The traditional measures of organizational performance – the balance sheet, income statement, sales pipeline, operations – have been around for decades / even centuries. In fact, the balance sheet and income statement, the two most fundamental measures of business performance, came into existence in the 1930s, well before computers were even invented. Today, we live in a completely new, digital world yet the fundamental measures of performance and ‘information tools’ we use to improve our organizations have not changed at all. Leading companies have been discovering that Big Data can have big payoffs for their business. In essence, capturing and analyzing massive amounts of data allows organizations to track new ‘signals’ or new measures of performance, new classifications and understanding of their customers, new insights into operations, finding new, measurable ways of doing business that they’ve never had before.The question you need to ask yourself is, ‘what new signals could help me dramatically improve my business?’
The signals of health we’ve been trained to look for haven’t changed for more than a century, but the amount of information (data) that could indicate the health and future viability of a company is radically different. In fact, the information we receive has exponentially magnified since these guys were doing business. But they’d easily recognize the tools and signals we’re still using today.
Going back to the Income Statement and Balance Sheet – they are at best rear-view measures of the top line and bottom line. They provide a snapshot in time of all that has happened, but very little, if any, indication of what is happening in the enterprise. For example, an online retailer with a subscription model experiences a massive drop in stock price because of poor Income Statement results. Further analysis indicates that there was a dramatic drop in subscribers (Churn) in one of their most profitable segments. It would stand to reason that a pre-emptive pulse-check on the churn could have helped stem the bleeding and perhaps prevented the reaction on Wall Street. This churn is an example of a new signal that could have helped this one enterprise run its business more proactively rather than look for explanations with a rear-view perspective.
To look forward, companies need a real-time data platform that can ingest the ever growing data elements, which influence your business and compare them with traditional measuresfrom the balance sheet and income statement, giving insight now vs. months down the road. This real-time data platform must have extreme capabilities to collect, move, store and process massive amounts of data from any source and discovernew trends, patterns and behaviors in real time…all critical to gaining competitive advantage.
With more and more people spending much of their existence in the digital world – whether it’s for work, play, learning, or to socialize– the amount of data being generated is truly astounding. Just think about the number of SMS messages and emails sent, phone calls placed, and Facebook updates made every minute, and it boggles the mind how much data is traversing networks around the world.
The signal, or signals, you may want to track may be different than other companies. While over time you may want to track many different signals, the big question to ask yourself is, ‘Where do you want to begin?’ For instance, do you want to track:Brand sentiment – By capturing and analyzing customer comments on Facebook, Twitter, and LinkedIn in order to improve customer experience and optimize campaign performance.Predictive maintenance – By analyzing a continuous stream of machine data diagnostics, you can predict when the performance of machinery is degrading or even worse potentially about to break down.Insider threats – By looking for anomalies hidden in data about user behavior, you identify suspicious behavior and pinpoint potentially high-risk employees Network optimization – By understanding usage patterns, and predicting customer trends, you can optimize your communications networkPropensity to churn – Maybe your business suffers from a customer turnover in a highly competitive market. How can you determine a customer’s propensity to churn, or in other words, a likelihood they will leave you as a customer so that you can offer new services or deals in order to keep them.Product recommendation – By analyzing customer purchasing history and online browsing patterns, you can build a profile of customer interests and make highly targeted product upsell recommendations.Fraud detection – Identify purchases or insurance claims that may have a high probability of being fraudulent by analyzing not only the transactional information, but also electronic documents.Risk mitigation, real-time – By analyzing financial transactions in real-time, you can identify high risk investments, sales, and deals before they actually occur360 degree customer view – By storing and analyzing all data about a customer, such as transactions, browsing history, customer profile, social media, and more, you can build a complete view of your customer across all channels.Asset tracking – Track high value assets and identify abnormal behavior that may put assets at risk of loss, or identify inefficient usage that is costing your business money. Personalized care – Use advanced analytics to create personalized treatments for patients, such as how Mitsui Knowledge Industry offers personalized cancer treatment based on genome analysisReal-time demand / supply forecast – Maybe your business is very seasonal or varies greatly in each local market. How can you better forecast customer demand by market, or by season, or weather pattern, or market trend, in order to forecast supply requirements and optimize inventory. -----------------------------------------COMMENT TO SPEAKER: This is a great opportunity to stop and ask your customer questions to understand where their pain is the greatest today, what ‘signal’ they are gravitating towards, and what is it they hope to accomplish with Big Data. Before moving onto the next slide we want to understand what it is that is important to the customer, and find a very specific measure or signal that we can use as context for the rest of the presentation. NOTE: You can find other ‘signal’ slides that are specific for particular industries or lines of business by visiting the Big Data community:https://go.sap.corp/BigData
We have been living in an application-centric world, with analysis as the add-on. But CEOs increasing realize that data is an asset, and must be treated that way.
