Then we focus on two things that you probably already know, but we emphasize their importance for that special topic of data analytics: <\/p>\n
- \n
- There is a price tag to it (aka budget) <\/li>\n
- You need someone who can do it (aka resources) <\/li>\n<\/ol>\n
The first five parts have already been covered (they are linked above, so you can go back anytime). This is the last part, covering \u201cThere is a price tag to it\u201d and \u201cYou need someone who can do it\u201d. <\/p>\n
Five things you should know …<\/h2>\n
The first five parts covered things that I see as \u201cessential\u201d for building a CCM environment. We had a look at the following steps:<\/p>\n
![](\"https:\/\/www.dab-europe.com\/\/wp-content\/uploads\/Publ\/cD\/20140415_CCM_Part6_D_01.png\")
<\/p>\nThe first step, labelled \u201cKnow what you want to know\u201d, was about a getting proper business understanding and stating as-detailed-as-possible questions that can actually be answered. Only by knowing your business well you can make a good list of analytic questions. The area we were interested in was \u201cCompliance\u201d, the topic \u201cPayments to critical countries\u201d and the detail questions that were raised we stated as follows:<\/p>\n
- \n
- \u201cIdentify payment transactions that have been done in context of partners like vendors, or customers, or even where an expense account is directly debited. <\/li>\n
- Create a list of these transactions and identify the payee\u2019s bank country for those payments. <\/li>\n
- Match these detail transactions versus a list of countries that are seen as critical because they are on the embargo list, known as tax haven or having a Corruption Perception Index > x.\u201d<\/li>\n<\/ul>\n
In step two we talked about the importance to \u201cKnow your systems\u201d. We found out that our payment data is on an SAP\u00ae system \u201cSY2\u201d, running SAP\u00ae ERP ECC 6.0, and containing the financial transactions for all companies worldwide.<\/p>\n
![](\"https:\/\/www.dab-europe.com\/\/wp-content\/uploads\/Publ\/cD\/20140415_CCM_Part6_D_02.png\")
<\/p>\nBased on that we identified the data owner, and then followed the process of requesting a user with appropriate read-only rights to access the data. <\/p>\n
What data actually is necessary we discovered in chapter \u201cKnow your data\u201d. We went from identifying the tables to finally identifying fields and understanding the logic and relations between the tables. Part of that was an explanation of different techniques how to find the data, and the top down approach. We ended up with a list of tables and fields, which for our example could look like this: <\/p>\n
<\/p>\n
\n
\n\n
\n Element \/ Process step
<\/b><\/td>\nTable
<\/b><\/td>\nField(s)
<\/b><\/td>\nComment
<\/b><\/td>\n<\/tr>\n\n Vendor master data<\/td>\n LFA1<\/td>\n LIFNR<\/td>\n Vendor number<\/td>\n<\/tr>\n \n Vendor master data<\/td>\n LFA1<\/td>\n LAND1<\/td>\n Vendor country of residence<\/td>\n<\/tr>\n \n Vendor bank accounts<\/td>\n LFBK<\/td>\n LIFNR<\/td>\n Vendor number<\/td>\n<\/tr>\n \n Vendor bank accounts<\/td>\n LFBK<\/td>\n BANKS<\/td>\n Vendor bank country<\/td>\n<\/tr>\n \n Customer master data<\/td>\n KNA1<\/td>\n KUNNR<\/td>\n Customer number<\/td>\n<\/tr>\n \n Customer master data<\/td>\n KNA1<\/td>\n LAND1<\/td>\n Customer country of residence<\/td>\n<\/tr>\n \n Customer bank accounts<\/td>\n KNBK<\/td>\n BANKS<\/td>\n Customer bank country<\/td>\n<\/tr>\n \n Customer bank accounts<\/td>\n KNBK<\/td>\n KUNNR<\/td>\n Customer number<\/td>\n<\/tr>\n \n Payment run transactions<\/td>\n REGUH<\/td>\n LIFNR<\/td>\n Vendor number<\/td>\n<\/tr>\n \n Payment run transactions<\/td>\n REGUH<\/td>\n KUNNR<\/td>\n Customer number<\/td>\n<\/tr>\n \n Payment run transactions<\/td>\n REGUH<\/td>\n LAND1<\/td>\n Vendor country of residence<\/td>\n<\/tr>\n \n Payment run transactions<\/td>\n REGUH<\/td>\n ZLAND<\/td>\n Payees country of residence<\/td>\n<\/tr>\n \n Payment run transactions<\/td>\n REGUH<\/td>\n ZBNKS<\/td>\n Payees bank country<\/td>\n<\/tr>\n \n …<\/td>\n …<\/td>\n …<\/td>\n …<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Picture 3 – Examine data structure: Table and Field list<\/p>\n
\n
We know the question, we know where the data for the answer is stored, and we are also aware what data is necessary. The attention points regarding the tools for data extraction and the analytic tool have been defined as well. The most important aspects are listed in the following checklist:<\/p>\n
\n
<\/p>\n
\n
\n\n
\n Data Extraction Tool
<\/b><\/td>\nData Analytic Tool
<\/b><\/td>\n<\/tr>\n\n Mass data capability<\/td>\n Mass data capability<\/td>\n<\/tr>\n \n Performance<\/td>\n Performance<\/td>\n<\/tr>\n \n Read-only access<\/td>\n Read Only<\/td>\n<\/tr>\n \n Delta-Downloads<\/td>\n Client\/Server capability<\/td>\n<\/tr>\n \n Automization<\/td>\n Automization<\/td>\n<\/tr>\n \n Usability<\/td>\n Usability<\/td>\n<\/tr>\n \n Correct target formats<\/td>\n Transparency<\/td>\n<\/tr>\n \n Data Privacy<\/td>\n Content<\/td>\n<\/tr>\n \n <\/td>\n Output formats<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Picture 4 – Checklist for data extraction and analytic tool<\/p>\n
