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 2015 SAP SE or an SAP affiliate company. All rights reserved. 1
Predictive Analytics - Best of times during challenging times! Prediction is very difficult, especially when it is about the future (Niels Bohr 1885-1962) 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
It s No Longer Sense and Respond 1 1 1 Massive Amount of Data Conversations Analytical Skill Gap Demand for deep analytical talent in the US could be 50 to 60% greater than its projected supply by 2018 Ever Faster Decision Cycle Transactions Machines McKinsey Global Institute Gartner 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
How Business Analytics need to evolve! Enabling decision making across your business Sense and respond Predict and act Competitive Advantage / User Engagement Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Self Service BI Agile Visualization What happened? Optimization Predictive Modeling Generic Predictive Analysis Why did it happen? What will happen? What is the best that could happen? Predictive Insight End-to-end loop Easy adoption Easy to use Time to value Business focused Self-service enabled Transact in real-time Maturity of Analytics Capabilities 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
The Secret To Predictive For The Masses Business Intelligence Advanced Analytics Descriptive Diagnostic Exploratory Analytics Predictive Prescriptive Powered By Humans For Humans Powered By Maths For Humans Powered By Maths For Processes 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
Address All the Business Questions Advanced Analytics Classic Analytics Which products are being sold? Who is buying them? 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? 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
Anticipate What Comes Next and Drive Better Decisions Today! IMHO, it s great! Structured Data Automobiles Click Stream Social Network RFID Smart Meter Customer Data Point of Sale Text Data Machine Data Locationbased Data Mobile 68% of organizations that used predictive analytics realized a competitive advantage Ventana Research 55% use predictive analytics to create new revenue opportunities 45% use predictive analytics for customer services 52% use predictive analytics to increase profitability 43% use predictive analytics for product recommendations 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
Today, Predictive Analytics is an Island Specialization ETL LOB Chasm PM PA DM ETL Cleaned Data EIM Raw Data Reporting Analysis BI Discovery Dashboards Sophistication / Skill Set There is a disconnect between the BI and Advanced Analytics world 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
Bringing Predictive Analytics To Business Users is Key Specialization ETL LOB Automated Predictive PM PA DM Cleaned Data EIM Raw Data Reporting Analysis BI Discovery BI Dashboards Invisible Analytics in BI Sophistication / Skill Set 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
SAP Analytics Solution Portfolio Discover Any Device Predictive Analytics Governance, Risk, and Compliance Cloud Anticipate Real-time Business Plan Business Intelligence Enterprise Performance Management Social Collaboration Big Data Inform 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
Opportunity to Broaden Access to Predictive Data Scientist I m building churn models for every region MS Statistics, Berkeley Data Analyst I need explain to the CEO why sales are down in EMEA MBA, U of Pennsylvania Business User The app needs to tell me what offer to make in real time BS French Literature, UC Davis.01% ~3% 97% 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
Ask yourself: Your Potential for Business Optimization :-) Brand Sentiment / Marketing Mix / Channel Affinity Product Recommendation / Market Basket / Cross- & Up-Sell Network Optimization Insider Threats Optimize the action plans for medical visitors Satisfaction Management / HR Developmet Predictive Maintenance / Quality Control / Manufacturing Process Optimization Risk Mitigation / Compliance Mgt Customer Attrition Mgt / Win Back Strategy / Churn Real-time Demand/ Supply / Sales Forecast Predictive Asset Management / Supply Chain Optimization Fraud Prevention & Detection / Collection Mgt 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
High Value Use Cases for Predictive Analytics Forecasting How do historical sales, costs, key performance metrics, and so on, translate to future performance? How do predicted results compare with goals? What anomalies might exist and conversely what groupings or clusters might exist for specific analysis? Anomalies Challenges Key Influencers What are the main influencers of customer satisfaction, customer churn, employee turnover, and so on, that impact success? What are the correlations in the data? What are the cross-sell and up-sell opportunities? Relationships Trends What are the trends: historical/emerging, sudden step changes, unusual numeric values that impact the business? 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
Innovate with data, across the enterprise SAP HANA (Hadoop ) Big Data SAP Predictive Analytics Discovery SAP Lumira 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
SAP Predictive Analytics Approach SAP Predictive Analytics 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
SAP Predictive Analytics The Difference 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! Before SAP Predictive Analytics After SAP Predictive Analytics On-going model management and recalibration - No rework necessary! 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
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 Instant insight for decision makers No learning curve Access from a browser or your mobile Scale and trust for IT and management Scale to thousands of users with BI Platform Govern access to data and assets 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
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 2015 SAP SE or an SAP affiliate company. All rights reserved. 18
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) 2015 SAP SE or an SAP affiliate company. All rights reserved. 19
Predictive Analytics Solutions from SAP Any Data Source Relational Databases Big Data Sources CRM/ERP Stores Applications Cloud Services SAP Predictive Analytics 2.x Data Preparation Visualization Automated Analysis SDK/API Model Management Scoring Social Recommendation Expert Analysis Connectors SAP HANA In-Memory Processing Engine Predictive Applications 25+ Industries 11+ LoBs R Transactions Predictive Analysis Library Automated Predictive Library R-Scripts Financial & Insurance Services Retail & Consumer Products Telecommunications Public Sector & Healthcare O&G, Manufacturing & Utilities Cloud / On-Premise 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
Key Messages Simplified 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
SAP as the Market Leader http://discover.sap.com/leading-in-predictive-analytics Victory Index Report Big Data Predictive Wave The Wisdom of Crowds Hurwitz Victor fast time to value and ability to support very large data sets. Forrester Leader SAP is a leader due to a strong architecture and strategy. Howard Dresner Top Vendor The top vendors for advanced and predictive analytics include SAP. 2015 SAP SE or an SAP affiliate company. All rights reserved. 23
Thank you! waldemar.adams@sap.com @adamsw SAP PREDICTIVE ANALYTICS DEMOCRATIZE PREDICTIVE ANALYTICS Productive predictive solutions for all REAL-TIME PREDICTIVE ANALYTICS FOR BIG DATA Anticipate risks & opportunities in real-time EMBED PREDICTIVE ANALYTICS Incorporate Predictive Analytics into Industry LoB Apps & business processes
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