SAP HANA allows for processing of vast amounts of profitability data in an instant. An unprecedented opportunity to turn improved insight into competitive differentiation. Curious how?
Well, HANA CO-PA enables business transformation. It allows you to…
- Revert failed business practices
- Change existing profitability management processes
- Introduce new profitability analysis processes
A large number of IT workarounds and compromises were put in place to manage performance on the transactional (month-end allocations) as well as on reporting side. With HANA-based CO-PA they no longer are required. You can stop executing them. No more aggregations levels to be maintained, no more more-or-less redundant info-cubes need to be updated, line item data and detail does not need to be archived anymore. Allocations or analytics on aggregated levels only with loss of line item detail no more.
Process and review the data based on the levels you manage your business. Incent your people on a product level? Track sales and assign cost to the product level, maybe even look at transaction level costing if this makes a difference to you. Look at your current setup and eliminate the compromises that were put in place to accommodate performance.
So far we covered reducing operational cost to provide profitability insights and elimination of business compromises.
On top of that there will be new processes and analytics that are just not known. Real-time profitability, allowing to manage the business to come rather then retro-actively reviewing it is highly probable. So are data enrichment scenarios where profitability is looked at under consideration of available inventory (why push sales of products you can deliver and invoice …). And one can imagine combining it with SAP internal as well as external data.
Those who will adopt in-memory first will be in the best position to think through and establish those value-added processes. This insight that other competitors won’t have will create competitive differentiation, no doubt.
HANA-based CO-PA allows you to get better, get healthy, and get great!