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SAP HANA: Harness the power of real time

SAP HANA in memory analytics: Harness the power


of real time

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER IN


INFORMATION MANAGEMENT
2014-2015

ROLL NO: MIM I - 130

Jamnalal Bajaj Institute of Management Studies


Mumbai University
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ACKNOWLEDGMENT
Firstly, I thank University of Mumbai and Jamnalal Bajaj Management Institute of Management
Studies for giving me this opportunity. This project would not have been possible without the
support of the following:
1.

My project guide who enlightened me with the subject and guided me throughout the
project duration.

2.

My colleagues from my organization who shared Valuable material for the project

3.

College library for providing reference material, books, articles and journals for this
project

4.

I would also like to thank my seniors, friends, as well as executives from my


organization who advised me on various aspects of the topic and providing there valuable
guidance on the project.

Also, I would specially like to thank all the professors of this institute for their continuous
guidance and support to complete the project on time.

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EXECUTIVE SUMMARY
In todays extremely competitive world, organizations need to undergo transformation in order to
compete with the best and create value for their stake holders. Many companies have identified the
benefits associated with ERPs long back and implemented it as means of strategic investment to
help them get an edge over the others. There are several success stories of various organizations that
have used ERPs in a very productive manner. SAP is the most common ERP used by almost all
organizations today. SAP has been around from quite some time with its different modules like
Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Product
Lifecycle Management (PLM), Supply Chain Management (SCM), Supplier Relationship
Management (SRM), SAP Business Intelligence (BI) and many more.
The latest and hottest addition to the above list of SAP products is SAP HANA which stands for
"High-Performance Analytic Appliance.

It

is

an in-memory, column-oriented, relational

database management system developed and marketed by SAP AG. It is a completely re-imaged
platform for real-time business.
The scope of this project is to understand the needs associated with the implementation of SAP
HANA, the actual implementation process of SAP HANA in an organization, the functionalities
which are available once an organization implements SAP HANA successfully, to understand the
different features incorporated in SAP HANA which transforms future with better business
insights using predictive analytics, approaches to HANA adaptation, to observe as to how SAP
will leverage SAP HANA to accelerate the transition of its business to the cloud and lastly to
bring an outlook with respect to how businesses are responding to this changing environment
and their approach towards the same.
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Several case studies of organizations are taken into consideration to identify the causes which has led
to success of SAP HANA implementation in their business whereas hesitation or failure in adaptation
of the same by the others. Based on analysis of these case studies critical success and failure factors
associated with SAP HANA implementation is collated.

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Table of Contents
Acknowledgement ....................................................................................................................... 2
Executive Summary ..................................................................................................................... 3
1. Introduction ............................................................................................................................ 8
1.1 Background of the study .................................................................................................... 8
1.2 ERA of ERP ...................................................................................................................... 9
1.3 ERA of SAP .................................................................................................................... 10
1.4 Concept of SAP HANA .................................................................................................. 15
2 Theoritcal & Conceptual Framework............................................................................... 17
2.1 Why SAP HANA ............................................................................................................ 17
2.2 Competitive advantage.................................................................................................... 20
2.3 Design & Implementation ............................................................................................... 21
2.3.1 Technical/Architecture- Overview...21
2.3.2 Extended System Landscape - Overview30
2.3.3 Deployment - Overview.33
3 Research Methodology ....................................................................................................... 38
3.1 Purpose of study..38
3.2 Research Objective..38
3.3 Research Design......38
3.4 Types of Research ............................................................................................................ 39
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3.5 Hypothesis.............................................................................................................. .39


3.6 Limitations ...................................................................................................................... 39
3.7 Data Collection ............................................................................................................... 40
3.8 Sample Design ................................................................................................................ 41
3.9 Tools of data analysis...................................................................................................... 41
4 Data interpretation & Analysis.......................................................................................... 42
4.1 Primary Data ................................................................................................................... 42
4.2

Secondary Data ........................................................................................................... 52

5 Research findings & Recommendations ........................................................................... 72


5.1 Critical success & Failure factors ................................................................................... 72
5.2 Key recommendations .................................................................................................... 72
References .................................................................................................................................. 78
Annexure .................................................................................................................................... 80

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List of Figures
Figure 1.1 Worldwide ERP Software Market Share

15

Figure 2.1 Business benefits by HANA

17

Figure 2.2 SAP HANA system technical overview

22

Figure 2.3 SAP HANA index server

26

Figure 2.4 SAP HANA extended system landsacpe

30

Figure 2.5 Detailed landscape of SAP HANA

31

Figure 2.6 SAP HANA open source, R language

32

Chart 4.1 Geographical footprint of organization

42

Chart 4.2 Period since first SAP implementation

43

Chart 4.3 Current Adoption level

44

Chart 4.5 Location of HANA instance

46

Chart 4.6 Netprofit of organization

47

Chart 4.7 Reasons for not adopting HANA

48

Chart 4.8 Benefits of SAP HANA

50

Chart 4.9 Performance gain of SAP HANA

50
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CHAPTER 1: INTRODUCTION
1.1 Background of the study

Numerous methods have been tried over several years for mapping the functions of business on
software however most of them have been limited to conversion of data from legacy systems
to new systems till the advent of ERP Systems. Many projects have failed, new systems
were not up to the mark and this meant additional cost and loss of business. With the arrival of
ERP, all this has changed.
Advent of ERPs has led to introduction of new tools, custom methodology databases
and applications leading to effective and efficient utilization of resources & increase in
overall productivity. Motivation level of employees has improved focus on budget has made
executive level contribute with more enthusiasm.
In order to prepare for the arrival of the year 2000 (Y2K), many companies were engaged in
implementations

of

standard

business

software

applications,

the enterprise systems

particularly such as ERP, and supply chain management systems. While these software
systems solved the immediate problem of Y2K compliance, they were typically implemented
with an emphasis on speed and the need to fix the Y2K problems. The scope of data
conversion from the legacy to the new systems was not sufficient. Focus on business processes
was required in order to leverage the capabilities of a software to maximum. Need arised to reengineer the business processes completely for technology-driven business dynamics such as
the implementation of e-business applications, ERP, B2B, SCM or Data Warehousing
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applications.

1.2 Era of ERP


Major motivation for an ERP was data visibility. Because ERPs are highly integrated, they
have the potential to make much better decision-making information available to managers.
This visibility, which gives an end-to-end view of supply chain processes, was expected to
improve operating decisions. In addition, data visibility helped to present a single face to
distributed customers and to recognize global customers as a single entity. The impact of data
visibility was expected to extend to strategic decision making. The online, real-time transaction
processing characteristic of ERPs can provide current rather than historical information on a
firm's performance thereby facilitating increased responsiveness to market conditions and new
internal capabilities.

Advantages and Disadvantages


ERP systems can support a companys work in many ways. Since ERP systems integrate all
parts of a company seamlessly, more proper control is possible. ERP systems are able to
minimize redundant data registration; control data produced by different departments, and
reduce registration errors. The interconnectivity among all the modules of ERP systems
reduces the time to perform the different operational tasks, so the companys efficiency can be
increased. ERP systems enable users to access timely information and accurate reports can be
produced at any time. The main reasons that companies undertake ERP systems are
summarized as follows:

Integrate financial information.

Integrate customer order information.


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Standardize and speed up manufacturing processes.

Reduce inventory.

Standardized HR information.

There are also few drawbacks of ERP system, which can be given as under

Inflexibility

Long implementation periods

Overly hierarchical organizations

1.3 ERA OF SAP


SAP (Systems, Applications & Products in Data Processing)

SAP is the world's largest inter-enterprise software company and the world's third largest
independent software supplier. It is one of the largest software companies in the world. It is an
European multinational software corporation that makes enterprise software to manage business
operations and customer relations. It is headquartered in Walldorf, Baden-Wrttemberg, Germany,
with regional offices around the world. Five software engineers at IBM in Germany had the
idea for a cross-functional information system. However, the idea was rejected by IBM, so the

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engineers founded their own company in 1972.

