SAP HANA EFFECT Title: Episode 10 - Real-Time Transformation at Dell (Duration: 18:39) Publish Date: March 23, 2015 Description: Bart Crider shares how Dell has revolutionized their sales and planning processes with real-time data for their entire sales force. THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED. JEFF: Welcome to The HANA Effect. I’m your host, Jeff Word, from SAP. Each week, we bring listeners the real stories of how companies are taking advantage of real-time computing to transform their organizations and let them share the lessons they’ve learned along their journey. Welcome to another edition of The HANA Effect. I’m your host, Jeff Word, and I’m here today with Bart Crider from Dell. Welcome, Bart. BART: Ah, thank you. JEFF: Today, we’re going to talk a little bit about what Dell has been doing with SAP HANA and their use case. But before that, Bart why don’t you kind of introduce yourself and what your role is at Dell. BART: Sure. Again, my name is Bart Crider, and I run our Enterprise Business Intelligence department within It. My HANA Effect Episode 10 – Real-‐Time Transformation at Dell 1 organization has responsibility for any project delivery, architecture, engineering around business intelligence and analytics or enterprise performance management for Dell. JEFF: You’re actually one of the guys at Dell that has to make this stuff work for your own internal purposes. BART: Yep. Now, I’m one of the back office geeks. JEFF: Awesome. We love those guys. So, Bart, why don’t you give us a little idea of what you’ve been doing with HANA and kind of describe your use case a little bit for us. BART: For many years, Dell has kind of focused on an architecture where we had one centralized enterprise data warehouse and started to recognize that the nature of data was changing. The technology was changing. And more and more organizations from a best practice perspective were moving more towards kind of an ecosystem of technology, so that you applied the right technology to the right type of data vs. trying to have this one solution that fits all needs. We recognized that there was a big movement toward capabilities from an in-memory perspective. And Dell’s got a strong go-to-market relationship with SAP and so, started to look at how we could take SAP HANA and position that in kind of that inmemory capability as it pertains to our enterprise data warehouse and BI ecosystem. And so, we partnered with HANA Effect Episode 10 – Real-‐Time Transformation at Dell 2 SAP a couple of years ago to kind of bring HANA in and kind of prove out the metal, so to speak, and learn more about it and how it would fit into what our enterprise standards and objectives were, look at performance perspective and compression perspective, and the ease of putting BI on top of it. We also have a very big self-service focus here and wanted to say, hey, how agile was this platform to develop in and how much could actually put into the hands of the end users in order to help them to be self-sufficient in kind of meeting their reporting needs? That project was very successful in helping us kind of learn more about HANA and how to appropriately position it in the different use cases that may come up from our business partners. And as luck would have it or it’s maybe a little bit of planning, we had a situation where we have a legacy set of systems that support a lot of agent performance and business attainment metrics, right? These are the systems that the sales guys use. And you know, Dell’s got a very complicated and matrixed oriented sales organization and so you have to do a lot overlays and drill downs to kind of look at how one agent is performing to the next, or what the product mix may be for a company or how a particular customer is buying across our product line. The current solution, quite honestly, wasn’t scaling, right? You know, sales guys would take a drill down into looking at their data and, if the data came back, it came back in minutes and not seconds and, obviously, for a sales organization that’s not acceptable. Sales teams need to be talking and working with our customers, not HANA Effect Episode 10 – Real-‐Time Transformation at Dell 3 waiting on specific queries to come back around their information, so that they can make decisions. And so, we work back with the business to say, hey, we think this is the perfect use case for an in-memory technology and that we have been positioned to solve this problem with SAP HANA. And so, we partnered with them on a very short POC, again, to kind of bring in some of the actual data that was in these legacy systems, prove out the performance of it, help them to understand the mechanics of it because we have a very collaborative relationship with our business where actually they do a lot of the reporting, and so it needed to be something that from an end to end perspective could work for both sides from a solution standpoint. And at the end of that POC, they were all in and said let’s go do this thing. So, for all of last year, we migrated from that legacy solution into SAP HANA and we actually used the opportunity to introduce agile development methodologies into the approach that we took from a program and project execution perspective, so we set up three week sprints. We established the scope for that sprint and we’re rolling stuff out every three weeks where the business could actually see the data that was moving from the legacy environment to HANA. So, we had a series of reports that we produced over the course of the year around how sufficient was the pipeline, how’s the business attainment HANA Effect Episode 10 – Real-‐Time Transformation at Dell 4 doing? I can look at it from a segment perspective, all the way down to an individual contributor, I can compare that across teams. We have things where, hey, how well are my trips turning actually into interactions from Dell from a quote or order perspective? Hey, how effective are my quotes turning into orders? And what’s going on from an overall participation with my customer in