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Business IntelligenceA Look at SAP Business
Warehouse at Canadian National
Business IntelligenceA Look at SAP Business
Warehouse at Canadian National
March 29, 2006
Marco AltieriMarco AltieriSenior Project Manager, ITSenior Project Manager, IT
2March 29, 2006
Table of Contents
• Who is Canadian National (CN)?• What is Business Intelligence?• BI implementation at CN?• Reporting options in SAP?• When do you choose SAP Business Warehouse (BW)?• Who are the BW end-users?• What is required to implement a BW solution?• Case Study 1: Worker’s Compensation• Case Study 2: Mechanical Shop Productivity• Lessons Learned
3March 29, 2006
2004 Results in CDN $Annual Revenues
$6.55 billion
Operating Income$2.17 billion
Expenses$4.38 billion
Operating Ratio66.9%
Route-Miles of Track19,304
Employees22,470
System Cars (2003)93,699 car fleet1,912 locomotive fleet
“CN’s is the only rail network on the
continent to connect three
coasts - the Pacific, the Atlantic and the
Gulf of Mexico”
Introduction to CN
4March 29, 2006
What is Business Intelligence?
The data is out there but how do I find it?
5March 29, 2006
What is Business Intelligence?
• Broad category of tools to gather, store, and disseminate decision-making information to business leaders
• ToolsØ Custom application programs or commercially
available software by Business Objects, Cognos, or SAP (Business Warehouse)
• GatherØ Extract data from multiple source systems in different
formatsØ Transform & standardize data
6March 29, 2006
What is Business Intelligence?
• StoreØ Integrate enterprise-wide corporate data in a single
repository called a data warehouse (DW)Ø DW can contain enormous amounts of data Ø DW is the foundation of business intelligence
• DisseminateØ Provide easy access to the right data
• Canned reports via email• On-line queries
Ø Enable on-line analytical processing (OLAP); view multiple dimensions of the data (slice & dice)
7March 29, 2006
Why Business Intelligence?
• Business survivalØ Need information to make better strategic and
operational decisionsØ You can’t manage what you can’t measure !
• Regulatory complianceØ Accurate financial reporting is more critical
than ever as a result of the Sarbanes-Oxley Act
8March 29, 2006
CN’s 5 Guiding Principles?
• ServiceØ Deliver goods on time and undamaged
• Cost Control Ø Right management of all expenses
• Asset UtilizationØ An asset not in use is a liability
• Safety
• People
9March 29, 2006
BI Implementation at CN
Rail SAP R/3
Ad Hoc Query Business Objects
SAP BusinessWarehouse
Corporate Data Warehouse
CN Datacity(CorporateMeasures)
Ad Hoc Query (Business Explorer)
10March 29, 2006
Corporate Data Warehouse
• Custom built application and databases (Cobol and DB2)
• Business Objects tool used to build queries and analyze data
• Provides mainly rail operation measures
Ø Car velocity
• Corporate measures accessed via web front-end on CN intranet site (Datacity)
11March 29, 2006
Reporting Options in SAP
As flexibility increases, so do costs
• R/3 Standard Reports
• R/3 Report Generators
• Programmed Reports (ABAP)
• Business Warehouse
12March 29, 2006
Reporting Options in SAP
Business Warehouse (BW)Ø SAP software solution (not an
R/3 module)Ø Consolidated view of enterprise
data Ø Optimized for reporting and
analysisØ Summarized copy of transaction
and non-transaction data Ø Data stored in multi-dimensional
tables called cubes
13March 29, 2006
SAP Business Warehouse
• Supports 16 different applications including:
ØFinance
ØMechanical Productivity
ØWork Related Injuries
ØTravel Management
• Approximately 500 users running over 20,000 queries per month
• Measures also found in CN Datacity
14March 29, 2006
Reporting Options in SAP
• BW Advantages:
Ø Empowers end-usersü Can build ad-hoc queries with no
programmingü Can ‘slice and dice’ information using
various business criteria and ‘what-if’scenarios
Ø Provides high-quality information to meetcomplex reporting needsü Summarizes large amounts of data from
different sources in a single view
15March 29, 2006
Reporting Options in SAP
• BW Advantages:
Ø Can analyze trends over several months or years
Ø Offloads ad-hoc and long running queries from production operational system to BI systemü Should improve overall performance of
operational systemü Reduces frequency of server capacity upgrades
Ø Can process large volumes of information quickly
16March 29, 2006
Reporting Options in SAP
• BW Advantages:
Ø Can pull information from different R/3 modules or non-SAP sourceü Train schedule information from operations
system
Ø Reports easily deployed across organization via thewebü No need for BW software on user desktop
Ø Provides development aids via standard Business Contentü Templates for R/3 data extractors & cubes
17March 29, 2006
Given all the advantages in BW …
Does BW replace R/3 reporting?
