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August 3, 2017
S/4HANA Cloud Embedded Analytics
Ataway SAP Experts
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Following our series of blog on SAP S/4HANA Cloud 1705 Release (“2 Highlights of the SAP S/4 HANA Cloud 1705 Release”, SAP S/4 HANA Cloud 1705 Release part 2 of 3, SAP S/4 HANA Cloud 1705 part 3 of 3 (top 4 features for Sourcing and Procurement)) we wanted to highlight the newest addition to SAP S/4HANA Cloud Embedded Analytics.

As you start evaluating SAP S/4HANA, we would like to provide insight around Operational Reporting in SAP S/4HANA. Embedded Analytics bring the formerly separated worlds of a BI system and an ERP system together.

Watch this video from Orla Cullen, Product Manager, Advanced Analytics, explaining the new predictive features in the SAP S/4HANA Cloud 1705 Release.

 

With SAP S/4HANA Cloud 1705 SAP Predictive Analytics are adding to the strong existing analytical capabilities. With Predictive Analytics, SAP add the possibility to leverage machine learning models to enrich the basis for decision making, for example, by forecasting the future value of a KPI and therefore help to anticipate.

 

SAP integrated Predictive Analytics and Embedded Analytics in SAP S/4HANA in “Quantity Contract Consumption” app, which is available as part of the buyer role.

 

This app provided already an exhaustive overview of the company’s purchasing contracts and their status, such as the contract start and end date, supplier, material, the current consumption, and much more. Buys can analyze the purchasing contracts and to take appropriate actions such as renegotiations.

 

While the buyer has all the capabilities to analyze the contract directly in the system, he must still track the contracts actively and relate the current status of a contract to the circumstances. An error and the main contract expires it will take weeks to renegotiated.

 

With SAP S/4HANA Cloud 1705 SAP to avoid such situations, the date of the contract’s full consumption is predicted using machine learning algorithms. The buyer can now identify the contacts, which should be renegotiated soon, and manage the contracts proactively. This gives the opportunity to avoid suboptimal conditions and to better prepare renegotiations.

 

 

From an end user’s perspective, the app now contains the additional measure “predicted consumption” in the trend view as well as the predicted fully consumed date per contract in the document view of the app.

 

Nevertheless, machine learning models are said to be complex and cumbersome to create and maintain. With SAP S/4HANA the system use the SAP BusinessObjects Predictive Analytics Integrator for integrating Predictive Models in business applications.

 

To understand how SAP do this, you can look at the creation lifecycle for standard Embedded Analytics apps, below in blue.

 

 

 

First, based on the selected data, the calculations and logic is implemented. With the SAP Fiori framework, the UI is created and the app is delivered. For Predictive Analytics apps, SAP added a layer, the Predictive Scenario, between the data selection and the coding of the logic, which is a predictive model container. As SAP knows for their apps which data is needed, SAP predefines the input of a predictive model and as SAP knows what the end user’s interaction will be at the end, SAP can also predefine the output of the model. This enables SAP to develop the app end-to-end. Machine learning models are so powerful because they mimic the behavior of historical data.

 

Value Proposition

• Renegotiate contracts early and efficiently
• Obtain better prices for goods from suppliers
• Enhance purchasing compliance

Capabilities

• Forecasting when a contract will be consumed 100%

 

For more information on SAP S/4HANA Cloud, check out the following links:
S/4HANA cloud release information: http://www.sap.com/s4-cloudrelease
Best practices for all the cloud editions here
SAP BusinessObjects Predictive Analytics, here

Interested in learning more about how you can take advantage of S/4HANA Cloud Embedded Analytics or are you looking for some help on defining your Cloud strategy to support your digital transformation? The Ataway SAP experts team is here to help you and make your digital transformation a success. Consider talking to one of our local Ataway offices. Ataway has worked on several SAP S/4HANA implementations and can help you. Consult with Ataway’s team of experts today to learn more or send us an email: experts@ataway.com.

 

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