openSAP

SAP Business Suite powered by SAP HANA

WEEK 1, UNIT 1
00:00:15

Hello and welcome to this openSAP course SAP Business Suite powered by SAP HANA or
in short Suite on HANA.

00:00:22

Today, we start with unit 1 of week 1.

00:00:26

My name is Michael Lamade. Im part of the Global SAP Business Suite on HANA Solutions
team, responsible for go-to-market across all industries.

00:00:35

The main focus is on asset creation, enablement of SAP field colleagues, partners, and 1:1
customer engagements.

00:00:44

In addition, I take care of business operations and manage the SoH industry portfolio.

00:00:50

Even though we will cover also some technical details of HANA, for you to understand the key
differentiators to relational databases or other in-memory offerings,

00:01:01

the main focus of this course is on the impact on the business, on the people who work with
such real-time applications, and the innovation power it can bring to IT.

00:01:13

This openSAP course consists of four weeks. In each week, there will be a number of videos
like the one you are watching now.

00:01:22

Usually, a course week consists of video units and self-tests that help you to measure your
learning progress.

00:01:29

Each week is complemented by an assignment.

00:01:33

These weekly assignments are graded, and you will earn points towards your Record of
Achievement.

00:01:40

From week to week, the learning sequence will differ a bit to allow you a maximum of flexibility;
but please do not worry, we will always explain this at the beginning of each course week.

00:01:52

We will also have an online forum. You can go there to collaborate with your fellow students
and to ask questions.

00:02:00

Finally, you can expect that it will take roughly a half day of effort to complete each week of
this course.

00:02:07

Now lets get started with an outlook on the entire course.

00:02:13

We start in week 1 with the question What is the Business Suite?.

00:02:18

Here, will briefly discuss how SAP defines the Business Suite, the solution scope, the
coverage of industries, line of business such as Finance, Sales, and Manufacturing.

00:02:29

We will also see how the SAP Business Suite got practically reinvented with the introduction of
the SAP HANA innovation platform, which runs the current version of the Business Suite.

00:02:40

Finally, we take a high-level look at implementation and deployment considerations.

00:02:47

Then we continue with what are the advantages of SAP HANA.

00:02:51

In this chapter, we will look at how HANA evolved over the last three years,

00:02:56

what unique technology innovations come with advanced in-memory computing,

00:03:01

the massive IT simplification you can achieve by bringing OLTP and OLAP together,

00:03:07

and we will look at the unlimited business innovations that can convert your business into a
real-time business.

00:03:15

In the next three units What Is the Value for Business?, What Is the Value for IT?, and
What Is the Value for People?,

00:03:21

we dive a bit deeper in the specific value proposition for each of these stakeholders.

00:03:27

At the end of week 1, we discuss how related SAP products benefit from the SAP Business
Suite powered by SAP HANA.

00:03:35

We look at HANA Live the real-time reporting solution,

00:03:39

at SAP Fiori with its radically simplified UI paradigm,

00:03:44

and at SAP Smart Business Cockpits, which completely change the way users interact with
SAP applications.

00:03:53

In week 2, well do a deep dive into the business value per line of business, which you see on
the slide, like Finance, Asset Management, Human Resources, etc.

00:04:04

Week 2 has a slightly different course structure.

00:04:09

It differs from the learning sequence of week 1.

00:04:11

Instead of doing all video lectures in a sequence, you can select one video unit covering the
line of business that is most relevant to you.

00:04:21

When you have watched this video unit, you can directly perform the assignment and earn
your points for the Record of Achievement.

00:04:28

As we offer one video and assignment per line of business, we did not include any self-tests.

00:04:34

If your primary focus is on only 1 LoB, your learning effort will be much lower than in week 1.

00:04:40

This will allow you to check out any other line of business videos in addition, if you are
interested.

00:04:49

In week 3, we do a deep dive on the business value for one or more industries.

00:04:55

Again, week 3 will allow you to select only the industry that is most relevant to you.

00:05:00

The comments I've just made for week 2 regarding video lectures, assignment, and how to
earn your points for the Record of Achievement, apply in the same way also for week 3.

00:05:13

If your primary focus is on only 1 industry, your learning effort will again be significantly
lower than in week 1.

00:05:20

This will allow you to check out any other videos from other industries in addition if you are
interested.

00:05:29

In week 4, we differentiate the course content whether you are already operating an SAP
system

00:05:36

and are interested in the tools and services that facilitate your migration to SoH (this content is

covered in Section 4a),

00:05:46

or whether you plan to start a new implementation of SAP Business Suite powered by SAP
HANA,

00:05:52

where the tools and services that facilitate your implementation are covered in Section 4b.

00:06:00

What is relevant in both cases are the aspects such as scoping, deployment, the use of rapid
deployment solution packages to accelerate your implementation.

00:06:10

With that, we conclude our course overview and move on to unit 2 What Is the SAP Business
Suite?.

00:06:18

Thanks for listening. I hope you gain many insights from our course and that you have a good
learning experience.

WEEK 1, UNIT 2
00:00:14

Hello and welcome to Unit 2 What Is the SAP Business Suite? of our openSAP course SAP
Business Suite powered by SAP HANA.

00:00:23

My name is Michael Lamade, Im part of the Global SAP Business Suite on HANA Solutions
team and your instructor for this unit.

00:00:34

So, here we see the description and value proposition of the SAP Business Suite at a glance.

00:00:38

Here, we want to give you an overview of the SAP Business Suite with a specific focus on the
value proposition.

00:00:45

Before we do this, we need to spend a moment on definitions.

00:00:49

There are three aspects that are relevant:

00:00:52

The SAP Business Suite consists of a defined functional scope.

00:00:57

We have to look at it from an installation perspective, so which technical components, such as

SAP ERP or SAP CRM that need to be installed,

00:01:05

and from a licensing perspective, because customers can license the Business Suite and all
the solutions that are included in that.

00:01:12

The focus of this unit is on the functional scope, meaning the business processes that are
supported by SAP Business Suite.

00:01:21

The Business Suite supports the core business operations of an enterprise with market-leading
applications, processes, and technologies designed to work together in a fully integrated suite.

00:01:33

It provides cutting-edge technology with continuous enhancements and new functionalities that
facilitate business growth.

00:01:42

It provides role-based user experiences that match the needs and skills of different employees
be it experts or be it occasional users,

00:01:51

and it allows access via mobile devices or via desktop.