R/2 was SAPs first integrated system, which ran on mainframes. Introduced in 1992 R/3, the next
version of the system was a client/server system. mySAP which is the successor to SAP R/3, is
the first service-oriented business application in the market, based on SAP Net Weaver, an open
integration platform that allows new applications to be developed. SAP has about 94,170
customers, 75 million users, 17500 installations, more than 2,700 partners and a share of over
25 percent of the ERP market. SAPs strength is the breadth and extensive capability

of

its

softwares functionality. SAP spends much more on R&D than any other competitor. SAP Net
Weaver became the first platform to allow seamless integration among various SAP and
non-SAP solutions, reducing customization and solving the integration issue at the business
level. The solution of SAP regarding the integration issue is the use of open standards that allow
software applications to be accessed as web services.
Products:
SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP
ERP. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name
was R/3. SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four
applications are:

Customer Relationship Management (CRM) helps companies acquire and retain customers,
gain marketing and customer insight

Product Lifecycle Management (PLM) helps manufacturers with product-related information

Supply Chain Management (SCM) helps companies with the process of resourcing its
manufacturing and service processes
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Supplier Relationship Management (SRM) enables companies to procure from suppliers

Other major product offerings include SAP Business Intelligence (BI), SAP Business Objects
(BO), SAP HANA, NetWeaver platform, Governance, Risk and Compliance (GRC) software, Duet
(joint offering with Microsoft), Performance Management software and RFID. SAP offers serviceoriented architecture capabilities (calling it Enterprise SOA) in the form of web services that are
wrapped around its applications.
While its original products were typically used by Fortune 500 companies, SAP now actively
targets small and medium sized enterprises (SME) with its SAP Business One and SAP Business
All-in-One.

Benefits of SAP
Many companies are realizing that SAP solutions have become extremely important to their
businesses. This realization is arising from the fact that many Fortune 500 companies use SAP
systems extensively internally for their daily operations and reporting. Over time, many companies
start to discover deficiencies in their information systems architecture. Most legacy business
systems were made up of islands of automation separate systems that handled some core business
needs. There may have been systems to handle the General Ledger, another to handle the sales
processes, a separate system to manage the manufacturing or production processes, etc. Data had to
be exchanged between these sub-systems in order to generate the reports that various levels of
management needed to run their operations. When there were errors or inconsistencies between
these sub-systems, these flowed on into the consolidation process and skewed the management
reports.

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SAP ERP systems Business Suite / R/3 and Business One are fully integrated business realtime systems. They enable transactions to be processed end-to-end and eliminate data
inconsistencies between sub-systems. Many companies replace their old business systems with the
best-of-breed ERP package developed by SAP. SAP delivers systems that are modern and highly
efficient. Their support infrastructure is unparalleled in the software industry. In addition, SAP has
developed industry-specific ERP solutions that address the needs of over 28 industrial sectors. SAP
is present in more than 120 countries worldwide. SAP has managed to build up a client base of
more than 12 million users worldwide. Those numbers are estimated to grow as more and more
enterprises jump on the SAP ERP bandwagon. The main business benefit of using SAP is that you
get a comprehensive set of integrated, cross-functional business processes.

Here are some other benefits of using SAP:

Align Strategies and Operations

Prior to the implementation of an SAP system, a thorough analysis of the current environment was
done. This was usually referred to as the As-Is analysis. All issues were identified for rectification
during the project. The short, medium and long-term strategies of the business were identified,
clarified and prioritized. All internal workflows were aligned to enable the eventual effective use of
the SAP system. In the next major step, the future state of the business information system was
specified. This was referred to as the To-Be state. It was the responsibility of the project team and
possibly consultants to bridge the gaps between the As-Is and To-Be states to build a workable
project plan.

Enhance Productivity and Insight

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The productivity enhancements arising from an SAP implementation can be tremendous. Data is
only entered once. There are no sub-systems to consolidate and verify. Data can be forwarded to
others within the organization by efficient workflows using internal messages, emails, SMS alerts
or other means. Operations can be authorized and passed along for the next person to process.
Employees can process many transactions on their from various access terminals. This can include
leave applications and submission of expense claims. The overall reporting and analytics
environment is enhanced to a level that facilitates operation management.

Minimize Costs by Increasing Flexibility

In order to improve process standardization, efficiency and adaptability, SAP relies on enterprise
services architecture. SAP extends its business eco-system by extrapolating transactions,
information and collaborative functions.

Reduce Risk

Solves complex business challenges as trusted partner for long-term growth, with over 30 years of
experience working with organizations of all sizes in more countries than any other vendor.

Improve Financial Management and Corporate Governance

Financial and management accounting functionalities combined with business analytics offers the
SAP user deep visibility into their organizations. Furthermore SAP increases profitability,
improves financial control, and manages risk.

Optimize IT Spending

SAP integrates and optimizes business processes as well as eliminates high integration costs and
the need to purchase third-party software. Use of SAP incrementally improves cash flow and
reduces costly borrowing.

Gain Higher ROI Faster


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A business can deploy SAP by using rapid-implementation techniques which cost less than half
what traditional approaches cost. It is also possible in certain cases for companies to reduce
implementation time and costs by leveraging on preset defaults and pre-packaged versions
available for specific industries.
As on 2013, SAP continued to be the market leader with about 24% share followed by Oracle
having about 12% market share. Rest of the market was split up by small players in the industry.
Market Size was about 25.4B$ which was about 3.8% more than that in 2012.

1.4 Concept of SAP HANA


SAP HANA, short for "High-Performance Analytic Appliance" is an in-memory, columnoriented, relational database management system developed and marketed by SAP SE. It is
massively parallel, thus exploiting the maximum out of multicore processors and subsequently
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enabling very fast query execution. SAP HANA originates from developed or acquired
technologies, including TREX search engine, an in-memory column-oriented search engine,
P*TIME, an in-memory OLTP database acquired by SAP in 2005, and MaxDB with its in-memory
liveCache engine. In 2008, teams from SAP SE working with Hasso Plattner Institute and Stanford
University demonstrated an application architecture for real-time analytics and aggregation,
mentioned as "Hasso's New Architecture" in SAP executive Vishal Sikka's blog. Before the name
HANA settled in, people referred to this product as New Database.
The product was officially announced in May 2010. In November 2010, SAP SE announced the
release of SAP HANA 1.0, an in-memory appliance for business applications and business
Intelligence allowing real-time response. The first product shipped in late November 2010. By mid2011, the technology had attracted interest but the conservative business customers still considered
it "in early days". HANA support for SAP NetWeaver Business Warehouse was announced in
September 2011 for availability by November.
In 2012, SAP promoted aspects of cloud computing. In October 2012, SAP announced a variant
called HANA, one that used a smaller amount of memory on Amazon Web Services for an hourly
fee.
In January 2013, SAP enterprise resource planning software from its Business Suite was
announced for HANA, and became available by May. In May 2013, a software as a
service offering called

the HANA Enterprise Cloud service was announced. Rather

than versioning, the software utilizes service packs.

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CHAPTER 2: Theoretical & Conceptual Framework


2.1 Why SAP HANA

SAP HANA is a market-disrupting technology, providing cost-effective management of large


volumes of data, simultaneously allowing analysis of current and complete information to
provide immediate answers to any question in real real-time.

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The in-memory technology lets users explore and analyse all transactional and analytical data in
real time from virtually any data source. Source-agnostic data access & integration services allow
accessing and indexing external data from across the entire organisation and adding them to
existing analytical models.

Real-time analytical processing can be performed to analyse business operations in real-time using
huge volumes of detailed information while business is happening.

Data can be aggregated from many applications and data sources without perturbing in any way the
on-going business transactions.

Views of business information can be persisted in a Persistent Data Repository, and reconstituted in
case of a crash.

Real-time Replication Service can be used to access and replicate data from SAP ERP.

Tight integration with SAP Business Objects BI solutions for insight and analytics.

SQL and MDX interfaces for third- party application access.

Unified information modelling and design environment. The great advantage here is that all data
models are purely virtual, and calculate results based on the underlying detailed operational data.

Simplification of existing models, of modelling and re-modelling.

Reduced costs through simplifications in hardware, maintenance and testing.

Simplified Operations and Monitoring with the integration of basic HANA administration
capabilities with the BW Admin Cockpit.

Unified information modelling and design environment. The great advantage here is that all data
models are purely virtual, and calculate results based on the underlying detailed operational data.

Simplification of existing models, of modelling and re-modelling.

Reduced costs through simplifications in hardware, maintenance and testing.

