SAP eXperience DaySAP BW/4HANA21 marzo 2018

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Disclaimer

Livio Iannizzi

Head of Industry Value Engineering (IVE), SAP Italia

I vantaggi di SAP BW/4HANA per l’IT e per il Business

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The Value of SAP BW/4HANACustomer Feedbacks

“We took an analytic that took us 6 months to develop and we redeployed it on HANA in two

weeks. Results come back so quickly now, we don’t have time to get coffee”

IT Director, American multinational conglomerate company

50%

Lowerdevelopment Effort

99.4%

Fastergeneration of key

reports

89.8%

Reductionin data volumes

33%

Lowerdata warehouse

maintenance costs

Large media company

in Australia and

New Zealand

Large international

technology group in

Japan

Semiconductor assembly

and test solution provider

in South Korea

Large German company in

the paper industry

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Benefits Areas

Value Case - Example

Overall SAP BW/4HANA Value

Agenda

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Get up and running sooner and keep running at lower

cost.

• Simplified Data Structures

• Simplified Data Flows

• Simplified Data Aging Process (Dynamic Tiering)

Work with HANA in BW mode, or in native SQL mode, or

both.

• Native SQL Access

• Simplified Data Integration

• Simplified Source Systems Management

MODERN INTERFACE HIGH PERFORMANCE

OPENNESS

Simplify access for everyone, not just database

experts.

• Enhanced UX for Business Users thanks to new

BI tools

• New BW/4HANA Modelling Tools

• New Administration User Interfaces

Leverage huge amounts of data in real time for competitive

advantage thanks to SAP HANA technology.

• In-memory Data Warehousing

• Algorithms Push-down

• Advanced Analytics (e.g. Machine Learning)

SAP BW/4HANA

SIMPLICITY

Design Principals

SAP BW/4HANA Design PrincipalsWhy SAP BW/4HANA is a Next Generation Data Warehouse

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IT Productivity

Business Productivity

SAP BW/4HANA

IT Infrastructure Costs

• SAP BW/4HANA Semplicity and Openess combined with SAP HANA’s in-

memory database, provide IT with the capability to ‘enable the business’ in

a way it has never been able to do so before.

• SAP HANA enables ‘on the fly’ reporting, simulations AND complex

reports and queries can be processed up to 10,000 times faster. With

improved user productivity and new capabilities the drivers behind

‘Shadow IT’ reduce, negating both the associated cost and challenges

• By developing and maintaining IT systems that are much simpler in their

design, IT Development is transformed with huge gains in both productivity

• As a large proportion of the complexity of the application is removed - empty

tables, indices and aggregates etc., and agility with the capability for

customers to implement 2-3X more with the same resources.

IT and TCO benefits gained from a simplified, lower cost IT landscape

Consolidation of OLTP and OLAP (+ other analytical engines) into the

same system; Single copy of data, column store and compression,

combined with the elimination of many tables and indices; less complex

environment making it simpler to run, operate and maintain

SAP BW/4HANA Benefits Main CategoriesSAP BW/4HANA adoption provides multiple benefits (1/2)

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IT Productivity

Business Productivity

SAP BW/4HANA

IT Infrastructure Costs

Enhanced Real-time Performance

Reduced Shadow Analytics Costs

Optimized Business Decisions and Improved Business Insights

Reduced BI Business Users Training Costs

Reduced implementation time for BW projects/customizations

Reduced/Eliminated need for ETL developments

Increased Speed of Innovation

Increased development agility

Reduced Acquisition Costs

Reduced Operational Support Costs

Reduced Storage Costs

Reduced Administration Staff Costs

SAP BW/4HANA Benefits Main CategoriesSAP BW/4HANA adoption provides multiple benefits (2/2)

INTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

IT

Pro

du

cti

vit

y

Bu

sin

es

s

Pro

du

cti

vit

yIT

In

fra

str

uc

ture

C

os

ts

Enhanced Real-time Performance

Reduced Shadow Analytics Costs

Optimized Business Decisions and Improved Business Insights

Reduced BI Business Users Training Costs

Reduced implementation time for BW projects/customizations

Reduced/Eliminated need for ETL developments

Increased Speed of Innovation

Increased development agility

Reduced Acquisition Costs (*)

Reduced Operational Support Costs

Reduced Storage Costs (*)

Reduced Administration Staff Costs

(*) In case of cloud deployment, the associated costs become recurrent, but the TCO reduces thanks to cloud intrinsic benefits.

One-timeRecurrent

Year 1

Year 1

Year N…

Recurring / One-time BenefitsSummary

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Major SAP Customer

Reference Value Case

Time for searching, handling, assembling and

analyzing information

Shadow Analytics Costs

BI User Training Cost

BW Report Development Spend

Implementation Speed of Change Requests

ETL Spend

BI Implementation Cycle Time

Software Spend (*)

Hardware Spend (*)

Data Integration Cost (*)

BI Support Employees Productivity

SW Maintenance Cost

BI Administration Spend

Touched IT Cost Items

IT

Pro

du

cti

vity

Bu

sin

es

s

Pro

du

cti

vity

IT

Infr

ast

ruc

ture

C

ost

s

35%

20%

10%

45%

30%

20%

122.500

100.000

5.000

157.500

150.000

10.000

Improvement RangeConservative Likely

Current

Spending (€)Savings

Conservative Likely

350.000

500.000

50.000

21.000

200.000

7.000

28.800

10.500

150.000

3.500

14.400

20%

40%

20%

20%

10%

30%

10%

10%

105.000

500.000

35.000

144.000

13.125

3.500

25.000

40.000

20.000

10.500

7.875

1.750

12.500

20.000

10.000

5.250

25%

10%

20%

20%

20%

10%

15%

5%

10%

10%

10%

5%

52.500

35.000

125.000

200.000

100.000

105.000

Annual Revenue: 500 M€

Value

Drivers

441 K€per year

Annual Touched Spend: 2,3 M€

644 K€per yearSAP BW/4HANA adoption can lead to high Savings

(*) Not included in the recurrent savings

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• Financial Benefits

✓Reduced TCO mainly due to simpler application

development and maintenance, simplified

Operation (less batch processes, less back-up, less

DB tuning and less HW/SW components); increased

Business User productivity

✓Decrease of Implementation costs (Faster time to

value)

• Strategic Benefits

✓Enables fast what-if scenarios simulations allowing

improved decision-making fully leveraging HANA

advanced analytics services (ex. predictive analytics,

text analysis, data mining…)

✓ Increased flexibility and agility in responsiveness to

business changes and changing requirements

Technology and Business Value

SAP BW/4HANA initiatives brings to companies several benefits contributing to Overall TCO Reduction, as well as

Strategic Benefits producing competitive advantages.

Current TCO(traditional DWH)

Target TCO(SAP BW/4HANA)

20% – 30%

Expected Savings

From… …to

(*) Top recurrent (OPEX) spending items as per SAP TCO model in BI area

Application Maintenance

Operations+

HW/SW

BusinessUser Usage

TCO

(*)

Cos

t Cat

egor

ies

Application Maintenance

Operations+

HW/SW

BusinessUser Usage

SAP BW/4HANA Overall ValueTCO Reduction is NOT the only benefit

Thank You.

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any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,

and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and

functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason

without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or

functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they

should not be relied upon in making purchasing decisions.

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