1. If, when, why, and how to use SAP NetWeaver BI analytical content to assess and improve sales and distribution processes
Dr. Bjarne Berg

2. 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.

3. How to use BI in SD Business Process Management Core Analytics
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

4. 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!!

5. 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

6. 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

7. 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
Source: SAP AG, 2008

8. How to use BI in SD Business Process Management Core Analytics
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

9. 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'
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).

10. What can SAP BI do for my Sales BPM? - Order management
The sales staff are pushed customer's order activities. BEx Broadcasters sends 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.

11. What can SAP BI do for my Sales BPM? - Inventory
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?

12. What can SAP BI do for my Sales BPM? - Inventory
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

13. What can SAP BI do for my Sales BPM? - Billing
Externalize billings and provide insights
Customer can manage their own accounts (SAP Portal)
Invoiced electronically - no paper, /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)

14. What can SAP BI do for my Sales BPM? - Payment
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.

15. 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
Don't start a multi-year SAP BI project for SD BPM.
Instead do a quick project that leverages standard content

16. 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"
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.

17. How to use BI in SD Business Process Management Core Analytics
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

18. Key Inputs to real Sales Forecasts -Determine Customer Lifetime Value
Do you know what a new customer is really worth long- term?
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?

19. 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 19
Image Source: SAP AG, 2008

20. 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 20

21. 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). 21

22. 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
“New data” based on the findings can be loaded back into data targets and used by others for reporting i.e.. CRM analysis. 22

23. 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

24. How to use BI in SD Business Process Management Core Analytics
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

25. 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)

26. How to use BI in SD Business Process Management Core Analytics
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

27. 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

28. 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
The banks are also good at cross-selling products such as VISA cards to high saving account holders, & car loans to good mortgage customers.
Do you know what your customers are likely to also buy.
Do you know what to suggest to a customer that buys any product?
Are you good at spotting new demand trends & can price dynamically? 28

29. 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 29

30. 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

31. How to use BI in SD Business Process Management Core Analytics
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

32. 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

33. How to use BI in SD Business Process Management Core Analytics
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

34. 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
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.

35. 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 location control of cells and integration of pictures, charts and fixed text.

36. 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.

37. How to use BI in SD Business Process Management Core Analytics
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

38. 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

39. 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

40. 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

41. 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 confirmations on the last process screen
Source: SAP AG, 2008

42. How to use BI in SD Business Process Management Core Analytics
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

43. 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.:
addresses, BW users, BW roles
SAP Enterprise Portal Knowledge Management folders
SAP Enterprise Portal
Image: SAP AG

44. 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…

45. 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.

46. How to use BI in SD Business Process Management Core Analytics
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

47. 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 Order- to-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…

48. 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

49. Resources COMERIT (Presentations, tutorials & articles)
The SAP Business Process Expert Community
bpx.sap.com
SAP Global: Next-Generation BPM on an Open Business Process Platform presentation (need free registration)
SAP Global: Road Map for BPM and Event-Driven Architecture (need free registration)

50. Your Turn!
How to contact me:
Dr. Bjarne Berg