Wettbewerbsvorsprung durch SAP Predictive Analysis. Andreas Forster / Solution Advisor June 2013

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1 Wettbewerbsvorsprung durch SAP Predictive Analysis Andreas Forster / Solution Advisor June 2013

2 Agenda Introduction to Predictive Analysis Use Cases, Demo & Customers Predictive Applications High Performance Applications (on SAP HANA) SAP Predictive Analysis Architecture and Algorithms Questions & Answers 2013 SAP AG or an SAP affiliate company. All rights reserved. 2

3 Definition Predictive Analysis 2013 SAP AG or an SAP affiliate company. All rights reserved. 3

4 Definition Predictive Analysis Some Data Mining Buzzwords Data Mining Machine Learning Artificial Intelligence Automatic / Semi-automatic Unknown Correlations, Patterns, Trends Large Data Analysis Better understand the past to know more about the future SAP AG or an SAP affiliate company. All rights reserved. 4

5 Competitive Advantage Extend your analytics capabilities where you want to be Sense & Respond Predict & Act Optimization Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Generic Predictive Analytics Predictive Modeling Why did it happen? What will happen? What is the best that could happen? What happened? Analytics Maturity The key is unlocking data to move decision making from sense & respond to predict & act 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

6 SAP s Predictive Analytics Strategy Empower the Business In-time Actionable Insights In Context Extend the Business Intelligence competency to Advanced Analytics Embed Predictive into Apps and BI environments Lend expertise In-memory processing No data latencies Big Data ready Relevant to your business Within the context of your Industry and LOB scenario Partner and customer apps Real-time in-memory predictive and next generation visualization and modeling 2013 SAP AG or an SAP affiliate company. All rights reserved. 6

7 Agenda Introduction to Predictive Analysis Use Cases, Demo & Customers Predictive Applications High Performance Applications (on SAP HANA) SAP Predictive Analysis Architecture and Algorithms Questions & Answers 2013 SAP AG or an SAP affiliate company. All rights reserved. 7

8 How Predictive Analytics is Used in Industry Business and Industry Use Cases where SAP has helped Healthcare Predict likelihood of disease to begin early treatment; identify clinical trial outcomes. Banking Identify key behaviors of customers likely to leave the bank; improve credit risk analysis. CRM Marketing Identify potential leads among existing customers and intelligently market to them based on individual preferences and histories Retail Product suggestions based on past purchases; inventory planning; selection of store locations based on demographics. Insurance Identify unusual transactions for fraud prevention. Rate / Score the risk that is to be insured. Utilities Forecast demand and usage for seasonal operations; provide anticipated resources. Government Predict community movement and trends that affect taxing districts; anticipate revenue. Telco Forecast demand on system load for capacity planning and customer scale. Reduce customer churn. Keep influencer customers SAP AG or an SAP affiliate company. All rights reserved. 8

9 Demo Time! 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

10 Bigpoint Gaming Industry - Predictive Game Player Behavior Analysis 5,000 events per second loaded onto SAP HANA (not possible before) Business Challenges Increase conversion rates from free paying player Increase the average revenue per paying player Decrease churn keep paying players playing longer 10-30% increase in revenue per year Interactive data analysis leading to improved design thinking and game planning Technical Challenges Leverage real-time data processing in SAP HANA and classification algorithms with R integration for SAP HANA to deliver personalized context-relevant offers to players Analyze vast amounts of historical and transactional data to forecast player behavior patterns Benefits Real-time insights Per player profitability analysis and increased understanding of player behavior Increase data volume and processing capabilities to communicate personalized messages to players At Bigpoint in the Battlestar Galactica online game, we have more than 5,000 events in the game per second which we have to load in SAP HANA environment and to work on it to create an individualized game environment to create offers for them. In this co-innovation project with SAP HANA, using Real Time Offer Management Bigpoint, we hope to increase revenue by 10-30%. Claus Wagner, Senior Vice President SAP Technology, Bigpoint 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

