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.
| Aspect | Embedded analytics in SAP S/4HANA | Separate data warehouse |
|---|---|---|
| Data freshness | Live: a posting is visible in the next query | As of the last load, often overnight |
| Data scope | This SAP S/4HANA system | Many systems combined and harmonized |
| History | What the operational system holds | Long history, snapshots and archived data |
| Typical questions | Open orders, overdue items, today's stock, this month's actuals | Multi-year trends, group-wide KPIs, cross-system analysis |
| Action | Jump straight from the figure to the document and act | Usually reported elsewhere, acted on in the ERP |
| Examples of SAP products | Analytical apps, multidimensional reports, KPIs in the launchpad | SAP BW/4HANA, SAP Datasphere |
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.
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?
- 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. Why do embedded analytics show real-time data?
2. Which question fits operational analytics best?
3. What is a strength of a separate data warehouse?
4. Why record the time a live figure was taken?