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Simplified Operations and Monitoring with the integration of basic HANA administration
capabilities with the BW Admin Cockpit.

With BW in-memory-optimized objects, complex analysis and planning scenarios with


unpredictable query types, high data volume, high query frequency, and complex calculations can
be processed with a high degree of efficiency.

Loading SAP HANA-optimized BW objects can also be done more efficiently.

The SAP HANA database replaces both any previous database and SAP NetWeaver BWA,
reducing infrastructure costs. Instead of both database administration tools and additional SAP
NetWeaver BWA administration tools, the SAP HANA database requires just a single set of
administration tools for monitoring, backup and restore, and other administrative tasks.

Data modeling is simplified. Using in-memory-optimized objects you do not need to load a BWA
index, for example. In addition, the architecture of the HANA datbase allows you to delete
characteristics from an InfoCube that still contains data.

With its high compression rate, the column-based HANA datastore requires less data be
materialized.

With BW in-memory-optimized objects, complex analysis and planning scenarios with


unpredictable query types, high data volume, high query frequency, and complex calculations can
be processed with a high degree of efficiency.

Loading SAP HANA-optimized BW objects can also be done more efficiently.

The SAP HANA database replaces both any previous database and SAP NetWeaver BWA,
reducing infrastructure costs. Instead of both database administration tools and additional SAP
NetWeaver BWA administration tools, the SAP HANA database requires just a single set of
administration tools for monitoring, backup and restore, and other administrative tasks.

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Data modeling is simplified. Using in-memory-optimized objects you do not need to load a BWA
index, for example. In addition, the architecture of the HANA datbase allows you to delete
characteristics from an InfoCube that still contains data.

With its high compression rate, the column-based HANA datastore requires less data be
materialized.

2.2 Competitive advantage


Information is an asset companies can use to make better decisions. The capability to capitalize on
this asset remains one of the highest priorities for organizations of all types. However, delivering
on this capability for everyone in the organization remains elusive. In-memory computing is a
disruptive force that provides the speed and agility to power analytics at exceptional performance
levels while remaining cost effective. In summary, SAP HANA built on Intel(r), Xeon(r)
processor 7500 series delivers:
Speed and agility: The business imperative for rapid change is creating new demands for
business and technology. The need to get all the right information to business users, without
the delay of typical enterprise data warehouses, is critical to the use of data as a competitive
differentiator
Performance and cost: New hardware technologies and advances in software have
dramatically improved performance, with similar reductions in costs, making new
computing models possible.
Alignment of business and IT: Business requirements demand that business analysts have the
flexibility to define their views of the information and the application. Efficient IT
departments strive for low redundancy and high reuse of system, information, and human
resources.
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More efficient data processing: Traditional disk-based data warehouses have limited
capability to benefit from major technology trends such as multicore CPUs, in-memory
processing, and columnar storage. The move to SAP HANA engine is a move to a
foundation that can truly fulfill the promise of real-time business now and in the future.
Technology to power business analytic applications: All industry-specific solutions and
functional areas of business share common information needs. At the same time, every
organization is unique in the way it can use data to enhance business in new ways.
Customers need the capabilities of powerful technology to use all their data with ease, so
they can flexibly model their business in a rapidly changing, competitive
All the above factors enables a firm to hold a strong and competitive position in the market.

2.3 Design and implementation


2.3.1 Technical/Architecture Overview
The SAP HANA database is developed in C++ and runs on SUSE Linux Enterpise Server. SAP
HANA database consists of multiple servers and the most important component is the Index
Server. SAP HANA database consists of Index Server, Name Server, Statistics Server,
Preprocessor Server and XS Engine.

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Index Server:
o

Index server is the main SAP HANA database component

It contains the actual data stores and the engines for processing the data.

The index server processes incoming SQL or MDX statements in the context of
authenticated sessions and transactions.

Persistence Layer:
The database persistence layer is responsible for durability and atomicity of transactions. It ensures
that the database can be restored to the most recent committed state after a restart and that
transactions are either completely executed or completely undone.

Preprocessor Server:
The index server uses the preprocessor server for analyzing text data and extracting the information
on which the text search capabilities are based.

Name Server:
The name server owns the information about the topology of SAP HANA system. In a distributed
system, the name server knows where the components are running and which data is located on
which server.

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Statistic Server:
The statistics server collects information about status, performance and resource consumption from
the other servers in the system.. The statistics server also provides a history of measurement data
for further analysis.

Session and Transaction Manager:


The Transaction manager coordinates database transactions, and keeps track of running and closed
transactions. When a transaction is committed or rolled back, the transaction manager informs the
involved storage engines about this event so they can execute necessary actions.

XS Engine:
XS Engine is an optional component. Using XS Engine clients can connect to SAP HANA
database to fetch data via HTTP.
The heart of SAP HANA Index server
The SAP HANA Index Server contains the majority of the magic behind SAP HANA.

Connection and Session Management


o

This component is responsible for creating and managing sessions and connections for the
database clients.

Once a session is established, clients can communicate with the SAP HANA database using
SQL statements.

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o

For each session a set of parameters are maintained like, auto-commit, current transaction
isolation level etc.

Users are Authenticated either by the SAP HANA database itself (login with user and password)
or authentication can be delegated to an external authentication providers such as an LDAP
directory.

The Authorization Manager


o

This component is invoked by other SAP HANA database components to check whether the
user has the required privileges to execute the requested operations.

SAP HANA allows granting of privileges to users or roles. A privilege grants the right to
perform a specified operation (such as create, update, select, execute, and so on) on a specified
object (for example a table, view, SQLScript function, and so on).

The SAP HANA database supports Analytic Privileges that represent filters or hierarchy
drilldown limitations for analytic queries. Analytic privileges grant access to values with a
certain combination of dimension attributes. This is used to restrict access to a cube with some
values of the dimensional attributes.

Request Processing and Execution Control:


o

The client requests are analyzed and executed by the set of components summarized as Request
Processing and Execution Control. The Request Parser analyses the client request and
dispatches it to the responsible component. The Execution Layer acts as the controller that
invokes the different engines and routes intermediate results to the next execution step.

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SQL Processor:

Incoming SQL requests are received by the SQL Processor. Data manipulation statements
are executed by the SQL Processor itself.

Other types of requests are delegated to other components. Data definition statements are
dispatched to the Metadata Manager, transaction control statements are forwarded to the
Transaction Manager, planning commands are routed to the Planning Engine and procedure
calls are forwarded to the stored procedure processor.

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SQLScript:
The SAP HANA database has its own scripting language named SQLScript that is designed to
enable optimizations and parallelization. SQLScript is a collection of extensions to SQL.
o

SQLScript is based on side effect free functions that operate on tables using SQL queries for
set processing. The motivation for SQLScript is to offload data-intensive application logic
into the database.

Multidimensional Expressions (MDX):


MDX is a language for querying and manipulating the multidimensional data stored in OLAP
cubes.
o

Incoming MDX requests are processed by the MDX engine and also forwarded to the Calc
Engine.

Planning Engine:

Planning Engine allows financial planning applications to execute basic planning operations
in the database layer. One such basic operation is to create a new version of a data set as a
copy of an existing one while applying filters and transformations. For example: planning
data for a new year is created as a copy of the data from the previous year.

Another example for a planning operation is the disaggregation operation that distributes
target values from higher to lower aggregation levels based on a distribution function.

Calc engine:

The SAP HANA database features such as SQLScript and Planning operations are
implemented using a common infrastructure called the Calc engine.
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o

The SQLScript, MDX, Planning Model and Domain-Specific models are converted into
Calculation Models. The Calc Engine creates Logical Execution Plan for Calculation
Models. The Calculation Engine will break up a model, for example some SQL Script, into
operations that can be processed in parallel.

Transaction Manager:
In HANA database, each SQL statement is processed in the context of a transaction. New sessions
are implicitly assigned to a new transaction. The Transaction Manager coordinates database
transactions, controls transactional isolation and keeps track of running and closed transactions.
When a transaction is committed or rolled back, the transaction manager informs the involved
engines about this event so they can execute necessary actions.
The transaction manager also cooperates with the persistence layer to achieve atomic and durable
transactions.

Metadata Manager:
o

Metadata can be accessed via the Metadata Manager component. In the SAP HANA database,
metadata comprises a variety of objects, such as definitions of relational tables, columns, views,
indexes and procedures.

