Analytics powered by SAP HANA: E-commerce and Utilities case. Our solution: FI-CA Reporting with SAP BW on HANA Lausanne, June 18th, 2015

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1 Analytics powered by SAP HANA: E-commerce and Utilities case Our solution: FI-CA Reporting with SAP BW on HANA Lausanne, June 18th, 2015

Torsten Lechelt Who I am Torsten Lechelt Germany Mobile: +49 175 9368461 torsten.lechelt@de.pwc.

2 Torsten Lechelt Who I am Torsten Lechelt Germany Mobile: torsten.lechelt@de.pwc.com 2000 Risk Assurance team, Energy & Utilities, SAP IS-U expert 2008 Global ERP leadership team 2013/14 Secondment Amsterdam 2014 Integration PwC Cundus st external IS-U training 2015 Global Data Assurance Fellowship 2015 Leading the German RAS D&A practice (Top 10 Use Cases) I sing bass in a choir, mostly baroque music At the weekends, I drive a 1966 vintage car: a Wartburg 312 (2-stroke) SAP (Schweiz) AG. All rights reserved. 2

3 PwC and SAP HANA PwC and SAP HANA 80 HANA and BW specialists in Europe, including in Switzerland; PwC acquired cundus in 2014, A strong SAP partner for HANA and BW since 2000; Focus on the provision of integrated services (professional and industry competence incl. implementation) Members: Belgium Denmark USA United Kingdom Germany Austria Switzerland Australia South Africa Netherlands 2015 SAP (Schweiz) AG. All rights reserved. 3 2

4 SAP HANA Our service portfolio Phase 3: HANAlytics Phase 0: What is SAP HANA? Once SAP HANA is installed, we define client-specific KPI/rule set based data analytics and reporting / dashboards. Business analytics with HANA Get it off the ground Provide information on HANA technical basics Identify possible use case and scenarios Build and review HANA roadmap Phase 2: Realisation Support implementation projects and auditing. HANA Realisation SAP and data model optimization Security and authorizations Program and upgrade assurance Controls redesign and transformation HANA HANA Readiness check Phase 1: HANA Readiness Refine scenarios and business cases Value assessment Landscape review Controls assessment Data assurance/sap optimization 2015 SAP (Schweiz) AG. All rights reserved. 4

5 Project approach Business analytics as a service/as a product Analysis outsourced (old-fashioned) way Implementation project (new trends) SAP system (Client) external HANA solution Extractor (ABAP) Generating data extracts with ABAP Extractor or direct DB Connect Import in external HANA solution Perform analysis Provision reporting (online/file reports) HANA Content (PwC) HANA Solution (Client) Implementation of RDS or individual solutions (SAP HANA Content) within client system environment Define and implement reporting cockpit Accompanying transfer to normal operations Dashb.&Rep. Analytics Dashb.&Rep. Analytics Mobile 2015 SAP (Schweiz) AG. All rights reserved. 5

6 Challenges and solutions project examples Two project examples a) As a service: Public Sector/Utilities - Completeness of revenues b) As a product: Online Retail - Credit management 2015 SAP (Schweiz) AG. All rights reserved. 6

Business analytics as a service Public sector/utilities process view KPIs (extract) Example 1:

8 Business analytics as a service Public sector process view KPIs (extract) SAP IS-U consumption billing Master data maintenance Meter reading, gathering consumption data Billing / invoicing Payments Dunning process Contract without meter Down counting meter Business partner with sequential credit vouchers Business partner without budget billing Handling dunning charge Bank account changes Different business partners with same bank account Manual adjustment of period consumption Installation with lots of meter reading adjustments Quality of meter reading Credit aging Benford (credit voucher) Alternative payee for invoice / credit voucher Differences in volume consumption (reported versus billed) Business partners whose meters have not been read for a long time Analysis of offset account New customer rewards Tariff check identify price outliers Dunning block analysis Manual posting Segregation of duties and four-eyes principle Document changes after payment release 2015 SAP (Schweiz) AG. All rights reserved. 8

Business analytics as a product Online retail credit management Example 2:

11 Current situation Challenge Solution Benefit Current situation In contract accounts receivables and payables, the large amounts of data must be evaluated rapidly and flexibly. Retailer, telecommunication and energy industry companies regularly produce large numbers of invoices for provided services due to existing contractual relationships In case of large volumes of data, ERP systems reach their limits, so that flexible evaluations are no longer possible because of longer runtime FI-CA Need to monitor permanently and to check the open and cleared items of the customers Required evaluations take up to 10 minutes in ERP systems 2015 SAP (Schweiz) AG. All rights reserved. 11