00:01:55

It leverages industry best practices for 25 industries based on thousands of implementations.

00:02:02

And it adopts the latest technology and software innovation without disruption.

00:02:10

Let's take a look at the high-level architecture of the SAP Business Suite.

00:02:14

I'd like to start from the top, where we find the user interface, which is the access point for all
employees.

00:02:21

We provide user interfaces which leverage the SAP UI technology HTML5 or provide access
through mobile devices.

00:02:32

In the center, we see the SAP Business Suite with its components ERP, CRM, all running on
SAP NetWeaver

00:02:39

SAP's open technology platform that enables composition, provisioning, and management

00:02:46

of SAP and non-SAP applications across heterogeneous software environments.

00:02:53

It also comes with a set of BI tools including preconfigured content for lines of business and
Industries.

00:03:02

The SAP Business Suite runs on the SAP HANA in-memory database or on a broad range of
other relational databases.

00:03:10

In order to provide customer choice regarding deployment, it can run traditionally on premise
with customers taking care of the infrastructure,

00:03:18

the application management and maintenance; or the other option is to run either the entire
Business Suite or parts of it in the cloud.

00:03:27

In summary, SAP Business Suite is a modular enterprise software that supports end-to-end
industry processes.

00:03:35

It allows your company to effectively deliver on business and IT strategies at the same time.

00:03:43

Let's take a detailed look at the different components and products that are included in the
Business Suite.

00:03:49

So at the bottom, we see SAP ERP with its components Finance, Human Capital, Procure to
Pay, Plan to Product, Order to Cash, and Request to Service.

00:04:02

In the Finance area, the key aspects are to streamline financial operations and analysis,

00:04:09

to ensure regulatory compliance and effective risk management,

00:04:13

and to create a 360-degree view of enterprise performance.

00:04:19

In the area of People & Talent, the main focus is on increasing the HR operational efficiency,

00:04:26

optimize people performance, and build a competitive advantage.

00:04:30

In the R&D and Engineering space, the key focus is on reducing time to profit,

00:04:36

Increase revenue contribution through new and enhanced products,

00:04:40

and to decrease costs of R&D, or noncompliance, or poor quality.

00:04:46

In the Sales space, which is partially covered in ERP and partially in CRM, the main focus is
on sales force effectiveness on

00:04:54

achieving sales rev enue, and profitability objectives.

00:04:59

In the area of customer service, the main focus is on efficiency of service operations,
increasing customer satisfaction, which then also translates into service revenue.

00:05:11

In the Marketing space, the key point is to improve operational effectiveness in marketing,

00:05:16

to return on marketing investment, and to improve the brand quality.

00:05:22

In the Manufacturing space, again partially covered in ERP and partially covered in SAP SCM,
the main focus is on producing high-quality and compliant products,

00:05:32

to align global manufacturing operations to changing market conditions,

00:05:37

and to execute efficient and sustainable product operations.

00:05:41

In the Procurement space, the focus is on process efficiency, improve spend under
management, and maximize realized cost savings.

00:05:51

All these capabilities are available across 25 industries, from Aerospace & Defense at the
upper left to wholesale Distribution at the bottom right.

00:06:07

The SAP Business Suite powered by SAP HANA putting all these capabilities described before
now on an in-memory platform.

00:06:14

So, what we see in the center is the real-time platform powered by SAP HANA, which allows
real-time interactions of the user with the system;

00:06:22

it allows real-time execution, so converting analytical insights into execution;

00:06:29

it allows real-time planning and it allows real-time reporting and analysis on operational data.

00:06:40

SAP has invested tremendously to simplify the adoption of SAP Business Suite powered by
SAP HANA through SAP Rapid Deployment Solutions.

00:06:48

SAP Rapid Deployment Solutions are offered as packages with everything you need to be up
and running quickly.

00:06:55

Standard software, support for proven best practices, step-by-step deployment instructions,
and end-to-end enablement material.

00:07:04

Furthermore, you benefit from a fixed-price service offering so your business can be up and
running in just weeks, with full control of the budget.

00:07:14

Customer examples have shown that, for example, customers can be up and running in only
eight weeks with SAP CRM rapid-deployment solutions to get real-time marketing, sales, and
service functionality.

00:07:26

How about analyzing live transactional data in real time?

00:07:30

The SAP HANA Live rapid-deployment solution enables real-time reporting on operational data
residing within SAP Business Suite and beyond.

00:07:40

This package allows you to run real-time analyses directly on top of your transactional data for
immediate insight into your operations.

00:07:49

Because of the prebuilt data models, reports, and dashboards, customers have a fully
operational real-time reporting system in only about 12 weeks.

00:08:03

Cloud is what many customers demand today and in response one of the cornerstones of the
SAP strategy.

00:08:10

For the time being and even in the future, we believe in a hybrid cloud world, and SAP is
therefore supporting all deployment scenarios from On Premise to Cloud and Hybrid inbetween.

00:08:22

We are offering cloud services for early prototyping of solutions and proof of concepts as well
as for productive systems.

00:08:31

We truly believe that SAP HANA Enterprise Cloud is the fastest way of starting any SAP
HANA-related project, independent of the final deployment mode of a customer's productive
system.

00:08:44

The power of real time plus the simplicity of the cloud allow for a faster innovation adoption
and reduced IT cost.

00:08:51

So as a result, customers have the choice of deployment, whether it's on premise, the cloud,
or in a hybrid mode.

00:09:00

The business impact: It provides a faster time to value with innovations deployed as business
requires.

00:09:08

It avoids capital expenditures for running mission-critical processes,

00:09:12

and it provides a non-disruptive approach with easy migration and deployment.

00:09:18

We look at the IT impact:

00:09:20

It accelerates deployment of new solutions and shortens innovation cycles;

00:09:25

it allows smart IT investments for high-value innovations delivered quicker to the business;

00:09:30

and it reduces the total cost of ownership with the simplicity of the cloud (e.g., no need to wait
for hardware or implementation).

00:09:40

SAP also provides a set of cloud services, like Assessment, Onboarding and Migration, Cloud
Hosting and Managed Services, and also Custom Services.

00:09:52

The last aspect, which is also important, is that customers get information about the long-term
maintenance strategy.