Metadata of all these types is stored in one common database catalog for all stores. The database
catalog is stored in tables in the Row Store. The features of the SAP HANA database such as
transaction support and multi-version concurrency control, are also used for metadata
management.

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In the center of the figure you see the different data Stores of the SAP HANA database. A store is a
sub-system of the SAP HANA database which includes in-memory storage, as well as the
components that manages that storage.

The Row Store:


The Row Store is the SAP HANA database row-based in-memory relational data engine.

The Column Store:


The Column Store stores tables column-wise. It originates from the TREX (SAP NetWeaver
Search and Classification) product.

Persistence Layer:
The Persistence Layer is responsible for durability and atomicity of transactions. This layer ensures
that the database is restored to the most recent committed state after a restart and that transactions
are either completely executed or completely undone. To achieve this goal in an efficient way, the
Persistence Layer uses a combination of write-ahead logs, shadow paging and savepoints.

The Persistence Layer offers interfaces for writing and reading persisted data. It also contains the
Logger component that manages the transaction log. Transaction log entries are written explicitly
by using a log interface or implicitly when using the virtual file abstraction.

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2.3.2 Extended System landscape - Overview

Above figure provides an example illustration of the various components and applications that
make up the extended SAP HANA system landscape. The various components / applications are:

SAP BusinessObjects BI Suite and SAP HANA Information Composer are types of
Business Intelligence tools

The primary persistence scenario, exemplified by SAP BW and SAP Business Suite

SAP HANA Apps.

R runtime.

Host Agent, SMD Agent x SAP HANA Studio.

SAP Solution Manager.

Data provisioning scenarios: SLT; SAP Data Services, DXC


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Another way to view the extended SAP HAN section 3.3SAP A Extended System Landscape is
by examining the various types of connections that exist with other applications and components:

Above figure illustrates the connections that exist to various components, applications, and
entities in the extended SAP HANA Extended System Landscape. Details are provided about the
nature of the interface, and the relevant port number ranges are visible as well

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SAP HANA Predictive Capabilities and Open Source R Language


SAP HANA includes native capabilities which enable predictive analytics, such as the Predictive
Analysis Library. One such aspect is integration with the open source language called R. R is an
open source programming language and software environment for statistical computing. The R
language is widely used among statisticians and data scientists in developing applications which
feature the use of predictive analytics.

The above figure depicts the SAP HANA predictive scenario utilizing the R open source language.
The R client has been included within SAP HANA; the R runtime must be installed on a separate
server than the SAP HANA server hardware. This architecture provides the ability to develop
predictive applications and functionality where data physically resides inside SAP HANA, but the
R language can be invoked to access the data in SAP HANA. Essentially, the application running
on SAP HANA requests the R server to run a modeled predictive algorithm on the data residing in
SAP HANA. The operation in the R sever will read the necessary data from SAP HANA, transfer
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the required data set to the R server, and then perform the predictive operation in the R server. The
result set of that operation is then returned to SAP HANA.
2.3.3 Deployment Overview

There are various approaches to deploying SAP HANA itself and applications and
scenarios that can run on SAP HANA. On-premise options are for single-host, scale-up, scale-out,
and there is concept of Tailored Data Center Integration. There is also option for deploying SAP
HANA on the cloud.

On-Premise:
The default option for installing SAP HANA on-premise is the appliance delivery model. This
means the hardware partner provides factory pre-installation for hardware, operating system, and
SAP software. The hardware vendor may add their own specific best-practices and SAP HANA
software configuration. Additionally, the hardware vendor finalizes installation with an on-site
setup and configuration of the SAP HANA components. Different technical architectures of SAP
HANA appliances exist depending on the particular hardware partner, which is manifested in the
approaches to scalability. The primary architectural difference is in the provision of (disk) storage.
Some utilize dedicated Storage Area Network (SAN) block storage, some use dedicated Network
Attached Storage (NAS) file storage, and some opt for directly attached storage devices, in
combination with a clustered file system.

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Single Node Systems and Scale-Up


A single node SAP HANA is made up of one and only one hardware server, and thus a single node
system is the most straightforward type of SAP HANA installation. While this is often a choice for
production SAP HANA environments, this is also common configuration for systems used for
development, test/QA, and other purposes such as sandbox, training, demo, etc. as well. A single
node SAP HANA system can support capacity planning through the scale-up concept. Scale-up
essentially means that additional CPU, memory, and disk capacity can be added to an existing
single node system, and the additional resources can be utilized effectively and efficiently
Scale-up offers the following set of benefits, when compared to scale-out:

Performance advantages: no overhead of network communication between hosts


particularly efficient use of all available resources (especially main memory) possible.

Cost benefits may exist depending on hardware partner.

Support for virtualization (non-production).

Scale-up offers the following constraints when compared to scale-out:.

Hardware of same size required for HA

Less total hardware capacity than with multi-node

Single-node SAP HANA systems with scale-up are typically deployed in the following scenarios:

Moderate amount of data and/or concurrent operations expected

SAP Business Suite systems

Non-production systems, such as QA, test, development, sandbox, etc.

Virtualized non-production systems

Custom data marts

Relatively small SAP NetWeaver Business Warehouse system


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Multiple Node SAP HANA Systems and Scale-Out


SAP HANA supports multiple instances of the same system, each on separate server hardware.
Data is distributed across the SAP HANA nodes and is data processing takes place on these
separate hardware servers. Indeed, with a scale out system, separate hardware servers are combined
together to form a larger unit. A scale-out system is characterized by different types of index server
processes

Scale-out offers the following set of benefits, when compared to scale-up:

Extensive scalability to handle large amount of data and/or concurrent operations

Table distribution automated for SAP NetWeaver Business Warehouse

A small number of standby nodes is sufficient for HA (fail-over) of an SAP HANA multinode cluster.

Scale-out offers the following constraints when compared to scale-up:

Table distribution/partitioning required (currently automated for SAP NetWeaver Business


Warehouse on SAP HANA only)

Additional rack and storage system may be required when a server node is added
(depending on hardware partner configuration options)

Single-node SAP HANA systems with scale-up are typically deployed in the following scenarios:

Large amount of data and/or concurrent operations expected.

SAP NetWeaver Business Warehouse system with extensive active data volume

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Tailored Data Center Integration for SAP HANA

As an alternative to the appliance delivery approach, SAP HANA tailored data center integration
provides a flexible approach which, depending on the scenario, may offer advantages for total cost
of ownership. It may be possible with this approach to reduce hardware and operational cost by
reusing existing hardware components (such as existing enterprise storage) and familiar IT system
management processes. Additionally, it may be possible for the customer to gain additional
flexibility in hardware vendor selection by leveraging the existing partner ecosystem.

The restrictions involved in utilizing the tailored data center integration approach are as follows:

The server is listed in the SAP HANA product availability matrix at service.sap.com/pam

Variations such as no local disks, no flash cards required, and additional Fiber
Channel adapters for SAN boot are allowed.

The storage solution has successfully passed SAP HANA hardware certification.

The installer of SAP HANA must have has passed the certification exam E_HANAINS131

SAP HANA Cloud Deployment Options


In addition to the on-premise deployment options, SAP HANA is also available alternatively in a
cloud deployment. There are several cloud deployment options available for SAP HANA, which
are geared toward different use cases and needs:

SAP HANA One

SAP HANA Developer Edition


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SAP HANA Cloud Infrastructure

SAP HANA Cloud Platform

SAP HANA Enterprise Cloud

SAP HANA Technical System Deployment Options

The various different types of technical deployment options, such as:

Standard deployment.

More than one SAP HANA database SID running on one SAP HANA hardware system

More than one application running on one SAP HANA database

Virtualization.

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CHAPTER 3 : Research Methodology


3.1 Purpose of study
The purpose of this report is to analyze the procedures & benefits of an SAP H A N A
implementation in various sectors. The report tries to identify the critical factors which can
lead to Success/Failure of SAP HANA implementation. The purpose is to understand and analyze
how SAP HANA would benefit a business and help them to have upper hand in the market. The
study would include analyzing the effects of inclusion of SAP HANA in ones business. Along
with the analysis, the study would also include the statistical information as to what the current
organizations using SAP feel about the SAP HANA implementation in business.
3.2 Research Objective

Exhaustive study on the process of SAP HANA implementation.

