In order to Run Smarter, EVERYONE needs to have meaning .... Everywhere and anytime....Whether it is about their customers, products, employees, competition, market, world, regardless of where you sit in an organization, while the context for the knowledge is different, the basic set of questions remains the same. All people spend a great deal of time trying to understand: what is happening, why things happened, what will happen in the future, what is the risk it does or does not happen and how will I prevent it from happening again or ensure it happens more in the future, and ultimately what is the best course of action. Try it, you can adjust these questions to work for any industry and LOB. What happened? What happened to sales? What happened to performance? What happened to our last quarter? What will happen to sales next quarter? What will happen to customer loyalty next quarter? Etc… This is what having meaning to have The ability for every person in every industry and every line of business to ask that important question --from anywhere in a very simple way and get the MEANING they need from it. Think about… Risks… every person in every role takes risks – what is the current risk level and how will this impact operations? Performance?Can you imagine the possibility :--If you could know the minute a competitor had a stock out or a plant that went down the moment it happened, or rumors of an acquisition as soon as someone blogged about it.--If you could respond immediately to a compliance alert by collaborating instantly with all stakeholders, adjust operations or plan as necessary and move on about your day BEFORE it becomes a regulatory issue – ultimately preventing fines, public announcements, etc…If you could know the behavior of your customers by doing a simple analysis of the last week of data of their facebook or twitter activity - and then launch a campaign around their needs--if you could instantly prevent an oil line from breaking , instantly predict the # of high risk loans in a quarter, notified when there’s a shift in the economy and the effect on your company for the quarter…..Well …. This can only happen if we address some of the most critical issues all businesses are faced with:
All organizations have access to raw data, and most have access to cleaned data and standard reports. Yet while many have access to ad hoc reporting to answer questions like “What Happened?”, organizations that pursue predictive analytics to answer more difficult questions—like “Why did it happen, what will happen, and what is the best that could happen?—have consistently proven a gain in competitive advantage and an increase in analytics maturity. Most customers we speak with would love to be conducting more of this sophisticated, powerful analytics, but the majority don’t know how to introduce tools like this to the business community.
The reality is that today, most predictive and data mining solutions are an island separated from the more traditional BI domain tools that require highly specialized skills. As the tool specialization goes up, sophistication also goes up, and this is something that historically has prevented customers from pursuing business scenarios for predictive analytics. A chasm is created between these disciples, requiring multiple skillsets for a singular purpose.
SAP brings BI and predictive analytics together by blending the benefits of self-service BI with the intuitive power of predictive discovery. In doing so, specialization is reduced and skillsets are available to more users, resulting in higher adoption across the analytic portfolio.
A recent study by Hurwitz & Associates has validated that the market trends for predictive analytics is in sync with SAP’s advanced analytics strategy, such as:- Providing solutions across the complete user spectrum – analyst, business user, and executive- Operationalizing models and incorporating the transformational insights and results within business processesThe embrace of open source and the data mining/predictive community (such as ‘R’)Real time and high performance analytics with Big Data sources – SAP HANAIn-database predictive analytics support – both HANA and Sybase IQAnd ubiquitous business access to results – getting the results in front of the users who need them!According to TDWI, “…prediction provides the most business value…”
SAP is #1 in combined BI, EPM, and analytic application and a visionary leader in every Gartner MQ. You’re safe with SAP and our > 22% of the analytics market, a market that has come to expect innovation in the BI space.
SAP offers complete end to end Analytics Solution knowledge – SAP differenceSAP is the #1 leader in Analytics (2011 Market share, Gartner Report April 2012)40,000+ business analytics customers; 80% of the Fortune 500Vibrant ecosystem of > 7000 partners with proven track record of success.
We can help customers evolve or create their analytics vision by sharing our BI Roadmap and our 5 Pillars view of BI.Predictive Analyticsfits in to the Extreme Analytics Pillar, where we provide solutions for Big Data, real-time analytics, and predictive capabilities.The key to this is Innovation without Disruption, helping customers leverage their existing investments and capabilities (lower TCO) while providing incremental and transformational capabilities along the analytics roadmap.