<\/p>\n
At the end of part four of this series, we briefly discussed the meaning of having different output formats<\/i>. As you may get different requirements from different types of \u201cresult consumers\u201d, a certain flexibility is important. You have a manager who only needs KPI information; on the other hand you have an accountant who should look up the details. <\/p>\n
Which types of result consumers (audience) you might encounter, and what this means for our example scenario of \u201cPayments to critical countries\u201d we discussed in part five. We identified the following parties:<\/p>\n
- \n
- Manager \/ Decision Maker <\/li>\n
- Business Analyst <\/li>\n
- Accounting clerk <\/li>\n<\/ol>\n
They will do different things based on or with the results that are generated by the data analytic routines of our CCM solution. The following picture differs between an \u201cFYI only\u201d part and concrete \u201cFollow-up actions\u201d. <\/p>\n
![](\"https:\/\/www.dab-europe.com\/\/wp-content\/uploads\/Publ\/cD\/20140415_CCM_Part6_D_03.png\")
<\/p>\nBottom line of part five was, that results provided to those parties should be on different detail levels, and different output format. This may require special tools depending on what will be provided and how:<\/p>\n
<\/p>\n
\n
\n\n
\n Result consumer
<\/b><\/td>\nGraphics
<\/b><\/td>\nDetail level
<\/b><\/td>\nTools
<\/b><\/td>\n<\/tr>\n\n Decision Maker<\/td>\n Solely<\/td>\n Birds view perspective<\/td>\n Dashboard<\/td>\n<\/tr>\n \n Business Analyst<\/td>\n Partly<\/td>\n Summarizes and Details<\/td>\n Analytic tool<\/td>\n<\/tr>\n \n Accounting Clerk<\/td>\n No<\/td>\n Detail level<\/td>\n Exception Management, Excel<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Picture 6 – Result consumer overview<\/p>\n
<\/p>\n
Now that all five prerequisites are covered, we \u201conly\u201d have to implement the CCM project successfully. In this last part of the CCM series we talk about two elements that you probably already know, so here are\u2026<\/p>\n
… two things you better not forget <\/h2>\n
We will be discussing the aspects of<\/p>\n
- \n
- There is a price tag to it (aka budget)<\/li>\n
- You need someone who can do it (aka resources) <\/li>\n<\/ol>\n
Of course there is no need to shy away from doing data analytics in a CCM environment. However it is more expensive (at least during the implementation) than doing only none-structured ad-hoc analytics. <\/p>\n
The key elements that have a price tag are <\/p>\n
- \n
- Software <\/li>\n
- Hardware <\/li>\n
- Internal costs <\/li>\n
- Content (Make or buy) <\/li>\n
- Know-How Transfer <\/li>\n
- Internal and external human resources <\/li>\n<\/ul>\n
Our CCM project \u201cPayments to critical countries\u201d should be performed by proper Client\/Server data analytics software<\/i> for the reasons discussed in part four of this article. This might cost more than only the desktop version of that software. If there is a user-based component (e.g. who can access the dashboard results) this has to be taken into account as well. <\/p>\n
Client\/server software usually does not make sense without a proper server environment. So the hardware <\/i>is an element you have to consider as well. Whereas standard software has lower system requirements, a CCM solution will need more iron and horsepower to run properly. <\/p>\n
If software and hardware are in place, installation and testing will require time and technical know-how (even more for this complex client\/server environment, SAP\u00ae data access and so on). Make sure that you have the internal costs for installation, testing and maintenance on your agenda. <\/p>\n
We also discussed the aspect of getting some ready-made content. Maybe the analytic \u201cPayments to critical countries\u201d can be purchased as readymade solution. This is a typical \u201cmake or buy\u201d questions. Buying content will cost money, but developing that analytics plus documentation internally (even if someone with appropriate know-how can do it) will eat up time as well and therefore cause costs and efforts. <\/p>\n
After setting up the solution and the content, there is the aspect of know-how transfer. How to use the CCM software, where to click? How to interpret the results? What are the steps necessary for change or add analytics to that solution? Are there SAP\u00ae specific elements that need to be trained? It is always good to have the focus on key users here, but having that know-how distributed over several shoulders will reduce the risk that comes with a potential fluctuation of employees. <\/p>\n
All these elements need to be taken care of by people, so the last bullet point above is titled with \u201cInternal and external human resources\u201d. But this brings us to the second aspect that this article covers \u201cYou need someone who can do it (aka resources)<\/b>\u201d.<\/p>\n