11 Mitsui Knowledge Industry Healthcare Speed Research & Improve Patient Support 408,000x faster than traditional disk-based systems in a technical PoC Business Challenges Reduce delays and minimize the costs associated with new drug discovery by optimizing the process for genome analysis Improve and speed decision making for hospitals which conduct cancer detection based on DNA sequence matching 216x faster by reducing genome analysis from several days to only 20 minutes making realtime cancer/drug screening possible Technical Implementation Leveraged the combination of SAP HANA, R, and Hadoop to store, pre-process, compute, and analyze huge amounts of data Provide access to breadth of predictive analytics libraries Benefits For pharmaceutical companies, provide required new drugs on time and aid identification of driver mutation for new drug targets Able to provide a one stop service including genomic data analysis of cancer patients to support personalized patient therapeutics Our solution is to incorporate SAP HANA along with Hadoop and R to create a single real-time big data platform. With this we have found a way to shorten the genome analysis time from several days down to only 20 minutes. Yukihisa Kato, CTO and Director of MITSUI KNOWLEDGE INDUSTRY 2013 SAP AG or an SAP affiliate company. All rights reserved. 11

12 Agenda Introduction to Predictive Analysis Use Cases, Demo & Customers Predictive Applications High Performance Applications (on SAP HANA) SAP Predictive Analysis Architecture and Algorithms Questions & Answers 2013 SAP AG or an SAP affiliate company. All rights reserved. 12

13 Predictive Analytics with SAP HANA Transforming the Future with Insight Today Unleash the value of Big Data through the power of SAP HANA Employ in-database predictive algorithms Access 3,500+ open-source algorithms via R integration for SAP HANA Intuitively design and visualize complex predictive models SAP Predictive Analysis software Bring predictive insight to everyone in the business Embed within business applications Extend into BI and reports Insight into events instantly delivered to dashboards, alerts, and mobile devices 2013 SAP AG or an SAP affiliate company. All rights reserved. 13

14 HANA Predictive Applications* Customer Revenue Performance Management Account Intelligence Predictive Customer Segmentation *: Predictive seamlessly embedded in applications 2013 SAP AG or an SAP affiliate company. All rights reserved. 14

15 SAP Predictive Analysis Intuitively design complex predictive models Read and write from data stored in SAP HANA, Universes, IQ, and other sources Drag-and-drop visual interface for data selection, preparation, and processing 2013 SAP AG or an SAP affiliate company. All rights reserved. 15

16 SAP Predictive Analysis Data Visualization and Sharing 1. Visualize the model for better understanding 2. Store the model and result back to SAP HANA 3. Share results via PMML and with other BI client tools Step 4 Data Visualization and Sharing Step1 Data Loading Step 2 Data Preparation Data Loading 1. Understand the business and identify issues 2. Load the SAP and non-sap data into SAP HANA or other source Data Processing 1. Define the model via clustering, classification, association, time series, etc. 2. Run the model Step 3 Data Processing Data Preparation 1. Visualize and examine the data 2. Sample, filter, merge, append, apply formulas 2013 SAP AG or an SAP affiliate company. All rights reserved. 16

17 SAP Predictive Analysis Visualize, discover, and share hidden insights Advanced visualization designed where you d expect it natively from within the modelling tool Share insights via PMML and with other BI client tools 2013 SAP AG or an SAP affiliate company. All rights reserved. 17

18 Agenda Introduction to Predictive Analysis Use Cases, Demo & Customers Predictive Applications High Performance Applications (on SAP HANA) SAP Predictive Analysis Architecture and Algorithms Questions & Answers 2013 SAP AG or an SAP affiliate company. All rights reserved. 18

19 Options to use SAP Predictive Analysis 2013 SAP AG or an SAP affiliate company. All rights reserved. 19

20 Data Sources for SAP Predicitve Analysis Access & Merge 2013 SAP AG or an SAP affiliate company. All rights reserved. 20

21 SAP HANA In-Memory Predictive Analytics Combine the depth and power of in-memory analytics within SAP HANA with the breadth of R to support a variety of advanced analytic and predictive scenarios Predictive Analysis Library (PAL) Native predictive algorithms In-database processing for powerful and fast results Quicker implementations Support for clustering, classification, association, time series etc R Integration for SAP HANA Enables the use of the R open source environment (> 3,500 packages) in the context of the HANA in-memory database R integration enabled via high performing parallelized connection R script is embedded within SAP HANA SQL Script 2013 SAP AG or an SAP affiliate company. All rights reserved. 21