We’re moving to a world where applications come and go, but the information foundation, including analytics, is the center of business activity.
Analytics changes the conversation – and the new data signals are changing the kinds of discussions we have in organizations…
Here’s an example from the consumer world. The New York Times published an article that took a dim view of Tesla’s latest model S car.Tesla took issue with the article, and were able to back up their arguments with a host of data that was recorded by the vehicles sensors – “the data bit back” (although they may have overstated their case – as one person observed, they should have “let the data speak for itself”)
Demonstration of the concept applications developed by SAP with McLaren in mind.
McLaren has a project to use HANA both for their operations, and to help get real-time information from the car’s 120 sensors. Here is a vision dashboard. For more information, see this video: http://blogs.sap.com/jonathanbecher/2012/11/15/jonathan-becher-cmo-at-sap-talks-about-the-challenge-of-big-data-in-formula-1/
A few screens that illustrate the SAP concept application for McLaren – uses SAP’s “visual enterprise” software.
What are the big changes to the information infrastructures that are supporting this move from backwards-looking transactions to “signal”?Biggest change in analytics in forty years – broken down the barrier between operations and analytics, between OLTP and OLAP. Yes, we’ve had operational and embedded analytics, but tradeoffs. Now using the same data for both, without compromise. Big jump towards the single source of truth we’ve been looking for. This is the architecture of the future. All your future applications are being engineered to this standard. It’s already the architecture of choice for the latest wave of cloud providers. The analysts agree: Gartner’s Donald Feinberg: “By 2016 in-memory column-store DBMS using storage-class memory will replace 25% of traditional DW and OLTP systems“We can provide it to you today, on-premise AND in the cloud. What are the benefits? Faster, smarter, simpler systems
Faster – faster queries (customers have seen speed increases of over 1000%), and no latency (all transaction data instantly available for analysis). It’s fast in the way digital cameras are faster than old film cameras. Film cameras take pictures very fast – but if you want to view the results, it can take days of expensive, specialized focusing. And when you get the pictures back, it’s often not what you want, so you have to take more pictures than you need, in the hope that one might come out. With a digital camera, we get the result instantly, and can take the picture again in real time until we get what we want…
Smarter – make smarter decisions, earlier in the business process. Today, all of our analytic systems would be focused on analyzing the broken glass lying on the floor after the vase had toppled, and trying to figure out how to make sure it doesn’t topple in the future. But imagine if your analysis was so fast you could catch it BEFORE it hit the ground? That would be a dramatic change to the “process” – and it’s the equivalent of what customers are doing within in-memory technology today, spotting and fixing problems before they negatively effect the customer experience.
Simpler – no data duplication, one version of the truth. Changes to metadata, not data, mean much lower cost of operations… Here’s some of the data from the IDC SAP HANA market assessment survey, available online.
But while we’ve been integrating transactions and analytics, there’s also been a redefinition of the notion of “transaction” – it’s no longer one line as the milk carton is swiped or as a web purchase is made. We can now capture vast amount of data before and around the transaction – what clicks were made, what other products were looked at on the shelf, etc. Hadoop and other noSQL databases have proved to be very interesting for capturing and analyzing vast amounts of detailed data in a very cost effective way. And relational databases, and analytic database such as column stores, are very mature technologies – they will be with us for a while. HANA is now a true platform, including an application server, and is at the heart of our new, end-to-end, real-time data plaform, that takes ALL of these different types of data into account – a Unified Data Management Platform for real time business, INCLUDING all the critical information governance – data movement, data quality, stewardship, etc. We have this platform. http://www.saphana.com/community/blogs/blog/2012/12/05/the-path-forward--the-sap-real-time-data-platform-powered-by-sap-hana
Can you spot the problem with these profiles on LinkedIn?