Absolutely not !
Each tool satisfies very specific needs
18March 29, 2006
Reporting Options in SAP
• BW DisadvantagesØ Most expensive to develop and maintainü Requires IT resources with BW skill setü Hardware infrastrucure to store several
years of dataØ Requires training of power usersØ Does not address real time reporting
needsü Available in 2006 with version 7.0
Ø May require ABAP programmingü To perform very complex calculationsü To pull additional R/3 data
19March 29, 2006
Distinction between R/3 and BW
• R/3 is an operational system optimized to post transactions as quickly as it can
• BW is an analytical tool optimized to readdata as quickly as it can
20March 29, 2006
When to Choose R/3 Reports …
• For operationaloperational needs
• When information is required by people:ü To carry on their day-to-day business
activitiesü In real-timeü At the detailed transaction levelü Frequently in the course of a day or week
21March 29, 2006
When to Choose BW Reports …
• For analyticalanalytical needs
• When information is required by managers: ü For decision-making that will impact the future of a
business ü To perform trend analysis on several months/years of
dataü To view aggregated information (with drill down
capabilities)ü Not needed daily
22March 29, 2006
When to Choose BW Reports …
• When R/3 reports time out
23March 29, 2006
Who are the BW Users?
Power Users
Report Viewers
Ø5% of users
ØFocus on Key Performance Indicators
Ø10% of users
ØBuild ad-hoc reports
ØPerform trend analysis & what-if scenarios
Ø85% of users
ØSimplified view of information
Executive Users
24March 29, 2006
Who are the BW Users?
Learning to navigate BW
reports is child’s play
25March 29, 2006
What is required for BW?
• Clear Requirements• BW Data Modeling• BW Configuration • ABAP Programming• BW Query Development• Security Analysis• Hardware • BW Software
26March 29, 2006
What is required for BW?
• Clear Requirementsü What are the key business questions that need to
be answered? ü What decisions will be made based on answers?ü How is information currently accessed (i.e MS
Access)?ü What are the various sources of information needed
(i.e. SAP, external)?ü Who is the audience for the reports? ü How often is data required (daily / weekly / monthly)ü What is data volume and retention period?
27March 29, 2006
What is required for BW?
• Data Modelling
Ø Store data in multi-dimensional tables called cubes
Ø Develop data model from scratch
Ø Can be very sophisticated to accomodate complexreporting needsü Summarized data with drill down to transaction
levelü Multiple data sources combined in one view
28March 29, 2006
What is required for BW?
Other
SAPBW Reports
Ad Hoc Query & Analysis
BW ODS
BW Cube
PM
External
HR
29March 29, 2006
What is required for BW?
• BW Configuration Ø Includes definition of data, cubes, and business
rulesØ Different from R/3 configurationØ Activation of business content
• ABAP ProgrammingØ Used when BW configuration cannot accomodate
requirements: ü Standard R/3 extractor does not include all
required dataü Very complex business rules or calculations
Ø Recommended as last resort
30March 29, 2006
What is required for BW?
• BW Query Development
Ø Build corporate or ad-hoc reports
Ø View reports via BEx or the Web
Ø BEx (Business Explorer)ü Excel front-end to BWü Requires desktop installation of SAP Business
Warehouse
Ø Web Templateü Simplifies deployment of reports across the
organizationü Requires a web browser only
31March 29, 2006
What is required for BW?
• Security AnalysisØ Different from R/3 Ø User access can be granted by:ü Info Area (functional grouping of cubes)ü Cubeü Report
Ø Security can even be restricted at field level (i.e. salary)
Ø Security by Info Area simplifies maintenance:ü Existing users continue to have access to new
reports or cubes developed within the same Info Area
32March 29, 2006
What is required for BW?
• HardwareØ Application server with multiple landscapes:Ø Sandbox for prototyping (production size)Ø DevelopmentØ User TestingØ Production
Ø Lots of disk space !!!
