Are You Ready To Take The Leap From Descriptive To Predictive Analytics? Ashish C. Morzaria Director, SAP Advanced Analytics @ashishmorzaria #BOAK2015 #SAPAnalytics #SAPPredictive 2014 SAP AG or an SAP affiliate company. All rights reserved. 1
What s the difference between descriptive and predictive analytics? 2015 SAP AG or an SAP affiliate company. All rights reserved.
Case: Optimizing Rent Using Japanese Elevators Minimizing Office Building Vacancies in Tokyo 2014 SAP AG or an SAP affiliate company. All rights reserved. 3
Analytics supports better decision making Gives us tangible return on investment Enables us to run our businesses better
Traditional BI systems are being Challenged
BI is limited in proactively solving problems Difficult to act quickly on changing situations Lack of trained experts in advanced analysis
Massive amounts of data lead to new opportunities... Transactions Conversations Machines 2015 SAP SE or an SAP affiliate company. All rights reserved. 2015 SAP AG. All rights reserved. Strictly confidential. Do not distribute outside SAP. Represents the current state of 7planning and can change at any time.
Analytical insights are getting harder to see Inaccessible data and technology Silos of approaches and analytic technologies Rear view mirror BI mentality Insights remain hidden Complexity, cost, confusion Slow decision making lacking future view 2015 SAP AG or an SAP affiliate company. All rights reserved.
Data volumes are also getting bigger Data is getting wider and more complex Content consumers and creators are merging 2015 SAP AG or an SAP affiliate company. All rights reserved.
Visual Analysis Has Limits
An era of unprecedented change fueled by hyper-connectivity 2.5 billion Connected people on social networks by 2020 75 billion Connected devices by 2020 The Internet of Things $65 trillion Global business trade by 2020 2015 SAP AG or an SAP affiliate company. All rights reserved. Internal 2014 SAP SE or an SAP affiliate company. All rights reserved.
Decison Cycles Are Getting Faster 2015 SAP AG or an SAP affiliate company. All rights reserved.
40% of executives worry that they will not keep pace with technology change 2015 SAP AG or an SAP affiliate company. All rights reserved.
What is the Future of Analytics? 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
2015 SAP AG or an SAP affiliate company. All rights reserved. Understanding patterns moves us from what happened to why it happened
Maximizing Mall Rents in California 2015 SAP AG or an SAP affiliate company. All rights reserved.
Pattern Recognition is Difficult For Humans Descriptive BI Diagnostic BI Predictive BI Prescriptive BI Describe Understand Predict Recommend A human using a computer A computer providing info to a human 2015 SAP AG or an SAP affiliate company. All rights reserved.
How Analytics Need to Evolve End-to-end Easy adoption Fast implementation Business focused Enables storytelling 2015 SAP AG or an SAP affiliate company. All rights reserved.
How Does Predictive Analytics Work? Historical data Customers Products Transactions Equipments Automatically detect patterns to determine recurrent behaviors Propensity Risk Fraud Apply predictive model to new data Marketing Finance Maintenance
Without Predictive Analytics
Predictive Analytics has a Perception Problem 2015 SAP AG or an SAP affiliate company. All rights reserved.
Only 21% of organizations have fully or partially implemented predictive analytics We are still dealing with the basics of BI first We need to get a handle on our existing data before we create more! We don t have any Data Scientists and our BI people can t do it. 2015 SAP AG or an SAP affiliate company. All rights reserved.
2015 SAP AG or an SAP affiliate company. All rights reserved. Is Predictive Analytics only for Data Scientists?
Types of Predictive Models Association Cluster Classification Time Series Outliers Product Recommendation Up-sell Link Tracking Customer Loyalty Spatial/Geo Analysis Predictive Maintenance Propensity to Churn Sales & Inventory Forecasting Fraud Detection 2015 SAP AG or an SAP affiliate company. All rights reserved.
2015 SAP AG or an SAP affiliate company. All rights reserved. Automated Analytics (SAP Predictive Analytics)
Automated Machine Learning brings prediction with clicks not code 2015 SAP AG or an SAP affiliate company. All rights reserved.
What if you could focus on ROI instead of TCO? Solve business pains: Improve customer satisfaction Reduce costs Increase sales 2015 SAP AG or an SAP affiliate company. All rights reserved.
2014 SAP AG or an SAP affiliate company. All rights reserved. 28