13 Challenge Large number of invoices -> impact on liquidity Current situation Challenge Solution Benefit 1. Receivables from contract accounts represent the essential factor of company liquidity. 2. A large number of invoices and customers makes it significantly more difficult for companies to keep track of receivables, payments, reminders/dunning and collections. 3. Non-payment/bad debt risks can be hard to control SAP (Schweiz) AG. All rights reserved. 13

14 Facts and figures of contract accounts German online retailer Current situation Challenge Solution Benefit Quantity structure 200 million partner items in two years 25 million business partners 30 million contract accounts Unusual complexity Multi-country Multi-currency Evaluation/reporting Most reports took up to 10 minutes in ERP system 2015 SAP (Schweiz) AG. All rights reserved. 14

15 Challenges and solutions case studies Online sales (SAP BW on HANA) areas of concern Data volumes vs. performance analysis Posting clearance Payment behaviour (client) Risk of loss Because of large volume of data, it is not possible to perform flexible analysis in the existing system environment The clearing results for open postings in combination with payment method could not be provided in time No rating report on successful or failed payments (e.g. open items cleared by cancellation or by payment) as a basis for integral solvency check of clients Based on new reporting opportunities and structures, the risk of loss should be minimized through process and payment optimization 2015 SAP (Schweiz) AG. All rights reserved. 15

17 Solution System architecture before and after Current situation Challenge Solution Benefit Before: Reporting just for logistical data now: logistical and financial data warehouse provide the full overview to business Logistik DWH (oracle) Logistik DWH (oracle) Finance DWH (SAP BW) Web- Shop SAP ERP (ECC) SAP ERP (FI-CA) Web- Shop SAP ERP (ECC) SAP ERP (FI-CA) 2015 SAP (Schweiz) AG. All rights reserved. 17

18 Solution Online retail (SAP BW on HANA) FI-CA credit management Provisioning reporting Develop and provide analysis of open postings depending on time pattern ( days) corresponding to dunning activities. Optimization of dunning activities Set up customer scoring Reporting supports better controlling of dunning activities and optimized options and instruments before legal dunning. Use of payment behavior relating to duration, dunning level and payment method to set up internal customer scoring SAP (Schweiz) AG. All rights reserved. 18

19 Solution Current situation Challenge Solution Benefit Presentation of open and Text cleared items - Analysis of open, due and overdue items - Presentation of receivables portfolio for each country and currency Presentation of payment data Text - Incoming and outgoing payments and returns FI-CA Reporting with SAP BW on HANA Collections mapping Provision of master data - Business partner - Contract account Provision of dunning activities Text 2015 SAP (Schweiz) AG. All rights reserved. 19

21 Benefits Online retail (SAP BW on HANA) Current situation Challenge Solution Benefit Flexible reporting Fast (<1sec.) and flexible reporting options on open and balanced postings. Holistic approach Comprehensive analysis considering all relevant characteristics Early risk detection Process control optimization Target group optimization Minimization of risks through early identification of payment trends Targeted management of cash collection based on daily data Flexible customer segmentation offers real-time and specifically-oriented actions SAP (Schweiz) AG. All rights reserved. 21

22 Outlook FI-CA reporting with BW on HANA can refer to scoring values from Credit Risk Management Current situation Challenge Solution Benefit Integration with Credit Risk Management (scoring values) and BW Integration with external information (credit reporting agencies or socio-demographic factors) Better management of credit risk or payment behaviors helping to save time and costs. Credit Risk Management SAP BW FI-CA (SAP ERP) 2015 SAP (Schweiz) AG. All rights reserved. 22

23 Feedback & Win!. Give us your feedback and take the chance to win a brand new SAMSUNG Galaxy S6 smart phone. The Event App can be downloaded for free at the following shops: Vote now win at the end of the day! 2015 SAP (Schweiz) AG. All rights reserved. 24

24 Contacts Torsten Lechelt Tel: Wolfgang Storm Tel: Barry Franck Tel: Antoine Wüthrich Tel: PwC. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers AG which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity SAP (Schweiz) AG. All rights reserved. 25

SAP Simple Finance The Future of Finance. Angélica Bedoya, Center of Excellence, SAP LAC Abril, 2015

SAP Simple Finance The Future of Finance Angélica Bedoya, Center of Excellence, SAP LAC Abril, 2015 Today s Volatile World Needs Strong CFOs How profitable is our new global business unit? The balance