SAP’s Advanced Analytics strategy is three-fold:We want to empower the business by extending the BI competency to advanced analytics, which means making predictive more approachable and usable by business resources; we aim to embed predictive insights in to applications and BI environments, and get the powerful results in front of the business; and we intend to standardize on a familiar and simple user interface, one that ensures the highest level of adoptability and productivityWe want to provide in-time actionable insights to the business when the business needs it most—at the time it’s critical in making immediate decisions. That means in-memory processing, little to no data latencies, and complete data discovery, data manipulation, and prediction capabilities in a single toolsetAnd we want to provide predictive analytics in context of your business and your industry/LoB scenario, which means having the ability to be relevant both from your business as well as TO your business, ensuring we can publish results and collaborate in real-time on actionable insight
SAP Predictive Analysis is a complete data discovery, visualization, and predictive analytics solution designed to extend your current analytics capability and skillset, regardless of your history with BI. It’s an intuitive, drag-and-drop, code-free experience with enough power for data scientists to conduct more sophisticated analysis using Big Data, yet simple enough to allow business analysts to conduct forward-looking analysis using departmental data from Excel.
A strategy for managing big data is more and more a requirement for businesses and industries of all sizes. Data growth is a top concern of CIO’s in todays reality where social media, customer interactions, and requirements for detailed transactional information necessitate a scalable and sizable investment in data storage, and this is the norm not the exception. Both Visual Intelligence and Predictive Analysis, two of SAP’s newest analytics innovations, are great use cases for big data and have pre-built integrations to SAP HANA and Sybase IQ. It begins with having access to multiple data sources, like HANA, relational databases, OLAP technologies, BOBJ universes, and Excel. Predictive Analysis allows you to load and transform these data sources within the application, model various scenarios based on predictive use case, and persist the results back to the same or different source…such as being able to persist back to HANA, where the newly-modeled data now including predictive results can be made available to the business community and executives through BOBJ Explorer, Explorer on Mobile devices, and though collaboration with SAP StreamWork.
SAP Predictive Analytics provides real business value that can be seen. It’s faster, using real-time answers, access to disparate enterprise data, and allows discovery to prediction to results in minutes. It’s easier, more approachable, and designed for business, yet powerful enough to provide the vast majority of predictive use cases used in the analytics community today. It provides the same experience as other BOBJ products, something users have come to expect and which aids in faster adoption. And it’s transforming, enabling insight to action, a proactive and forward-looking visibility into the business, and allows for greater competitive advantage.
As more and more organizations are being asked to do more with less, investments in software and hardware are being further scrutinized and asked to provide a substantiated level of return. SAP Predictive Analysis can increase your ROI and minimize your TCO, in these ways:It works with what you already have, taking advantage of integrations to SAP solutions like HANA and BOBJIt allows you to maximize resource utilization with little to no learning curve – use the skillsets you have today and the SAP solutions you’ve already invested in to deploy predictive capabilities to the businessIt allows you to increase return by leveraging more users – ROI is calculated best by analyzing the reach, accountability, and productive efforts a solution is able to provide. When you get predictive capabilities in front of the business and in a proactive manner, you’re able to achieve the highest levels of ROIIt enables you to predict and solve difficult industry scenarios in order to gain greater competitive advantage and stay ahead of market conditions and other unknowns
There are 3 simple steps to SAP Predictive Analytics:Load your data from any source – whether that be relational databases, flat files, SAP HANA, social data stores, etc.Discover, enrich, and visualize results – see your data like never before where patterns can be analyzed, filters can be applied, and details can be visualized like never beforeLastly, apply simple or complex predictive models, run simulations to see results, and publish analyses for business consumption and use
