Performance and Insight Optimization by SAPMathematics Meet Business
Gheorghe OlteanuHead of SAP Global Delivery Center Bucharest
Dr. Helmut LindeGlobal Management Office of SAP Services
Bucharest, RomaniaDecember 10th, 2009
© SAP AG 2009. All rights reserved. / Page 2
SAP In a Nut Shell
World market leader in enterprise application software
Largest German software company with ~48,000 employees
~11,000 colleagues in SAP Consulting – helping customers
to plan, build and run their SAP landscapes Center of an ecosystem of ~150,000 SAP consultants,
~300,000 SAP specialists at customers and 12 Mio users
- world wide
1972 1980 1985 1987 1992 2001 2007 2008
11.6 Bn EURRevenues
80% outside of Germany
© SAP AG 2009. All rights reserved. / Page 3
Client Server/SAP R/3
Transformation from a One-Product Company to a Multi-Product Company
Client Server/mySAP
SOA
mySAPERP
mySAP SCM
mySAP PLM
mySAP SRM
mySAP CRM
20031998 2008
Business User Solutions
SME Segment
Business ProcessPlatform
IndustrySolutions
SAP Business Suite
Industy Solutions
SAP NetWeaverIntegration
SAP NetWeaverComposition
SRM SCM ERPPLMCRM
© SAP AG 2009. All rights reserved. / Page 4
The Availability of Business Data Is Rapidly Increasing
20081995 2000
0,003 €/GB
160 TB/sec
0.006TB/sec
Transmission capacity of the internet in total
Transmission
cost
500 €/GB
How can enterprisesleverage their data?
20081995 2000
0,20 €/GB
Storage cost
1,000 €/GB
Data transmission Data storage
SAP customer example 145.000 SAP users at Nestlé in 74 countries 13 R/3 systems with 10-12 Tbyte each 3 BW systems with 30 Tbyte each
© SAP AG 2009. All rights reserved. / Page 5
Analytics Is The New Competitive Advantage in Today‘s Business
“I trust in God – all others have to bring data.”
(Web advertisement and search functionality optimization)
(Customer care and game design)
(Player selection) (Personalized movie recommendations)
(Cement distribution logistics) (Delivery route optimization)
© SAP AG 2009. All rights reserved. / Page 6
Mathematics Meet BusinessExample: Bernoulli Prize Optimization Model
Modeling: Expectation value of total revenue from time t to 0, if c items are available:
V{p}(c,t) = dt(pt) (pt + V(c-1,t-1) + (1- dt(pt)) V(c,t-1) with V(0,t) = V(c,0) = 0
Goal is to maximize V{p}(c,t) by choosing pt right
Example (optimum price in the last time step): pc,1 = 1/(2 )a
In general: pc,t = 1/(2 )a + ½ ( V(c,t-1) – V(c-1,t-1) )
All optimal prices pc,t and all V(c,t) can be calculated recursively
Problem: Maximize profit of sales of a limited number of items during a limited time
Assumption: C items to be sold in T time steps (t = T,…,1) In each time step the price can be changed In each time step one or zero items are sold dt(p) = probability to sell item at price p and time t
= 1 – a p
pc,t = optimal value for the price of an item at time t if c items are left
© SAP AG 2009. All rights reserved. / Page 7
Mathematics Meet BusinessExample: Bernoulli Prize Optimization Model
Solution of the Bernoulli model for T = 50 and a = 1/200
Dotted lines: Optimal prices for different capacities c
Solid line: Optimal pricing given a series of sales events (solid dots) and initial capacity C = 15
Results of the model for strong and weak initial demand
time time
pric
e
pric
e
Strong demand example Weak demand example
time
pric
e
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A Typical SAP Price Optimization Project
PreparationProof of Concept
Roll-out
Modelling & Optimization
Estimation of benefits based on historic data
Proof of optimization in a scientific experiment with control group
Full implementation of optimization solution (processes and software)
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Scientific Modeling is a Great Business Opportunity for SAP
Highly complex and differentiating mathematical approach to extract actionable information from existing data
Scientific Modeling & Optimization Engines
$4 billion
Analysis and reporting based on industry-specific templates and data models
Industry-Centric Performance Analytics
$28 billion
Analysis and reporting on business support processes
Budgeting and planning
Packaged Analytics / Optimization Apps
$23 billion
Foundational BI, Enterprise Data Warehouse, generic analysis and reporting capabilities
Tools-Centric Approach
$13 billion
Mark
et pote
nti
al
As communicated by the SAP Executive Board, entering this new
market is one of four strategic priorities for SAP Consulting
Services strategic direction
© SAP AG 2009. All rights reserved. / Page 10
Bucharest will be an SAP innovation center to develop and deliver analytical services
Analytical solutions for
SAP customers
Science & TechnologyBucharest, Romania
Science & TechnologyPhoenix, Arizona
Industry Expert Teams
Industry knowledge
Scientific skills
SAP technology& products
Customers
© SAP AG 2009. All rights reserved. / Page 11
Romania Is An Important Location For SAP
• SAP Skills development started in 1995-96 with the setting up of Integrator (SAP Rom)
• SAP projects in Romania started during 1998-2000 timeframe
•SAP Romania started to operate in 2002, part SAP CEE
•Total number of employees over 75 and Eco system, 300 consultants in 20 companies
•Yearly revenue above 13 million Euro
•Global Delivery (GD) started to operate in 2007 as part of SAP Romania SRL
•Globally GDC Bucharest has counterparts in India, China and Argentina (over 1000)
•Resources , average age is 27, mostly hired after graduation, or 2-3 years history
•Provides consulting services for projects outside Romania:Functional Consulting (ERP)
Software Development (ABAP)
Technical Services (Basis)
Project Management (PMI)
© SAP AG 2009. All rights reserved. / Page 12
Why SAP Services? The breadth and depth you need to succeed
Our Customers’ Success is Our Success!
18,000+ SAP Services experts
7 Global Support Centers
Unparalleled 24/7 customer and partner support, at a global level
35+ years of experience
Strategic solutions in more than 25 industries
Closed loop ecosystem from strategy to execution, including:
3,850+ partners 15 Industry Value Networks (IVNs) SAP user groups - global, regional, and
local
© SAP AG 2009. All rights reserved. / Page 13
An Out-of-the-Ordinary Company…
We hire self-motivated individuals not afraid of taking initiative
Employees are responsible for… Achieving individual goals Enhancing skills Developing a career
We ask a lot of our employees, but we also give a lot in return: Exceptional benefits Knowledge, tools, and resources Challenging projects with global customers
The opportunity to make a name for yourself!
…Recruits Out-of-the-Ordinary People
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ANY QUESTIONS?
Send an email to: [email protected]
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