Study of SAP HANA implementation in an Organization.

Discussing about SAP HANAs advantages & disadvantages.

To analyze the benefits/drawbacks arising in an organization after SAP H A N A


implementation.

To identify the Critical Success Factors which can help an organization benefit from a SAP
HANA implementation

3.3 Research Design


The research design used for this research is HYPOTHESIS TESTING. The primary reason for the
same is the responses of the questionnaire that was provided to record the reactions of the
organizations to SAP HANA. Based on the responses, inferences can be made about SAP HANA

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as the future of in-memory analytics.


There are multiple case studies which are analyzed, based on the CASE STUDY inferences are
drawn based on success ratios with respect to increase in statistics of number of companies
welcoming SAP HANA.

3.4 Type of Research


The research is carried out by analyzing the SAP H A N A implementation of major
companies
The research is q u e s t i o n n a i r e a n d case study based and inferences are drawn
based on the success and failures of various S A P H A N A functionalities, after analyzing
the above companies

3.5 Hypothesis
SAP HANA implementation is always beneficial for all current organizations in any sector.

3.6 Limitations
This report is limited on the extent of the comparison of the SAP HANA implementation i n
various companies of the mentioned case studies

Tata Steel / Rolls Royce /

Tata Motors & Whirlpool and the theoretical framework. The report does not cover the
selection of SAP HANA systems over its other competitors by observing no other
systems besides SAP HANA. Because of a restricted period of time the interview was
conducted with a single manager of a company, so the conclusions cannot be generalized.
Also for couple of organizations getting primary data was difficult and secondary data was used
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to analyze the success/failure of SAP H A N A Implementation.

3.7
3.7.1

Data Collection
Primary Data Collection:

The primary data for this research is collected through questionnaires. A structured questionnaire
was designed to find out from managers of various organizations who currently use SAP about
their reactions and willingness to adopt SAP HANA .
**A copy of questionnaire, which is used to collect the primary data from the respondents, is
attached in the annexure**.

3.7.2

Secondary Data Collection:

Most important sources of secondary information was from case studies of leading organizations
from various sectors who have already implemented SAP HANA.
Other secondary sources were SAP forums, SAP journals and other internet sources.

3.8

Sample Design

3.8.1 Target Population


As the customers are globally spread and are from different sectors, so are the target companies
too, the target population selected for the survey are the working officials from various
organizations who use SAP. The survey takers belong to varied age groups, geographies, profiles
and cultures too.

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3.8.2 Sampling Frame


The sampling frame is the age group above 18 globally (majority from Mumbai itself), people
with more than 10 years of work experience
Since the actual users of the system would be the managers, the sampling frame is concentrated on
the same people.

3.8.3 Sampling Unit


The sampling unit is an adult individual from the corporate sector.

3.8.4 Sampling
The sampling method used for the research is non-probability judgment sampling. The sample
included equal number of respondents from each age group states in the questionnaire. Judgment
sampling was considered for the reason, having equal number of respondents from each age group
would give a sufficiently accurate response representing the target population.

3.8.5 Sample Size


The sample size (p) selected for the purpose of the research is over 10 companies which use SAP.

3.9

Tools of Data Analysis

3.9.1. Significance Level


- The significance level chosen in hypothesis testing is 0.01

3.9.2. Method of Hypothesis testing used


- Hypothesis test of proportion
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CHAPTER 4: Data Interpretation & Analysis


4.1Primary Data
4.1.1

What is the footprint of your organization?

18
16
14
12
10

SAP implementation
Geographical footprint of
organization

8
6
4
2
0
Local

Pan India

Global

Majority of the companies interviewed that had a global footprint had SAP HANA implemented
due to the many benefits it offered which make it detrimental for a global presence to maintain a
competitive IT edge.

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4.1.2

How many years it has been since the first implementation of the SAP ERP in
the organization?

Chart Title
16
14
12
10
8
6
4
2
0
<5 years

5-10 years

Period since first SAP implementation

> 10 years
SAP HANA implemented

As it is clearly indicated, most of the respondents that have SAP implementation over a period of
time also see a case in adopting the SAP HANA module for the advantages it offers. As is
indicated all the organization that have SAP implemented since 10 or more years have SAP
HANA implemented. As can be seen there is a clear correlation between the number of SAP
implementation years and adaptation of SAPA HANA module.

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4.1.3

What best describes your company's current adoption level of HANA?

Current adoption level


Investigating the technology

Have a production instance

Waiting for executive approvals

Not investigating any aspect of technology

15%

8%

15%

62%

The above analysis depicts that most of the companies interviewed, who already had SAP ERP
system in place had already implemented SAP HANA module and some already have it under
consideration. Only a minority few did not have SAP HANA implemented or even under
consideration for various reasons ranging from cost limitations to not being aware of the benefits
of it.

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4.1.4

Which of the following use cases best describe your HANA implementation(s)?

Use case
Operational or Agile data mart
HANA based accelerator
"Sidecar" or "Bolt-on" to existing SAP environment

37%

21%

42%

It is clearly illustrated that the major use case for companies that already have SAP HANA
implemented is for its accelerator use for faster generation of reports and quicker developments
when needed. Followed by the ease of SAP HANA being able to be implemented and aligned with
the current SAP system that is in place within the organization. Lastly, it is followed by the
operational or agile data mart quality improving the use of large data tables adding efficiency to
the whole process.

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4.1.5

Is your HANA instance primarily on-premise or in the cloud?

Location of HANA instance


Premise

Cloud

25%

75%

As can be seen most of the database is based on the cloud. This is primarily due to the reason that
most of the users are not located in a centralized location and would need the access to the data at
any time. The justification for having the data on own premise is that up to an extent it ensures
the safety and accessibility of confidential data.

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4.1.6

What is the annual net profit of the organization?

Net Profit in $
7
6
5
4
Net Profit in $

3
2
1
0
<100 Million

100 - 500 million

> 500 million

The above analysis is inconclusive in arriving at a correlation between adaptation of SAP HANA
and the profitability of the organization. This is due to the fact that SAP HANA is not limited to a
sector or the profitability of the company. It primarily depends on the use case an organization
sees in adopting the technology.

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4.1.7

Whats holding back customers from buying HANA?

Reason for not adopting SAP HANA


Not able to pin down business case

Cost involved

Others

8%
31%

61%

As clearly demonstrated the respondents including those who have HANA implementation feel
that the cost involved in implementing a new SAP module is the cause that it has a low adaption
rate even in companies who already have SAP as their main ERP system.

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4.1.8

What are the business benefits of HANA?

Benefits of HANA
Cut hardware cost

Reduce software cost

Accelerate development

Increase productivity

12%

24%

32%
32%

The major benefit as can be seen is the ability to accelerate development and reduce software costs
within an organization.

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4.1.9

What is the performance gain after SAP HANA? (Please select one or
more of the following)

Performance gain after SAP HANA


Data size and compression

Query complexity

Type or structure of data

Other

8%
35%
35%

22%

The major performance gain that has been demonstrated by SAP HANA implementation is the
data size it can handle at the same time reducing the hardware cost due to data compression and
type and structure of data as it has the capability of arranging the data even the most complex ones
in a structured way.

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4.1.10 Please describe the situation before SAP HANA

Scenario before HANA implementation


Slow reporting

More time spent on analytics

Others

8%
23%

69%

It can be seen that the major reason for adoption of the HANA module is the slow reporting
of large amount of data in a non HANA SAP background and with the the adoption of this
particular the same has been addressed to. Also the overall time spent on analytics the data
was much more then desirable and this too has been addressed to with the adoption of
HANA.

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4.2 Secondary Data


4.2.1 SAP HANA Implementation at SAFRAN

SAGEM, a member of the French aerospace and defense conglomerate SAFRAN, is a global
leader in optronics, avionics, and electronics for aircraft. It makes the stuff that enables fighter jets
to go fast and outmaneuver adversaries. Safran is a French multinational aircraft and rocket
engine, aerospace component, and security company. It was formed by a merger between the
aircraft

and

rocket

engine

manufacturer

and

aerospace

component

manufacturer

group SNECMA and the security company SAGEM in 2005. It is headquartered in Paris.

Problem:
In a company like this, there is, naturally, little patience for slow reporting and analysis. It expects
its IT systems to be as quick and agile as the fighter jets it helps equip.,having data is only half the
battle; to be of value, Sagem needs to be able to quickly access and analyze mission critical
information. As any fighter pilot will say, speed and agility are always relative. In a competitive
contest, it is not just how good you are, but how good you are relative to your competitor.

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Solution:
Sagem already relied on SAPs industry-leading NetWeaver Business Warehouse application for
reporting and analytics. Migrating its SAP Netweaver Business Warehouse to the SAP HANA
platform, though, opened up the possibility of dramatically improving performance.
This was exactly what Sagems IT team was looking for. SAP Active Global Support delivered
SAP MaxAttention helped Sagem migrate its existing NetWeaver Business Warehouse to the SAP
HANA platform without disruption, enabling Sagem to dramatically improve reporting speed and
analytical agility.

Benefits:
The results were dramatic. From a technical perspective, with its SAP Netweaver Business
Warehouse running on SAP HANA, Sagem saw blazingly fast query execution, data activation and
cache execution paired with significant database compression. Translated into business speak, the
company was able to significantly improve the speed with which its analysts could access and
analyze mission critical datatransforming information into insight much more quickly and
agilely than they were able to previously. And they were able to do this while avoiding disruptions.

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4.2.2 SAP HANA Implementation at eBAY

About ebay:
With more than 100 million active users globally, eBay is the world's largest online marketplace,
where practically anyone can buy and sell practically anything.

Problem:
The collective impact on ecommerce is staggering: In 2012, the total value of goods sold on eBay
was $175 billion. Over next three years, eBay predicts that number to grow to $300 billion -- more
than the gross domestic product of all but 33 of the world's countries. In addition, eBay owns
PayPal. With more than 128 million active users in 193 markets and 25 currencies around the
world, PayPal enables global commerce. PayPals net Total Payment Volume for 2012, the total
value of transactions, was $145 billion. eBay CFO describes eBay as a dynamic self-regulating
economy similar to how the free-market based economy of a country , like United States, operates.
Similar to how Ben Bernanke, Federal Reserve Chairman can manage the US economy by
manipulating monetary policies (changing interest rates, etc.), eBay CFO believes they can manage
the eBay economy as well by modifying variables at micro/macro level (like listing rates, policies,
etc).
To achieve this goal, eBays vision is to build a system that has four components:
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a.

WHAT Track several thousand business metrics, forecast for 1 day in future (tomorrow)
and if there is deviation between forecast and actual, alert (send a signal)

b.

WHY Determine causality, once a signal (deviation from forecast) is detect. They
expect the system to automate the process of root-cause analysis to a large extent.

c.

WHAT IS LIKELY TO HAPPEN Generate near-term, mid-term and long-terms


forecast, all the way from 1 day to 18 months in future with differing confidence levels

d.

WHAT IF Ability to run simulations to visualize the impact of decisions on eBay


economy

eBay needs more than 300 analysts, just to track the metrics (WHAT part of the project). Even
then the key issue was still how to distinguish the signal from the noise. In addition, eBay team was
concerned about the impact of added workload on the central EDW and slowing down rest of
critical eBay operational reporting. Moreover, they were missing the agility to change the data
structures and build predictive models for exploratory work. For the WHY part, eBay ended up
spending more 2-3 weeks of an analysts time to do root-cause analysis. A large part of their
process tends to be manual relying on a degree of luck and lots of experience. Consequently,
signals are missed leading to delayed corrective action. The third and fourth part of the system
didnt exist at all.

Solution:
SAP successfully delivered the first phase (WHAT) of the project as a POC using SAP HANA
Platform and Performance and Insight Optimization (PIO) services. The solution involved building
a comprehensive Signal Detection system that can automatically handle any of the thousands of
time series metrics that eBay tracks on a daily basis by combining the following features:

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1. Data cleansing operations to remove duplicates, and fill in missing data for planned and unplanned
events.
2. Determination of time series characteristics (such as multiple seasonal cycles, and the Hurst
exponent)
3. A library of different time series models that consider the trend, seasonality, lagged effects, and
also correlation against holidays and promotions.
4. And, as no one model works well for all the metrics, a decision tree based framework that
determines the best time series model to use.
5. Finally, a dashboard for business users that helps them in finding the signals within a day; and
understand the strength of the signals based on the probability of the metric value being an outlier
on any single day.

Benefits:
By using the signal detection system, eBay analysts can focus on the most important outliers within
a day rather than spending 2-3 weeks before learning about potential problems.

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4.2.3 SAP HANA Implementation at Charite hospital (Germany)

About Charite:
The Charit is the largest University hospital in Europe with more than 100 clinical departments
and 3700 hospital beds. It also houses a large number of translational and basic science research
groups. One of the 4 major research areas is oncology. In 2008, the Charit has created the Charit
Comprehensive Cancer Center (CCCC), which is governing its oncology clinical and research
programs.

Problem:
To research, teach, and heal. Charit provides 150,000 inpatient and 600,000 outpatient treatments
per year. The hospitals 3,800 doctors and scientists are committed to the highest levels of
healthcare and research and the organization is equally committed to providing the accurate,
timely reports and analysis required for success.

Charit already has a mature analytics program. This enables them to think creatively about how
they use patient data, medical records, and study results within their business. Researchers wanted
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to look at millions of data points and ask questions in a flexible reporting environment and they
wanted to make their in-house analytics systems as fast and easy to use as a Google search.

Solution:
To make the above possible, the hospital invested in SAP in-memory technology designed to
harness the big data associated with medical records. Already, more than 600 users are taking
advantage of the technology.
When the SAP HANA platform was first introduced at Charit, the hospital held workshops to
brainstorm use cases, focusing on several key questions: What is possible, and where might the
university make improvements? Where could the technology have the biggest impact on patient
care and healthcare research? Can we use it to look for trends in patient cases?

For its first project with SAP HANA, the team decided to focus on the hospitals cancer database
and its use in selecting patients for clinical trials. A typical clinical trial involves a research
partnership with a commercial sponsor such as a

medical device or pharmaceutical company; the hospital has only a small window of opportunity in
which to get the study, participants, and funding in place. The faster Charit can identify suitable
study participants, the greater its chances of landing the study and conducting the research.

Benefits:
Charit now uses the SAP HANA Oncolyzer to analyze data merged from its cancer and medical
admin databases to find the best candidates for each new trial. The Oncolyzer searches and
examines information such as tumor types, gender, age, risk factors, treatments, and diagnoses to
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find the best candidates based on the study criteria. In the future, when DNA is added to the data
set, the Oncolyzer will analyze up to 500,000 data points per patient. Both structured and
unstructured data is analyzed, accelerating the identification process greatly and giving Charit a
competitive advantage over other prospective research partners.

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4.2.4 SAP HANA Implementation at BMW

Bayerische Motoren Werke, commonly known as BMW or BMW AG, is a German automobile,
motorcycle and engine manufacturing company founded in 1916. BMW
is headquartered in Munich, Bavaria. It also owns and produces Mini cars, and is the parent
company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In
2012, the BMW Group produced 1,845,186automobiles and 117,109 motorcycles across all of its
brands. BMW is part of the "German Big 3" luxury automakers, along with Audi and MercedesBenz, which are the three best-selling luxury automakers in the world.
Problem:

Sustain broad adoption of SAP BusinessObjects BI solutions.

Accelerate reports on 3rd-party database as data volume increases.


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Lower TCO as data access optimization and tuning increases costs

The resolution:

Load detailed data into SAP HANA from 3rd-party database.

Push calculation on detailed data down to SAP HANA, avoiding pre-aggregation.

Move existing SAP BusinessObjects reports to the new environment

The key benefits:

A minimum of 20x performance improvement.

No change to the SAP BusinessObjects reports.

Enabled drill down to details that was not possible in the previous environment

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4.2.5 SAP HANA Implementation at Asian Paints

About Asian Paints:


Asian Paints Limited is an Indian chemicals company headquartered in Mumbai, India. It
manufactures paints for decorative and industrial use. Asian Paints is India's largest paint company
and Asia's third largest paint company, with a turnover of Rs 96.32 billion. Besides Asian Paints,
the group operates around the world through its subsidiaries Berger International Limited, Apco
Coatings Limited, SCIB Paints and Taubmans.
Problem & Solution:
It is an early adopter of cutting edge IT solutions, and is widely regarded in the SAP customer community as very
prolific user of SAP BI. In late 2011, Asian Paints decided to implement HANA for their growing analytical needs
for the large volume ERP and BW implementations, and with the help of SAP Consulting implemented SAP
HANA running under SAP BW in only 3 weeks.

