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
Predictive Analytics - Best of times during challenging times!
Prediction is very difficult,
especially when it is about the future
(Niels Bohr 1885-1962)
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
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
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
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?
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 profitability55%
use predictive analytics to create new revenue opportunities45%
use predictive analytics for customer services43%
use predictive analytics for product recommendationsThere 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
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
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
“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
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
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
Big Data
Discovery
SAP HANA
(Hadoop…)
SAP Predictive
Analytics
SAP Lumira
Innovate with data, across the enterprise
SAP Predictive Analytics Approach
SAP Predictive Analytics
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!
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
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
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)
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
Key Messages Simplified
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
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
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.