There may be a lot of people in your department, with an in-depth knowledge regarding a lot of relevant topics. But what this article showed as well is the immense need for a mix of<\/p>\n
- \n
- Technical skills <\/li>\n
- Process understanding <\/li>\n
- Business \/ Accounting know-how <\/li>\n
- ERP system know-how <\/li>\n
- Analytical thinking <\/li>\n
- Communication skills <\/li>\n<\/ul>\n
You might have realized how important technical skills<\/i> are when we discussed tables, fields, data structures and the concept of relational databases in chapter three of this article. Part of that was an explanation of different techniques how to find the data and to understand how the process logic is reflected in the database. <\/p>\n
<\/i>The business process<\/i> understanding was emphasized when we worked on the analytic question in chapter \u201cKnow what you want to know\u201d. Together with the requirement of knowing your business really well these are the prerequisites for making a good and detailed enough list of analytic questions. <\/p>\n
Business \/ Accounting Know-How<\/i> are related to the process understanding. Especially if there are analytics in context of Finances, Accounting or Controlling a basic knowledge about that is mandatory. If someone should analyze and understand the purchase-to-pay process, invoices, G\/L accounts and Cost Centers, or incoming and outgoing payments, we have to deal with T-accounts, debit and credit posting rules rather sooner than later. <\/p>\n
ERP system know how<\/i> (in our case, knowledge about SAP\u00ae) was necessary several times already. In part one we had do understand how the process is implemented in the SAP\u00ae system; \u201cKnowing your systems\u201d we had to identify the relevant SAP\u00ae version, system, and talked about users and authorizations. When it came to finding out about the table and field names, we had to use SAP\u00ae transactions to identify the underlying data structures. <\/p>\n
Analytical thinking<\/i> is quite self-evident. The ability to structure an analytic question as well as the roadmap to answer it; logical thinking and being able to translate and transform a business aspect into a technical solution \u2013 all this is part of the analytical thinking. <\/p>\n
Last but not least, communication skills<\/i> (as usual) do help a lot. In data analytics it might be even more required than in other areas, because sometimes we need to talk about heavy stuff like risk, Compliance aspects, human errors, process weaknesses or even money that is identified as \u201clost\u201d. People feel responsible for this and maybe as well \u201cmade responsible\u201d for this when raising such questions. Also, during the implementation, there will be a learning process, and round-table discussions where managers, IT specialists, business analysts and accounting clerks will have to discuss the same topic from different angles. This needs to be balanced by a solid set of communication skills. <\/p>\n
All of this sounds reasonable, but the thing is, you need some heads where all this know-how is combined within the same person. This will be a very important factor for success. That skillset in combination is hard to find, as often people do know technical aspects very well OR business aspects OR have a good know-how regarding SAP\u00ae. If this mix does not exist to that extent \u2013 bring in external resources who will do the know-how transfer. I do not want to sound selfish here, as obviously we are in that business. However it is a critical success factor, and \u2013 especially in the starting phase \u2013 things will go a lot better and faster and with less frustration if this mix of skills exist. So after this walkthrough of getting a CCM project started, and what needs to be considered, the importance of keeping the resources in mind is obvious. Yes, there are a lot of things to be considered (five important aspects have been explained in detail in this article); and yes, it will cost money, time and brings the challenge of having real all-rounders on board who make this project a success. However it is a journey worth to travel; having a profound data analytic approach is not nice-to-have, nowadays it is mandatory. There is a nice McKinsey article about that on a more strategic level, which nevertheless shows the urgency to push and establish data analytics\u2013 it is linked here, as you may want to check out in addition to this hands-on series<\/a>.<\/p>\n
I hope you enjoyed reading it as much as I did when writing it. There are a lot more things to be said about data analytics, so keep on checking out our blog here. For any comments, questions or request, feel free to write us at info@dab-gmbh.de.<\/a><\/p>\n
To contact the author you can also use LinkedIn or XING (you may have to login first before you can access these links). <\/p>\n
LinkedIn: http:\/\/de.linkedin.com\/pub\/stefan-wenig\/54\/1b8\/b30 <\/a><\/p>\n