• BW SoftwareØ Requires licensing and supportØ Application software on host serverØ Desktop software for developers and end-users
33March 29, 2006
Case Study 1: Worker’s Compensation
• BackgroundØ Obligatory in CanadaØ Protects CN from legal action resulting from work-
related injuries or illnessØ No fault system regulated by Provincial Compensation
Boards (i.e. CSST)Ø Payments in Canada are approximately $35m / yearØ Every 3 years, CN must produce future liability of
compensation costs for accounting purposesØ Compensation costs on the rise in spite of fewer injuries
34March 29, 2006
Case Study 1: Worker’s Compensation
• Context for Reporting:Ø Run custom R/3 reports (ABAP)Ø Manipulate excel files with downloaded R/3
information
• Limitations:Ø Complex and very time-consuming to produce
reports (3 days)Ø Unable to perform ‘what-if’ scenarios Ø Lack of drilldown capabilities Ø R/3 reports cannot handle sufficient volume of
information for trend analysis purposes
35March 29, 2006
Case Study 1: Worker’s Compensation
• Limitations:Ø No tool to perform in-house valuations Ø No integration between expected payments and
the actual claim information (including administrative fees paid to the provinces)
36March 29, 2006
Case Study 1: Worker’s Compensation
• AudienceØ Claim & Risk Managers across CanadaØ VP Finance and Accounting Managers
• Business RequirementsØ What are my WC costs by year of injury?Ø Why are my WC costs increasing when my injuries are
decreasing?Ø What injury type will cost me most?Ø What is my projected outlook for future costs?
37March 29, 2006
Case Study 1: BI Solution
Other
SAP R/3
Actual Payments Cube
Claims & Payments
Actuarial Factors
Employee Health & Safety
Future Payments Cube
38March 29, 2006
Case Study 1: WC Cube
‘03 ‘04 ‘05
Compensation Costs
Ontario
Quebec
Concussion
Sprain
Burn
BC
Injury Type
Report:View Compensation Costs for Quebec according to Injury Type for 2003 to 2005
Event
39March 29, 2006
Case Study 1: BI Benefits
• Improved productivity for claim managers Ø Reports available in seconds compared to daysØ View data from different criteria
• Ability to analyze compensation costs over several years to identify injury trends trends
• Ability to drill down on individual cases to focus on high-cost generatorsØ Better allocation of time for claim managersØ Anticipate $10 million savings
40March 29, 2006
Case Study 1: BI Benefits
• Ability to run in-house valuation for future costsØ Savings of $100,000 per year
• Cleanup of source dataØ BW catalyst for initiative
41March 29, 2006
Case Study 2: Shop Productivity
• Background
Ø American Association of Railroads (AAR) provides standards for maintenance activities on rail cars:
üCar inspections
üWheel Change
Ø Management was looking for ways to measure productivity of maintenance workers across Canada
42March 29, 2006
Case Study 1: Shop Productivity
• Context for Reporting:Ø Developed ABAP programs in SAP R/3 to match
standards with time reported by employee
• Limitations:Ø Run-time performance of reports was very slow
(over 45 minutes to run report for 1 shop for 1 month)
Ø Not able to run more than 6 months (time-out)Ø Not able to run comparison reports between
different shops Ø Measures inconsistent depending on who ran
report (R/3 security constraint)
43March 29, 2006
Case Study 2: BI Solution
SAP R/3
SAP R/3
Mechanical Productivity Cube
Mechanical Work Orders
Employee Time Reporting
Plant Maintenance
Human Resources
44March 29, 2006
Case Study 2: BI Benefits
• Increased visibility of measures improved productivity of all shops across CanadaØ 1 shop went from 30% to 80% productivity in a few
monthsØ No need to replace maintenance workers who left
by attrition
• Significantly improved run-time of reports from 45 minutes to under 10 seconds
• Can run measures with over 1 year data to identify trends
45March 29, 2006
Case Study 2: BI Benefits
• Retired old R/3 programs (strain on operational system)
• Measures produced are consistent regardless of who runs report (no security constraint)
• Reports easily accessed via Datacity with a browser
46March 29, 2006
Lessons Learned
• Get clear requirements from the businessØ Identify key questions to be answered
• Get early commitment from the business for testingØ Identify power user and report viewerØ Schedule test period
• Plan and budget for user training:Ø Power users (2 days)Ø Report Viewers (1/2 day)
• Run a pilot before full deployment
47March 29, 2006
Lessons Learned
• Use the web for deployment of reports to viewers
• Plan time to prototype application Ø Early validation of requirements by the businessØ Speeds up delivery by minimizing transports
• Make sure you have a solid data model & architecture
• Use Operational data stores (ODS) to store transactions in their raw formØ Reduces impact of future cube reloads
48March 29, 2006
Lessons Learned
• Pull any R/3 field that may be required in the futureØ Minimizes risk of cube reloads
• Apply security by Info-AreaØ Simplifies maintenance
• Assess hardware requirements earlyØ Vendors can help to identify requirements for main
memory, disk space and CPU
• Allow sufficient time for initial data loadsØ Can range from a few hours to 3 weeks
49March 29, 2006
Lessons Learned
• Minimize ABAP codingØ ABAP programmers tend to quickly adopt ABAP
• Use Process Chains for:Ø Alerts: Email or pager notification of problemsØ To schedule dependencies between nightly jobs
• Ensure your development team is comprised of at least 1 internal resourceØ Improves support of implemented solution