00:10:00

So what we see on the left is the Enhancement Packs for incremental innovations; so SAP
provides new functionality that can be activated on an as-needed basis.

00:10:12

It provides evolutionary and breakthrough innovations.

00:10:18

So evolutionary innovations are done in close collaboration with customers through the
customer connection program.

00:10:25

And breakthrough innovations (here HANA), we have a very good example.

00:10:31

The last building block also very important that SAP protects the investment of customers
with the extension of the maintenance window from 2015 to 2020.

00:10:41

Thanks for listening. In the next unit, we will take a closer look at the architecture of SAP
HANA and the specific capabilities.

WEEK 1, UNIT 3
00:00:14

Hello and welcome to unit 3 Advantages of SAP HANA of our openSAP course, SAP
Business Suite powered by SAP HANA.

00:00:24

My name is Michael Lamade. Im part of the Global SAP Business Suite on HANA Solutions
team and your instructor for this unit.

00:00:32

Lets take a look at the accelerated roadmap.

00:00:36

The key point to note here is that SAP HANA was launched to the market already in 2011,

00:00:41

which gives SAP a two-year lead compared to the in-memory announcement from other
vendors.

00:00:48

Key steps in the introduction of SAP HANA to the market:

00:00:52

In step 1, real-time analytics, where HANA was used as a data mart.

00:00:57

In step 2, Enterprise Data Warehouse on HANA with BW on HANA at SAP

00:01:04

In step 3, the whole Suite was put on HANA, with ERP on HANA, CRM on HANA, and other
components

00:01:11

In step 4, new deployment options were introduced with on-premise, Cloud, hybrid with the
introduction of the HANA Enterprise Cloud

00:01:20

And in step 5, we started with the reinvention of the user experience with SAP Fiori and more
innovation applications.

00:01:32

While user experience and business has moved to a new paradigm, the information
technology has not.

00:01:40

Current market requirements for real-time business need to be tackled from ground up

00:01:45

through each layer and process of computing with technology innovation and simplification.

00:01:51

The explosion in data volume is causing a mayor IO bottleneck.

00:01:56

IO transfer rates from storage disks to servers have not kept up with data volumes.

00:02:01

This has led to complex and inefficient IT environments, compromising business flexibility as
well as adding significant cost.

00:02:11

Users suffer from slow online transaction and batch processes.

00:02:15

What is needed is a new technology platform which unifies layers, avoids latency, reduces
complexity and supports real-time business requirements.

00:02:26

The SAP HANA platform leverages the power on in-memory computing technology.

00:02:32

It analyzes massive quantities of data in local memory so that the results of complex analyses
and transactions are available at finger tips

00:02:43

And business decisions can be executed without delay.

00:02:47

This means that complex analyses, plans and simulations can be done based on real-time
data and made available immediately.

00:02:57

Administrators do not need to move data between a multitude of systems to achieve

acceptable performance levels.

00:03:04

The unique features of SAP HANA platforms are to store massive amounts of information
impressed in main memory,

00:03:12

To utilize parallel processing on multiple cores and move data-intensive calculations from the
applications layer into the database layer for faster processing.

00:03:23

Since analytics and transactions are provided in the same platform, there is no need for data
duplication.

00:03:30

Since all the detailed data available in main memory is processed on the fly, there is no need
for aggregated information or materialized views.

00:03:40

In summary, SAP HANA provides a fundamentally simplified architecture and hence reduced
latency, complexity and cost.

00:03:51

What we see on this slide is the advantages of bringing OLTP and OLAP together.

00:03:56

For a long time, enterprise applications and the users working with them have suffered from
the fundamental divide between transactions and analytics.

00:04:06

Business users had to deal with poor usability and performance, and with stove-pipe views of
operational stores.

00:04:14

This is history.

00:04:16

You dont have to live with those limitations anymore.

00:04:19

Visibility is a given.

00:04:22

SAP is leading the real-time computing revolution,

00:04:26

leveraging the power of in-memory computing, to bring OLTP and OLAP together

00:04:33

According to the IDC report, the latency of data is in average approximately two days.

00:04:39

That means that you usually analyze the problems of the day on older data.

00:04:46

In addition, the average time it takes to get a simple report is also two days

00:04:52

as it has to go through several layers: Data extraction, replication until it reaches finally the
business user.

00:05:01

It was Hassos promise when HANA was introduced two years ago not only to use HANA for
analytics, but for both, analytics and transactions.

00:05:11

With Suite on HANA, SAP provides the most modern suite of applications, unifying analytics
and transactions into a single in-memory platform.

00:05:21

This new and unique approach allows customer to always work on a single source of truth for
real-time planning, execution, reporting and analysis on very large volumes of data.

00:05:34

As a result, you have no latency because of no replication and no preaggreagation, required

real-time data, on-the fly calculations and aggregations,

00:05:44

and all data can be processed and analyzed, not only the preaggregated ones.

00:05:50

Suite on HANA allows on-the-fly aggregations which provide more flexibility to slice and dice
information for highest relevance and immediate insight to action for closed-loop analysis and
process execution.

00:06:05

In a context, in which OLAP and OLTP are combined in a single in-memory platform, business
users can now prevent exceptions instead of performing exception handling.

00:06:18

For example, replan deliveries instead of bringing back products if the demand has changed
for a specific customer or location.

00:06:25

The IT value: two systems to one system.

00:06:30

One system combining system of records and the system for decisions for a simplified IT
landscape and reduced TCO.

00:06:37

Specs and designs to joint development model, joint virtual data model in SAP HANA live
between IT and Line of Business to create new reports for accelerated development

00:06:49

Reduced costs for data quality and data provisioning.

00:06:53

And, last but not least, reduced database size and footprint for reduced TCO.

00:07:01

Lets look at how Suite on HANA simplifies the IT landscape.

00:07:07

It eliminates unnecessary process steps. It took

00:07:11

It took seven years to bring OLTP and OLAP processing back into one single system with the
HANA in-memory database.

00:07:19

All data being processed in the hot partition of the database is brought and kept into main
memory as a single copy.

00:07:27

The tables in the columnar store can be considered as fully index-relational tables.

00:07:33

Any attribute can be used as an index, and the indexes can run with incredible performance.

00:07:40

SAP is running now all large enterprise systems on HANA, and the systems are running
extremely well.

00:07:47

In the latest applications fully optimized for HANA, we can expect a dramatic reduction in the
data footprint, down to only 15% of the storage space on disk in comparison to the previous
database system.

