Connecting to the Evolving Customer - CAR Webinar

Connecting with the Evolving Customer SAP’s Customer Activity Repository
Brian Cederborg, VP Consulting
June 5, 2015
Adesh Daryapurkar, Solution Architect
A Rizing Company
Agenda
1
About our hosts
2
/N SPRO – who we are
3
What is CAR?
4
CAR Case Studies & Use Cases
5
CAR Roadmap
6
Recommended Next Steps
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Confidential
2
About our hosts
Brian Cederborg VP, Retail and Wholesale Consulting
Brian h as led retail transformation p rograms a t o rganizations a cross North America including B J’s Wholesale Club, L oblaw Companies L td., a nd Brookshire Grocery Company. B rian h as d eveloped a n innovative a pproach to leveraging technology to b etter d rive retail b usiness value.
Adesh Daryapurkar Solutions Architect, Retail
Adesh is an SAP expert s pecializing in SAP Retail implementations, with operational experience at multiple retail c hains ( Loblaw Companies Ltd., Grainger, Chico's, TravelCenters of America, and G oodyear).
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3
/N SPRO - Who we are
THE TOP
is one of product development and consulting service providers across all of SAP’s
Retail and Wholesale software suite and the ‘ GO-­TO’ expert in the market …service provider priming multiple CAR implementations with large ($1+ billion USD in annual revenue) North American retailers
…certified service provider in North America for SAP’s Forecasting & Replenishment (F&R), sitting in on multiple industry consortiums
KEY PARTNER of the SAP Industry Business Unit, advising SAP and Retailers across t he entire breadth of t he SAP Retail s oftware s uite
With office locations WORLDWIDE
..and an aggressive geographical expansion plan
100
Completed over SAP implementations…
17
of SAP Implementation
experience…
YEARS
…with more than
specific 1O experience to SAP Retail …in more than
YEARS
30
solutions for…
COUNTRIES
OUR EMPLOYEES:
More than 300
Retail & SAP
…professionals worldwide
© 2015 /N SPRO. All rights reserved.
Turnover
of less than
5%
IN Q1 OF 2015
FINANCE
MERCHANDISING
SUPPLY CHAIN
Confidential
4
What is CAR?
An operational reporting and analytics platform
• HANA database software suite
?
?
?
A Retail-­specific toolkit for enterprise data management
• POS Data Management (SAP tool for collecting and auditing all inbound POS data prior to financial posting)
• Forecasting and analytics framework (DDF/UDF)
• Pre-­built HANA views (semantic and calculation layers) and database schema
• SAP Landscape Transformation (SLT) for data replication
• Pre-­built dashboards
An enterprise planning platform
• Database for all ‘consuming’ planning applications;; current applications include:
o
o
o
o
Promotion Planning
Assortment Planning
hybris Marketing
Additional 3rd Party
• Forecasting and other algorithms (e.g., real-­time inventory)
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What CAR is NOT?
A historical reporting platform
• BW still required in most environments
• BW and CAR ‘white listed’ to leverage the same HANA instance
?
?
?
• When to use CAR vs. BW for reporting is use case driven
A reporting (visualization) product
• An SAP or non-­SAP product required to ‘see’ the data for most use cases
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6
Why Consider CAR?
Speed
• Sub-­second response on most queries, regardless of data size
One data source for operational reporting and planning
• Disaggregated
• No replication of sales required
Attractive 3rd option for buy vs. build
• Pre-­built content
• Flexible to extend
Relatively simple to use and administer
Customer and multi-­channel data foundation
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CAR Requirements
SAP ERP (IS-­Retail)
• Master data
• Sales
• Inventory
Unique HANA instance for CAR
• Whitelisted to be deployed on same instance as BW
Installation of CAR / HANA suite of software
Recommended (for forecasting / analytics):
• 1-­2 years sales (can be daily aggregated;; TLOG not necessary)
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8
Active CAR Customers
North American Retailers in Realization or Live on CAR:
PGA TOUR Superstores
Brooks Brothers
Brookshire Grocery Company
Jo-­Ann Stores
Loblaw Companies
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9
CAR Current Use Cases
Loyalty
Multi-­Channel Promotion Planning & Execution
Assortment Planning
Operational Reporting
Customer Segmentation
Social Media Analytics
Shrink Analytics
…and many more
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10
CAR Loyalty Process Flow
Targeted Marketing Campaign
Insight & Analytics
SAP hybris Marketing
• Find the Customer to Engage
Best Offers
Rules Engine
Validate and Enrich Member
SAP CRM, L oyalty Mgmt
• Campaign: Drive Customer Loyalty and Increase M onthly Spend
HANA Offer View
Communicate Targeted Offers
• Targeted Offer
• Buy any Tide Product and Get 10% off and Earn 100 Points
Multi-­‐Channel Offer Repository
SAP CAR
SAP CRM, L oyalty Mgmt
• Email Blast
• Mobile
Selected Targeted Offers
Point of Purchase
Events & Offers
SAP Promotion Management for Retail
• General Offer Outbound
• Existing ERP Interface
• Marketing Content Export
POS, Web Channel
Shopper
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11
3rd Party Applications – Loyalty
Third Party Offer Management System
hybris Marketing
Target Groups
Digital Publishing
Offers
Offers
Target Groups
Target Group Tables
CRM
Campaigns + Events + Target Groups
Member Activity
PMR
Offer Enhancements
CAR
Load to Card Function
Customer Offers + Point Balances
POS
FM to Read View
Loyalty O ffer View
Member ID
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CAR Near-­Term Roadmap
Consuming Applications
• Functional enhancements for Assortment Planning, Promotion Planning and Planning for Retail
Technical Enhancements
• Multiple ERP systems connected to CAR (ways to distinguish data from various ERP systems if data are not harmonized)
• Support for dynamic tiering (to be able to store CAR data in non-­HANA environments for use cases that require long historical periods)
• More extensions to T LOG-­F
Functional / Content Enhancements
•
•
•
•
•
SAP Sales Insights (aka Affinity Insights)
Fiori dashboards and extensions
Lumira reporting
Extensions for SAP Fashion Management (FMS)
Omni-­channel enhancements o
o
Pricing repository
Available-­to-­sell for o nline p urchasing
2 Feature Packs planned in 2015
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13
CAR Longer-­Term Roadmap
Consuming Applications
• Merchandise Financial Planning
• Demand Planning
• Replenishment
• Allocations
Non-­SAP ERP Support
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QUESTIONS
Recommended Next Steps
Additional research:
• http://www.n-­spro.com/solutions/retail/car-­customer-­activity-­repository/
• https://help.sap.com/car
• http://events.sap.com/sapphirenow/en/session/15988
On-­site demonstration
Proof of concept
Talk with active customers
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Thank You!
Brian Cederborg VP, Retail & Wholesale Consulting
brian.cederborg@n-­spro.com
Adesh Daryapurkar
Solution Architect, Retail & Wholesale
adesh.daryapurkar@n-­spro.com
A Rizing Company
HANA
Database
•
•
•
•
In-­memory (removes I/O bottleneck f rom traditional disk)
Columnar vs. row-­based data storage for faster queries
Compressed (5-­7X)
Data stored at source level (no aggregrates);; no indexes required
Hardware
•
•
•
Separate cost from s oftware licensing
Can leverage any vendor on preferred list (includes all common enterprise hardware providers)
More expensive than ‘traditional’ database hardware (4-­8X)
Enterprise cloud option (HEC)
•
•
License software
Managed services s eparate – several providers, including SAP
Run-­time vs. Enterprise license
•
•
Run-­time – application specific, lower cost, s ome limitations (e.g., c annot c reate fully c ustom tables in HANA)
Enterprise – more expensive, only really required when need to make modification inside the HANA layer
Support requirements
•
•
HANA Studio training for creating HANA views
For development:
o
SQLScript to build / access HANA s tored procedures
o
XML to modify delivered CAR / HANA views
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POSDM
Sales audit application (POSDM Workbench)
• Verify / fix transaction errors / anomalies
o Incorrect master data (e.g., UPCs)
o Missing transactions
• Essentially the same product as contained in POSDM 1.0
TLOG-­F
• Flat structure for holding transaction-­level data
• Single source for all sales;; extensible and scalable
Channel and customer-­specific (as applicable)
Inbound interface from POS
• Standard if using GK or SAP POS
• Custom interface can be built for other POS systems (very common)
• Existing POSDM interface can be migrated if no changes
Data enrichment can be performed (as required)
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Demand Data Foundation (DDF) and
Unified Demand Forecast (UDF)
Pre-­built integration to SAP IS-­Retail to receive master data and cost
DDF is the ABAP-­based master data layer;; UDF is the analytics framework consuming the DDF data
Demand modelling
• Biggest consumer of CPUs
• Can model daily, but driven by business requirements
Demand forecasting:
• Characteristics:
o
Unique forecasted demand value plus accompanying info (e.g., prediction intervals, baseline, lifts) for an object (e.g., product / location), scenario ( date, price, offer, DIF), given configuration, based on a demand source ( e.g., sales)
Causal plus time series forecasting
o
o
Forecasts persisted to the database at the product / location / day / channel level
What-­if scenario analysis
o
Can build HANA views of the UDF forecast v alues to include into reporting
o
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Demand Data Foundation (DDF) and
Unified Demand Forecast (UDF)
Demand forecasting continued:
• Promotions:
o Promotional Causal Data
o Hierarchical Priors
o Holiday Ramp-­Up and Ramp-­Down
• Assortment Planning:
o
o
o
o
o
Reference Product Location
Placeholder Product
Location Clustering
Historical Inventory Information
Pre-­Season Projection
• Forecast Management Toolkit:
o Holdout Forecast
o Forecast Confidence Index
o UDF visualization dashboard
On-­shelf availability algorithm
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21
CAR Virtual Data Models (VDMs)
Delivered VDMs / HANA views:
• Sales Transactions (Customer & Channel-­Specific)
• Current Inventory Position
• Cross Company Stock In Transit
SQLScript and XML-­Based
• Flexible platform for modifications
VDM templates (reuse views)
• Can be copied and modified
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CAR Data Replication
Data replication framework
• SLT – application-­based replication (included in HANA suite)
• DRF Out – application-­based replication for consuming applications, like PMR (included in CAR suite)
• Data Services – data warehouse-­based replication (included in Business Objects suite)
Unlimited z-­tables / fields replicated to CAR with simple configuration
Time-­series data enabled through configuration
Requires unique server for each SLT and Data Services
SLT / Data Services can replicate SAP and non-­SAP data through simple configuration (e.g., JDA Intactix, Manugistics)
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Pre-­Built Dashboards
Multi-­channel sales analytics dashboards
• Fiori-­based
o Net Sales
o Gross Margin
More coming from SAP…
• Large focus for further development
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SAP Visualization Suite
Dashboarding
• Business Objects (BOBJ) Dashboards (former Xcelsius product)
Reporting
• Web Intelligence (WEBI)
• Crystal Reporting (higher pixilation / print properties)
Mobility
• Fiori (reporting and applications)
Data Discovery and Analysis
• BOBJ Explorer
• Lumira (more info-­graphics based;; can enrich data)
Statistical Modelling and Data Mining
• Predictive Analytics (create stored procedures)
• Infinite Insights (ad hoc data mining;; former KXEN product)
Can connect non-­SAP reporting platform if required
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