How to create positive feedback loop with BPC BW HANA Integration

Author: 
Selwyn Zhou

What’s the meaning of positive feedback loop?

A positive feedback loop goes something like this: X causes Y, which then causes more of X, now we have more X, then more X will cause more Y. There will be a cycle build on a healthy eco-system.

What is BPC, BW and HANA?

BPC: SAP BPC is the financial management element of the enterprise performance management cycle. It entails business planning and forecasting, the reporting of actual performance data and both management and group consolidation.

BW: SAP Business Warehouse runs on industry standard RDBMS and SAP's HANA in-memory DBMS. It delivers reporting, analysis and interpretation of business data

HANA: SAP HANA is an in-memory, column-oriented, relational database management system developed and marketed by SAP SE. HANA's architecture is designed to handle both high transaction rates and complex query processing on the same platform

architecture

How can their integration benefit to each other?

From above architecture graph, we can know all of the components are integrated closely. Different components have their own responsibilities and cons and pros. Let’s go back to our topic, this architecture is an efficient system. BPC is performing well in the budgeting, planning and forecasting. With BPC, now we probably get a larger chance to keep clients’ financial status in a good level. As time goes on, existing data grow faster and faster, since we have enough money on hand, we will consider to improve our database to get real-time and in-memory computing, now there comes a great chance to BW and HANA. After we implement other applications, this is a large amount investment in BI. So guess what will happen, obviously it will benefit you as well. Now you have a faster, real-time DBMS to help you manage and store data. You have fancy BI reporting tools and data visualization tools to display you what important information hide behind data. BTW, you still have powerful predictive analysis tools to help you figure out trend in your industry. All these components are essential factors for your business success. With their help, you can save time, lower risk and gain more profit. Then in this stage, of course, you will find your BPC’s work is not so hard as usual. This simple example is just one route for the positive feedback loop, in a lot other aspects, the cooperation between them make sense and make life much easier.

How can we create a positive feedback loop step by step?

This is a difficult question to answer. Every case has its own features. We need to consider all of the factors to figure out a specific solution for corresponding company. We need to clarify priority levels according to clients’ request and need. If you want to know more detail, here I write a guide, you can step by and take a look.