00:08:01

If we acticate the simplified data model where all materialized aggregates are replaced by SQL
statements for aggregation on the fly,

00:08:10

most database indices are being dropped and modern application will have only footprint of
less than 2% left.

00:08:17

To summarize, we will see the following reductions:

00:08:21

Factor of 2 for dropping redundant tables and aggregates

00:08:25

Another factor of 2 for splitting the remaining data into hot and cold partitions

00:08:30

Roughly a factor of 10 for compression of the main transactional data tables

00:08:35

And, some additional percentage due to simplification in the database, for example, no indices

00:08:42

We see further savings with less replication of redundant data into other systems like BW or
CRM.

00:08:51

But what is SAP HANA?

00:08:54

HANA is often referred to as a database and it is the most advanced in-memory database in

10

the market.
00:09:01

But it is so much more.

00:09:04

SAP HANA enables converged OLTP and OLAP data processing within a single in-memory
column-based data store.

00:09:12

It combines database, data processing and application platform capabilities in-memory.

00:09:19

The platform provides libraries for predictive, planning, text processing, spatial and business
analytics.

00:09:28

Plus, provides connectivity services for apps, mobile and portal, for example.

00:09:35

It provides system services like application management, systems management,

administration and monitoring, and security.

00:09:43

And, it further simplifies application development processing across big data sources such as
Hadoop.

00:09:51

This makes SAP HANA the most suitable platform for building and deploying next-generation,
real-time applications analytics.

00:09:59

A real-time innovation platform.

00:10:04

What we see here in the before state that mainly system of records coupled with historicalbased reporting analytics.

00:10:14

The technology innovation with Suite on HANA, SAP HANA is more than a database; it is an
innovation platform.

00:10:21

We have also extended SAP HANA to include an application server as well as a planning and
calculation engine, a rules engine and business function libraries.

00:10:32

By pushing these technology components from the application layer down into the in-memory
database layer, SAP HANA has opened the door

00:10:41

to a new breed of applications that were not possible in the past and that are engineered to
work with Suite on HANA for incremental business value.

00:10:50

As a result, new business processes and new business models enabled by Suite on HANA
and innovative real-time applications.

00:11:00

We have roughly 70 of these real-time applications available today, plus another 1100 startups that are developing apps on top of HANA.

00:11:10

But even better, and you can develop your own apps on HANA with full support of Custom
Developments.

00:11:19

What does it mean with the SAP Business Suite powered by HANA designed for business
innovation and higher business value?

00:11:27

The merge of transactional and analytical processes on one platform offers a new dimension
to run classical business processes and to enrich those with innovation.

00:11:37

It connects the world of classical ERP systems with new data like machine-to machine
communication, social media and any other type of unstructured information.

00:11:49

This new platform offers a simple IT landscape with choice of deployment: in the cloud, on
premise, or hybrid, for faster innovation adoption and lower IT cost.

11

00:12:01

Furthermore, with SAP Fiori user experience, the business user can now get a personalized,
yet simple access to real-time applications on any device for optimal usability.

00:12:14

Thanks for attending todays sessions.

00:12:16

In the next unit we will assess the impact and value of SAP Business Suite for HANA for the
business.

12

WEEK 1, UNIT 4
00:00:14

Hello and welcome to unit 4, Impact and Value for Business of our openSAP course, SAP
Business Suite powered by SAP HANA.

00:00:23

My name is Mike Lamade, Im part of the Global SAP Business Suite on HANA Solutions team
and your instructor for this unit.

00:00:32

If you look at this slide and the questions here like, do we have massive, do we have
processes that need massive re-work due to data latency,

00:00:40

can we respond flexibly to changing business situations, or do business users always get
timely, up-to-date, and accurate information?

00:00:49

If you dont have good answers to these questions you are probably doing it the hard way.

00:00:56

According to an IDC survey, 60 per cent of business users seemed okay with an environment
that could not deliver timely information.

00:01:06

Your learning effort will be much lower than in week 1.

00:01:03

We wondered how this could be until we realized that this is the normal state of play in most
enterprises most of the time.

00:01:14

Business users dont complain that information is old or incomplete because this is the way
they are used to.

00:01:20

Its hard to imagine a fully integrated system that can apply a wealth of up-to-date information
to support decisions that they make every hour of every day.

00:01:34

Whats harder to imagine is how such capability could change even dramatically transform
current businesses processes, policies and practices.

00:01:44

Most of us confine our scheduled business events based on the readiness of our systems to
support them.

00:01:50

So when inventory is searched only immediate inventory is available.

00:01:55

Open orders are taken we wait until that data is moved to the inventory management system
before starting the actions to fulfil the order.

00:02:03

When in the acting with the customer we have no expectation of associating that customers
behavior patterns with those of thousands of others.

00:02:13

Or associating those patterns with current patterns of consumption so that we make more
informed recommendations to the customer regarding producter services that the customer
might find appealing.

00:02:28

Dynamic business processes are not achieved simply by making data bases run faster.

00:02:34

They are achieved by having a data platform that is both, unified and highly flexible.

00:02:41

This is why 14 years after R/3 Hasso Plattner decided to revisit what would an ERP system
look like if we start from scratch.

00:02:53

So what you see here is the traditional situation which we see in most enterprises from an IT
and from a business perspective.

00:03:01

From an IT perspective, we have OLTP and OLAP separated, we have disk base, the data
bases,

13

00:03:07

we have a lot of batch chops, we have data replication, and we work with a lot of aggregates to
increase or improve information access.

00:03:18

On the business side, decisions are often taken by instinct, there is limited search capabilities,
tedious batch processes, and analysis is often separated from the execution in the
transactional system.

00:03:33

What we see with an in-memory platform, significant changes on both sides, on the IT and on
the business side.

00:03:41

On the IT side, OLAP and OLTP are together, we see zero latency, we see all data in-memory,
we see structured and unstructured data being processed together, and we see a real-time
business system.

00:03:55

On the business side we achieve insight to action, we can increase planning capabilities with
predictive elements, we do data-based decisions, and overall we become much more
responsive to changing business requirements.

00:04:15

What does that translate in value for business for IT and for people?

00:04:20

For the business first of all, in-memory platform provides a single source of truth which
provides real-time information for personalized insights.

00:04:31

It allows for real-time business processes so that we can react with much higher agility to
changing business requirements

00:04:39

and the ultimate step is to provide unmatched business transformation information allowing for
new business models.

00:04:48

For IT it primarily translates in lower costs, but also providing more choice with deployment
options in the cloud, on-premise or in a hybrid way for faster innovation and lower IT costs

00:05:03

and to support also the business, it provides the foundation for innovation with a
comprehensive suite of applications which all run in a single in-memory platform.

00:05:15

And last but not least, it also creates value for the people because it provides a personalized
user experience with access on any device for optimal usability.

00:05:32

If you look at these q-cards or at this list of questions you can analyze how far you are away
from a real-time operational model or a real-time business model.

00:05:43

If you look at the questions here in Analytics and Reporting, you can ask yourself how difficult
it was to define the right reporting structures or where you drilldown from reports or
transactions is missing.

00:05:58

Or we have frequent change requests from your business side for reports.

00:06:03

These are all indicators where a real-time business model may make a different, a significant
change.

00:06:10

The other example here from a business process perspective, you can see where business
process have been designed around performance bottle necks which processes are in general
to slow

00:06:21

or where you work on outdated information and rather work on exceptions than preventing
these exceptions.

00:06:31

Then you could also take a look from a business process, from a business practice perspective
where real-time information would make a significant change how you do your business today

14

00:06:43

or where end users would not waste time for manual- or office tool-supported information
processes.

00:06:53

As we learnt in a previous unit, the SAP Business Suite represents our core applications, with
applications such as ERP, CRM, supporting end-to-end business processes, for finance,
human recourses, manufacturing, procurement, and so on.

00:07:09

Each of these applications has been introduced in an incremental way based on market
demand and technology readiness.

00:07:17

At each shift in business computing, SAP has responded, converting technology into practical,
every-day business use, enabling end-to-end business processes management across 26
industries.

00:07:31

From the first ERP of the market are three in 1972 to the client-server technology with SAP R/3
in the nineties

00:07:40

allowing global business process management to the first full in-memory platform SAP HANA
until the cloud today.

00:07:48

Through all these technology battles like mainframe versus client-server using the internet of
business and now in-memory, SAP has always reacted to technology shifts in a way that result
in value for our customers.

00:08:04

The SAP Business Suite powered by SAP HANA currently completely redefines the notion of
real-time which was the R in R/1, R/2, and R/3 to not only rethink businesses but effectively
drive real-time business transformation across the industries.

00:08:20

Suite on HANA brings together transactions and analytics into a single in-memory platform
allowing our customers to now drive the entire business in real-time and create new value for
IT, for business and for the people.

00:08:38

SAP Business Suite powered by HANA is designed for business innovation and higher
business value.

00:08:43

The merge of transactional and analytical processes on one platform offers a new dimension
to run classical business processes and to enrich those with innovations,

00:08:56

connects the world of classical ERP systems with new data like machine-to-machine
communication, social media or any other type of unstructured information.

00:09:07

Because of the incredible computing power, the way application are designed and the way
users interact with application changes fundamentally.

00:09:16

For example, in an MRP run where planning of the MRP and simulation are done in parallel.

00:09:23

Furthermore, with SAP Fiori user experience business users can now get a personalized yet
simple access to real-time application on any device for optimal usability.

00:09:36

The real-time platform not only generates new insights for the user it also allows them to react
immediately on the information and trigger transactions.

00:09:49

On this slide we discuss a few new possibilities that come from this in-memory platform. HR
businesses appeal to customers by leveraging smarter business models and processes.

00:10:03

Suite on HANA can help customers become innovation driven by allowing them to rethink
business processes or even enable formally impossible processes and invent new business
models.

15

00:10:15

This is possible because SAP HANA enables these business processes with innovative
capabilities such as predictive, analytics, unstructured data and on the fly insights.

00:10:28

For example, customers can gain insights into more granular customer segments and new
formats of data such as machine sensors and social data.

00:10:39

In traditional systems tons of data contain information that are basically unused a typical big
data problem as the process of identifying relevant information sets is cumbersome and
almost impossible.

00:10:55

Costly exception processes are triggered as a consequence to cover up for the lack of
information use.

00:11:01

With SAP HANA automatic pattern recognition information deriving a feasible work set for
users enables new preventive scenarios

00:11:11

such as predictive maintenance in a production environment, warranty claims for finance or

predictive analysis to manage the financial performance.

00:11:21

Another example for unstructured data, data reciting in unstructured way cannot be used in
business process without human interaction.

00:11:32

Massive usage of unstructured information can allow new business processes such as
sentiment analysis not only driven by experts but by an employee being now empowered with
new and unlimited knowledge.

00:11:46

Customers can also act on the segment of one, meaning to react to a single post on Facebook
about their product and then engage directly with each customer digitally delivering a real new
experience.

00:12:00

Take another example from the asset intensive industry.

00:11:04

Scheduling maintenance on critical production asset is today a very time-intensive and longlasting process.

00:12:11

With Suite on HANA we are changing this in two ways:

00:12:15

We are streamlining this process by removing all long-running batch jobs around scheduling of
asset maintenance and making these real-time interactive steps.

00:12:25

In addition, we are revolutionizing the process as such by directly including machine data from
the assets into the Suite and using this information to come up with a much more tailored and
optimized schedule of maintenance for each individual machine.

00:12:41

Avoiding machine break down on the one side but also reducing maintenance cost by
cancelling unnecessary maintenance.

00:12:48

Examples of these new possibilities like one-to-one marketing, fan engagement, predictive
maintenance,

00:12:56

personalized health care, real-time engine testing and customer engagement or real-time ATP
retail, just to name a few.

00:13:06

The SAP Business Suite powered by SAP HANA enables true market differentiation by
inventing new data-driven business models for increased market share.

00:13:18

Alignment is a key prerequisite for any real-time organization.

00:13:23

An organization can only act in real-time if everyone is sitting in the same boat, rowing in the
same direction.

16

00:13:30

In our context this means that everyone is working from a common set of information provided
by a single source of truth.

00:13:39

Such a single source of truth comprises three major elements: First, it provides seamless
access to all data, not only financial data from a single access point.

00:13:50

HANA Life, a virtual semantic data model on top of SAP HANA is providing this capability.

00:13:58

Second, its about ensuring data consistency across all solutions.

