• SAP-GTS to Sybase ASE: April 2015• SAP-GRC to Sybase ASE: April 2015• SAP-CRM to Sybase ASE: April 2015
What’s next for Varian Start to take advantage of new innovations from SAP:
• Smart Financials • MRP on HANA
Use HANA as a platform to drive innovations and business process transformations
• Super Fast Analytics• Shorten period close processes• Supply Chain• Mobility
Use IT to gain a competitive advantage
Thanks for listening
Happy to take questions
John DenyerSr. Manager & Co-Lead, Worldwide Enterprise ApplicationsVarian Medical Systems