We have analytic applications to help you with information governance…
Examples of companies that have used SAP HANA for innovative new applications, without any existing links to SAP. Visit http://www.saphana.com/community/learn/startups for more information.Genome analysis – MKI https://www.youtube.com/v/U6dA41_ulxo?autoplay=1&rel=0AlertEnterprise, uniquely recognizes that effectively addressing Insider Threat requires analyzing risks across IT Security, Physical Security and Operational Systems like SCADA etc., to safeguard critical assets. Security Convergence has not been so effective in the past. The volume of data and the number of disparate sources of information that can range from structured to un-structured data, tend to scare off the un-initiated. AlertEnterprise possesses the secret sauce to bring such divergent sources of data together and make sense out of it all. So why include SAP HANA in the mix? Predictive Risk Analytics for security took too long to process. http://www.saphana.com/community/blogs/blog/2012/05/01/insider-threat-at-airportsTaulia -- http://www.saphana.com/community/blogs/blog/2012/05/03/using-sap-hana-for-real-time-financial-risk-assessmentsJerome – http://www.saphana.com/community/learn/startups/marketplace/jeromeQunb – http://www.saphana.com/community/learn/startups/marketplace/qunbhttp://www.lemondeinformatique.fr/actualites/lire-qunb-combine-son-cluster-hadoop-avec-les-calculs-en-memoire-de-hana-51346.html Sensen networks: http://www.saphana.com/community/learn/startups/marketplace/sensennetworkshttp://sensennetworks.com/senstore – counting people, vehicle tracking, etc…
Chef Jerome – the recipe on the left is automatically analyzed semantically, and combined with information from the Casino supermarket inventory systems to come up with a shopping basket (right) that you can click to have delivered to your home.
why have companies not come as far as consumers? Why are companies not leveraging new types of information or providing their employees or consumers with new experiences? The reality only 10% of people in organizations use analytics in their job. According to Gartner, 75% will use analytics by 2020. The question is – how will companies enable more people with the more, better, right information to make decisions?
Analytics has been changing. In-memory has broken down the barriers that we previously took for granted. We can now do powerful, complex analytics directly in-memoryPlan/Act – BW on HANAStructured/Unstructured (text analytics directly in-memory, inside HANA)Past/Present – predictive analytics, directly in memoryThe result is a big leap in power, but also simplicity, because it’s now all in one system instead of several.
People need:Agility = Visual Intelligence etcPower = PredictiveMaturity = Agility and power without being another silo, can take from desktop to department to country to globalAnd of course, on-premise, on-demand, across all data, integrated with collaboration… And not just for employees – increasingly, it’s about your customers…
“SAP is a newcomer to big data predictive analytics but is a Leader due to a strong architectureand strategy.”http://www.forrester.com/pimages/rws/reprints/document/85601/oid/1-KWYFVB The Forrester Wave™: Big Data Predictive Analytics Solutions, Q1 2013
Information is useless unless you act on it. Every effective analysis system is part of a business workflow, an “application”. SAP has forty years of deep expertise in your industry and your business roles. We have worked with our customers to find the best, most innovative uses of the new in-memory, cloud, and mobile possibilities to transform business. We don’t just sell you tools that you have to put together yourself. When you innovate, you have to start with the customer experience. Customers have choices. They have a voice. To earn their loyalty, need more than a loyalty program. You need to earn their trust. This is a trust revolution. Need to recognize them as more than numbers or accounts, but as unique individuals, human beings with a distinct set of needs. Customers expect more than a product - they expect a relationship on equal terms. They expect to be at the center of your world. And you need to put them there. Become a customer company.
