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HANA tangible business benefits.pngIf you think SAP HANA’s superior technical performance interests only the IT organization, the architects and geeks, then I appeal to you to spend the next 2 min reading this short blog. Having spent the last two years working closely with firms evaluating and adopting HANA, I feel it is my responsibility to state published facts that will help you in eradicating such unfounded theories. The fact is that HANA has created tangible business benefits/value for organizations across the globe even within this short span of its existence since its global release. Early adopters have got significant business benefits by leveraging HANA and have differentiated themselves from others. Some are committing even more resources on initiatives based on HANA in addition to their initial investments. Let us now try and find out any tangible benefits that these early adopters have got and what is inspiring them to go for more. I want to share with you short snippets of 6 early adopters of HANA and what they say about value they realized from their HANA initiatives. These are drawn from business transformation studies done at these organizations. 

Provimi, a €1.5 billion Netherland based consumer products company, achieved what their CIO, Rogier Jacobs calls the 3-3-3 for HANA: in 3 days they completed proof of concept; in 3 weeks they were live and running and within 3 seconds they now run any Cost and Profitability analysis. Having done 3-3-3, they did ½ in 1: reduced working capital by ½ million euros in 1 weeks time. They have achieved 15,000x faster analysis and insights compared to before.

Usha International, a leading player in household appliance and consumer durables in India has implemented SAP Business Warehouse on HANA in a record 3 weeks time. This system has enabled them to reduce inventory by 50% facilitated by out-of-date inventory visibility and liquidation thereby saving the company on working capital and recurring inventory carrying costs. Just by changing their database for SAP Business Warehouse to HANA, they were able to compress their data by 9 times and 75% reduction in reporting and analytics.

ConAgra foods, a $13.3 billion US based consumer and commercial foods company reduced their month end financial close and forecasting cycle by 3 days and reduced transfer of material ledger data by 93% (7 hours to 30 minutes). They took just 4 weeks for implementing profitability analysis and 8 weeks for finance and controlling HANA solution leveraging rapid deployment implementation offering.

Nongfu Spring, a ¥10 billion based in China (leader in bottled water industry in China), has been able to reduce their monthly closing of accounts by 24 hours and run their production of freight account settlement report 2,335 times faster. 

YOKE Industrial Corporation, a NT$1.2 billion Taiwan based mill products company, implemented SAP ERP and HANA recently. They have been able to improve production by 10%, 26% reduction in days sales outstanding and increased orders from new customers by 40%

University of Kentucky, running on a budget of $2.68 billion, has been able to now get real-time information into student’s performance, run their reports 420x faster and to conduct predictive tuition and revenue modeling. They have a projected saving in annual IT costs due to HANA to be around $250000.  

These experiences should help you refine your thoughts about the impact SAP HANA can bring. And I believe that there will be numerous such examples given the tremendous adoption we are seeing for SAP HANA across industries. I honestly think it gives opportunity to organizations do things that were not possible before, get insights, answer questions that were not answerable before and take actions before the competition does. And all these result in sustainable business benefits and promote an innovation culture with the organization. It helps you to leverage your “data” as an asset and not think of it as a liability that it seems to have become due to the restrictions posed by traditional databases and architectures. Within SAP, there is a huge excitement about this innovation – the basis for intellectual renewal. And this excitement seems to be really infectious! Now enrollment should be started into HANA $ million benefits club (and/or $ billon) in addition to the 100K and 10K performance improvement clubs we have today. I am eager to know your thoughts on this topic and am sure others following would be interested as well. Please share your views. 

Reference: http://www.sap.com/customer-testimonials/index.epx

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  1. Christoph Lessmoellmann

    Hi Manas,

    great blog!

    I guess the core question that stays open is: What were the specific SAP HANA capabilities that created these benefits? Profitability Analysis was possible in ERP before HANA. Financial Closing speed improvement was also possible with the Financial Closing Cockpit in ERP. DSO reductions were possible before as well.

    My view is that HANA creates these benefits because it creates a visibility that wasnt possible before. Like if you want to compare that to a browser capability I would say that HANA is like the search engine that makes the internet of things more consumable. Through the much faster processing speed, you pick up additional benefits you would never explore in a traditional situation.

    What do you think?

    Cheers Christoph

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    1. Manas SAHOO Post author

      Hi Christoph,

      You are absolutely right. The vastly superior performance of HANA opens up possibilities that were not conceivable before. Improved visibility into business processes made possible through deeper, broader, faster and simpler analysis using HANA facilitates decision making and all these can now be done in the real-time. It is like what automobiles brought to human civilization. Prior to that our business, exchanges, contacts , thoughts, all would be limited by the ability to travel. Automobiles improved transportation and thus opened up possibilities, influenced business and revolutionized cross-border trade. In a similar fashion, in today’s information age innovations like HANA makes it possible to leverage this information in ways that were not possible before. I feel privileged to be witnessing these innovations unfold and am looking forward to organizations improving these further. 

      Best regards,

      Manas Sahoo.

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