We have 3 types of users for predictive analytics – data scientists, data analysts, and business users/executives. <Discuss roles/functions in the grey boxes>. But what we see from analyzing the BI user base is that ~ 97% are business users/execs, with only 3% in an analyst role, and less than a tenth of 1% in the role of a data scientist. The real challenge for predictive analytics is ensuring the organization gets the results to the largest user base of analytics today—the business and executives roles! Therefore, a predictive solution must have the ability to cater to all three roles—the data scientist for the modeling and simulating, the data analyst for the data integration/enrichment and report creation, and the business users/execs for interaction/visualization and workflow processes associated to monitoring results in a forward-looking, proactive manner.,
Following are some of the predictive use cases in industry where SAP has helped customers achieve results like never before. There are many more, and many times, specific use cases start with the customer where a very discreet or unique process is required, and SAP Predictive Analysis is used to create a model or simulation of that process in order to achieve positive operational results. Let’s look at some specific examples…
Affinity Analysis for RetailersProblem(s) – Difficulty understanding financial impact of merchandising decisions; large volume of POS data is difficult to mine for patterns; data is disconnected from the BI systemSolution – Use PA to analyze sales data at the market basket level to understand and predict effectiveness and profitability; conduct new product affinity, product performance, basket performance, and associationBenefits – Unlock the value of your POS data in real-time to understand what’s selling and not, and quickly respond to consumer demand; improve revenue and net margin while accelerating merchandising initiatives; provide more strategic product placement for cross-sell and up-sell opportunities; reduce holding costs for slow-moving or obsolete products
Customer Segmentation for BankingProblem(s) – Difficulty understanding which customer segments to target; identification of growth productsSolution – Predictive Analysis is used to analyze volumes of customer data to understand key characteristics, patterns, and unique attributes within populationsBenefits – Identification of under-penetrated groups of customers; targeted marketing and promotional offers to specific customer clusters; improve revenue and net margin by accelerating profitable marketing initiatives
Customer Segmentation and Churn Analysis for TelcoProblem(s) – Average churn (loss) of 20% annually in telco; difficulty in mitigation efforts due to multiple human and social factors affecting relationshipSolution – Predictive Analysis is used to analyze characteristics of retained vs. lost customers to identify patterns; develop strategies to identify customers likely to leave and develop adapted plans (sales and marketing) to maximize retentionBenefits – Provide the most appropriate offer at the most desirable time; improve revenue and net margin by customer retention; react faster and more appropriately to the causes of customer churn
Tax Fraud DetectionProblem(s) – Public budgets are tighter and tax pressures higher; necessity to identify the true cases of fraud among millions of tax returns with different attributes and complexities; demand for greater accuracy in detectionSolution – Predictive Analysis is used to analyze volumes of tax payer data to isolate most likely candidates for fraud based on any number of attributes/characteristics; identify patterns and propensity measuresBenefits – Better allocate limited resources to the investigation of fewer but better targeted cases; improve revenue collection efforts and contribute to the reduction of budget deficits
Beckman Coulter –EPMBertelsman – Accelerated Financial Close Bon Secours – EIM, BI Coca Cola (Femsa) – NW BW, BWA Desjardins – EPM Discovery Comm – EPM Dow Corning – LOB Finance – Dispute MgmtEnfinity – BI Fonterra – GRC Gruma – GRC GrupoPao de Acucar – BI, EPM Iberiabank – EPMJP Coats - EPM Lionsgate – EPM MAF Retail – EPM, BI Newell Rubbermaid – BI, EPM, GRC Organic Valley – EPM Pioneer Foods – GRC Portsmouth Hospitals – BI, EIMSabre Holdings – BI, EIM Sanofi Aventis – GRCSocieteGenerale - EPM Sotheby’s – GRC Sperian – EPM Swiss Post – EPM Tesoro – EPM US Air Force – BI Valero – GRC Waters – GRC
SAP Predictive AnalysisTransforming the Future with Insight TodayBI Global Center of Excellence
User powered, IT approvedSAP Predictive Analytics – Real Business ValueFaster TransformingEasier• Real-time answers• Access to disparateenterprise data• Allows discovery toprediction to results inminutes• Intuitive business design• Designed for more usersfor answering morequestions with less effort• Same experience andinterface as other BOBJproducts• Enables deep insight toimmediate action• Proactive and forward-looking visibility into thebusiness• Allows for greatercompetitive advantage