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SAP Predictive Analytics

What’s the best that COULD happen?

Bringing predictive analytics to the end user

SAP Forum Belgium – September 9, 2015

Waldemar Adams @adamsw

SVP & GM Analytics SAP Europe, Middle-East & Africa

(2)

Predictive Analytics - Best of times during challenging times!

Prediction is very difficult,

especially when it is about the future

(Niels Bohr 1885-1962)

(3)

It’s No Longer Sense and Respond …

Ever Faster

Decision Cycle

Analytical

Skill Gap

“ Demand for deep

analytical talent in the US

could be 50 to 60%

greater than its projected

supply by 2018”

McKinsey Global Institute

1 1 1

Transactions Conversations

Machines

Massive

Amount of Data

Gartner

(4)

How Business Analytics need to evolve!

Enabling decision making across your business

End-to-end loop

Easy adoption

Easy to use

Time to value

Business focused

Self-service enabled

Transact in real-time

Raw Data

Cleaned Data

Standard Reports

Ad Hoc Reports &

OLAP

Agile Visualization

Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?

What is the best that could happen?

Competitive Advantage / User Engagement

Maturity of Analytics Capabilities

Self Service BI

Generic

Predictive Analysis Predictive Insight Predict and act

Sense and respond

(5)

The Secret To Predictive For The Masses

Business Intelligence Advanced Analytics

Predictive Prescriptive

Descriptive Diagnostic Exploratory

Analytics

Powered By Humans

For Humans

Powered By Maths

For Processes

Powered By Maths

For Humans

(6)

Classic Analytics

Address All the Business Questions

Which products are being sold?

Who is buying them?

Advanced Analytics

What is a good customer?

Which types of customers do I have?

Which products are sold together?

Which customers are likely to buy our products?

Which customers are likely to leave?

Which customers are likely to be frauders?

How many products are we likely to sell?

Which machines are likely to need maintenance?

What product should I propose?

Which customer should I target?

When should I maintain my machine?

What is the next best action to perform?

(7)

Anticipate What Comes Next and Drive Better Decisions… Today!

Social

Network Customer Data

Automobiles Machine

Smart Meter Point of Data

Sale Mobile

Structured

Data Click Stream Location-

based Data Text Data

IMHO, it’s great!

RFID

68% of organizations

that used predictive analytics

realized a competitive

advantage

Ventana Research

52%

use predictive analytics to increase profitability

55%

use predictive analytics to create new revenue opportunities

45%

use predictive analytics for customer services

43%

use predictive analytics for product recommendations

(8)

There is a disconnect between the BI and Advanced Analytics world

Today, Predictive Analytics is an Island

EIM BI

PM

DM PA

Cleaned Data Raw Data

Reporting

Analysis

Discovery

Dashboards

Chasm

Specialization

Sophistication / Skill Set ETL LOB

ETL

(9)

BI

EIM BI

Cleaned Data Raw Data

Reporting

Analysis

Discovery

Dashboards

Specialization

Sophistication / Skill Set

“Invisible Analytics” in BI

PM

DM

Automated PA

Predictive ETL LOB

Bringing Predictive Analytics To Business Users is Key

(10)

SAP Analytics Solution Portfolio

Discover

Cloud Any Device

Social Collaboration Big Data

Enterprise Performance Management Governance,

Risk, and Compliance

Inform

Anticipate Plan

Business Intelligence

Predictive Analytics

Real-time Business

(11)

“I’m building churn

models for every

region”

MS Statistics, Berkeley

Data Scientist

.01%

“I need explain to the

CEO why sales are down

in EMEA”

MBA, U of Pennsylvania

Data Analyst

~3% 97%

Business User

“The app needs to tell

me what offer to make in

real time”

BS French Literature, UC Davis

Opportunity to Broaden Access to Predictive

(12)

Ask yourself: Your Potential for Business Optimization

:-)

Brand Sentiment / Marketing Mix / Channel Affinity

Optimize the action plans for medical visitors

Product Recommendation / Market Basket / Cross- & Up-Sell

Customer Attrition Mgt / Win Back Strategy / Churn

Real-time Demand/

Supply / Sales Forecast

Predictive Maintenance / Quality Control / Manufacturing Process

Optimization

Fraud Prevention & Detection / Collection Mgt

Network Optimization Insider Threats

Risk Mitigation / Compliance Mgt

Predictive Asset Management / Supply Chain Optimization Satisfaction Management /

HR Developmet

(13)

Challenges

Forecasting

InfluencersKey

Trends Anomalies

Relationships

How do historical sales, costs, key performance metrics, and so on,

translate to future performance? How do predicted results compare with goals?

