SAP Predictive Analysis


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SAP: see what SAP Predictive Analysis can do for you

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  • 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 Analysis

    1. 1. SAP Predictive AnalysisTransforming the Future with Insight TodayBI Global Center of Excellence
    2. 2. © 2012 SAP AG. All rights reserved. 2Safe harbor statementThe information in this presentation is confidential and proprietary to SAP and may not be disclosedwithout the permission of SAP. This presentation is not subject to your license agreement or anyother service or subscription agreement with SAP. SAP has no obligation to pursue any course ofbusiness outlined in this document or any related presentation, or to develop or release anyfunctionality mentioned therein. This document, or any related presentation and SAPs strategy andpossible future developments, products and or platforms directions and functionality are all subjectto change and may be changed by SAP at any time for any reason without notice. The informationon this document is not a commitment, promise or legal obligation to deliver any material, code orfunctionality. This document is provided without a warranty of any kind, either express or implied,including but not limited to, the implied warranties of merchantability, fitness for a particularpurpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in thisdocument, except if such damages were caused by SAP intentionally or grossly negligent.All forward-looking statements are subject to various risks and uncertainties that could cause actualresults to differ materially from expectations. Readers are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of their dates, and they should not be reliedupon in making purchasing decisions.
    3. 3. © 2012 SAP AG. All rights reserved. 3AgendaThe Business Case for Advanced AnalyticsSAP Predictive Analytics StrategySAP Predictive Analysis SolutionIndustry and LoB Use CasesQ & A
    4. 4. © 2012 SAP AG. All rights reserved. 4Competing in today’s demandingmarketplace means going beyond “what happened”Tom Davenport International Institute for AnalyticsHow and whydid it happen?What is the risk if itdoes/doesn’t happen?How do you prevent /ensure it happens again?Whathappened?What ishappening now?What willhappen?OPERATIONSlHRlFINANCE|IT|SALESlMARKETINGMANUFACTURING l RETAIL l HEALTHCARE l BANKING l UTILITIES l TELCO | PUBLIC SECTOR | FINANCIAL SERVICES
    5. 5. © 2012 SAP AG. All rights reserved. 5Extend your analytics capabilities where you want to be…Sense & Respond Predict & ActRawDataCleanedDataStandardReportsAd HocReports &OLAPGenericPredictiveAnalyticsPredictiveModelingOptimizationWhat happened?Why did it happen?What will happen?What is the best thatcould happen?CompetitiveAdvantageAnalytics MaturityThe key is unlocking data to move decision making from sense & respond to predict & act
    6. 6. © 2012 SAP AG. All rights reserved. 6There is a disconnect between the BI and Advanced Analytics worldToday, Predictive Analytics is an IslandEIMBIPMDMPACleaned DataRaw DataReportingAnalysisDiscoveryDashboardsChasmSpecializationSophistication / Skill SetLOBETLETL
    7. 7. © 2012 SAP AG. All rights reserved. 7BISAP Brings BI and Predictive TogetherEIMBICleaned DataRaw DataReportingAnalysisDiscoveryDashboardsSpecializationSophistication / Skill SetNew predictivein BIPMDMPABI to predictiveinteroperability
    8. 8. © 2012 SAP AG. All rights reserved. 8Market Trends for Predictive Analytics“Among Business Intelligence disciples, prediction provides the mostbusiness value...”Source: 2007 TDWI1. Providing solutions across the user spectrum2. Operationalizing models and incorporating in business processes3. Open source solutions and community embrace4. Real time analysis and high performance with Big Data5. In-database predictive analytics6. Ubiquitous business access to resultsPredictive Analytics: The Hurwitz Victory Index Report2011, Hurwitz & Associates
    9. 9. © 2012 SAP AG. All rights reserved. 9#1 combined: BI, EPManalytic applications14.5%22.4%12.2%We Lead the MarketBusiness Analytics Solutions from SAPVisionary leaderin every Gartner quadrant#* Gartner Dataquest Research Note G00212433, 18 April 2011
    10. 10. © 2012 SAP AG. All rights reserved. 10The SAP differenceCompleteend-to-end analytics solution#1leader in analytics*40,000+analytics customers7,000+partners with proventrack record of success* 2011 Market share, Gartner Report April 2012
