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SAP Predictive Analysis


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SAP: see what SAP Predictive Analysis can do for you

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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: