According to McKinsey, Retailers who embrace the "Big Data" opportunity could increase margins by 60%. SAP HANA is a key enabler for doing this.
This blog is a collection of questions about SAP HANA usage in Retail that I hear being frequently asked - questions about what it is (and what it's not), how it can be used for real benefit, and what makes it different. It is written with a specific audience in mind - IT people who work in the Retail sector that need to try and explain this "SAP HANA" thing to some of their non-techie colleagues!
For IT people who want more, there is an excellent general SAP HANA FAQ blog that deals with the technical know-how by John Appleby.
1) What is SAP HANA?
See Experience SAP HANA for more information.
2) Why is it important to Retail?
3) What are the typical use cases?
Check out the use cases on Experience SAP HANA for more examples.
4) What is "big data"?
"Big data" is a term used to imply an environment where applications need to process larger than normal amounts of information - generally much larger than are typically found in ERP scenarios. The exact size is not specified, and changes as time goes on. Right now "big data" for most people is probably measured in pB, but could sometimes be measured in tB, depending on the industry and application considered. Examples of "big data" could include:
5) How "big" can SAP HANA go?
SAP HANA can't (currently) manage the kinds of data that are generated by CERN in its big experiments - around 18tB per minute. However, it can manage the kinds of data volumes that are generated in many retail scenarios, such as:
6) Who's using SAP HANA at the moment?
Lots of organisations globally, including Lenovo, BASF, Cisco, Colgate-Palmolive, Procter and Gamble, Bosch and Siemens
7) What can SAP HANA do that others can't?
The amount of data that SAP HANA can handle gets bigger every month, but the key thing SAP HANA does that is different from its competitors, is to process this data fast. So for any scenarios where timely / real time insights based on a large volume of underlying data are key, SAP HANA presents a compelling proposition.
😎 Is it about steady insight or deal shaping?
Both. SAP HANA can deliver steady insights across a very large stream of events, directing these insights to the relevant person. And it can also bring together large amounts of data quickly to influence a deal or offer in real time - for example in a multi-channel consumer environment.
9) As a retailer, what is the impact of NOT implementing SAP HANA?
Other solutions that handle "big data" are available - and many have been around longer than SAP HANA. Most retailers will have one or more of these solutions in place already. So not going for SAP HANA will enable Retailers to carry on as usual. In this case, the major risk is that competitors will use SAP HANA to their advantage. How much of an advantage depends on the retailer, the maturity of the sector in which it operates, and the maturity of the consumers it serves. For environments where there are a lot of empowered consumers, with a mature online channel, where margins are under a lot of pressure, the advantage could be significant.
10) Is SAP HANA specific enough for Retail?
It's relatively early days yet for SAP HANA, but already there are a number of Retail-specific use cases that make it worth considering seriously. Especially if there's a real need for "Big Data" combined with fast processing
11) How can SAP HANA help increase margins?
All of the applications mentioned above can help increase margins - by as much as 60% if you believe McKinsey. Which prize to go for first depends on maturity. For all Retailers, rapid inventory analysis to manage stock levels more closely will have a business case, as will basket / affinity analysis. For retailers in the more developed markets, applications targeting mobile consumers with offers in real time will have a business case that may be more difficult in less developed markets.
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