Benefits:
Data volume compression savings of 6:1 moving from BW/Oracle to BW/HANA.
Significant improvement in the query performance: average query performance improvement was15 x
with maximum improvement 266x times.
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Certain queries, for analyzing orders and billing that could not run in the past on BW-Oracle, are
returning the results with an impressive query response time of 15-20 secs with BW-HANA.
Data load time reduced by an average of 95% with some of the delta data load completing in 2 minutes in
BW-HANA, paving the way for near real-time data extraction and analysis, compared to more than 3540 minutes it used to take in BW-Oracle.

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4.2.6 SAP HANA Implementation at Usha International Limited

About Usha:
A household name in India, Usha International Limited (UIL) is a multi-product consumer durable
manufacturing, marketing and distribution company, which has more than 33 warehouses, 70
company-owned retail stores, and a distribution network of more than 14,000 dealers.

Problem:
Being in a competitive market, the key business need of the company was to be amongst the first
few who quickly respond to the changing market needs and immediately tap the profits. In order to
achieve this, firstly UIL wanted to gain granular visibility across its widespread supply chain, sales
and inventory data. And secondly the company wanted to be able take quick and informed
decisions by churning out real-time business-critical insights from the enterprises business data.
For example, UIL wanted that the real-time data on cash-flow, daily sales and inventory data
should all be available for operations review at the click of a button.

Solution:
After a lot of evaluation and brainstorming, UIL decided to implement SAP High Performance
Analytics Appliance (HANA) Database which uses in-memory technology that facilitates in
obtaining quick results from even complex data queries. Traditionally majority of data storage,
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calculation and aggregation, happens on-disk which substantially impacts the end-user experience.
But with SAP HANA, a complete in-memory database is built that combines transactional data
processing, analytical data processing and application logic processing functionality, in-memory.
In February 2012, UIL started the implementation of SAP HANA Database over which the SAP
NetWeaver Business Warehouse (the Business Intelligence and Analytics piece) was to be run. For
this implementation, UIL worked closely with a dedicated SAP Ramp-Up coach and SAP
Enterprise Support services and successfuly completed the entire project within just four weeks. So
by March 2012, the project was live and was rolled out to its 16 branch offices, 30 depots, and 4
manufacturing plants.

Talking about the benefits SAP HANA has brought to the company, Subodh Dubey, Group CIO,
UIL says, To take full advantage of our business data, we needed high-performance business
analytics. That means faster data loads and faster query response times. Implementing SAP HANA
has improved performance tremendously with faster data loads and better storage compression and
has given a whole new life to our business intelligence solution.

One of the major benefits that UIL derived out of the transparency that SAP HANA
implementation brought was reduction of inventory levels by 50 percent and elimination of out-ofdata inventory. This in turn led to lowering of inventory carrying costs and better cash flow. Also
with SAP HANA, UIL has for the first time achieved sales visibility down to the individual Stock
Keeping Unit (SKU) and territory. SAP HANA on Business Warehouse is providing UIL the
visibility into live information with minimal time-lag to make the right decisions at the right time
and respond faster to their consumer demands," adds Dubey. UIL recently won the SAP ACE
Award for Customer Excellence 2012 for being the first ever customer to do the real-time analysis
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of Big Data using the new SAP HANA for Business Warehouse.

Benefits:
50 percent reduction in inventory levels
50 times faster query performance
About 75 percent improvement in reporting and analytics performance
Achievement of 8 times faster data loads

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4.2.7 SAP HANA implementation by TCS for client Lexmark

Above TCS:
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT)
service, consulting and business solutions company headquartered in Mumbai, Maharashtra. TCS
operates in 46 countries. It is a subsidiary of the Tata Group and is listed on the Bombay Stock
Exchange and the National Stock Exchange of India. TCS is the largest Indian company
by market capitalization and is the largest India-based IT services company by 2013 revenues.

About Customer

Lexmark International Inc. provides businesses with a broad range of printing and imaging
products, solutions and services that help customers print less and save more. The company is a
leading provider of process and content management software that helps organizations fuel greater
operational efficiency.

Problem:
Lexmarks data warehousing applications had been disconnected from its operational applications,
resulting in a lag time of one day between gathering data and analyzing it. TCS delivered real-time
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visibility into Lexmarks financial data by implementing SAP HANA. Lexmark produces huge
volumes of financial and transactional datainventory, sales orders, general ledger balances and
invoicesdaily. However, it lacked the ability to capture and analyze data in real time. To
maintain its competitive advantage, Lexmark needed to adopt a single platform that would provide
insights into all of its financial and transactional data in real time.

TCS Solution

To deliver real-time transactional reporting, we implemented the SAP HANA Rapid Deployment
Solution (RDS) database, a high-speed in-memory solution that enables immediate business
analytics. Since 2008, we have partnered with Lexmark to improve its ability to manage and gain
insight from its growing data. We assisted Lexmark in the implementation and optimization of the
following:

Three SAP enterprise resource planning systems.

SAP Netweaver Business Warehouse (BW 7.3), which integrates data from multiple
sources so that it can be analyzed.

SAP Business Objects (BO 4.0), a business intelligence solution that transforms raw data
into useful information upon which informed business decisions can be made

Results:

Lexmark now enjoys a single, common, enterprise view of the truth.

Deep, rapid insights into Lexmarks transactional data enable more accurate, timely and
improved decision-making.
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Lexmarks finance department can initiate a variety of real-time reports as often as it


wishes.

Lexmarks sales representatives can instantly check a customers credit, quickly source the
needed products within the companys global inventory and ensure that the products are
shipped to the customer on time.

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4.2.8 SAP HANA implementation by Kolkotta Knight Riders


About Kolkata Knight Riders:
The Kolkata

Knight

Riders (abbreviated

as KKR)

are

a cricket franchise

representingKolkata in the Indian Premier League. The franchise is owned by Bollywood


actor Shah Rukh Khan's company Red Chillies Entertainment in partnership with actress Juhi
Chawla and her husband Jay Mehta from the Mehta Group. The team is currently captained
by Gautam Gambhir and coached by Trevor Bayliss, a former Australian cricketer. The home of
the Knight Riders is Eden Gardens, the largest cricket stadium in India and the third largest in
the world by seating capacity.

Benefits
The Kolkata Knight Riders (KKR) team leveraged SAP HANA based platforms - SAP Auction
Analytics, SAP Game Analytics, and SAP Lumira to evaluate players during the auction, derive
post-game analytics following each of the teams games, and drive fan engagement respectively,
during the Pepsi IPL 2014.

Below are the points KKR adopted analytic solutions in sports and how helped KKR won the
Pepsi IPL 2014.
Custom developed SAP Auction Analytics
An application was created that gave complete flexibility to KKR to build their own strategy,
with ability to compare and find similar players. The interface was very simplistic and offered a
live dashboard to provide a real-time view of all the teams. The application was designed in a
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way to become the base on which other analytics application in cricket can be built.

SAP HANA platform, provided instant access to data at any level of granularity for any business
process. Decision makers use run predictive models quickly enabling real-time action for the
fan or player. Such flexible, scalable analytics solutions enable evaluation of data scattered
across various internal and external sources. Intuitive dashboards let decision makers find
insights within mountains of data and visually present them in an easy-to-digest fashion.

Real-time analytics
SAP solutions span the breadth of a sporting franchise whether its helping organizations drive
fan engagement, enhance team performance, fuel revenue growth or scale technology to gain a
competitive advantage. From an analytics perspective, there is growing recognition and can be a
source of competitive differentiation.