    11. 11. © 2012 SAP AG. All rights reserved. 11Forrester Wave: Big Data Predictive Analytics• SAP is a leader in the2013 Forrester Big DataPredictive Analytics wave• SAP went from notappearing on the wave toleader within one year• SAP’s in-memorypredictive analyticsapproach is unparalleledand unique amongvendors• SAP’s vision and roadmapfor predictive analytics iswell-received by analysts
    12. 12. © 2012 SAP AG. All rights reserved. 12AgendaThe Business Case for Advanced AnalyticsSAP Predictive Analytics StrategySAP Predictive Analysis SolutionIndustry and LoB Use CasesQ & A
    13. 13. © 2012 SAP AG. All rights reserved. 13SAP BusinessObjects Business Intelligence Strategic FocusShare our vision to help them evolveMobile BIFirst experiencefor BIContent to pointof impactExpand tountapped usersExtreme AnalyticsBig dataReal-timePredictiveBI CoreCore forinnovationComplete BISuiteContinuedLeadershipCreative BIFor IT andDepartmentFast time-to-valueConnected tothe EnterpriseSocialCapture thedecisionOpinion andFactsLeveragethe networkInnovation without Disruption
    14. 14. © 2012 SAP AG. All rights reserved. 14SAP’s Advanced Analytics Strategy1 Empower the businessReal-time in-memory Predictive and Next Generation Visualization & Modeling2In-Time ActionableInsights3 In context Extend the BusinessIntelligence Competency toAdvanced Analytics Embed Predictive in to Appsand BI environments Familiar and simple UI In-memory processing No data latencies Complete data discovery,data manipulation, andpredictive toolset in one Relevant to your business Within the context of yourIndustry & LOB scenario Persist changes, collaborate,and publish results to thebusiness
    15. 15. © 2012 SAP AG. All rights reserved. 15Strictly ConfidentialSAP BusinessObjects Business IntelligenceOne Unified and Complete BI Suite Addressing the Full Spectrum of BIDiscovery and Analysis• Discover areas to optimize your business• Adapt data to business needs• Tell your story with beautiful visualizations• Provide predictive capabilities to thebusiness communityDiscover. Predict. Create.Dashboards and Apps• Deliver engaging information to userswhere they need it• Track key performance indicators andsummary data• Build custom experiences so users getwhat they need quicklyBuild Engaging ExperiencesReporting• Securely distribute information across yourorganization• Give users the ability to ask and answertheir own questions• Build printable reports for operationalefficiencyShare Information
    16. 16. © 2012 SAP AG. All rights reserved. 16AgendaThe Business Case for Advanced AnalyticsSAP Predictive Analytics StrategySAP Predictive Analysis SolutionIndustry and LoB Use CasesQ & A
    17. 17. © 2012 SAP AG. All rights reserved. 17SAP Predictive Analysis is…A complete data discovery, visualization, and predictive analytics solution designed toextend your current analytics capability and skillset.SAP Predictive AnalysisData Discovery Rich Visualizations Predictive Analytics
    18. 18. © 2012 SAP AG. All rights reserved. 18Data Discovery, Predictive, and Visual Suite for Big DataStreamWorkExplorerMobileDatasetInformation SpaceVisualizationsExploration ViewsExplorerSQLHANA UNVVisual Intelligence Predictive Analysis
    19. 19. 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
    20. 20. © 2012 SAP AG. All rights reserved. 20Increase ROI and minimize TCO• Works with what you already have• Maximize resource utilization with little tono learning curve• Increase return by leveraging more users• Predict and solve difficult industryscenarios and gain competitive advantage
    21. 21. © 2012 SAP AG. All rights reserved. 211001010110101001013 Simple Steps to SAP Predictive Analytics1 Load Your DataFrom Any Source2 Discover, Enrich, &Visualize Results3 Apply PredictiveModels & Publish
    22. 22. © 2012 SAP AG. All rights reserved. 223 Types of Users for SAP Predictive AnalyticsBusinessUsers/ExecsDataScientistsDataAnalysts• Create complex predictive models andsimulations• Validate predictive business requirements• Publish results back to source• Transform and enrich data source(s)• Create simple predictive models andsimulations• Visualize results and publish to BI Platform• Interact with published predictive analysis• Visualize results in context of use case• Collaborate with colleagues towardclosure/action.001%RepresentativeUserBase3%97%
    23. 23. © 2012 SAP AG. All rights reserved. 23AgendaThe Business Case for Advanced AnalyticsSAP Predictive Analytics StrategySAP Predictive Analysis SolutionIndustry and LoB Use CasesQ & A
    24. 24. © 2012 SAP AG. All rights reserved. 24Predictive Use Cases in IndustryInstantly predict market trendsand customer needsPredict how market pricevolatility will impact yourproduction plansSee changes in demand orsupply across your entireSupply Chain immediatelyMonitor and analyze alldeviations and quality issuesin your production processProvide exactly the right offersand service levels to everycustomerHave a continuously-updatedwindow into future sales,showing changes in real timeUnderstand what yourcustomers and potentialcustomers are saying aboutyou, right nowPredict cash flows to managecollections, risk and short-term borrowing in real time
