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Lesson 1 of 6

Operational analytics

7 min

For decades, ERP reporting followed a simple rule: run the business in the ERP system, analyze it somewhere else. Data was extracted every night into a data warehouse, reshaped, and reported the next morning. SAP S/4HANA changes that rule for a large class of questions. Embedded analytics means the analytical apps run inside SAP S/4HANA, on the same live data the transactions write, with no copy in between.

What "operational" means

Operational analytics supports decisions people make while running the process: which orders to expedite today, which suppliers are late this week, whether this month's spend on a cost center is on track. The questions are about the current state of the business, they need current data, and the answer often leads directly to an action in the same system. Embedded analytics is built for exactly this.

AspectEmbedded analytics in SAP S/4HANASeparate data warehouse
Data freshnessLive: a posting is visible in the next queryAs of the last load, often overnight
Data scopeThis SAP S/4HANA systemMany systems combined and harmonized
HistoryWhat the operational system holdsLong history, snapshots and archived data
Typical questionsOpen orders, overdue items, today's stock, this month's actualsMulti-year trends, group-wide KPIs, cross-system analysis
ActionJump straight from the figure to the document and actUsually reported elsewhere, acted on in the ERP
Examples of SAP productsAnalytical apps, multidimensional reports, KPIs in the launchpadSAP BW/4HANA, SAP Datasphere
Embedded analytics complements a data warehouse; it does not replace it.
The Sign-Off Table · thesignofftable.com/academy/sap-xpr-203

The two approaches work together. Contoso's group-level reporting, which combines SAP S/4HANA with other systems and years of history, still belongs in a data warehouse. But Dan no longer waits for tomorrow's report to see whether today's billing posted correctly, and Maria can see blocked orders for sales area 1710 / 10 / 00 as they are blocked.

Why this became possible

Two things made embedded analytics practical. First, the SAP HANA in-memory database can aggregate millions of line items fast enough to answer analytical queries on transactional tables directly. Second, SAP S/4HANA's simplified data model, for example the Universal Journal that holds finance and controlling line items in one table, means fewer joins and fewer redundant totals tables. On top of the tables, SAP delivers a virtual data model of CDS views that turns technical tables into business-friendly data sources. Lesson 4 explains it in plain terms.

Analytical appsOverview pages, analytical list pages, multidimensional reports, KPI tiles, review booklets
Analytical queriesDefine the measures, dimensions, filters and default layout a report uses
Virtual data model (CDS views)Business-friendly views over the database tables, with authorizations
SAP HANA databaseThe live transactional tables: journal entries, sales documents, stock
The embedded analytics stack, from the screen down to the data.
The Sign-Off Table · thesignofftable.com/academy/sap-xpr-203

Analytics inside the transaction

Embedded analytics is not only separate reports. Many transactional apps show analytical content in context: a chart on an object page, a KPI in an overview card, an analytical list page where you select a chart segment and act on the items behind it. The idea is that you analyze and act in one place, without switching systems.

What would you do?

Grace asks whether Contoso still needs its data warehouse now that SAP S/4HANA has embedded analytics. What is the best answer?

Key points
  • Embedded analytics runs inside SAP S/4HANA on live transactional data, with no copy.
  • Operational analytics supports decisions made while running the process, often followed by an action in the same system.
  • A data warehouse still serves cross-system, historical and group-wide analysis.
  • SAP HANA, the simplified data model and the CDS-based virtual data model make it possible.
  • Record the time of any figure you report from live data.

Check your understanding · not graded

Lesson check

  1. 1. Why do embedded analytics show real-time data?

  2. 2. Which question fits operational analytics best?

  3. 3. What is a strength of a separate data warehouse?

  4. 4. Why record the time a live figure was taken?