A U T H O R : P u s h k a r D e s h p a n d e. Real-Time Analytics on S4/HANA. 1 Executive Summary Introduction to Real-Time Analytics...

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1 A U T H O R : P u s h k a r D e s h p a n d e Real-Time Analytics on S4/HANA Contents 1 Executive Summary Introduction to Real-Time Analytics Real-Time Analytics in S/4HANA Conclusion... 7 About the Author... 8 About L&T Infotech... 9

2 1 Executive Summary S/4HANA is optimized for both, Transactional and Analytical Processing, thus enabling real-time Analytics and Applications. In this White Paper, we will see how data can be supplied in to business users in realtime through S/4HANA, providing them with flexibility to analyze their business in real-time. This helps them in driving new revenues and profits, in addition to savings on infrastructure and operational costs. L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 2 of 9

3 2 Introduction to Real-Time Analytics Traditional Analytics approach involves creation of transactions and recording them in OLAP systems. This approach has dependency on ETL, with shortcomings like multiple data copies and redundancy of data. Decisions and Actions from Traditional Analytics are based on old data. Real-time Analytics overcomes all the above limitations and provides instant insight into Live Data for actionable BI. Real-time Analytics involves collecting Real-time data, processing the data as it flows in, and building Reports and Dashboards on the processed data. Collecting Real-time data can happen through real-time transactions or live streaming. The key to realtime analytics is building transformations, doing calculations, integrating outside data sources and branching data to multiple destinations instantaneously in Real-time. Once the data is processed, Reports, Dashboards and Ad-hoc queries can access it instantaneously for visualization. Real-Time Analytics L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 3 of 9

4 3 Real-Time Analytics in S/4HANA SAP S/4HANA provides a real-time analytics platform, using an in-memory database. Organizations can combine large data sets from their operational systems and other sources, and perform complex queries in real-time at a high speed. Real-Time Collection of Data For Real-time Analytics, there is a business need to use the pull Technology as soon as data is available in the Transactional database. Business transactions that are directly created in S/4HANA are readily available for further processing. However, to integrate data from other sources for Real-Time Analytics with Pull Technology, SAP provides Smart Data Streaming (SDS) based on HANA platform. SAP HANA-based SDS applications will enable incorporating real-time event stream processing and complex event processing in order to: Collect event data streaming from any number of live sources. Actively monitor incoming data for real-time situation detection, generating alerts/notifications or immediate response. Continuously compute and publish operational statistics, KPIs and indices, and streaming data to live operational dashboards. Some of the business applications that take advantage of Smart Data Streaming are: Sensor Data from Equipment: This is monitored for trends or correlations that indicate a problem, alerting an operator to take immediate action before equipment damage occurs. A Commodity Pricing Application: This continuously adjusts quoted prices in response to market conditions where delays mean either lost business or lost profit. Processing Data as it Flows In traditional Data Warehousing applications, Transactional and Master Data get replicated into analytical systems from transactional systems. For performance improvements, this data is aggregated or indexed in persistent format. For processing data as it flows, we need to build transformations and calculations instantaneously after real-time data collection. This is achieved in S/4HANA through a logical layer on top of transactional tables. To build this logical layer, S/4HANA provides deployment of Calculation views, which allow complex transformations and calculations on-the-fly. The calculations can be further standardized and maintained in the form of a decision table in S/4HANA. Business rules are embedded into Decision Tables, allowing L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 4 of 9

5 real-time calculation. Business rules within Decision tables are segregated from the logical layer, thus ensuring design flexibility. Visualize Real-time Analytics in S/4HANA is based on this logical layer. It enables support to large strategic and tactical user queries, and at the same time for Visualization. This further empowers business community to build their own analytics without depending on IT, thus significantly increasing response time for business questions. 3.1 GRIR Monitor Business Example of Real-Time Analytics in S/4HANA S/4HANA provides packaged HANA Live for processing data as it flows. This enables users to visualize and analyze transactional data in Real-time. HANA Live contains predefined, unified virtual Data Models that are tailored to analytical applications. BI tools like Design Studio and Lumira can be used to consume these models. This output is available within SAP S/4HANA and the user does not need to leave the application. Custom requirements that are not met by HANA Live can be built by creating own views and information models in S/4HANA. Business Case for GR/IR Monitor Let us take the example of GRIR Monitor, which is a prebuilt HANA Live model and offered as Real-time operational Analytics in S/4HANA. GR/IR clearing is always a pain area for clients in traditional SAP solution. This has been a time-consuming process, since the data is available in multiple transactions and reports between Materials Management & Finance. The user had to switch from one screen to another, to clear the Invoice against goods receipt. This severely limits the ability of business to analyze unmatched invoices. As a result, Vendor Invoices are not booked on time and payments are not made, resulting in loss of discount. It also results into wrong payments. Business Benefits of GR/IR Monitor Real-time Analytics, in the form of GRIR Monitor, displays all the information on a single screen that is related to unmatched items, as well as the reason for the difference. This significantly improves the ability of a business to analyze and take corrective action. Building GR/IR Monitor In S/4HANA, building GR/IR monitor is as simple as consuming relevant, prebuilt HANA Live views through a Design Studio or Lumira application. Building GR/IR Monitor L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 5 of 9

6 Watch-Outs It is necessary to watch out for Data Growth before building Real-time Analytics. An archiving strategy with SAP HANA and Hadoop can provide the right combination of performance & cost, and yet meet the objectives of Real-time Analytics. 3.2 Advantages of Real-Time Analytics on S/4HANA From a business value perspective, Real-time Analytics on S/4HANA creates unique opportunities to reinvent business models and drive new revenues and profits through Actionable BI on Live Data. From an IT value perspective, enterprises can now reduce their data footprint and work with larger data sets in one system, saving hardware and operational costs. L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 6 of 9

7 4 Conclusion Real-time Analytics on S/4HANA provides Real-time Data Access and Instant Insight into Live Data. A single environment for transactions and analytics ensures ability for quick and informed decision-making to business and reduced infrastructure and operational cost for IT. L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 7 of 9

8 About the Author Pushkar Deshpande has 18 years of experience in the SAP space and works as Practice Head in L&T Infotech. He has worked with Global Multinationals, providing SAP Services in USA, Europe & APAC regions. Pushkar s experience ranges from building Analytical Frameworks and Solutions, Strategies for large databases and Upgrades & Rollouts. L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 8 of 9

9 About L&T Infotech Larsen & Toubro Infotech is a global IT services and solutions provider with presence in 23 countries. We solve complex business challenges at the convergence of digital and physical with our real-world expertise and client centricity. We enable our clients to build innovative business models, enhance operational efficiencies and create captivating customer experiences. L&T Infotech Proprietary Real-Time Analytics on S4/HANA Page 9 of 9

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