Future of CRM planning and reporting at Kellogg Rapid Migration to an Accelerated-TPM (BW on HANA)
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1 Orange County Convention Center Orlando, Florida June 3-5, 2014 Future of CRM planning and reporting at Kellogg Rapid Migration to an Accelerated-TPM (BW on HANA) Session code: 0512 Gina Newton Kellogg Company Arvind Bhaskar TekLink (implementation partner)
2 Agenda Kellogg s journey with TPM (Trade promotion management) Why Accelerated TPM/ HANA Pain points with current solution Motivation to move to A-TPM Project details & approach Technical components Accelerated TPM architecture Detail project scope Lessons learned -Wave 1 Technical design Wave 2 Lessons learned Wave 2 Key takeaways
3
4 About Kellogg s 30,000 Kellogg employees worldwide Approximate employee numbers by region: 18,000 North America 4,000 Latin America 6,000 Europe 2,000 Asia Pacific
5 IT landscape at Kellogg s Heavily invested in SAP software ECC (multiple instances) SAP BW CRM APO (Demand planning, SNP, TP/VS) EPM 10 (BPC) SAP BusinessObjects Windows 7, IE 9, Microsoft office 2010 Large user-base for SAP ECC, BW & CRM 29 manufacturing locations (North America) 50+ distribution centers (North America) TP/VS - Transportation Planning/Vehicle Scheduling, SNP supply network planning
6 What are Trade Promotions? Trade Promotions are incentives paid by consumer goods manufacturers to retailers for merchandising support Manufacturer Retailer Consumer TPM At Kellogg s - company s total promotional expenditures represented approximately 40% of 2012 net sales* *Source: Kellogg annual report 2012
7 Our Journey with TPM in North America CRM 7.0 Implementation Brand new TPM implementation in 7.0 for North America using Web Interface Implemented Trade Claims and Trade Funds Management Heavily integrated with ECC system Moved SVP (sales volume planning) from a BPS solution to BW IP Built a front end user input screen for Off Invoice pricing entry at the Chain level 2013 CRM Lite Moved from a one size fits all solution to a tailored solution based on account size Streamlined a promotion for simplified data inputs Upgraded CRM to EhP 2.0 Purchased HANA licenses and hardware for new BW environment Amazon Web Services to host development and quality environments on the cloud Migrated all CRM Planning objects to a dedicated BW environment built on HANA Accelerated TPM solution Excel Front End interface Dashboards A-TPM on HANA Kellogg s used an older version of SAP CRM from
8 TPM process at Kellogg's CRM -UI TPM BPS A-TPM PAK Corporate BW With BWA attached Analysis office (BI-IP) Off-invoice conditions FUNDS LE* CRM Funds TPM Base Volume Promo P&L LE* A-TPM Budget Sales Price Price Sales CO-PA B1P ECC APO BPS functions SAS Budget BPC Forecast B3P BW on HANA LE* -Latest Estimate BPS function reads TPM data in addition to funds & LE table to calculate LE
9 Pain Points with current TPM solution Performance: Unable to plan large promotions (long duration / large number of products) without adversely affecting system performance Poor Speed after pushing a button, switching screens etc Number of promotion statuses slows down work in the system System complexity drives decline in performance increasing the time required for planning Users open up to 6 parallel sessions to multitask/get around the performance issues. Live-reports (i.e reporting on real time cube) are slow User Interface: Too many promotional inputs for shipment/smaller accounts Too many actions required in the planning layout
10 Motivation to move to A-TPM & HANA Decrease the time spent by AEs (Account Executives) on the system & more time in the field Gain the capability to plan large promotions without compromising performance Pre-requisite for TPM Excel Front End Interface Significantly improve performance of live-reporting ( reporting off of real-time cubes) Meet SLAs for Overnight Reporting on a consistent basis Establish the platform to improve performance of: Base volume planning (BI-IP layout) Latest-Estimate calculation engine Sales (actuals from CO-PA) dataload
11 What is Accelerated TPM? Accelerated TPM Integration to BW-IP Based Planning SAP standard planning infrastructure HANA (in-memory) integration for faster performance Completely new planning architecture Enabler for Excel Integration New Features for Usability: Streamline Trade Spend maintenance in layout Ability to hide columns Maintenance at all time periods down to day
12 Excel frontend(a-tpm): Usability improvements 4/14/ Standard SAP Real Time Integration Intended for Simple Planning (Statistical & Lite Promo) Integration to Reports within Workbook Account Search Search for Promotions on Right Pane Results are brought back into main worksheet Promotion Name, Plan/Ship Dates, Status can all be modified Ability to copy a promotion
13 Scope- Accelerate TPM + BW on HANA Improve Usability and System Response Times How? Wave One: Implement BW 7.3 on HANA Brand new HANA appliance Dedicated Planning BW environment for CRM BW 7.3 (Latest Version) Migrate all Planning Objects from B1P to new HANA BW resulting in increased load processing times and speed improvements to Live Reporting Wave Two: Accelerated TPM Replaces old BPS technology used by our current Planning Layouts with PAK Improve the usability & speed of the Planning Layouts Enable Excel based Planning for selected promotion types Consolidate promotion planning and reports within one workbook
14 Driving Innovation HANA,A-TPM & Cloud New Vendor AWS New Technology AWS- Amazon Web Service CRM HANA A-TPM Leading Development in the Cloud Leading Hybrid Environment Production On Premise Leading Amazon (AWS) HANA Bleeding
15 Business benefits Area Wave One Wave Two Load Performance Reporting Performance Promotion Planning Performance General Redesign Optimized further in Wave 2 by Data Model Live Reports Immediate Improvements A-TPM Replaces BPS, Excel Evaluating Further Optimizations to backend architecture
16 Timeline Q Q Q Q Q3 14 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul CRM Upgrade UAT Go Live April 7th Wave One UAT Enables HANA / A-TPM add-in Wave Two Foundation for Wave 2 Enhanced Performance to Live Reporting Improved Processing Times for Overnight Reporting Speed Improvements to Planning Layouts Optimization: Calculation engine, or L Estimate, Overnight Reporting Excel Planning
17 Implementation Details
18 Why SAP Accelerated Trade Promotion Planning? Challenges with traditional TPM: Business Planning and Simulation (BPS) based planning 10 year solution now in maintenance mode Complex infrastructure to maintain Proprietary intermediate planning layer non-compliant to standard SAP planning Slow performance Inability to scale with voluminous data
19 Challenges addressed by - Accelerated TPM Process Business process rich in functionality Solved with Flexibility Highly customizable New and Improved User Interface Planning Applications Kit (PAK) Scalability Large promotions 7X Day level planning HANA
20 Solution Overview Accelerated TPM Three-tier application architecture built on HANA Leverage the strengths of each layer to address specific challenges Presentation Layer Business Logic Remote Connectivity Application driven APIs Planning Infrastructure Data CRM BW HANA
21 Key Features Accelerated TPM
22 Key Features- Accelerated TPM 1/4 Performance 1 Source: SAP presentations 2 Source: Runtime achieved in test environment at Kellogg
23 Key Features- Accelerated TPM 2/4 Flexibility Allows to plan on multiple date ranges in one single layout Example different Ship & plan date ranges Enhanced customization capabilities due to event mechanism Several new BAdI s to influence various aspects of plan data processing Allows different distribution types per key figure in the same query Excel client extensibility
24 Key Features- Accelerated TPM -3/4 Reporting More accurate reporting as a result of Day-Level planning e.g prices at day-level Day-level data allows minimizing mismatch between financial-calendar & Sales-calendar, allowing more accurate tracking against budgets Data aligned between reporting and planning grid Reporting on non-aggregating key figures (e.g. prices) is now possible
25 Key Features- Accelerated TPM -4/4 Reduced TCO (Total cost of ownership) Implementation :Simplified Stack No separate BW Accelerator (BWA) is required Many hidden benefits of HANA for support team (covered later) Unified planning tools TPM now uses BW PAK (Planning applications kit - HANA), BI-IP Benefit from future enhancements Re-use resource BW resource pool Use of known BW tools such as Bex Query Designer Allows for a larger resource/talent pool
26 Demo Demo Demo
27 Demo Map A-TPM (CRM-UI) Adjust trade spend to control P&L impact & objective Enter discount/spend at totals-level User reviews the impact on Promotion P&L (What-if-analysis) System distributes the discount to individual SKUs/Days
28 Accelerated TPM project at
29 Project Scope Project conducted in 2 Waves Wave 1: Bring up a new BW-on HANA environment (7.31 SP9, HANA 69.03) Migrate TPM + CRM related objects to new BW-on HANA box Switch CRM-TPM façade to new-bw system Move CRM users over to the new BW box Wave 2: Create new planning objects & input-ready queries in BW (for A-TPM) Configure promo-types in CRM to use Accelerated TPM Re-design CRM BAdIs, planning layout etc. Switch CRM-TPM façade to use in memory planning DSO Create/Modify BW datamodels to include in-memory DSO for reporting and planning functions
30 Wave 1 - details Migrate (transport) all TPM related objects to a new BW-on HANA environment Build data-marts for Sales-data from main-bw box to CRM-BW- HANA box TPM planning using BPS layouts pointing to BW on HANA box Build dataflows to source master-data & transaction data directly from CRM into the new BW-on-HANA environment Optimize transformation to run on HANA (ABAP hints) Optimize queries for HANA & 7.3 Unit test & UAT Cut-over and sync deltas
31 Wave 1 object count The below table will help appreciate the effort required to move & test, given the sheer #-of-objects Description Technical type # of objects Base Infocubes CUBE 25 Infoobjects IOBJ 500 Multiproviders MPRO 15 Data store objects ODSO 16 Transformations RSDS 98 ABAP Objects ABAP 20 ABAP tables TABL 5 BPS objects BPS0 15 Process chains RSPC 50 Queries ELEM 250 DTPs, Infopackages RSBK 200 Datamart datasources VAR1 10 CRM datasources VAR1 95 ECC datasources VAR1 50 Total 1349 Required approx 200 transports
32 Lessons learned (Wave I) 1/3 Wave I Move CRM-reporting & planning to new BWon-HANA box Moving to BW-on-HANA(7.31) from BW (7.X) is an similar to an upgrade buried-in the project Testing & UAT took 4-5 weeks Build performance testing into plan for queries on BEx Web on JAVA runtime esp. support of new versions of Internet explorer Field-routines have to be adjusted to gain performance ABAP hints have to be introduced in transformations Web-Java templates behave differently in 7.3. require adjustments Substantial time required to patch HANA, OS etc
33 Lessons learned (Wave 1) 2/3 Wave I Move CRM-reporting & planning to new BW-on- HANA box Apply OSS notes (we applied 15 on 7.31 SP9) don t underestimate the effort & skills required to research issues Check Lock-settings on planning cube & basis setting (shared memory & locks) on new-box Pay attention to performance & behavior of BPS functions Write programs to aid with verification of objects, transport etc Use APD (analysis process designer) as tool to tie out data & explain discrepancies
34 Lessons learned (Wave 1) 3/3 Move CRM-reporting & planning to new BW-on-HANA box DO NOT Underestimate the effort required to: Develop cut-over plan. It takes a lot of effort and know-how & prior experience to come-up a workable plan Work with business earlier to arrive at a cut-over date (has to take business calendar, maintenance window etc into account) Switch security, users, planning workbooks to a new box Load data from old-bw to BW-on-HANA takes a long time (because of RFC load on old-bw box) Synching delta & dataload dependencies - takes planning & multiple iterations Prove-out that data-matches exactly At Kellogg Dev & QA systems are on Amazon cloud. Mock & production are on-premise. This brings its set of own challenges
35 Sneak peak into Benefits Wave I Able to Meet Daily SLAs for overnight-reporting Load completes on HANA box by 4 AM vs 8-10AM in the old environment 2X overall improvement in dataload, can be further tuned to take advantage of IPAK & HANA capabilities Live-reporting (i.e based on Real-time cubes) 10X faster - approx 2 min (complex OLAP calculations) vs 15 mins in old box. Further improvement possible with HANA calculation view & composite provider In BW 7.4 frontend UoM conversion likely to available -SP8 Real-time cubes (TPM-BPS infrastructure) are now in-memory. BWA used to crash when real-time cube were put on BWA. List-cube 100X faster reduced TCO for support & helps speed of issue resolution BW-7.3-on HANA box offers a phenomenal platform for future-example dashboard coming soon as part of related project
36 Wave 2 Accelerated TPM
37 Wave 2 Accelerated TPM Scope: Wave 2 Build DSO for in-memory planning Develop planning functions & other planning objects Optimize characteristic derivations to run on HANA (SQL scripts) Develop Logging BAdI (SQL script on HANA) Build CRM A-TPM to DSO planning input-ready queries Optimize dataflows for overnight-reporting Design combined reporting (history & new A-TPM promotions) Excel planning workbooks for CRM-A-TPM Unit test & UAT Cut-over and sync data
38 Wave 2 Modeling Single Provider (TPM) for save Planning DSO mandatory Master query Dependent query Read query Fox for cell updates Multiprovider (TPM+Baseline) Fox for Baseline retrieval CRM BAdI 6 BAdIs available
39 Wave 2 Lessons learned so far 1/3 Only Planning DSO only is supported by A-TPM Apply OSS notes/latest support pack for Compoundcharacteristic derivation to work correctly. Was a major bottleneck for us Activate all the standard-planning functions stated in the customizing guide Pay attention to notes on Shared memory and be sure to clear the metadata from Shared memory during development Review OSS collective note on planning application kit regularly & carefully. USE HANA optimized functions/ features wherever possible.
40 Wave 2 Lessons learned so far 2/3 Get access to HANA studio at the start of the project. Considerable effort to set-up roles, frontend client etc Code Characteristic derivation using SQL scripts on HANA. This could be 30% of the total runtime & significant performance gains can be expected by moving this to HANA Use Logging BAdI (executed using HANA script) to capture deltas for overnight reporting or change-log reporting With the advent of BI-Rates (only BI rates can be used in Excel planning)- custom development required for Capturing the changes to planning values (use logging BAdI) BW solution required to replace any ABAP report used to compare OI (Off-invoice) rates in CRM-Rates-table with Condition table
41 Wave 2 Lessons learned so far 3/3 Plan to update the support pack level to latest release for BW. Planning on DSO is a new feature & corrections are released frequently Plan to apply HANA patches frequently. Plan to apply OSS notes. We applied close to 35 OSS notes for planning to work correctly Be sure to include characteristic derivation in prototype Issues with locking. Use restriction on CRM Marketing element in the global filter
42 Conclusion
43 Accelerated TPM & TPM can co-exist At Kellogg, we will use a mix of BPS (traditional TPM) and accelerated TPM BPS & A-TPM scenarios can co-exist
44 KEY LEARNINGS Set realistic expectations about HANA performance with users & top management. OLAP & frontend functions only marginally improved over BWA. Invest in a resource to build a methodology to measure the performance improvement from the beginning of the project. Migration to BW-on-HANA is a upgrade project buried in the effort. Do not underestimate the effort required to test, reconcile data & cut-over Be agile & flexible to apply BW, CRM, JAVA & HANA support packs for A-TPM implementation. DSO planning is new & OSS notes are released frequently
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46 THANK YOU THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 0512 For ongoing education on this area of focus, visit
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