analytics powered by sap hana: e-commerce and utilities … · sap is-u consumption billing...

Analytics powered by SAP HANA: E-commerce and Utilities caseOur solution: FI-CA Reporting with SAP BW on HANALausanne, June 18th, 2015

© 2015 SAP (Schweiz) AG. All rights reserved. 2

Torsten Lechelt – Who I am …

• 2000 Risk Assurance team, Energy & Utilities, SAP IS-U expert • 2008 Global ERP leadership team• 2013/14 Secondment Amsterdam• 2014 Integration PwC Cundus• 2014 1st external IS-U training• 2015 Global Data Assurance Fellowship• 2015 Leading the German RAS D&A practice (Top 10 Use Cases)

• I sing bass in a choir, mostly baroque music• At the weekends, I drive a 1966 vintage car:

a Wartburg 312 (2-stroke).

Torsten Lechelt

GermanyMobile: +49 175 [email protected]


PwC and SAP HANA

2

PwC and SAP HANA

• 80 HANA and BW specialists in Europe, including in Switzerland;• PwC acquired “cundus” in 2014, • A strong SAP partner for HANA and BW since 2000;• Focus on the provision of integrated services (professional and

industry competence incl. implementation)

Members:

GermanyUSA

South Africa

AustriaBelgium

NetherlandsSwitzerland

United KingdomDenmark

Australia


SAP HANA – Our service portfolio

HANA

Phase 0: What is SAP HANA?

Phase 1: HANA ReadinessRefine scenarios and business cases

Phase 3: HANAlytics

Phase 2: RealisationSupport implementationprojects and auditing.

Get it off the ground

Business analytics with

HANA

HANA Realisation

HANA Readiness check

• Provide information on HANA technical basics

• Identify possible use case and scenarios

• Build and review HANA roadmap

• Once SAP HANA is installed, we define client-specific KPI/rule set based data analytics and reporting / dashboards.

• SAP and data model optimization

• Security and authorizations• Program and upgrade assurance• Controls redesign and transformation

• Value assessment• Landscape review • Controls assessment • Data assurance/SAP

optimization


Project approachBusiness analytics – as a service/as a product

Analysis outsourced (old-fashioned) way Implementation project (new trends)

Generating data extracts with ABAP Extractor or direct DB ConnectImport in external HANA solution Perform analysisProvision reporting(online/file reports)

external HANA solution

SAP system (Client)

Extractor (ABAP) Implementation of RDS

or individual solutions (SAP HANA Content) within client system environmentDefine and implement reporting cockpitAccompanying transfer to normal operations

HANA Content (PwC)

HANA Solution (Client)

Dashb.&Rep. Analytics Dashb.&Rep. Analytics Mobile


Challenges and solutions – project examples

Two project examples

a) As a service: Public Sector/Utilities - Completeness of revenues

b) As a product: Online Retail - Credit management


Business analytics – as a servicePublic sector/Utilities – process view KPIs (extract)

Example 1:

Public Sector/UtilitiesCompleteness of revenues


Business analytics – as a servicePublic sector – process view KPIs (extract)

SAP IS-U consumption billing

Payments Dunning processMeter reading, gathering consumption data

Master data maintenance Billing / invoicing

Down counting meter Business partner with-out budget billing

Business partner with sequential credit vouchers

Credit aging Business partners whose meters have not been read for a

long timeBenford (credit voucher)

Installation with lots of meter reading adjustments

Alternative payee for invoice / credit voucher

Bank account changes

Different business partners with same

bank account

Document changes after payment release

Analysis of offset account

Contract without meter

Manual adjustment of period consumption

Manual posting

Handling dunning charge

Dunning block analysis

Segregation of duties and four-eyes principle

New customer rewards

Differences in volume consumption (reported

versus billed) Tariff check – identify price outliers

Quality of meter reading


Business analytics – as a productOnline retail – credit management

Example 2:

Online RetailCredit Management


Business analytics – as a productOnline retail – credit management

Current situation Challenge Solution Benefit


Current situationIn contract accounts receivables and payables, the large amounts of data must be evaluated rapidly and flexibly.

Need to monitor permanently and to check the open and cleared items of the customers

Required evaluations take up to 10 minutes in ERP systems

In case of large volumes of data, ERP systems reach their limits, so that

flexible evaluations are no longer possible because of longer runtime

Retailer, telecommunication and energy industry companies regularly produce large numbers of invoices for provided services due to existing contractual relationships

FI-CA



Challenge



ChallengeLarge number of invoices -> impact on liquidity


1. Receivables from contract accounts represent the essential factor of company liquidity.

2. A large number of invoices and customers makes it significantly more difficult for companies to keep track of receivables, payments, reminders/dunning and collections.

3. Non-payment/bad debt risks can be hard to control.


Facts and figures of contract accounts German online retailer

Quantity structure • 200 million partner items in two years • 25 million business partners • 30 million contract accounts

Unusual complexity• Multi-country• Multi-currency

Evaluation/reporting• Most reports took up to 10 minutes in ERP system



Challenges and solutions – case studiesOnline sales (SAP BW on HANA) – areas of concern

Because of large volume of data, it is not possible to perform flexible analysis in the existing system environment

Data volumes vs. performance analysis

The clearing results for open postings in combination with payment method could not be provided in time

Posting clearance

No rating report on successful or failed payments (e.g. open items cleared by cancellation or by payment) as a basis for integral solvency check of clients

Payment behaviour (client)

Based on new reporting opportunities and structures, the risk of loss should be minimized through process and payment optimization

Risk of loss


Solution



Solution System architecture – before and after


Web-Shop

SAP ERP

(ECC)

FinanceDWH(SAP BW)

Logistik DWH(oracle)

SAP ERP

(FI-CA)

Web-Shop

SAP ERP

(ECC)

Logistik DWH(oracle)

SAP ERP

(FI-CA)

Before: Reporting just for logistical data

now: logistical and financial data warehouseprovide the full overview to business


SolutionOnline retail (SAP BW on HANA) – FI-CA credit management

Develop and provide analysis of open postings depending on time pattern (30-60-90 days) corresponding to dunning activities.

Provisioning reporting

Reporting supports better controlling of dunning activities and optimized options and instruments before legal dunning.

Optimization of dunning activities

Use of payment behavior relating to duration, dunning level and payment method to set up internal customer scoring.

Set up customer scoring


Solution

Text

Text

Text

Presentation of payment data

Presentation of open and cleared items

Provision of dunning activities

Provision of master data

Collections mapping

- Analysis of open, due and overdue items

- Presentation of receivables portfolio for each country and currency FI-CA

Reporting with SAP BW

on HANA- Incoming and outgoing payments and returns

- Business partner- Contract account



Benefit



BenefitsOnline retail (SAP BW on HANA)

Fast (<1sec.) and flexible reporting options on open and balanced postings.

Flexible reporting

Comprehensive analysis considering all relevant characteristics

Holistic approach

Minimization of risks through early identification of payment trends

Early risk detection

Targeted management of cash collection based on daily data

Process control optimization

Flexible customer segmentation offers real-time and specifically-oriented actions.

Target group optimization



OutlookFI-CA reporting with BW on HANA can refer to scoring values from Credit Risk Management

• Integration with Credit Risk Management (scoring values) and BW

• Integration with external information (credit reporting agencies or socio-demographic factors)


FI-CA (SAP ERP)

SAP BW

Credit Risk ManagementBetter management of credit risk or payment

behaviors helping to save time and costs.


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© 2015 PwC. All rights reserved. In this document, ‘PwC’ refers to PricewaterhouseCoopers AG which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. .

Torsten LecheltTel: +49 30 2636-5579E-mail: [email protected]

Wolfgang StormTel: +49 30 2636-1700E-mail: [email protected]

Contacts

Barry FranckTel: +41 79 470 6966E-mail: [email protected]

Antoine WüthrichTel: +41 79 613 2923E-Mail: [email protected]

analytics powered by sap hana: e-commerce and utilities … · sap is-u consumption billing...

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