SAP Advanced Analytical Capabilities

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Business Intelligence, for many companies, has often meant structured operational and historical reporting. End users often complain about lack of flexibility, timeliness and their inability to turn data into actionable information. While this is still important and often critical to day-to-day operations, recent changes to the portfolio of SAP’s BusinessObjects suite of analytical and exploration tools has set SAP apart from the competition in many areas. The power of advanced analytics, made available as self-service to end users, opens up many opportunities to not only report on data, but also integrate meaningful information into business processes. Combined with SAP HANA, a real-time, in-memory database that enables organizations to process "big data" in support of transactional processing, operational reporting, advanced analytics and predictive modeling, the information available to your organization is even more valuable.

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SAP Advanced Analytical Capabilities

  1. 1. 1 SAP Advanced Analytical Capabilities Beyond Business Intelligence Troy Mahr Jon Ross
  2. 2. 2 Introduction  Advanced Analytics and the value of integration with SAP HANA  What do you truly know? Where does Advanced Analytics provide the biggest benefits?  One tool or the right toolset?
  3. 3. 3 Agenda  Business Impact of Analytics  Overview of SAP’s BusinessObjects Business Intelligence Suite  SAP Analysis Applications  SAP Lumira  SAP Predictive Analysis  SAP InfiniteInsight  SAS Integration (forthcoming)  Demonstration  Bringing Value to the Business  Resources and Next Steps  Q&A
  4. 4. Business Impact of Analytics
  5. 5. 5 Comparison of Business Intelligence and Analytics  BI tools have been used for years to report on historical data  Predictive analytics is different, using advanced statistics to find patterns that traditional BI tools may not reveal  Big data, coupled with statistical capabilities, provide self- service and have enabled end-users to develop higher quality predictive models  This combination, and embedding the models into business processes, allows firms to discover, deploy, and profit from the knowledge they gain
  6. 6. 6 Business Intelligence vs. Predictive Analytics  Where are you?  Where do you want be?  Where is your competition headed?
  7. 7. 7 Insights through Predictive Analytics  The vast majority (85%) of those currently using predictive analytics report it having had a positive impact on their business  Sales (46%), finance (44%) and marketing (42%) are the three functions seen to currently benefit most from the use of predictive analytics  The key benefits of using predictive analytics are considered to be better business performance in the future (61%), greater insight into business dynamics (50%) and making greater use of data already available (49%) Source: Loudhouse Research
  8. 8. 8 Business Benefit Examples of Predictive Analytics Source: SAP and Ventana Research Instantly predict market trends and customer needs Create customized offer for each segment and channel Predict how market-price volatility will impact production plans Foresee changes in demand and supply across your entire supply chain Proactively manage your workforce by attracting and retaining talent
  9. 9. 9 Business is Paying Attention to Predictive Analytics Key Points:  90% of organizations agree that predictive analytics (PA) give them a competitive advantage  60% of those surveyed agree that PA is currently an investment priority, while 80% think it will be a crucial investment in the next 5 years  Those who invested in PA are seeing a quick return on investment – 30% reporting a major impact from PA in the first 6 months, with 50% reporting similar benefits 6-9 months out  95% have seen an increase in the volume of data they are dealing with over the last year (“big data”)  Businesses say they are using PA to exploit opportunities rather than minimize risk – predicting customer needs and market trends are seen as the most valuable scenarios for PA Source: Loudhouse research agency study in 2013, sponsored by SAP SAP Newsbyte – Dec. 4, 2013
  10. 10. SAP’s BusinessObjects Business Intelligence Suite
  11. 11. 11 Analytics Solutions from SAP Agile Visualization Advanced Analytics Big Data Mobile Collaboration Cloud Enterprise Business Intelligence Today’s Focus
  12. 12. 12 SAP’s Strategic Focus on Analytics Solutions
  13. 13. 13 BusinessObjects Solutions
  14. 14. 14 Product Overview - Lumira  Freedom to visualize your data, discover new insights, and share stories  Available as a separate product or embedded as part of Predictive Analysis  Transform data – acquire data from corporate and personal sources  Visualize and discover insights – rich library of chart types; extend, embed and customize with SDK; and discover related insights and influencers  Share stories – build engaging stories using storybooks and infographics, using mobile, web and desktop  Lumira Server now available for processing big data in real time
  15. 15. 15 Product Overview – Predictive Analysis  Identify the KPIs that will drive the greatest revenue growth and profitability  Easily share financial intelligence with key stakeholders for immediate decision making  Use predictive analytics to improve financial performance from strategy to execution  Reduce financial risk through cash analyses with predictive modeling and visualization  Improve accounting with predefined content, advanced analyses, and ad hoc reporting
  16. 16. 16 Feature Summary – Predictive Analysis Some key advanced analytical features available in PA include:  23 statistical algorithms (and growing)  Apriori in demo today  Integration with the HANA predictive analytics library (PAL)  Support for open source “R” language  Integration of Lumira within PA to build data visualization on top of analysis
  17. 17. 17 Integration Overview – Predictive Analysis
  18. 18. 18 Infinite Insight - “Insights” Source: SCN Blog Entry
  19. 19. 19 Demonstration – SAP Predictive Analysis Example: Apriori Algorithm “Association Analysis” Apriori  Classic predictive analysis algorithm  Used to uncover hidden patterns and correlations among a set of items Popular Use Cases  Amazon “Frequently Bought Together”  Transactional data (Sales Order items) Measures  Support  Proportion of transactions in the data set which contain a particular item set (Ex: 1/5 , 1 out of 5 transactions contain an item set)  Confidence  Measure tells you how often a customer buys Item B when they buy Item A.  Lift  Used to judge the strength of the association rule  For example if we have high support and high confidence then we get a strong association, but this can be deceptive because we can have a high level of confidence even when they are independent  Lift ratio = confidence of the rule / the confidence assuming Item B and Item A are independent
  20. 20. 20
  21. 21. Bringing Value to the Business
  22. 22. 22 Best Practices  Consider the broad indicator over the precise measurement  Is measurement to the 4th decimal necessary or will a more general indicator suffice?  Make sure leadership is aligned with strategic priorities and see activities the same way  Keep measurements and KPIs to a reasonable and actionable number  Once you’ve determined what the right measures are, be prepared for them to change as your organization does  In most cases, the organization is already collecting the data you need; you just need to know how to use it  Present the right data to the right people in the right way  Look for opportunities to embed information in business processes
  23. 23. 23 Resources  Product Roadmaps – available on SCN or SAP.com  Watch short SAP Videos on YouTube – look for channels related to SAPAnalytics Training or SAP HANA Academy. You’ll find a series of related topical sessions that are quite informative.  SCN – browse around – there’s great material  http://scn.sap.com/community/predictive-analysis  Dickinson + Associates LinkedIn Page: https://www.linkedin.com/company/68054?trk=prof-exp- company-name
  24. 24. 24 Next Steps  Identify areas where Predictive Analytics can provide business value?  Download the trial versions of SAP Lumira – watch for other software as it becomes available  Talk with other businesses about what they are doing with advanced analytics
  25. 25. Dickinson + Associates BI Offerings
  26. 26. 26 Service Offerings SAP Strategy + Implementation Process Optimization Services SAP Upgrade Services Support Desk Professional Staffing ERP Mobility Analytics
  27. 27. 27 Dickinson + Associates Troy Mahr Manager, Business Intelligence troy.m@dickinson-assoc.com 586-747-0242 Jonathan Ross Consultant jon.r@dickinson-assoc.com 312-496-7577

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