00:14:03

This consistency is being provided by SAP HANA as the single repository of shared data and
shared methods across all finance solutions.

00:14:12

And last but not least in order to ensure data consistency, finance solutions have to support all
personalized analytics within the system of record.

00:14:22

Otherwise, user will continue to extract and maintain data in local spreadsheets. We all are
aware of that.

00:14:30

This change requires an unprecedented flexibility and adoptability in reporting as provided by

SAP empowered by SAP HANA.

00:14:40

This concludes unit 4. In unit 5 we will learn about the value for IT that comes from the SAP
Suite on HANA in-memory platform.

17

WEEK 1, UNIT 5
00:00:15

Hello and welcome to unit 5, Impact and Value for IT of our openSAP course, SAP Business
Suite powered by SAP HANA.

00:00:24

My name is Mike Lamade, Im part of the Global SAP Suite on HANA Solution team and your
instructor for this unit.

00:00:33

Our 42 years of innovations include three major turning points that have one thing in common:

00:00:40

Major technology advances coincide with changes in business needs and practices.

00:00:46

First, R/3 and R/2 business leverage mainframe technology to support standardization of
information.

00:00:54

R/3 global processes become the major driver for software.

00:00:58

R/3 with client-server technology made it possible that global companies could run processes
efficiently with integration and automation across 25 industries.

00:01:09

And third, SAP HANA was developed as a technology innovation to not only rethink data
bases but also rethink the concept of real-time.

00:01:20

We are at the brink of a technology/business revolution again.

00:01:26

In early January 2014 we announced SAP Business Suite being now powered by HANA and
shortly after its Sapphire and made in 2013, we declared general availability across 25
industries

00:01:40

just 5 months after successful ramp-up.

00:01:42

This is the SAP product launch of the decade. It marks the beginning of a new era.

00:01:49

This launch was a special day in SAPs history for our customers and partners, comparable
with the R/3 launch.

00:01:58

Let me explain you why. The power of One.

00:02:04

This section provides concrete examples on the type of entrance information enabled by new
technologies today.

00:02:11

Sophisticated technologies brought together can help support very complex requirements
while delivering highly innovative yet simple and unified experience.

00:02:21

The first ERP launched in the market more than 4 decades ago was already good example of
these conversions through one system of record to entirely run an enterprise.

00:02:32

Whatever the complexity, size, or industry which generate it massive business transformation
in the eighties and nineties.

00:02:41

Today examples of one R/3 tree printers making a three-dimensional solid object of virtually
any shape from a digital model,

00:02:50

all with one machine despite the complexity of multiple parameters to create an object.

00:02:57

Another example are smart phones. Not only just a phone but also providing new experience
to buy, sell, book, play, browse, chat, take pictures,

00:03:07

all with one device despite the complexity to deal with different applications.

18

00:03:08

Third example would be augmented reality.

00:03:16

Google class is the perfect example here of augmented reality opening avenues for completely
new usage for business and consumers.

00:03:25

This also requires to get instant access to real-time information which is the perfect transition
to our topic,

00:03:32

the power of One in in-memory technology.

00:03:36

The data base is not only used for transaction or analytics but can now be used to transact,
analyze, predict, simulate, and sense in real-time,

00:03:47

all with one data base despite the complexity of data, volume, warranty, and velocity and
business processes.

00:03:56

Or as one of our board members used to say: SAP is in the business of solving complex
business problems and we are proud of it.

00:04:05

This world of new possibilities is now, real, thanks to new technologies such as in-memory
technology, cloud, and mobile allowing real-time data processing and much more as you will
see.

00:04:21

The key needs from an IT today.

00:04:25

To improve business users productivity and satisfaction through timely and accurate insight,
create value through faster delivery of relevant innovations to the business, reduce total cost of
ownership through dramatic simplification of IT,

00:04:41

however, youre facing significant challenges to meet your needs.

00:04:45

Here we see the key results from the IDC report and survey, outlining the key business and IT
issues for having separate systems for transactional analytics.

00:04:55

For decades separate platforms have been accepted approached to ensure good performance
for transactions and analytics, given the different requirements for capturing data versus
analyzing data.

00:05:07

In practice however, the requirements to transfer data between the two platforms causes
information delays and reduces the ability to connect insight to action because of a disconnect
from analytics to source data.

00:05:24

This leaves the enterprise at risk when decision makers are forced to rely on outdated or
insufficient data or when they cannot connect analytic insights to the source transactional data.

00:05:36

Performance issues because of slow disc access, slow response times, the speed of business
processes is confined to the performance characteristics of the transactional data base.

00:05:47

If some analytics are introduced into the process then the performance of the analytical data
base and of the data movement can further slow down business processes.

00:05:58

Without the integration of analytics into transactional applications there is little opportunity to
adjust to shifting business circumstances, for example, during planning processes.

00:06:11

Latency issues because of multiple data transfer requirements, old data being used especially
for analysis, 70 per cent of the effort in the analytics project is dedicated to preparing the data
for analysis.

00:06:25

More than 50 per cent of the survey indicates that the estimate time to process data and to
make it available for analysis to the business user requires more than on average.

19

00:06:37

60 per cent of business users dont expect to have the data they need to make decisions in a
timely manner.

00:06:44

And last but not least, innovation issue because of single focus of current data bases,
limitations the change of business.

00:06:52

40 per cent of the IT poll said that users could not use predictive analysis or simulations to
work with real-time data because of these limitations.

00:07:02

Big data workloads and diving down into more granular data than is routinely available were
also off the table for almost as many respondents.

00:07:15

50 per cent of business users surveyed did see the possibility that access to the right
information at the right time could have a transformative effect on business process making
them more dynamic.

00:07:28

IT cost issue because of complexity to manage different systems of records, OLTP and
systems of decisions OLAP which leads to higher cost of ownership.

00:07:41

Complex and costly IT is the top issue that organizations face with regard to their current
transactions and analytic systems.

00:07:49

Heavy dependence on IT and lack of flexibility for business users to create reports and or
analyze the activity represents the second top issue.

00:08:00

Difficult to manage the growing size of data bases and handle different types of data like
unstructured and structured is a major concern with the explosion of data.

00:08:10

This report and survey simply shows that the disc based data base technology that we have
been using for decades has now achieved its limits to meet todays requirements

00:08:20

big data, mobile experience, social media, sensors and predictive.

00:08:26

Running an enterprise application suite and reporting applications on this single data base
management platform, the concept of One is now possible, providing complete insights into
all data from the moment the transaction is captured.

00:08:42

You have seen this slide in a previous sections before. If you are responsive to this questions,
may be a strong indicator that you are doing things still the hard way.

00:08:56

The SAP Business Suite powered by SAP HANA was developed following these principles.

00:09:01

Only Suite on HANA is natively designed for real-time business, foundation of innovation, a
comprehensive suite of applications on a single in-memory platform

00:09:11

for unlimited business innovation, new applications, new business processes, and even new
business models.

00:09:18

Provide simpler IT with choice, a simpler IT landscape with OLTP and OLAP together, a choice
of deployment options with cloud on-premise and hybrid for faster innovation adoption and
lower IT cost,

00:09:33

and last but not least a personalized user experience which is yet simple but provides access
to real-time applications on any device for optimal usability.

00:09:47

Cloud is one of the corner stones of the SAP strategy.

00:09:50

SAP strongly believes in a hybrid cloud world and SAP is therefore supporting all deployment
scenarios from on-premise to cloud and hybrid and in between.

20

00:10:01

SAP provides cloud services such as assessment, on-boarding, and migration, cloud hosting,
and managed services, and also custom services.

00:10:12

Additionally, we are offering cloud services for early prototyping of solutions and proof of
concepts as well as productive systems.

00:10:20

We truly believe that SAP HANA enterprise cloud is the fastest way of starting any SAP HANA
related project independent on the final deployment mode of a customers productive system.

00:10:33

So jump-start your HANA project quickly with SAP HANA enterprise cloud and then choose
your preferred productive scenario.

00:10:41

The power of real-time plus the simplicity of the cloud for a faster innovation adoption in a
reduced IT cost.

00:10:48

Lets look at the impact for IT.

00:10:50

Accelerate deployment of new solutions and shorten innovation cycles allows smart IT
investments for high-value innovations delivered quicker to the business

00:11:00

and last but not least reduce total cost of ownership with the simplicity of the cloud.

00:11:07

You can also choose your integration scenario.

00:11:12

So at the moment, SAP supports multiple integration scenarios, on-premise to on-premise,

cloud to cloud, or on-premise to cloud, for very simple to also very complex landscapes.

00:11:26

And as you can see from all the light bulbs going on on this slide,

00:11:30

we are simply declaring the end of long-running transactions and batch processes to now
allowing customers run all their business processes in real-time.

00:11:41

This is possible because SAP HANA is able to eliminate latency in data movement by unifying
the date store in a single platform

00:11:50

by moving CPU intensive processing in-memory like push down of calculation to the data
base, SAP HANA significantly improves transactional performance for many key processes.

00:12:03

Reduced data layer and processing also significantly simplifies the operational and
maintenance of data management of infrastructure.

00:12:11

As an example, we know that some batches can only be executed in particular batch windows
like MRP or billing runs at night.

00:12:19

This usually triggers process delays.

00:12:22

The ability to now update information on an as-needed bases helps drive processes earlier
and with higher accuracy while reducing buffers,

00:12:32

for example more frequent use of billing run will improve cash flow.

00:12:36

Take another example with inventory cost, one of the main cost drivers in manufacturing
industries:

00:12:43

With MRP planning on HANA, we can now much more flexibly and accurately plan demand
and supply and react instantly on changing requirements

00:12:52

instead of using the result of an hours running MRP run for more than a week.

00:12:58

This improved agility in the business helps to optimize inventory usage so safely levels can be

21

reduced,
00:13:05

as a result real-time business processes, much better performance, and high availability of
system resources

00:13:13

plus as IT value, less IT resources are required while getting high availability from the system
to perform more runs.

00:13:23

Reduced data layer and processing are also significantly simplifying the operational
maintenance of data management infrastructure.

00:13:32

This concludes unit 5. In unit 6 we will see how employees benefit from the Suite on HANA inmemory platform.

22

WEEK 1, UNIT 6
00:00:14

Hello and welcome to unit 6 Impact and value for people of our openSAP course, SAP
Business Suite powered by SAP HANA.

00:00:23

My name is Mike Lamade. I am part of the Global SAP Business Suite on HANA Solutions
team and your instructor for this unit.

00:00:31

There is no doubt that todays business users are under a lot of pressure.

00:00:36

On the one hand, they have to deal with the challenges of the infamous three Vs of big data:
volume, velocity and variety.

00:00:44

Volume caused by a massive increase in the amount of traditional data such as transactional
data but also new data types

00:00:53

Variety comes in the form of web logs, wirelessly connected sensors, unstructured textual
information from social networks as well as other data types

00:01:05

Velocity: Fast-changing data that needs to be captured, stored and analyzed to reap its full
value

00:01:13

At the same time, business users are being asked to make flexible long-term plans that can
mitigate future uncertainty through scenario planning,

00:01:21

make fact-based decisions that is based on up-to-date information rather than rely on their gut
instincts,

00:01:27

offer personalized recommendations to their customers and stakeholders,

00:01:33

respond to deviations and alerts in real time and within the window of opportunity.

00:01:39

Addressing these challenges requires a fundamental change in both, the underlying enterprise
software architecture

00:01:46

as well as the user experience that business users can rely on to interact with traditional
transactional and analytical enterprise applications.

00:01:57

SAP has a user experience strategy that is fairly straight-forward.

00:02:02

Going forward, its intent is upon providing consumer-grade better usability to business users

00:02:09

anywhere and anytime, which means prolific use of mobile devices, and the use of HANA to
deliver real-time insight.

00:02:20

A key requirement here is the responsiveness of the system. Business users need immediate
answers to very precise questions, otherwise, they simply skip.

00:02:31

By combining analytics with transactions, business users can now get a unified access to
information within context.

00:02:38

They have 360 degree views of real-time information at their fingertips on any device across
the Business Suite applications and even beyond, like information from sensors and social
media.

00:02:51

Suite on HANA returns both, structured data like business objects, and unstructured data,
HTML files, presentations, documents from SAP systems and other search providers.

00:03:02

It also allows direct access to associated applications and actions.

23

00:03:07

Combined with people-centric interfaces and Google-like search functionality, this new
approach brings much more flexibility, speed and powerful information to users.

