The document discusses the value of advanced analytics, particularly in relation to SAP's various business intelligence tools and predictive analytics. It emphasizes the growing importance of predictive analytics in enhancing business performance, and the competitive advantages organizations gain from it. Key benefits highlighted include improved decision-making, financial performance, and the ability to predict market trends and customer needs.

1. 1
SAP Advanced Analytical Capabilities
Beyond Business Intelligence
Troy Mahr
Jon Ross

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
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. Business Impact of Analytics

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
Business Intelligence vs. Predictive Analytics
 Where are you?
 Where do you want
be?
 Where is your
competition headed?

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
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
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. SAP’s BusinessObjects
Business Intelligence Suite

11. 11
Analytics Solutions from SAP
Agile
Visualization
Advanced
Analytics
Big Data
Mobile
Collaboration
Cloud
Enterprise
Business Intelligence
Today’s
Focus

12. 12
SAP’s Strategic Focus on Analytics Solutions

13. 13
BusinessObjects Solutions

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
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
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
Integration Overview – Predictive Analysis

18. 18
Infinite Insight - “Insights”
Source: SCN Blog Entry

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

21. Bringing Value to the Business

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
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
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. Dickinson + Associates BI Offerings

26. 26
Service Offerings
SAP Strategy +
Implementation
Process
Optimization
Services
SAP
Upgrade
Services
Support
Desk
Professional
Staffing
ERP
Mobility
Analytics

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