Deriving Value from Big Data
for Enterprise Performance Management
Dr. Rüdiger Eichin
SAP Products & Innovation
© 2013 SAP AG. All rights reserved. 2
Changes in the Value Creation of Enterprises
*) Source: Ocean Tomo
 Value is more and more depending
on digital and intangible assets
(DIA), e.g. Computerized
Information, Innovative Property,
Brands and Competencies
© 2013 SAP AG. All rights reserved. 3
Changes in the Value Creation of Enterprises
*) Source: Ocean Tomo
 Value is more and more depending
on digital and intangible assets
(DIA), e.g. Computerized
Information, Innovative
Property, Brands and
Competencies
17%
32%
68%
80% 80%
83%
68%
32%
20% 20%
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2010
Intangible Assets Tangible Assets
Components of S&P 500 Market Value*  Stock Markets can serve as an
indicator for these changes
© 2013 SAP AG. All rights reserved. 4
Changes in the Value Creation of Enterprises
 How do enterprises manage their
key value drivers today ?
 Can Big Data help to improve the
situation ?
*) Source: Ocean Tomo
 Value is more and more depending
on digital and intangible assets
(DIA), e.g. Computerized
Information, Innovative
Property, Brands and
Competencies
17%
32%
68%
80% 80%
83%
68%
32%
20% 20%
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2010
Intangible Assets Tangible Assets
Components of S&P 500 Market Value*  Stock Markets can serve as an
indicator for these changes
© 2013 SAP AG. All rights reserved. 5
Digital & Intangible Assets (DIA) – Challenges
© 2013 SAP AG. All rights reserved. 6
Digital & Intangible Assets (DIA) – Challenges
 Relevant for
many decisions
 Hard to
capture, measur
e and monitor
 May reside in-
and outside of a
company
 Control and
reporting
systems are
mainly focused
on financial
value
© 2013 SAP AG. All rights reserved. 7
Digital and Intangible Assets – Benefits from Big Data
 Much of the information related to DIA is unstructured, e.g. for
 Customer Relationship: Behavior and sentiment
 Human Capital: Collaborative tools & social company networks
 Intellectual Capital: Patents and ideas
© 2013 SAP AG. All rights reserved. 8
Digital and Intangible Assets – Benefits from Big Data
 Big Data may help to improve with regards to
 Availability
 Quality
 Semantics
 Relevance
 Much of the information related to DIA is unstructured, e.g. for
 Customer Relationship: Behavior and sentiment
 Human Capital: Collaborative tools & social company networks
 Intellectual Capital: Patents and ideas
© 2013 SAP AG. All rights reserved. 9
Our Project – Building a Foundation for DIA
 Connect to multiple sources with
internal and external,
structured and unstructured,
transactional or machine-generated,
and multi-lingual content
© 2013 SAP AG. All rights reserved. 10
Our Project – Building a Foundation for DIA
 Connect to multiple sources with
internal and external,
structured and unstructured,
transactional or machine-generated,
and multi-lingual content
 Extensible, e.g.with methods for
measuring,
predicting,
text analysis,
sentiment analysis,
and reporting of DIA
© 2013 SAP AG. All rights reserved. 11
Our Project – Building a Foundation for DIA
 Connect to multiple sources with
internal and external,
structured and unstructured,
transactional or machine-generated,
and multi-lingual content
 Extensible, e.g.with methods for
measuring,
predicting,
text analysis,
sentiment analysis,
and reporting of DIA
 Enabling new types of solutions and
services, e.g. for
Human Capital Managment,
or Marketing
© 2013 SAP AG. All rights reserved. 12
Transparency on the Value Creation of a Company – Example
www.sapintegratedreport.com
© 2013 SAP AG. All rights reserved. 13
Transparency on the Value Creation of a Company – Example
www.sapintegratedreport.com
Connecting financial and
non-financial performance
Dr. Rüdiger Eichin
SAP Products & Innovation
Dietmar-Hopp-Allee 16
69190 Walldorf
Germany
ruediger.eichin@sap.com

EDF2014: Rüdiger Eichin, Research Manager at SAP AG, Germany: Deriving Value from Big Data for Enterprise Performance Management