00:03:19

As an example, business users usually only enter data when finally required, at the latest point
in time in the system to avoid repeated waiting times.

00:03:29

This drives wrong decisions as data can be required by other departments sooner.

00:03:35

Suite on HANA means less waiting times and higher user satisfaction through the use of
interactive dashboards as an example, leading to higher responsiveness and process
compliance

00:03:45

This is the beauty of SAP Fiori.

00:03:50

Lets look at some of the key Fiori design principles. SAP Fiori design represents the new SAP
user experience paradigm.

00:03:59

It offers various business roles in a personalized and simple experience, for SAP software
functions and works seamlessly on desktops, tablets or smartphones.

00:04:10

Its role-based, focus on developing simple apps, and break up complex processes into simple
steps which can be handled with these simple apps and UIs.

00:04:20

Its responsive, designed and developed for a consistent experience on many devices.

00:04:26

Supporting multiple form factors, like phone, tablet, desktop, multiple interaction styles like
touch or keyboard, multiple technologies and all in a single code line.

00:04:38

Its simple, focused on user experience outcomes over features and functions, provides a 1-13 paradigm, meaning one use case for one user with maximum three screens.

00:04:51

Make the important things really easy to use and to learn. Little apps combine into a swarm of
functions.

00:05:00

Its coherent. Assortment of apps that speak the same language; apps that feel familiar by
embracing best practices and purposeful effects and intelligence visualizations.

00:05:13

Content is in the essence. Design information for as balanced consistency and best fit to use
case.

00:05:19

Provides instant value with a low barrier to adoption, no upgrades, works on releases with
largest installed base and on HANA.

00:05:28

Easy to adapt without simple learning. Easy to deploy, no footprint, little administration.

00:05:36

Easy in to introduce with no additional training required. And, can easily be extended, either
from SAP or from partners.

00:05:49

The latest shipment has 190+ applications supporting a large variety of roles in more Lines of
Business, incl. HR, Finance, Manufacturing, Procurement and Sales.

00:06:01

The apps offer users the ability to conduct transactions, get insight and take action as well as
view fact sheets and contextual information.

00:06:11

Provides an enhanced look and feel including SAP Fiori launch pad, a single entry point for
SAP business functions, contextual, role-based, personalized and search-enabled.

00:06:23

Provides SAP Fiori active tiles which provide the most impactful real-time information and KPIs
as a glance.

24

00:06:32

Lets take a look of one of these interaction paradigms: the search and contextual navigation.

00:06:39

So, in this example, we see a user looking for a material and the associated suppliers.

00:06:46

So, he keys in the first letters of that material description and gets a whole list of objects where
these materials are used

00:06:56

being the material master record, being purchasing agreements, being suppliers that can
supply that material.

00:07:02

Then he can look up the material fact sheet, and from there navigate to the material info
record.So, here he sees all the details about the supplier

00:07:11

and all the data that are shown on that screen, whether its inventory levels, whether its
supplier evaluation records are all calculated on the fly without any preaggregation.

00:07:24

This provides a complete new interaction paradigm for users which makes them more
productive and generate higher user satisfaction.

00:07:35

Take a. Lets take a closer look at the Smart Business Cockpits which apply the SAP Fiori
design principles.

00:07:42

Today, as a business user in Finance, Sales or Procurement, getting the information you need
at the right time is tough.

00:07:49

You have to wait, as opposed to responsive. You use old data, as opposed to real-time.

00:07:56

You leverage generic UX, as opposed to the one that is adapted to your role.

00:08:01

And you deal with information that is provided in multiple places, as opposed to single source
of truth.

00:08:08

The result is: You struggle connecting analysis with execution, as opposed to instant insight to
action.

00:08:15

This is where Smart Business Cockpits come into play. They are the new cockpits to help you
drive your business through fact-based information versus gut feel.

00:08:25

They include tailored KPIs and graphical visualization, designed for instant insight to action in
the context of the SAP Business Suite powered by SAP HANA.

00:08:37

The SAP Smart Business Cockpits leverage SAP Fiori design principles for a simplified, yet
beautiful UX.

00:08:45

SAP Smart Business Cockpits are responsive, bringing together transactions and analytics to
close the gap between insight and action.

00:08:55

They are individualized, offering personalized, role-based, tailored KPIs, actionable insights,
news feeds and tasks.

00:09:03

They are seamless, delivering the same real-time insight and user experience across desktop,
mobile and tablets, and they are beautiful.

00:09:17

Smart Business Cockpits are tailored to key roles across the organization so business users
can always stay on top of their business by deciding and acting in real time.

00:09:28

More accurately, more interactively, more collaboratively and simpler.

00:09:34

Supporting insight-to-action scenarios, a business user can analyze strategic or operational

KPIs on a single source of real-time information available anywhere and anytime for easy

25

access to personalized insight.

00:09:48

Evaluate the situation in case of deviations and trigger follow-up actions immediately.

00:09:54

Examples would be that, for example, during the MRP calculation, simulations suggest
examples how to address production shortages.

00:10:07

On the slide, you see examples of how Smart Business Cockpits have been tailored to
business user roles such as a Transportation Manager that wants to reduce his average delay
time,

00:10:18

a Purchasing Manager that wants to figure out how he consume from his current contract, an
Inventory Officer that wants to decrease the opportunity cost of his slow-moving inventory,

00:10:29

and a Cash Manager that wants to keep track on her cash on hand.

00:10:37

SAP Smart Business Cockpits have been designed to work seamlessly across different
devices enabling Line of Business users to keep the hand on the pulse of their business and
take action anytime and anywhere.

00:10:50

Let me take you on a tour through the history of SAPs ERP solutions, or to be more precise, of
the UIs of these applications.

00:11:00

You see here SAP R/3 1.0, 3.1 still similar layout despite a different background

00:11:09

Then we see the SAP mySAP.com colorful style guide but still a lot of information.

00:11:19

We see the mySAP ERP 2004 version, again different colors, different style guides but still a
lot of information on the screen.

00:11:28

And finally, we see the SAP Smart Business Cockpits. I hope you agree that SAP Fiori design
principle and user interaction represents a break-through in SAPs user experience.

00:11:40

This concludes week 1 of our openSAP course SAP Business Suite powered by SAP HANA.

00:11:47

In week 2, youll do a deep dive into real-time business for Line of Business solutions.

26

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