terms of buying across my product mix? We have tons of information and metrics that we have built into HANA and then roll that to the business and retire the legacy system. The effort was so successful—it’s called our Business Management Scorecard or BMS—that they actually want to take what we did for sales and kind of role the same construct out across the other business units. It’s part of what the business initiative was driving was to simplify and standardize around a global set of KPIs and bring a lot of the business and the processing back to the data vs. the temptation to have to go push the data out to meet individual use cases at a segment or function level. So, that’s what we’ll be doing this year is just taking that and extending that across into other areas. You know, one of the things we saw from an agile perspective with HANA was very flexible to make changes and we were able to react when business priorities changed mid-year and they needed something different from a data structure perspective or data set perspective; very easy to make those changes in memory. So, that’s been a huge HANA Effect Episode 10 – Real-‐Time Transformation at Dell 5 advantage as well in kind of improving the overall velocity of the team and how quickly we could make and adjust to information needs of the business, so they can make decisions or have insights into how the business was performing. JEFF: Let’s go back and actually double-click on a couple things that you mentioned there. The first was you talked about the sprints and these three week sprints and the project team. Can you give us an idea how many people were kind of involved with this from your team and from the business side of things to make that project a reality? BART: So, I would say we probably had on my team it was about 10-12 people. And then on the business side, it was probably a core set of 4-6 and we kind of laid this out in four main chunks. We had one where did we have data gaps? And we needed to move either specific data that they had sitting outside of our ecosystem back in. Or, second, hey I move it and I’ve got to do the business rules. And then I needed to move the data into HANA and then I needed to go build the reports. And so we had different workloads going on around each one of those areas and across each one of the sprints that my team or the business team was working on. And so, my team was responsible for all of the data ingestion, re-instantiating the business rules inside of our HANA Effect Episode 10 – Real-‐Time Transformation at Dell 6 ecosystem, pushing information out into HANA and creating the analytical and attribute views. The business actually owned the calculation views within HANA and then the publish creating the universes and the reports. And so, that’s kind of where we had the partnership. And so, we would identify certain scope items across each sprints where I may be doing, hey, in this area bringing new data in to solve gaps while you’re building out the calculation views for this. And the next sprint’s hey, now I’m pushing that data into HANA while they’re building the report. So, we had a real cadence that we went through over the course of the year. JEFF: So, that sounds like you guys were just fast and furious for quite a while there. What was kind of the split between the effort involved with the data quality, data sourcing, data provisioning side of it, vs. the actual technical hands on with HANA to get it going the way you needed it? BART: The bulk of the effort was all around building out the models within HANA. I mean that’s where the IP is and secret sauce that makes the performance so great. If you don’t take advantage and understand how to build the models, you can make any system perform slowly, and we definitely didn’t want to do that with HANA. So, we actually had partnered with SAP to bring specialists to come in to invest in the models themselves, so that we knew that the different engines inside HANA we’d structured the data HANA Effect Episode 10 – Real-‐Time Transformation at Dell 7 appropriately to optimize performance for those. So, I think, by and large, that’s where the bulk of the effort was. Moving the data in and using data services to push into HANA was pretty straightforward, but I think the bulk of it was really optimizing those models to get the performance that we want and then, secondarily, creating the calculation and creating the reports to push out to the business. JEFF: Can you give us a kind of general idea of what the size and scope of the data set that you’re working with is? BART: We brought in a year’s worth, or five quarters, of our order information from a facts perspective and then brought a customer information, product information, CRM information, sales teams-sales territory information and quote all together and it’s probably several terabytes of data that we put into HANA. JEFF: How many of those source systems are actually SAP? BART: Zero. Yeah, one of the unique things about Dell is you know there’s kind of three main areas that we see HANA positioned when you look at how SAP talks to customers. And one of them is when you’re not a SAP ERP shop, which we are not, and so we’ve positioned it truly for that business intelligence and analytics capability in-memory, HANA Effect Episode 10 – Real-‐Time Transformation at Dell 8 and so none of the source systems that we get in for that are coming from SAP back office systems. JEFF: So, this is a standalone, agile data mart with HANA and analytics on top of that pulling in data from lots and lots of systems, lots of data, and none of it coming from an SAP environment? BART: Correct. JEFF: That’s pretty awesome. Let me ask you this: what kind of problems did you have during the project? BART: Initially, we’re a pretty mature enterprise data warehouse organization and you know being a large, global company, managing mixed workloads is something that we’re used to having a lot of administration and tools around. I think one of the things that we have seen—and it’s not unexpected given where HANA