  • 1.
    Deriving Value fromBig Data for Enterprise Performance Management Dr. Rüdiger Eichin SAP Products & Innovation
  • 2.
    © 2013 SAPAG. All rights reserved. 2 Changes in the Value Creation of Enterprises *) Source: Ocean Tomo  Value is more and more depending on digital and intangible assets (DIA), e.g. Computerized Information, Innovative Property, Brands and Competencies
  • 3.
    © 2013 SAPAG. All rights reserved. 3 Changes in the Value Creation of Enterprises *) Source: Ocean Tomo  Value is more and more depending on digital and intangible assets (DIA), e.g. Computerized Information, Innovative Property, Brands and Competencies 17% 32% 68% 80% 80% 83% 68% 32% 20% 20% 0% 20% 40% 60% 80% 100% 1975 1985 1995 2005 2010 Intangible Assets Tangible Assets Components of S&P 500 Market Value*  Stock Markets can serve as an indicator for these changes
  • 4.
    © 2013 SAPAG. All rights reserved. 4 Changes in the Value Creation of Enterprises  How do enterprises manage their key value drivers today ?  Can Big Data help to improve the situation ? *) Source: Ocean Tomo  Value is more and more depending on digital and intangible assets (DIA), e.g. Computerized Information, Innovative Property, Brands and Competencies 17% 32% 68% 80% 80% 83% 68% 32% 20% 20% 0% 20% 40% 60% 80% 100% 1975 1985 1995 2005 2010 Intangible Assets Tangible Assets Components of S&P 500 Market Value*  Stock Markets can serve as an indicator for these changes
  • 5.
    © 2013 SAPAG. All rights reserved. 5 Digital & Intangible Assets (DIA) – Challenges
  • 6.
    © 2013 SAPAG. All rights reserved. 6 Digital & Intangible Assets (DIA) – Challenges  Relevant for many decisions  Hard to capture, measur e and monitor  May reside in- and outside of a company  Control and reporting systems are mainly focused on financial value
  • 7.
    © 2013 SAPAG. All rights reserved. 7 Digital and Intangible Assets – Benefits from Big Data  Much of the information related to DIA is unstructured, e.g. for  Customer Relationship: Behavior and sentiment  Human Capital: Collaborative tools & social company networks  Intellectual Capital: Patents and ideas
  • 8.
    © 2013 SAPAG. All rights reserved. 8 Digital and Intangible Assets – Benefits from Big Data  Big Data may help to improve with regards to  Availability  Quality  Semantics  Relevance  Much of the information related to DIA is unstructured, e.g. for  Customer Relationship: Behavior and sentiment  Human Capital: Collaborative tools & social company networks  Intellectual Capital: Patents and ideas
  • 9.
    © 2013 SAPAG. All rights reserved. 9 Our Project – Building a Foundation for DIA  Connect to multiple sources with internal and external, structured and unstructured, transactional or machine-generated, and multi-lingual content
  • 10.
    © 2013 SAPAG. All rights reserved. 10 Our Project – Building a Foundation for DIA  Connect to multiple sources with internal and external, structured and unstructured, transactional or machine-generated, and multi-lingual content  Extensible, e.g.with methods for measuring, predicting, text analysis, sentiment analysis, and reporting of DIA
  • 11.
    © 2013 SAPAG. All rights reserved. 11 Our Project – Building a Foundation for DIA  Connect to multiple sources with internal and external, structured and unstructured, transactional or machine-generated, and multi-lingual content  Extensible, e.g.with methods for measuring, predicting, text analysis, sentiment analysis, and reporting of DIA  Enabling new types of solutions and services, e.g. for Human Capital Managment, or Marketing
  • 12.
    © 2013 SAPAG. All rights reserved. 12 Transparency on the Value Creation of a Company – Example www.sapintegratedreport.com
  • 13.
    © 2013 SAPAG. All rights reserved. 13 Transparency on the Value Creation of a Company – Example www.sapintegratedreport.com Connecting financial and non-financial performance
  • 14.
    Dr. Rüdiger Eichin SAPProducts & Innovation Dietmar-Hopp-Allee 16 69190 Walldorf Germany ruediger.eichin@sap.com

Editor's Notes

  • #3 Somethingchangeswithinthe last 20 years: IncreasingimportanceofIntangibleAssetslike Human Capital, Intellectual Capital (e.g. Brands), as an extreme youcanthinkof Google orTwitter…Multiple Initiatives on theirwaytoimprovethetransparancy on the non-financialperfomanceofthecompany => highermarketvaluation, betterratingbyinvestors, increasingbrandvalueandbetterreputation
  • #4 Somethingchangeswithinthe last 20 years: IncreasingimportanceofIntangibleAssetslike Human Capital, Intellectual Capital (e.g. Brands), as an extreme youcanthinkof Google orTwitter…Multiple Initiatives on theirwaytoimprovethetransparancy on the non-financialperfomanceofthecompany => highermarketvaluation, betterratingbyinvestors, increasingbrandvalueandbetterreputation
  • #5 Somethingchangeswithinthe last 20 years: IncreasingimportanceofIntangibleAssetslike Human Capital, Intellectual Capital (e.g. Brands), as an extreme youcanthinkof Google orTwitter…Multiple Initiatives on theirwaytoimprovethetransparancy on the non-financialperfomanceofthecompany => highermarketvaluation, betterratingbyinvestors, increasingbrandvalueandbetterreputation
  • #6 Inmanyprocessesandformanydecisions digital andintangibleresourcesarehighly relevant oreventhetopictodecided uponNon-physicalrepresentation => hardtocapture & measureLicensesorknowledgemayreside in- or outside a comanyMost oftheaccountingandreportingsystemsarefocused on financialvalue, also logisticalsystemsfeedintofinancialsystems
  • #7 Inmanyprocessesandformanydecisions digital andintangibleresourcesarehighly relevant oreventhetopictodecided uponNon-physicalrepresentation => hardtocapture & measureLicensesorknowledgemayreside in- or outside a comanyMost oftheaccountingandreportingsystemsarefocused on financialvalue, also logisticalsystemsfeedintofinancialsystems
  • #9 Availability: Access moredatasources in- and outside thecompany, e.g. from sensor networks or social mediaQuality: Handle sourcedatawithoutETL / ProfilingSemantics: Handle multi-lingual contentRelevance: Useofstatisticalmethodstodeterminesignificance
  • #10 We work on a foundation allowing to connecttovarioussources, andproviding a setof innovative methodologiesforcapturing, measuringandmanaging digital andintangibleassetsSuch a foundationenables the data-driven management of intangible assets and provides a platform for an ecosystem of partners to build new solutions and services
  • #11 We work on a foundation allowing to connecttovarioussources, andproviding a setof innovative methodologiesforcapturing, measuringandmanaging digital andintangibleassetsSuch a foundationenables the data-driven management of intangible assets and provides a platform for an ecosystem of partners to build new solutions and services
  • #12 We work on a foundation allowing to connecttovarioussources, andproviding a setof innovative methodologiesforcapturing, measuringandmanaging digital andintangibleassetsSuch a foundationenables the data-driven management of intangible assets and provides a platform for an ecosystem of partners to build new solutions and services