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CHAPTER 5: Research Key Findings & Recommendations

5.1 Critical Success & Failure Factors


Consultant effectiveness
Team responsible for implementation of ERP Software is most important as proper
understanding of business process is required to map the existing processes on software,
improper mapping can be detrimental for the outcome of the project

Project management effectiveness


Project managers should have knowledge about the implementation process, they should
understand the criticalities of various functionalities and proper planning should be done
to plan, lead monitor project activities and there should be suitable alternative plan
devised to accommodate any deviation from the expected project plan

Turnover rate of project team members


As project team members suffer from high work stress and tremendous workload when
coping with the implementation, some members may resign from their jobs. This may
contribute to the insufficient ERP knowledge and skill transfer among project team
members during the ERP implementation life cycle. In the end, users and project team
members may have insufficient ERP knowledge for performing their daily tasks when
using the ERP system.
Over-reliance on heavy customization
Due to software mismatch, heavy customization may be required in the areas of program

SAP HANA: Harness the power of real time

customization and report customization. Customization

SAP HANA: Harness the power of real time

could cause project delays, overshoot budget and an unreliable system (due to poor
quality of customization, unresolved system bugs and insufficient testing). Customizing
the ERP to fit with business processes might lead to sacrificing "best practices"
embedded in the ERP system.

IT Infrastructure
Due to top managements insufficient financial resource provided for the implementation
budget, a low performance IT infrastructure hardware

might be proposed by the

consultants and project manager so as to reduce the costs of ERP implementation. The
poor IT infrastructure may contribute to the slow processing capability of the ERP system.

Knowledge transfer
Adequate knowledge transfer is very crucial to ensure that the ERP system is used as per
standard guidelines, improper knowledge transfer may lead to many inconsistencies
creeping in the system due to improper customization

Too tight project schedule


Top management and the project manager may like to reduce the budget of the ERP
project, and thus they set too tight a project schedule.
Implementation activities may be conducted in a rush (e.g., project planning, BPR,
training, testing and so on) in order to meet the project deadline. The project team and
users may be overloaded and thus they might have higher resistance to change.
Users resistance to change
Due to a limited knowledge of formalized business processes and ERP systems, as well as
work overload during the implementation process,

SAP HANA: Harness the power of real time

users may be resistant to change. This may contribute to user resistance to participating
in BPR, a lack of use of the ERP system, and poor quality of data entered into the
system.

Top management support


Top management is expected to provide support in the areas of committing to the ERP
project, sufficient financial and human resource, and the resolution of political problems
if necessary. Limited financial support may contribute to a rushed ERP implementation
process, project team

members getting overloaded and thus high staff turnover rate,

ineffective Knowledge transfer and political problems. Insufficient commitment may


lead to political problems which may hinder the implementation process (causing poor
BPR, widespread user resistance to change and low user satisfaction).

Quality of testing
Due to the over-tight project schedule and insufficient knowledge in testing ERP systems, it
may be conducted in a rush and may be of low quality.
Poor testing may have significant repercussions on the system leading to severe
inconsistencies which may then have a catastrophic impact on the overall ERP
Implementation

SAP HANA: Harness the power of real time

5.2 Key Recommendations


After finishing project work and understanding the implementation of the SAP HANA
system into the organizations mentioned above in our case studies we know many benefits
a company gets from SAP HANA adaptation.

It is recommended to have help from professional consultants during all steps of


planning and implementations, because they have the knowledge to avoid common
mistakes. Mistakes can come across during the preparation of the business cases.

The question all companies must answer is if they should change or modify their
business processes according to the SAP HANA system or if they want to customize
it. Often only a few changes must be done in the process in order to cover the regular
requirements in SAP HANA.

All employees must be convinced of the need and the advantages of the new system.
Project leader has to motivate all project members to work as hard as possible to get the
project successful. The well-planned schedule is very important for the success of the new
system.

SAP HANA: Harness the power of real time

References
www.saphana.com
http://scn.sap.com
SAP HANA users and developers in firms like Tata consultancy services, iGATE
computer systems, Godrej consumer private limited and IBM india.
www.news-sap.com/topics/sap-hana
www.saphana.com
Jeff Kelly (July 12, 2013). "Primer on SAP HANA". Wikibon. Retrieved October 9, 2013.
SAP HANA - The Column Oriented (Based) Database on YouTube (December 8, 2012)
Vey, Gereon; Krutov, Ilya (January 2012). "SAP In-Memory Computing on IBM eX5
Systems". Retrieved 22 October 2013.
SAP SE (June 17, 2012). "SAP HANA Timeline". SlideShare. Retrieved October 9, 2013.
"What is SAP HANA Database". Gucons web site. 2011. Retrieved October 9, 2013.
www.asugnews.com
Chris Kanaracus (October 19, 2010). "SAP's in-memory analytics boxes set for November
release". Info World. Retrieved October 9, 2013.
Chris Kanaracus (December 1, 2010). "SAP launches HANA for in-memory analytics:
The in-memory analytic appliance will compete with next-generation data-processing
platforms such as Oracle's Exadata machines". Info World. Retrieved September 24, 2013.
www.businesscloudnews.com
Chris Kanaracus (September 15, 2011). "SAP's HANA is hot, but still in early
days". Network World. Retrieved October 15, 2013.
Courtney Bjorlin (November 9, 2011). "SAP Begins BW on HANA Ramp-Up, First Big
Test for the HANA Database". ASUG News. Retrieved October 15, 2013.
www.forbes.com

SAP HANA: Harness the power of real time

Trevis Team (April 30, 2012). "SAP Headed For $71 On Cloud, Mobile And HANA
Growth". Forbes. Retrieved October 9, 2013.
SDN - SAP Community Network.
Doug Henschen (October 17, 2012). "SAP Launches Cloud Platform Built On
Hana". Information Week. Archived from the original on October 19, 2012. Retrieved
October 15, 2013.
Brian McKenna (January 11, 2013). "SAP puts Business Suite on HANA, joins
transactional to analytical". Retrieved Computer Weekly. October 15, 2013.
eBay CFO on SAP HANA in below You Tube video
http://www.youtube.com/watch?v=hS-0ZadT6so
"Sapphire 2013: Business Suite on HANA goes to general availability". Computer Weekly.
May 15, 2013. Retrieved October 15, 2013.
http://www.sap.com/
Chris Kanaracus (May 7, 2013). "SAP unveils HANA Enterprise Cloud service:
Customers will be able to run their applications on the HANA-powered cloud". Network
World. October 15, 2013.
"Update III: The SAP HANA FAQ - answering key SAP In-Memory questions". Bluefin
Solutions. John Appleby. Retrieved October 9, 2013.
Mellisa Tolentino (May 14, 2012) "Your SAP HANA Cheat Sheet: Milestones, Terms and
More". Silicon Angle blog. Retrieved October 9, 2013.
Shiralkar;

Shreekant,

Amol

Palekar,

Bharat

(2010). A-Practical-Guide-to-SAP-

NetWeaver-Business-Warehouse-7.0 (First Edition ed.). SAP Press. ISBN 978-1-59229323-0.


McDonald; Wilmsmeier, Dixon, Inmon (2006). Mastering the SAP Business Information
Warehouse (Second Edition ed.). Wiley. ISBN 0-471-21971-1.
searchsap.techtarget.com

SAP HANA: Harness the power of real time

ANNEXURE
QUESTIONAIRE
What is the footprint of your organization?

Local

Pan India

Global

How many years it has been since the first implementation of the SAP ERP in the
organization?

< 5 years

5-10 years

> 10 years

What best describes your company's current adoption level of HANA?

Select all that apply.

We are investigating the technology but have not sought or received approvals

We are waiting for executive approvals

We are waiting for specific features to become available

We plan to begin implementing a production instance of HANA before the end of 2014

We are in the midst of implementing a production instance of HANA

We already have a HANA proof-of-concept

We already have a production instance of HANA We are not investigating any aspect of
the technology

SAP HANA: Harness the power of real time

Which of the following use cases best describe your HANA implementation(s)?

Select all that apply.

Operational or agile data mart

HANA-based accelerator

Application Platform

HANA federation with smart data access

Predictive analytics

"Sidecar" or "Bolt-on" to existing SAP environment

Is your HANA instance primarily on-premise or in the cloud?

Premise

Cloud

What is the annual net profit of the organization?

< 100 million $

100-500 million $

> 500 million $

Whats holding back customers from buying HANA?

Not Able to pin down a business case

Cost involved

Others

SAP HANA: Harness the power of real time

What are the business benefits of HANA?


What is the performance gain after SAP HANA? (Please select one or more of the
following)

Data size and compression

Query complexity

Type or structure of data

Others (Please describe)

Please describe the situation before SAP HANA.