http://www.sap.com/solutions/technology/in-memory-computing-platform/hana/applications/sales-analysis-for-retail/index.epxE.g. Real-time cross-promotion– HSE24, one of the biggest home shopping networks in Europe will be using SAP CRM on HANA technology to provide cross-promotions in real-time, based on the customer profile, not just by the product being purchased..Precision retail – cloud-based, HANA-powered solution for retailers : http://www54.sap.com/solutions/tech/cloud/software/precision-retailing/index.htmlRetailPoint-of-sale (POS) data analysis– Use dashboards, interactive reports, and performance indicators to assess sales performance and respond•• Inventory management – Align inventory with demand; identify key stock and margin issues•• Promotional analysis – Understand promotional impact and ROI in real time; enable an early response system•• Store operations – Understand which stores perform best and why; replicate success; manage by exceptionBenefits•• Unified POS data for lightning-fast analysis for immediate access to answers, information, and insight •• Improved sales and store operations effectiveness by aligning customer demand, product assortment, inventory levels, and promotions•• Better visibility into demand via real-time POS data analysis and reporting•• Insight into promotional effectiveness with what-if analysis of tactics to increase promotional lift and margins •• Higher stock availability by leveraging real-time insights into inventory risks and opportunities•• Increased consumer satisfaction, as buyers can find what they want, when they want itWhat are the typical use cases?Promotional analysis. Understand promotional impact and ROI in real time. Enable a pricing strategy that takes into account factors such as stock levels and weather, linked with electronic at-shelf labeling to execute effectivelyBasket analysis. Analyze POS data to understand the affinity between products within assortments, to drive up salesProfitability analysis. Deep dive into the drivers behind margin development - by category, SKU, store, customer and moreInventory management. Analyse inventory issues at detailed and aggregated levels. Enable stores to learn from each other, and promote best practice by category. Avoid stock outs.Mobile shopper applications. Enable multi-channel shopping and/or protect against "Showrooming". Provide highly-targeted offers to shoppers in real time.Social Media analytics. Analyse social media platforms to understand what sentiment is driving footfall and purchasing decisions, match with relevant data such as sales and inventories, and adapt offers and displays to optimize margins more quicklyCheck out the use cases on Experience SAP HANA for more examples.
The high-end audio speakers made by Bowers & Wilkins Group Limited – or B&W – delight audiophiles around the world. However, with inconsistent processes governing the distribution of sales reports and product data, the company’s salespeople were having trouble delighting B&W’s customers. To simplify and standardize its sales data – and make the information accessible on the digital devices favored by its sales team – B&W implemented SAP® BusinessObjects™ Explorer™ software.The problem wasn’t the data itself; rather, it was the somewhat cumbersome way in which reports were packaged and distributed to sales teams. Each region or division would import the data into Microsoft Excel or Microsoft Access, but there were so many versions of these products that it was difficult to establish common standards. “It was something of a Wild West atmosphere,” says Fryer. “There were multiple versions of Excel and Access across different layers of our sales organization and other groups, and it all became overwhelming.”Mobility is also paying substantial dividendsfor B&W’s salespeople, any oneof whom can now access sales andproduct data via a Web browser, and“Our people are heavily dependent on the iPhone and the iPad. And whatreally sold us on SAP BusinessObjects Explorer was the ability to closelyand quickly integrate sales data into both these products.”then analyze and manipulate the datato meet specific needs. The flexibilityof being able to run reports anywherein the world, at any time, and on anydevice, has made the sales team moreproductive and more effective. Not onlydo they spend less time preparing andrunning reports, they also have neededinformation at their fingertips. Whilecautioning that anecdotal evidencedoesn’t necessarily translate into bottomline results, Fryer says that B&W’ssalespeople are highly enthusiasticabout SAP BusinessObjects Explorer.“One of our sales managers told methat, after using the solution on his iPad,he could commit to a million pounds inadditional sales for the coming year,”says Fryer. “That’s because we nowhave timely data that’s readily available– and we know we can trust it.”