What are the main influencers of customer satisfaction, customer churn, employee turnover, and so on, that impact success?

What are the trends:

historical/emerging, sudden step changes, unusual numeric values that impact the business?

What are the correlations in the data? What are the cross-sell and up-sell opportunities?

What anomalies might exist and conversely what groupings or clusters might exist for specific analysis?

High Value Use Cases for Predictive Analytics

(14)

Big Data

Discovery

SAP HANA

(Hadoop…)

SAP Predictive

Analytics

SAP Lumira

Innovate with data, across the enterprise

(15)

SAP Predictive Analytics Approach

SAP Predictive Analytics

(16)

SAP Predictive Analytics – The Difference

Before SAP Predictive Analytics

After SAP Predictive

Analytics

Answer any/all questions with any/all data sources –

No limits!

In-database automated dataset production -

No data movement!

Automated modeling and tuning process - Focus on accurate results,

not algorithms or code!

Native in-database and application/process

deployment - Embed and consume for

immediate results!

On-going model management and recalibration - No rework necessary!

(17)

Instant insight for decision makers

No learning curve

Access from a browser or your mobile

Understand and preparing your data with Lumira

Agility for business analysts

Access and mash up data from multiple sources

Visualize data and share your insights

Scale and trust for IT and management

Scale to thousands of users with BI Platform

Govern access to data and assets

(18)

SAP Lumira Overview

Mash up data

Access data from corporate, personal and web sources

Quickly cleanse, combine, and enrich data

Visualize and discover insights

Visually explore you data

Rich library of visualizations, extensible with SDK

Get faster insights with suggested visualizations and key influencers

Share your story

Build engaging stories using storyboards and infographics

Share insights on mobile, web, and desktop

(19)

SAP Predictive Analytics Overview

Insert predictive algorithms into

business processes

Extensive predictive library plus

R and Hadoop integration

Packaged business applications

Optimized for SAP HANA

Cloud-ready services

Agnostic big data aware

SAP BW

Integrated in business apps

(cloud services, SDK, API, APL)

(20)

Predictive Analytics Solutions from SAP

Transactions

SAP Predictive Analytics 2.x

Data Preparation

Expert Analysis Automated Analysis

Visualization

Recommendation

Scoring Social

SDK/API Model Management

Connectors

Cloud / On-Premise

Predictive Analysis

Library Automated

Predictive Library R-Scripts

In-Memory Processing Engine 25+ Industries  11+ LoBs

O&G, Manufacturing

& Utilities Public Sector

& Healthcare Financial &

Insurance Services

Telecommunications Retail &

Consumer Products

Predictive Applications SAP HANA

Relational Databases Big Data Sources CRM/ERP Stores Applications Cloud Services

Any Data Source

R

(21)

Key Messages Simplified

(22)

SAP as the Market Leader

http://discover.sap.com/leading-in-predictive-analytics

Hurwitz

Victor

“fast time to value and ability to support very large data sets.”

Victory

Index Report

Forrester

Leader

“SAP is a leader due to a strong architecture

and strategy.”

Big Data

Predictive Wave

Howard Dresner

Top Vendor

“The top vendors for advanced and predictive analytics

include SAP.”

The Wisdom

of Crowds

(23)

Thank you!

[email protected] @adamsw

SAP PREDICTIVE ANALYTICS

Anticipate risks & opportunities in real-time

REAL-TIME PREDICTIVE

ANALYTICS FOR BIG DATA

Productive predictive solutions for all

DEMOCRATIZE PREDICTIVE

ANALYTICS

Incorporate Predictive Analytics into Industry LoB Apps &

business processes

EMBED PREDICTIVE ANALYTICS

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Legal Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to

deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing

decisions.

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