    25. 25. © 2012 SAP AG. All rights reserved. 25Affinity Analysis for RetailersCurrent Customer Situation Difficulty understanding financial impact of merchandisingdecisions due to magnitude of POS data and disconnect toBI systemDescription Analyze sales data on market basket level to understandand predict effectiveness and profitability of merchandisinginitiatives at regional, store, (sub)category and SKU level. Conduct new product affinity analysis, product to productgroup affinity analysis and performance, product andbasket performance, and optimize co-product assortmentselection.Value Proposition Unlock the value of your POS data in real-time tounderstand what’s selling and what’s not, and to quicklyrespond to consumer demand.Outcome Opportunity Improve revenue and net margin by accelerating profitablemerchandising initiatives, while reducing holding costs ofslow-moving obsolete products.SAP Predictive Analysis
    26. 26. © 2012 SAP AG. All rights reserved. 26Customer Segmentation for BankingCurrent Customer Situation Difficulty understanding which customer segments to targetwith which product to help fuel the next stage of growthDescription The scenario analyzes customer data to understandcustomer segments and their unique characteristics toidentify under-penetrated groups of customers Based on a key customer cluster characteristics andpenetration levels, the bank can target introduction of mostappropriate product such as high credit limit premium creditcard.Value Proposition Unlock the value of your customer data in real-time tounderstand which customer segments to target with whichproducts and services to fuel the growth of your bankinginstitution.Outcome Opportunity Improve revenue and net margin by accelerating profitablemarketing initiatives by targeting under-served customersegment.SAP Predictive Analysis
    27. 27. © 2012 SAP AG. All rights reserved. 27Customer Segmentation and Churn Analysis for TelcoCurrent Customer Situation On average Telco companies lose 20% of their customersannually. Therefore they must understand the propensity ofcustomers to leave or not renew their contract based on a varietyof attributes in order to mitigate this rampant issue.Description Analyze customer segmentation data attributes to understanddifferences between customers who have been retained incontrast to those who have left or churned Develop strategies to identify customers most likely to leave anddevelop adapted plans to maximize their retention.Value Proposition Unlock the value of your customer data to understand whichcustomers are likely to leave and why to help retain desirablecustomers through the most appropriate offer at the right time.Outcome Opportunity Improve revenue and net margin by retaining more customersthrough faster understanding of customer attributes. React faster and more appropriately to the causes of customerchurnSAP Predictive Analysis
    28. 28. © 2012 SAP AG. All rights reserved. 28Tax Fraud DetectionCurrent Customer Situation Public budgets are getting tighter and pressure on tax authoritiesis rising to increase collection levels. Identifying true cases offraud among millions of tax returns with many different attributesis complex and yet needs to be done faster than ever before andwith more accuracy.Description The scenario analyzes tax payer data such as age, income, taxamount, wealth, number of dependents and sum of bank depositsto isolate the most likely fraudulent tax returns Based on the findings the tax agency is able to focus itsinvestigators on fewer cases that have a much higher likelihoodof being fraudulent.Value Proposition Unlock the value of your data in real-time to understand which taxpayer attributes are most likely linked to fraud and thereforeallocate limited resources to the investigation of fewer but bettertargeted cases.Outcome Opportunity Improve revenue collection levels, discourage fraudulentbehavior with better prediction and investigation and contribute tothe reduction of budget deficits.SAP Predictive Analysis
    29. 29. © 2012 SAP AG. All rights reserved. 29Run BetterAnalytics from SAPRemarkable customers…over 40,000Know Your Business Decide With Confidence Act Boldly
    30. 30. © 2012 SAP AG. All rights reserved. 30AgendaThe Business Case for Advanced AnalyticsSAP Predictive Analytics StrategySAP Predictive Analysis SolutionIndustry and LoB Use CasesQ & A
    31. 31. Thank YouContact information: