If, when, why, and how to
use SAP NetWeaver BI
analytical content to assess
and improve sales and
distribution processes
Dr. Bjarne Berg
© 2008 Wellesley Information Services. All rights reserved.
Introduction…
 In this session we will look at what ready-made content is
available with SAP NetWeaver BI 7.0 to assess and
monitor sales and distribution (SD) process performance.
 Pinpoint the best ways to leverage SAP NetWeaver BI
analytics for SD to improve processes for sales
forecasting, commission reporting, market-basket
analysis, cross-selling, customer segmentation, and
standardized formatted reporting.
 Learn how sales reps can get access to performance
reports through mobile devices.
 Learn how to use SAP information broadcasting alerts
and exception reporting to better track items such as late
deliveries, exceptional orders, nonstandard billings, and
unusual orders.
2
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
• Wrap-up
3
SAP BI Adaptation is exploding
SAP BI is now a Mainstream SAP Solution
Source: Zia Yusuf, EVP SAP, TechEd, 2007
There are now almost 25,000 productive SAP BI systems
worldwide, an increase of 3,250% in 18 months!!
4
BPM on a NetWeaver Business Process Platform
SAP NetWeaver is also a platform for developing and integrating value
added business processes. BI can be used to support complex scenarios
that increases sales and profits through process innovation and tighter
SCM integration.
BPM increasingly being used
to manage processes that
bridge multiple packaged
applications.
BPM is not only XI integration
and data movement, but also
how the data is being used.
This session focuses on the
CRM process, usage and BPM
integration, Not on XI.
Source: SAP AG, 2008
B2B
Non SAP
5
NetWeaver BPM tools
SAP NetWeaver has process and rules composer
tools that is used to define & implement complex
business processes.
In this session we will cover many new &
innovative CRM processes you should consider
as prime candidates to integrate with SAP BI and
these tools.
In the current release of BPM these features
are pre-delivered:
1. Human Workflow Patterns:
Task management (claim, complete)
Sequence flow (including data flow)
Decisions (XOR)
Parallel branch & merge (AND)
Deferred choice (eventing)
Exception handling
Nested (sub-)processesService
Processes
2. Service Orchestration
Enterprise service consumption
Sequencing of automated activities
Exception handling
Eventing (intermediate events)
Event correlation
Source: SAP AG, 2008
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BPM on SAP NetWeaver
Business processes are
becoming increasingly complex,
integrated and comprised of
more and more partners.
Intelligent Process Automation
must therefore be developed to
provide a close link between
the analytical (SAP BI) & the
transaction systems
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Source: SAP AG, 2008
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
8
What can SAP BI do for my Sales BPM?: Pre-Sales Activities
Before the sales meeting, the
SAP BI system provides a
Customer overview file(s):
Customer's profile & financial
information
Past due payments
Customer complaints logged in the
system
Previous period shipping problems
The customer's orders in progress
Cancelled orders
Returned items in the past,
Unearned discounts taken
Target sales
Suggestive products, prices &
'deals'
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Payment
Billing
Delivery
The basic data is inside SAP BI and a set
of process rules determine what is
needed, who have access and how/when
it is delivered (pdf, web, print, portal etc).
What can SAP BI do for my Sales BPM? - Order management
The sales staff are pushed
customer's order activities.
BEx Broadcasters sends email
notifications about unusual
events or series of events I.e.:
Unusual orders (high volume, low
price, short delivery time)
Cancelled orders
Tracking special customer's orders
Tracking contracted sales
Individual sales rep requests for
order notifications
Early demand shifts: Increased
order volume for particular items.
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Payment
Billing
Delivery
What can SAP BI do for my Sales BPM? - Inventory
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Dashboards for workers & SCM
leaders
Improved transportation & logistics
planning with SAP Advanced
Planning & Optimization (APO)
Web tracking of all inventory
movements available to customers
& partners (UPS, FedEx & Amazon)
Instant mobile access to inventory
data by sales reps in the field
Dynamic pricing based on aging
inventory & demand spikes - Done
by airlines, car rental and hotels
why not you?
Payment
Billing
Delivery
What can SAP BI do for my Sales BPM? - Inventory
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Payment
Billing
Proactive delivery management using SAP BI
Notify customers about delivery problems before they
contact you - BEx Broadcaster
Manage shippers and their on-time, on-cost, delivery
performance - SAP BI scorecards
Improve on-time delivery by predictive modeling based on
past performance - SAP BI Analysis Process Designer (APD)
Create external facing dashboards for your key customers
and partners, providing them insights into the supply chain SAP BI Visual Composer & Web Application Designer
Delivery
What can SAP BI do for my Sales BPM? - Billing
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Payment
Billing
Externalize billings and provide insights
 Customer can manage their own accounts (SAP Portal)
 Invoiced electronically - no paper, email/fax (SAP Portal)
Access old statements and invoices (SAP BI)
Dispute billings electronically (X-Apps)
We can do detailed profit analysis on billing condition
data (SAP BI)
We can do statistical analysis & data mining on detailed
billing information (BI-analysis process designer - APD)
Delivery
What can SAP BI do for my Sales BPM? - Payment
Pre-Sales Activities
Sales Order Processing
Inventory Sourcing
Payment
Billing
Allow customers to set up accounts, credit lines,
banker's letter of acceptance, letters of credits,
electronic payments cards, automatic drafts,
check payments and pre-payments on-line.
Use SAP Portals to give customers secure access
and SAP BI for all account statements, reports
and loyalty programs.
Delivery
Available Standard CRM and SD Content
SAP BI content for SD and CRM has been developed over the last 10 years
and now have data stores for most content areas used in sales processes
Analytics
ERP Analytics
Area
Enterprise Sales & Distribution
Cross-Scenario Analyses
Industry-Specific Analyses
CRM Analytics
Entitlement Analyses
Service Analyses
Group
Enterprise SD
Installed base Analysis
Activity Analysis
Case Mgmt Analysis
Billing Engine Analysis
Incentive & Commission Mgmt
CRM Incentive & Commission Mgmt
Customer Relationship Mgmt for Retail
Pharmaceuticals
High Tech
InfoArea: Channel Sales Mgmt
Consumer Products - Sales & Trade Promotions
Consumer Products - Syndicated data
Consumer Products - Assortment Agreement
Consumer Products - Category Mgmt.
Entitlement Analyses
Service Contract & Quotation Analysis
Warranty Analysis
Service Order & Quotation Analysis
Cost & Revenue Analysis
Case Mgmt Analysis
Planned Services Analysis
Strategic Service Planning
Timestamp Service Analysis
Infocubes
DSOs
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Don't start a multi-year SAP BI project for SD BPM.
Instead do a quick project that leverages standard content
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Available Standard CRM Content (continued)
Most of what your sales representatives are looking for (orders,
deliveries and billing) are in InfoCube SD_C03 - "Sales Overview"
Analytics
Area
Interaction Channel Analyses
Cross-Application Performance Analyses
Customer Analyses
Product Analyses
Marketing Analyses
CRM Analytics
Digital Asset Mgmt Analysis
Sales Analyses
Rebate Processing Analyses
Partner & Channel Analytics
Grants Mgmt for Grantor
Group
E-Analytics
Interaction Center Analytics
Cross-Application Performance Analyses
Customer Analyses
Cross selling
Product Analyses
Marketing & Campaign Analysis
External List Analysis
Lead Analysis
Business Partner Marketing Attributes
Market Exploration
Digital Asset Mgmt Analysis
Sales Planning Analysis
Activity Analysis
Opportunity Analysis
Sales Quotations & Orders Analysis
Contracts Analysis
Rebate Processing Analyses
Partner & Channel Analytics
Grants Mgmt for Grantor
Infocubes
DSOs
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There are 127 InfoCubes for user access with data extraction programs
and 108 Data Store Objects (DSOs) for CRM in SAP BI version 7.0. Use
these and focus on the process models & presentation to end users. 16
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
17
Key Inputs to real Sales Forecasts -Determine Customer Lifetime
Value
Do you know what a
new customer is
really worth longterm?