is in it maturity curve—you don’t have a lot of the same capabilities from a HANA perspective in terms of being able to manage and protect yourself from a bad query bringing down the environment or being able to manage how much capacity you’re going to throw towards data loading vs. serving up the reports. So, you have to have a little bit more hands on administration support to do that. Again, we’ve actually partnered with SAP who provides database operations and oversees that environment to be sure that we’re doing that correctly. I think the other thing that you have to be HANA Effect Episode 10 – Real-‐Time Transformation at Dell 9 mindful of is that it’s not just about HANA. It’s about the whole SAP ecosystem that you have to build on top of HANA and having that all lined up from a versioning perspective, from a connection perspective, you have to pay a lot of attention to configuration management to be sure that the right version of HANA is compatible with the version of business objects that you’re using or the mare that you’re using or design studio that you’re using or crystal reports that you’re using and you’ve got to kind of keep that in sync. Initially, there was a lot of patching going on, right, that would actually break those connections. It’s smoothed out a bit. It’s gotten better over time. But it’s still something that you have to pay attention to. I think the third area would be capacity planning. I think this is where we did a good job up front, but the good news story of you guys continuing to invest in new capabilities of HANA has continued to kind of stress that capacity. We actually partnered with SAP to say, hey, help us think through how big of an environment we need. Because the temptation is, oh, just you know, how much data do you want to put in memory? But it’s also how many users you’re going to put on the system. Because each one of those as they interact with the data in HANA is going to consume memory. So, you had to have a balance of, hey, we’re going to have 14,000-15,000 users on this. At the same time, we’re going to be loading up multiple terabytes of data in this. HANA Effect Episode 10 – Real-‐Time Transformation at Dell 10 How much memory is needed to support all of that? When you start adding on a lot of the excess services that have happened since we kind of did that initial capacity planning, whether it’s Lemari server or some of the others, all of that goes and takes advantage of that same memory too. So, I think having good capacity planning up front and partnering with SAP in terms of understanding what new products are going to continue to be put into the HANA Suite is also critical. JEFF: So, that’s phenomenal advice. Something else I wanted to check about. Sometimes people are surprised in bad ways; sometimes in good ways. What were some of good surprises that you guys encountered on this journey? BART: We saw a lot more compression than we had expected going into it and working back with SAP, we kind of expected you know 1-5 was kind of the benchmark with which to size. And we’ve actually seen 1-15, 1-20, which we’ve loaded a lot of data input. So, we’ve been able to put a lot more data into HANA than we expected; that was a pleasant surprise. What met kind of our expectations, but it was still pleasant is the performance. And we’ve seen 60 times improvement for queries in HANA than you would run on our traditional enterprise data warehouse. And so, the speed of it has kind of been to the business a pleasant surprise because it’s one of those things, yeah yeah yeah, I believe it when I see it. You’re like, oh, you HANA Effect Episode 10 – Real-‐Time Transformation at Dell 11 guys were telling the truth; this is a whole lot faster than I have today. And I think, thirdly, was really having the business embrace the agility of the platform and seeing the power of it and how they could take advantage of it to make publishing reports a whole lot more smooth and streamlined than it is today. You know, when you have both the business and IT rallied around a technology believe it’s the right way to go, that makes all the difference in the world. And so, having their participation and getting to that understanding was key as well, and I think it was a benefit to the success of the program. JEFF: You know, the speed is the sexy part. But there’s a real business benefit behind that. Have you guys been able to quantify at all the actual business benefit of it this new system? BART: We have in probably some metrics that may be a little bit different than you saw before. Actually, the 60 times improvement in speed, obviously, from a sales perspective is a business benefit. They also used this, this was part of an effort to globalize and standardize a set of metrics. And so, they saw a 40% reduction and kind of non-standard metrics, as they rolled this program out. And so, you’ve got some very tangible numbers. They don’t necessarily equate an X million dollars or an X hundred thousand dollars, but from a BI competency perspective, those are HANA Effect Episode 10 – Real-‐Time Transformation at Dell 12 very meaningful metrics to show how you’re optimizing your overall BI spend and leveraging effectively across the company. JEFF: Did you ever get any interesting reactions from the users, other than wow it’s fast? BART: When can I have this? When can I have that? More, more, more, more. JEFF: That is almost universal response is once they see it for one thing, they immediately go, I want it for this, this, this, and this, and I want it next week too. BART: Yeah. And that’s where you have to be smart about it, right? Because the temptation that you run into, I think, with any technology that you have initial success around is to continue to do more and more and more with it. But, at some point, if you don’t have any governance around that, you can cripple that solution no matter what technology it’s in. And so, we’ve had to put a lot of governance and due diligence around wanting to cram more and more and more and more data into HANA and get away