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Business Case

for
SAP HANA , SAP S/4 HANA ,
BW on HANA

Ajay Kumar Uppal

Copyright 2014 Hewlett-Packard Development Company, L.P. PROVIDER & CUSTOMER Confidential
Way Forward Oracle/RDBMS or HANA/In-
Memory?
Oracle 11
Self-tuning database components,
Sophisticated partitioning schemes calling for skilled resources,
Limited data compression
Licencing by number of cores rather than compute capacity. Core count can go up and down in line with demand.
Even non-production environments have to be licenced

Oracle 12c
Oracle 12c is Columnar, compressed, high-speed, in-memory database to directly compete with SAP Hana is what is
promised in thenext release of Oracle 12c database.
Customer needs to purchase, integrate and manage a variety of Oracle products: 12c database, Exadata software
and hardware, TimesTen database, Oracle Clusterware, ASM etc.
Licencing by core rather than compute capacity. Core count can go up and down in line with demand.
Even non-production environments have to be licenced

HANA is the best bet and is the solution fit for future
Enables new real-time use cases for customers with up to x100000 performance boost and response times Best
performance guarantee using the appliance model
Future SAP Business Suite optimized for HANA and all new functionality being built leveraging HANA.
HANA appliance model reduces operational costs by simplifying classic datacenter layers (no separate efforts needed
for server, operating system, storage, network)
Licensing by capacity as opposed number of cores and no licences for non-production environments
Moving to HANA can cut down
customisation
Growth, Mergers and Acquisitions have created a custom code
nightmare

Roadblocks for adoption of SAP Unnecessary custom code increases Increased risk of
innovation TCO ($8k per object and $500 annual business
maintenance per object) disruption

70%
of the custom code objects have
not been used within the last 4
weeks
60% of all custom code objects
contain
messages
code inspection

90%
of perceived functionality Gaps are
available in newer version of

20%
standard SAP of the system resources are
attributed to the execution of
custom code

12%
of the custom code objects are
identical or very similar to each Source: SAP Value Management Survey
other (clones)
PROVIDER & SAP will help you in building Business Case
for HANA
SAP Suite On HANA
$ 14.61 M Conservative ANNUAL
Business Benefits* $ 28.63 M BENEFITS
Likely ANNUAL
BENEFITS
Conservative ONE TIME
$ 1.61 M
BENEFIT

Capital Spend $ 1.90M $ 5.45M Operational $ 0.92M


Supply Chain
Effectiveness $ 3.60M $ 10.89M Integrity $ 1.71M
% Potential % Potential
% Potential Value Driver (VD) Value Driver (VD)
Value Driver (VD) Improvement Benefit Improvement Benefit
Improvement Benefit
Increase Cross-sell / Up- Reduce Service and
Reduce Discounts Lost 5% - 10% $0.44 M - $0.88 M 0.5% - 1% $0.50 M - $1.00 M
2% - 3% $0.40 M - $0.60 M sell Effectiveness Maintenance Costs
from Suppliers
Reduce Marketing Cost 0.01% - 0.02% $0.01 M - $0.01 M Reduce Un-Planned
Reduce Maverick Spend - 3% - 5% $0.42 M - $0.71 M
10% - 20% $0.50 M - $1.00 M Downtime Or Outages
Indirect Materials
Reduce Revenue Loss Due
0.01% - 0.02% $0.00 M - $0.00 M
Reduce Maverick Spend - To Stock-outs
10% - 20% $1.00 M - $2.00 M
Services
Improve Sales Margin
(Petroleum Products)
0.005% - 0.01% $5.00 M - $10.00 M $ 1.57M
$ 3.53M
Reduce Planning and
Finance
People & Talent Scheduling Function Cost
1% - 2% $0.25 M - $0.50 M $ 3.13M
$ 7.05M Reduce Transportation
0.5% - 1% $0.50 M - $1.00 M % Potential
Spend (for O&G) Value Driver (VD)
Improvement Benefit
% Potential
Value Driver (VD) 2% - 3% $0.50 M - $0.75 M
Improvement Benefit Reduce Storage Costs (for Reduce Audit Cost 10% - 20% $0.50 M - $1.00 M
O&G)
Increase Employee
0.5% - 1% $3.53 M - $7.05 M Reduce Days to Close
Productivity 5% - 10% $1.07 M - $2.13 M
Annual Books

Reduce Days Sales


* Average Benefits from SAP Suite On Hana Outstanding (ONE 0.05% - 0.1% $1.61 M - $3.22 M
TIME)
SAP S/4HANA Innovation Analysis
Busines
Interactive Inter- s Value
System Scan Analysis
Report pretation

Bottleneck Map

Rating of ERP on
Business HANA Scenarios
Case
Simulatio
n

Supported by detailed
x. x.
data on Performance, Rating of SAP Fiori Apps
Users, Transactions, Programs, Tables etc.

Interactive Presentation of Detailed Results enable fact-based Value Estimates


SAP HANA Business Case Customer
Interaction
Based on Customer Objectives, Actual System Usage and SAP Innovations

Technical
Aspects

Functional
Aspects

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SAP HANA Business Case Customer
Interaction
Based on Customer Objectives, Actual System Usage and SAP Innovations

Technical
Aspects

Functional
Aspects

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S/4HANA / SAP Fiori Potential by La
b
Pr
ev
business process
i ew
Business Process per Application Area
Number of active
executables
differentiated by Fiori /
SAPGUI

High level overview


about active
Summary about active processes
processes per application
area

Detailed view
including KPIs

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S/4HANA DB Simplification Impact
Assessment
Considering used SAP standard as well as custom programs, views and
appends

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La
b
S/4HANA Maturity Assessment Pr
ev
i ew
Identify usage of transactions which will be obsolete in S/4HANA to check migration
effort

Detailed
usage
information Impact Analysis of
S/4HANA Simplifications
on current business
processes

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Custom Code Assessment
Powered by smartShift
Requires additional Scan ABAP in the same round of scanning
Customer has to agree

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La
b
Data Aging
Pr
ev
i ew
Identification of large tables with and without archiving objects and
allows to evaluate strategies for hot/cold storage

Detailed information
created entries per
month/year in last 5Y

Visualization of data aging


as Heatmap per SAP
module

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Various options

SAP S/4HANA Innovation PROVIDER Solution Operation SAP Solution Manager


PROVIDER Usage Analysis
Analysis Analysis Integration

Purpose Prepare for or decide on SAP Assess maturity and quality of current Large analysis scope covering Provides business process structure
S/4HANA, SoH focus areas and Application Management Processes application management and business for upload to SAP Solution Manager
transformation processes
Business case simulations Covers all RICEFWs (reports (R), Business Process High Level Flow Covers >50% standard SAP
ERP on HANA scenarios rating interface (I), conversion (C), Charts transactions vs. SAP Solution Manager
SAP S/4HANA Best practice enhancements (E), forms (F) and Scorecards with exceptions & hints, Solution Documentation Assistant
processes workflow (W), detailed data accessible Includes mapping of custom code
Performance aspects Usage of interfaces, batch jobs, KPIs based on industry best practices Includes process variances
Bottleneck analysis workflows, custom code, Includes majority of the application Can adjust to customer specific
Productivity improvements w/ SAP Information on user & time management aspects too (RICEFWs, process descriptions
Fiori distribution of usage user, custom code) Customer documents can be included
Scorecards with exceptions & hints Industry benchmarks in upload
Action item list Action item list
Results HANA-powered, interactive online RBE Plus Browser (local installation) RBE Plus Browser (local installation) 2 days Custom Code Assignment
tool Personal presentation (2 hours) Personal presentation (4 times 2 Workshop
Personal presentation (2 hours) hours) XML Upload file for SAP Solution
Manager
Duration 2 weeks (Requires 1 scan only) 2 weeks (Requires 1 scan only) 4-10 weeks (Requires two scans) 4-10 weeks (Requires two scans)

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SAP S/4HANA Innovation Analysis
(ECC/CRM/SRM) Realization Steps
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Strategic Results Results
SCAN1 ABAP Results Value
Goal Processing / Handover
Import Interpretation Realization
Definition Analysis Workshop

Strategic goals The SCAN1 S/4HANA The results are The Client is The defined
are defined and ABAP program Innovation interpreted and invited to a approach and
selected is imported and Analysis is run prepared by two-hour steps based on
amongst a list executed in the on the extracts PROVIDER, workshop to PROVIDERs
from the Client SAP and all results tailored to the present the recommendatio
PROVIDER SSA Production are loaded into needs of the results of the ns are realized
Questionnaire System. Report a VPC for 3 Client S/4HANA
is extracted months Innovation
and uploaded Analysis and
to the RBETM define value
Portal realization
approach

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S/4HANA Innovation Analysis Results in
less 4 weeks
Weeks
Activity
START 1 2 3 4
Strategic Goal Definition
Important prerequisite: ST03N workload monitor has to have at least three
months of performance data, and completion of the check list +
questionnaire
SCAN1 ABAP Import and Execution
SCAN1 of productive system dependent on Release to Production time for the
SCAN1 ABAPs and their execution (HP can get engaged for this activity); Customer
Results: extract files provided to PROVIDER

Results Processing / Analysis PROVI


The extract is processed and packaged into the S/4HANA Innovation Analysis
DER
Results Interpretation
Results are interpreted and collated in a PPT and initially aligned with the
PROVI
customer DER
Results Handover Workshop PROVI
Handover Results: 1 x 2hr workshop
DER
Value Realization
The S/4HANA Innovation Analysis results are available for three months Customer
following the handover and
PROVIDER

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Calculating the Acceleration Potential
Assuming DB Read Time gets 10x faster:
SAP HANA Time needed in % Example Z2SE Example ZF19
Before Response Time 100% 100%
DB Time 90% 81%
DB Read Time 89.6% 81%
After DB Read Time (10% of before) 8.96% 8.1%
DB Time 9.36% 8.2%
Response Time 19.36% 27.2%
Roughly how many times 5 3.7%
faster?

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