SAP BI can be used to
determine the total
Customer Lifetime
value (CLV) and build
this dynamically into
the forecasting
process.
I.e. a major US phone company, has determined that the lifetime value of
a customer is so high, that it can afford to give incentives (such as
checks up to $100) if key private customer is willing to switch companies.
Are you using customer life-time value, retention &
attrition analysis processes in your sales forecast?
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Key Inputs to real Sales Forecasts - What should you charge?
SAP BI is also used to track the price sensitivity of certain geographical
regions and customer groups. This type of analysis, called price elasticity
analysis, is often performed against the historical data in SAP BI in order
to determine the best price to charge for a certain product.
SAP BI models can also be built to monitor the effect of changes in pricing
strategies, i.e.. did we sell more widgets in France after we reduced the
price by 10%, or did a "clearance sale" have the intended effect.
This is often done in the food industry,
where the same product may be
packaged, labeled & priced differently,
while being sold in the same store.
BPM is a prime resource to help
answer such price analysis processes
Image Source: SAP AG, 2008
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Key Inputs to real Sales Forecasts - What must you charge?
From the other side, SAP BI can provide a
unified cost picture of all activities related
to a sale.
SAP BI can be used to evaluating minimum
sales price of each product, in each region,
and to designated customer groups.
This is frequently done at construction projects such as road and
bridge building, construction of utilities plants, as well as in sales of
commodity goods, where large overheads directly related to sales have
to be evaluated.
BPM and SAP BI can answer complex
analysis processes dynamically
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Key Inputs to real Sales Forecasts - Predict Customer Behavior
If we know which customers are likely to leave us for a competitive
offering, we can flag them for improved customer service or target
them for a promotional marketing campaign designed to keep them
as a customer.
The key is that SAP BI have the data to support analysis of complex
purchasing patterns over time.
If we know that a man under the age of 25, with an income less than
$35,000 who buys a Mercedes, is 1.8% more likely to default on his
loan than a woman in the same customer group, why should the
creditor not increase the interest rate by 1.8% to reflect the increased
risk?
SAP BI is the enabler of this type of analysis
(Hint: look at SAP BI Analysis Process Designer).
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Analysis Process Designer (APD)
Complex scenarios can be
built for structured analysis
such as risk modeling,
customer segmentation,
market basket analysis,
predictive modeling and
much more
Image: SAP
“New data” based on the
findings can be loaded back into
data targets and used by others
for reporting i.e.. CRM analysis.
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SAP BI & BPM - a Natural choice for Category Management
Category Management is the process of managing a category of similar
products across suppliers. 'Category Captains' (CM) are responsible for
everything from the product mix to the store layout. SAP BI Information
needed for category management includes:
Efficient Assortment, Efficient Promotion, Competitive Pricing Analysis, Product
Profitability Analysis, Shelf Presentation, Scorecard
With SAP BI, you can empower a CM with full responsibility for assortment
decisions, inventory levels, shelf-space allocation, promotions & buying.
With the SAP BI, authority & responsibility, the CM may be able to judge
more accurately the consumer buying patterns, product sales & market
trends of that category.
By emphasizing profits & sales for entire product groups instead of individual
items, CM encourage a longer-term, joint retailer-supplier focus without being
confounded by the complexity of analyzing 1000s of different SKU’s.
23
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
24
Incentive & Commission Process Management
Accurate and complete commission reporting
is critical to build trust in agency relationships.
SAP offers a package known as Incentive and
Commission Management (ICM) for CRM.
In SAP BI it is supported by the standard
InfoCubes:
 ICM - (0CRM_ICO1)
 Remuneration and Liability (0CRM_ICO1)
Jump-targets to show detailed BI analysis on
how the commission was calculated can be
added in any SAP BI query.
T-Mobile Deutschland processes over 2 million
commission checks each month with SAP ICM
(whitepapers.techrepublic.com.com/abstract.aspx?docid=273253)
25
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
26
Market basket Analysis with SAP BI & BPM
This is a type of analysis where the user is attempting to find out which
products are bought in combination, where should they be positioned
within the store, catalog or web site, and how much space they should
they have in your store, catalog, web site, marketing campaign etc.
Your analysis should also be designed to find:
The appropriate product breath (the number
of products offered)
The optimal product depth (the number of
items within the product breath)
The best product line extension (product
variety)
SAP BPM can help you answer product mix
questions dynamically & continuously
better than guessing and intuition can
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Using Market-Basket Analysis: Cross, Upgrade & Suggestive Selling
The world's largest on-line
bookstore, Amazon.com, uses
active market basket analysis to
suggest what you should also
buy (suggestive selling).
They can also offer special deals
to customers that are generated
automatically in sales processing
1. Do you know what your customers
are likely to also buy.
2. Do you know what to suggest to a
customer that buys any product?
3. Are you good at spotting new demand
trends & can price dynamically?
The banks are also good at
cross-selling products such as
VISA cards to high saving
account holders, & car loans to
good mortgage customers.
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Using BI for Cross-Selling
Delta is an airline, but through
market basket analysis, they
cross sell many other products:
- Hotel rooms
- Rental cars
- Activities
SAP BPM models can track
what customers are searching
for and what products are
logical compliments.
Cross selling and suggestive selling works, but composite
applications are needed to make it executionable
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Suggestive Selling
Suggestive selling started with waiters suggesting
what to order to the customer and have moved into
mainstream marketing rapidly, because it works…
Some banks in the US are already experimented with
pre-approving car loans, and sending out vouchers to
its prime customers a few months before their current
loan has been paid off (no application needed).
The bank has the customer's payment history and the customer's personal
information, and can, therefore, cross-sell its product through a push-strategy.
The bank does not have to compete for that same customer every time the
customer is making a new financial decision.
Does your SAP BI system tell you when your customer are likely to
make their next purchase and what you should suggest? - BPM rules
can be created to take advantage of existing data & knowledge
30
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
31
Customer Segmentation with SAP BI and BPM
SAP BI provides significant insights to your
customer behaviors and what drives profits.
BPM can analyze segmentation by
Sales volume
Sales amounts
Total sales (-returns and complaint costs)
Total profitability
Sales growth and potential
Long-term customer value
Customer behavior such as reference customers,
early product adaptors and marketing customers
32
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
33
Integrate on-line access to formatted statements in your BPM processes
• Customizable font styles
(i.e.. bold, italic), colors, etc.
• Group-level changes with
individual formatting
• Layout options, e.g.: Height
of rows, width of columns
• Multi-line column headers
• Flexible field positioning
• Merging cells
• Support for hierarchies
• Rules for the presentation of
special characteristic values
• Integration of text, pictures,
and charts
• Header & footer for reports
34
BEx Report Designer 7.1, (last release in
2008) will be available under maximum
maintenance until 2016 and will be
replaced with the Crystal Light product.
BEx Report Designer In SAP BI
This SAP BI tool was created
to simplify the formatting of
reports and fix printing issues
in previous versions.
Use it to externalize customer
& partner information.
Source: SAP AG
You have color control,
header-footer control and many new features such as
35
location control of cells and integration of pictures, charts and fixed text.
Crystal Report a SAP BI tool to support BPM
• With BW you get access to Crystal reports. In fact you have many
pre-developed reports that comes with SAP-BW. Currently, you can
modify, or develop and deploy a few Crystal reports without
additional licensing cost.
• Crystal is a great tool for batch reporting of "pixel controlled'
formatted reports.
36
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
•
• Wrap-up
37
SAP NetWeaver Mobile 7.1
With SAP NetWeaver 7.1 users of mobile devices can carry out their tasks
without a connection to a back-end system. The required applications and the
user interface exist on the mobile device. Data is exchanged with the back end
during the synchronization. Supported SD & CRM scenarios include:











Track customer information remotely
Create and display orders in real time
Update new opportunities instantly
Improve pipeline visibility
Account Management
Sales order management
Opportunity management
Activity and task management
Product and Price Information
Surveys on handheld
Service Functionality
Source: SAP AG, 2008
What was cool 5-10 years ago are now expected
by many customer & employees
38
A SAP Mobile Application Example – Book a flight
This is accessing the backend system
using a handheld device and
searching the products catalog.
The available products can be stored
in ECC or in SAP NetWeaver BI.
For a sales application, you can add many search features
and also allow for pick-lists (drop-downs). But the trick to
fast processing is to keep it simple.
Source: SAP AG, 2007
39
A SAP Mobile Application Example – Look up products
After the search
results is returned,
you can allow the
users to access
more product
information.
Since these screens are used frequently, you should
keep them free for graphs, images and other high
bandwidth features.
Source: SAP AG, 2007
40
A SAP Mobile Application – Data Entry & confirmation
For rapid data entry, keep
the required fields to a
minimum.
You should pre-fill as much
as possible based on:
 User log-on
 Previous navigation
 Previous purchases
 Pre-defined “user preferences”
Since External users cannot print from the PDA and
Mobile phones you should also offer to email
confirmations on the last process screen
Source: SAP AG, 2008
41
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
• Wrap-up
42
What Is BEx Information Broadcasting ?
It’s a standard part of SAP NetWeaver. It lets you send “reports,” BEx
queries, Workbooks, and Web Applications to a variety of recipients i.e.:
• Email addresses,
BW users, BW
roles
• SAP Enterprise
Portal Knowledge
Management
folders
• SAP Enterprise
Portal
43
Image: SAP AG
BEx Broadcaster: Exception Reporting integration in BPM
You can make BEx Broadcaster
send you an exception report
when an exception occurs or if
the system reaches a certain
level
We can make a query and
define any exception.
In this example we are
tracking the returned items
by customers.
If they return many items
we want to be proactive and
call them to ask why…
Making Alerts text based and Intuitive
Using the Central Alert Server, by selecting the distribution
type “Create Alert” and selecting the" Alert Category”, you can
also insert text from BEx Broadcaster into the alerts to make
them more relevant to the recipient.
What We’ll Cover …
• Introduction
• How to use BI in SD Business Process Management
• Core Analytics
Sales forecasting
 Commission reporting
 Market-basket analysis & cross-selling
 Customer segmentation
 Standardized formatted reporting

• Mobile Analytics
• Broadcasting and Alerts
• Wrap-up
46
7 Key Points to Take Home
• You need to be proactive and provide advanced services in SD and
CRM before your competitors act.
• You should plan for composite applications and don’t feel restricted
by the system boundaries and current capabilities.
• SAP BI is an integral part of the external facing partner community
and business processed, not just a reporting tool.
• Advanced analytics should be integrated in every step of the Orderto-Cash scenario to push target information, instead of relying on
users to log-on and ‘pull’ reports every day.
• Mobile computing is a key component of sales force automation.
Data should be available everywhere…
47
7 Key Points to Take Home
• Integration and BPM can take place in composite applications inside the
portal so that data transparency is enforced (users don’t care which
system provided the data).
• BPM is not just another way of linking the same old processes, but
instead BPM allows companies to provide new innovate processes that
adds value to the SD and the CRM experience -benefits to seller & buyers
• The key to success in BPM is to re-examine the old process scenarios,
decide on new capabilities, and creating a strategy for new technology
enabled processes.
“Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat”.
– Sun Tzu, The Art of War
48
Resources
COMERIT (Presentations, tutorials & articles)
www.COMERIT.net
The SAP Business Process Expert Community
bpx.sap.com
SAP Global: Next-Generation BPM on an Open Business
Process Platform presentation (need free registration)
http://www.sap.com/community/showdetail.epx?itemID=11665
SAP Global: Road Map for BPM and Event-Driven
Architecture (need free registration)
http://www.sap.com/community/showdetail.epx?itemID=8960
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Your Turn!
How to contact me:
Dr. Bjarne Berg
bberg@comerit.net
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