Banking innovations with SAP HANA: http://blogs.sap.com/banking/tag/sap-hana/Financial reportingTransaction systems and customer systems are separate today – bringing them together can result in customer-centric bankingReduced customer churnDetecting fraud, money-launderingSAP Liquidity risk management: http://www.sap.com/solutions/technology/in-memory-computing-platform/hana/applications/liquidity-risk-management/index.epxAnalyze 200 million cash-flows in under 3 seconds – and get the information straight onto an iPad device... – Basel III liquidity coverage ratio, any liquity gaps, advanced stress-testing and scenarios… predict impact of future market conditions on your liquidity profile. Respond to liquidity gaps by calculating your counter-balancing capacity to determine the cash inflows that could potentially be raised when needed… Reduce borrowing costs, minimize regulatory compliance costs, predict impact of volatility, take counterbalancing action to reduce your liquidity exposure… Aggregated risk on demand Change the banking experience for the unbanked: Standard Bank: http://www.slideshare.net/sapmobile/standard-bank-opening-7000-new-accounts-per-day-using-a-mobile-origination-platform-from-saphttp://www.youtube.com/watch?v=10XDU5EvPuY
For more information, please see this link: http://www54.sap.com/industries/healthcare.html
Intelligent Finance. For more information, please visit this link: http://www54.sap.com/lob/financial-management/software/overview/highlights.html
Intelligent Finance. For more information, please visit this link: http://www54.sap.com/lob/financial-management/software/overview/highlights.html
Examples of iPad applications for financial staff (some of these are lab previews)
A brand-new, HANA-powered fraud management system
Examples of innovation, customersListen to Bill Oates, CIO of the City of Boston, talk about how his city organization is trying to engage directly with its citizens and is improving services using SAP solutions for enterprise performance management – giving city officials and residents the ability to find out what city agencies are doing, how well they are doing it, and where they can improve. Link to City of Boston VideoThe City of Edmonton’s CIO, Chris Moore, shares his vision of a "Best Run" city and how Edmonton is achieving that vision by embracing the consumerization of information technology. Link to City of Edmonton VideoBest Run Governments - Thought Leader Video featuring City of Boston, City of Edmonton and Center for Technology in Government (CTG) - Find out how governments are using technology to innovate public policy and information management, to increase good governance, and foster citizen engagement. Theresa Pardo, Director of the Center for Technology in Government discusses the direction of open government initiatives and the recently released CTG white paper The Dynamics of Opening Government DataLink to Best Run Government - Thought Leadership Video
Boston uses SAP Analytics to allow citizens to have up-to-the minute info about the city. See here for more information: http://www.cityofboston.gov/bar/home.aspKeeping citizens informedKeeping city alignedAdapting to real-time feedbackReal-time - transitionThis is new way companies can do businessImmediacy – out with real-time informationTransforming our businessesRunning your business on business suiteExciting new innovationNew powerful brain behind your business suite
The NFL fantasy football information, powered by SAP Analytics -- For more information, please see this link: http://www.sap.com/corporate-en/news.epx?PressID=20323
Bigpoint gaming’s BattlestarGalactica online – real-time optimization of the gaming experience using HANAhttp://www.sap.com/asset/index.epx?id=6c0a1c3d-f80e-4634-abdf-982d7eba4e13
Analytics and information is not only about making decisions faster or doing business better. The reality is that information is now a core part of your customers’ experience – it is part of your PRODUCT. For ideas, please visit: http://www.saphana.com/community/implement
Our Big Data offerings begin with our portfolio of analytic applications designed to address information challenges specific to particular industries and lines of business. The analytic applications can be rapidly deployed enabling you to achieve results quickly. The applications are built using our leading analytic solutions for business intelligence, enterprise performance management, and governance, risk and compliance. We offer analytic solutions for all stakeholders, including tools for data scientists to carry out predictive analysis and data mining, as well as advanced visualization tools enabling business analysts to explore data in depth. The analytic solutions from SAP are built on top of the SAP real-time data platform, which is based on market leading data management solutions with SAP HANA at its center.With SAP you can rapidly deploy applications that also help you to build out a Big Data architecture that delivers business value each step along the way.
The traditional analytics stack is complex and expensive. We can help you save money with a bundled offer based on SAP HANA.
It’s not only about the products, it’s about the ecosystem – partners, service providers, the SAP Community Network with its 2.5 million members, in your industry and line of business. http://scn.sap.com/welcome
I believe the three key trends I’ve talked about – transactions with analytics; interfaces that meet not only the patchwork needs of specific users, but the full lifecycle of analytics projects; and packaged solution-based analytics – are inevitable, no matter which vendor you choose. I think we have better answers than most. Please come and talk to us…
SAP Analytics Innovation Asia ANZ Tour
Big Data AnalyticsDrive Data to DecisionTimo Elliott, SAP, February 2013 Public
DATA TO DECISION Capture Analyze EngageAnalytic applications Industry Line of Businessfrom SAP EnterpriseAnalytic solutions Business Performance Governance, Risk,from SAP Intelligence Compliance ManagementReal-time Databases In-memory Informationdata platform management