22 SAP HANA Predictive Ecosystem SAP Predictive Analysis SAP and Custom Applications Business Intelligence Clients SAP HANA Platform SAP HANA Studio Predictive Analysis Library (PAL) R Integration for SAP HANA R Data Pre-Processing and Loading SAP Data Services, Information Composer, SLT, DXC, Hadoop 2013 SAP AG or an SAP affiliate company. All rights reserved. 22

23 SAP HANA In-Memory Predictive Analytics Predictive Analysis Library (PAL) - Algorithms Supported Association Analysis Apriori Apriori Lite Cluster Analysis K-Means Kohonen Self Organized Maps Classification Analysis C4.5 Decision Tree Analysis CHAID Decision Tree Analysis K Nearest Neighbour Multiple Linear Regression Polynomial Regression Exponential Regression Bi-Variate Geometric Regression Bi-Variate Logarithmic Regression Logistic Regression Time Series Analysis Single Exponential Smoothing Double Exponential Smoothing Triple Exponential Smoothing Outlier Detection Inter-Quartile Range Test (Tukey s Test) Variance Test Anomaly Detection Data Preparation Sampling Binning Scaling Other ABC Classification Weighted Scores Table 2013 SAP AG or an SAP affiliate company. All rights reserved. 23

24 R Integration for SAP HANA What is R? R is a software environment for statistical computing and graphics Open Source statistical programming language Over 3,500 add-on packages; ability to write your own functions Widely used for a variety of statistical methods More algorithms and packages than SAS + SPSS + Statistica Who s using it? Growing number of data analysts in industry, government, consulting, and academia Cross-industry use: high-tech, retail, manufacturing, CPG, financial services, banking, telecom, etc. Why do they use it? Free, comprehensive, and many learn it at college/university Offers rich library of statistical and graphical packages 2013 SAP AG or an SAP affiliate company. All rights reserved. 24

25 The Forrester Wave Big Data Predictive Analytics Solutions, Q A leader in predictive SAP is a newcomer to big data predictive analytics but is a Leader due to a strong architecture and strategy. Comprehensive and holistic approach to Big Data SAP also differentiates by putting its SAP HANA in-memory appliance at the center of its offering, including an indatabase predictive analytics library (PAL), and offering a modeling tool that looks a lot like SAS Enterprise Miner and IBM SPSS Modeler. The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change SAP AG or an SAP affiliate company. All rights reserved. 25

26 Agenda Introduction to Predictive Analysis Use Cases, Demo & Customers Predictive Applications High Performance Applications (on SAP HANA) SAP Predictive Analysis Architecture and Algorithms Questions & Answers 2013 SAP AG or an SAP affiliate company. All rights reserved. 26

27 Predictive Analysis Quick Start Services Planning Assessment for Predictive 1 Analysis 2 Implementation of Predictive Analysis Using HANA Scope: Assess goals for predictive Analysis and current state Identify what data will be needed Identify user groups and enablement plan Roadmap to predictive Analysis maturity Scope: In addition to PA Quick Start, data integration with a HANA (or EDW) data source Data model in HANA to support predictive model Leverage HANA for faster performance Duration: ~2 days Resources Decision Scientist Duration: ~20 days Resources Decision Scientist PA Tech Architect Data Architect 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

28 Zusammenfassung 5 Punkte zum Mitnehmen 1. SAP macht Predictive Analysis! 2. Mit SAP Predictive Analysis können Fachanwender ohne grossen Schulungsaufwand Data Mining betreiben. 3. Mit SAP HANA geht es noch detaillierter und schneller. 4. Business Applikationen bringen Predictive direkt in die Prozesse. 5. Möglichkeit der gemeinsamen Entwicklung von kundenspezifischen Predictive Applikationen SAP AG or an SAP affiliate company. All rights reserved. 28

29 Thank you Contact information: Andreas Forster Solution Advisor SAP Schweiz , 2013 SAP AG or an SAP affiliate company. All rights reserved.

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