from its core purpose from a sales performance management system perspective. And so, that’s something that’s been critical too, to you know not fall in love with it. And then all of a sudden, you’ve overused it and over taxed it and it doesn’t really meet your needs anymore. So, I think that’s critical too, to have the right governance structure in place to be HANA Effect Episode 10 – Real-‐Time Transformation at Dell 13 sure it says, hey, this is what we purchased it for. This is its sweet spot. This is what it’s meant to go do. It’s succeeding at that. Any decision to move away from that has to have a very well thought out governance and decision making process before we decide to do it. JEFF: Some people might not know, but Dell is actually a certified and very good go to market partner with SAP specifically on the HANA hardware. A lot of questions I get asked, especially since you guys are using this yourselves to help your business run simpler and more efficiently. How do you guys work and feed the knowledge that you’ve gained from your internal usage out to the field teams that are actually out there selling and installing and supporting this at your customers? BART: Yeah. So, we have a very active engagement with our engineering team that works with SAP on the certified configuration, as well as with our sales organization in terms of selling it out in the field and our service organization because we have a service component around SAP HANA as well. And so, for example, when it was Dell World, we spoke about that. We’ve spoken at it at Sapphire alongside the Dell booth there. I was actually just on a call earlier this week where, again, they want to use the success story we’ve had around the BMS to reeducate the sales teams as they sell HANA into the market. And so, it is very much an active discussion that goes on HANA Effect Episode 10 – Real-‐Time Transformation at Dell 14 frequently within Dell to keep all the parties involved engaged in understanding the Dell on Dell story around HANA and how we can share that with other customers and show them the value of it. JEFF: I really love that virtuous cycle of getting your experiences out to customers, but then also customers giving you guys new ideas and things to do as well. So, I do have to ask specifically about that. Can you give us an idea of what this multiterabyte system, what kind of hardware landscape are you guys running it on? BART: So, we’ve got a five node cluster—four hot, one standby— 2-terabyte scale-out environment that we are running the sales BMS on. JEFF: So, each one of those five is a half terabyte machine? BART: Each one of those five is half terabyte, runs on Dell 920’s. JEFF: 920’s, nice. And what kind of advice would you give to new customers who are considering going down this path of an agile data mart with HANA? BART: Know what you’re doing with modeling; invest in that skill set because that’s the heartbeat of HANA and to make it perform and then also understand that you need to HANA Effect Episode 10 – Real-‐Time Transformation at Dell 15 manage what you know, don’t be cavalier in what queries you execute, especially in a production environment because, again, you don’t have all the work management controls to be able to control the impact of some of those changes. So, I think, again, from an administration perspective, you have to take a little bit more hands on and oriented approach to insure overall environment stability. We do quarterly health checks with the remote database operations team from SAP that partners with us. So, they tell us, hey, here’s where things aren’t performing as well as we would expect. They look across the engine. Here might be some hotspots you want to go invest. And it’s uncovered some areas that we may be able to go optimize around additional partitioning, etc. But I think to anyone starting out, go make that investment in understanding how to go model in HANA because that’s the key to it all. JEFF: What other aspects of HANA and the capabilities of HANA are you guys looking to explore the next couple of years? BART: You know, we’ve started to explore the other tools that interact with HANA. Part of the beauty of it is that with data discover tools like Lamara or something that you can implement that’s more application oriented like design studio that you can take for mobile, part of the beauty of it the data all resides in HANA and it’s just the queries that HANA Effect Episode 10 – Real-‐Time Transformation at Dell 16 get saved. So, it minimized data movement immensely, whereas opposed with other tools, they may be pulling that down to the client or in other areas. And so, I think the advantage of HANA and the ecosystem from a BI capability perspective that’s being built around it is fantastic because it really leverages the power of the data in memory and avoids a lot of unnecessary data movement. So, I think as SAP continues to build out capabilities in those tools, it only enhances what HANA brings to the table. JEFF: Bart, that is phenomenal information. I know customers are going to get a lot of value out of what you guys have done and using you guys as a great example on how to do a specifically non-SAP HANA environment using lots of non-SAP data and setting it up as an agile data mart. We’re thrilled that you guys are such wonderful partners of ours. We’re thrilled that, more importantly, as an SAP HANA customer, you guys are getting massive value out of it and see a lot of new opportunities to really simplify your business with that. For everybody else that’s listening, I want to thank you, again, for joining us on The HANA Effect, and you guys can get more information, obviously, about SAP HANA on hana.sap.com. And we’ll actually post some links for this to the Dell page, where you can get more information about how they’re using HANA and can HANA Effect Episode 10 – Real-‐Time Transformation at Dell 17 provide you with HANA services. So, thanks a lot, Bart. BART: Thank you. Enjoyed the conversation. 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