Sponsored Educational Session

Building a business case for SAP

HANA and S/4HANA

John Appleby
Bluefin Solutions Inc.
Produced by Wellesley Information Services,
LLC, publisher of SAPinsider. © 2014 Wellesley
Information Services. All rights reserved.
In This Session

• You will…
• Gain insight into the value derived from migrating 50TB of SAP
ECC on SAP HANA and find out how to:
• Develop a compelling business case across any SAP HANA
solution
• Successfully architect a 100TB SAP HANA environment for SAP
ECC, SAP CRM, SAP BW and SAP APO
• Solve the retail analytics conundrum and leverage SAP HANA as a
platform to revolutionize pricing
• Achieve SAP BW on SAP HANA migrations quickly with little risk

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What We’ll Cover

• The Digital Transformation

• The SAP HANA Platform
• Building the Business Case for SAP HANA
• Rapid Migration of BW on SAP HANA Systems
• Wrap-up

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Digital Transformation

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What We’ll Cover

• The Digital Transformation

• The SAP HANA Platform
• Building the Business Case for SAP HANA
• Rapid Migration of BW on SAP HANA Systems
• Wrap-up

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 SAP HANA in-memory platform

Developers Data Scientists Business Users Executives Consumers

Applications
Industry | LoB | Consumer | Analytics | Social | Cloud | Mobile
& Tools

SAP HANA PLATFORM

Application Services
Lifecycle Management Services

Application Server | UI Integration Services | Web Server

Development | Connectivity |

Unified Administration |
Processing Engine

Security Services
Spatial l Events Stream | Planning | Calculation | Predictive | Graph

Database Services
Transactions | Analytics | Partitioning
Compression | Availability | Encryption | Virtualization

Rules | Text Mining | Search | Application Function Libraries

Integration Services
Mobile | XaaS | High-volume Replication | Real-time Replication | Hadoop

Transact | Analyze | Deliver

Source: SAP
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What We’ll Cover

• The Digital Transformation

• The SAP HANA Platform
• Building the Business Case for SAP HANA
• Rapid Migration of BW on SAP HANA Systems
• Wrap-up

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The HANA business case paradox

 4000 SAP HANA customers

 1500 BW on SAP HANA customers
 BW on SAP HANA the #1
deployment option
 60% of SAP HANA installed-based
customers deployed BW
 #1 problem cited by customers in
buying BW on SAP HANA
 Building the business case
 Biggest benefit cited by
customers buying BW on SAP
HANA
 Cost reduction!

Source: ASUG survey June 2014

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Typical BW on SAP HANA deployment
• BW on SAP HANA • Dev (VM)
• 6TB any DB SMBV license • QA/DR 2TB
• $1.5m (7% of SMBV) • Prod 2TB
 Page Compressed • $1.5m

• BW modules
 Finance
 Logistics
 HR
Software Hardware
 Sales

• 43k employees
 2k BW users

• $14bn revenue
Maintenance Services

• $300k/year Software • Outsourced Migration

• $300k/year Hardware $400k
• $300k/year Maintenance • Internal charges $400k

TCO: $6.1m over 3 years 8

IT spending in 2014/2015

IT spending as a percentage of revenue, by industry

Source: IT Key Metrics Data 2014, Gartner Benchmark

Analytics
Source: http://www.gartner.com/technology/metrics/
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 Components of a business case

• Reduction in Stock • Reduction in Days

• Reduction in Hardware Outstanding
Cost • Reduction in batch
• Reduction in Project schedule
Costs

1. 2.
Financial Quantifiable

4. 3.
Observable Measurable
• Better Business
Engagement
• Improved Morale
• Customer Satisfaction

Tip: try to move benefits from Observable  Measurable  Quantifiable  Financial

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 Quantifying benefits

• Verify capabilities • Validate based on

• Solidify Business Case experience of others
• Relatively inexpensive

Reference
Pilot / PoC
Sites

Simulation Benchmarking

• Services organizations • Compare against

provide simulation similar companies
using your business • SAP Value Engineering
conditions

Remember: try to move benefits from Observable  Measurable  Quantifiable 

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Financial
Business benefits matrix

Doing new things Doing things better Stop doing things

• Reduction in annual maintenance costs of hardware
and infrastructure

• One time reduction in stock

Financial • DBA Tasks
• Increase total shopping cart size and value

• Reduced overtime due to less integration pressures

• Reduced project costs

Quantifiable • Reduction in SLA misses for data availability

• Increased adoption
• Simplification of the solution stack
Measurable • Shorter development time due to simplification of the as BWA Blades removed
architecture

• Mix non-SAP and SAP data into

one data model in real-time
• 30x Improved average query time leads to faster and
Observable • Ability to navigate from company
better decision making and support
level to document level in one
report

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What We’ll Cover

• The Digital Transformation

• The SAP HANA Platform
• Building the Business Case for SAP HANA
• Rapid Migration of BW on SAP HANA Systems
• Wrap-up

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Rapid Migrations

• Business Case is predicted on using a new asset

 Hardware Depreciates on balance sheet

 Software and Hardware carry support cost

 Benefits cannot be realized until asset is live

 Hardware/Software cannot be capitalized until go-live

• And Yet…
 Many organizations buy SAP HANA and delay implementing

• … Leading to…
 Reduced value of stated business case

 Stagnation

 Reduced Adoption

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Challenges of a Rapid Migration

• Release Management Process

 Other projects

• Change Management Process

 Governance

 Test Management

• Dependencies
 Other Projects

 Upgrade / Unicode Conversion / 3.x Authorizations etc.

• Skills Gaps
 New Versions

 New Software/Hardware

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How to Accelerate Adoption?

• Consider a PoC / Pilot

• A well-run PoC:
 Increases Confidence

 Validates Sizing

 Confirms Project Approach

 Gains Project Momentum

• Accelerates Adoption!

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How to do a Rapid Migration?

• Gain Executive Sponsor

 Should be one for every SAP HANA Project

 Use Exec Sponsor for business communications

• Consider Working Outside a Major Release

 Releases constrain technical migration projects

• Increase Technical Project Scope

 Upgrade, Migration, Unicode-Conversion etc.

 Test Management is the most time-consuming

 Larger technical project scope goes live faster

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How to do a Rapid Migration? (cont)

• Create 3 plan levels

 High Level (Week/System) ~ 20 lines

 Mid Level (Day/Activity) ~100 lines

 Detailed (Technical) ~ 500 lines

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How to do a Rapid Migration? (cont)

• Align All Stakeholders into one War Room

 Network, Infrastructure, Basis, Application, Project

• Focus on Test Management early

 Automate where possible

 Focus on high-priority functional areas

• Use Modern Tooling

 DMO can do Upgrade/Migration/Unicode Conversion

 Uses in-memory PIPE

 Leaves App Servers in Place

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What We’ll Cover

• The Digital Transformation

• The SAP HANA Platform
• Building the Business Case for SAP HANA
• Rapid Migration of BW on SAP HANA Systems
• Wrap-up

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Where to Find More Information

• http://bluefinsolutions.com/Blogs/John-Appleby/

• http://scn.sap.com/people/applebyj/content

• https://blogs.saphana.com/author/john-appleby/

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7 Key Points to Take Home

• HANA is now mainstream, stable and extremely powerful

• Take a structured approach to the business case
• Consider a Pilot/PoC to accelerate the program
• Plan to go live quickly and successfully
• Invest in training and development
• Spend time on program communications strategy
• Good Luck!

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Your Turn!

How to contact me:

John Appleby
john.appleby@bluefinsolutions.com
@applebyj

Please remember to complete your session evaluation

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Disclaimer

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or
an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective
companies. Wellesley Information Services is neither owned nor controlled by SAP SE.

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