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Analytics and digital business: new ways to turn information into income

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My presentation from ASUG 2018 / SAPPHIRENOW in Orlando.

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Analytics and digital business: new ways to turn information into income

  1. 1. Timo Elliott, Innovation Evangelist, SAP SESSION ID: 10175 Analytics and Digital Business: New Ways to Turn Information into Income
  2. 2. 4INTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Why analytics is now 4X more important What has changed in the new world of analytics How to directly monetize your data Conclusion Agenda
  3. 3. Why analytics is now 4X more important
  4. 4. 6INTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ “Analytics will have an even bigger impact on our society in the next twenty years than the internet did on the last twenty.” Rita Sallam, Gartner
  5. 5. 7© 2018 SAP SE or an SAP affiliate company. All rights reserved. 1. Decisions are more important than ever BI/Analytics 26% Digitization/Digital Marketing 14% Cloud Services 10% Mobility/Mobile Applications 6% Internet of Things 6% Customer Relationship Management 5% Artificial Intelligence 5% Enterprise Resource Planning 5% Infrastructure/Data Center 5% Automation 4% Gartner CIO Survey 2018: “Technologies expected to help businesses differentiate from their competitors”
  6. 6. 8© 2018 SAP SE or an SAP affiliate company. All rights reserved. Speed and agility are essential in modern business. If data is fuel in a digital world, Analytics is the engine. Organizations that provide people with the insight they need to make better decisions and enable them to act is what will distinguish between who is the disruptor or disrupted Better analytics means faster business cycles 010101001 100101010 10010101001 Customer Employee IoT Enterprise Partner Big Data Action DecisionInsight
  7. 7. 9© 2018 SAP SE or an SAP affiliate company. All rights reserved. We are used to processes generating data for analytics BUSINESS PROCESS BUSINESS INTELLIGENCE 2. We’re moving from a process-driven world to a data-driven world
  8. 8. 10© 2018 SAP SE or an SAP affiliate company. All rights reserved. But digital transformation is about analytics creating new processes BUSINESS PROCESS BUSINESS INTELLIGENCE 2. We’re moving from a process-driven world to a data-driven world
  9. 9. 11© 2018 SAP SE or an SAP affiliate company. All rights reserved. Example: the customer experience Effectively creating and managing flexible, on-the-fly processes is an essential part of digital business – and is powered by analytics Every customer journey is now essentially a separate “process”, driven by data
  10. 10. 12© 2018 SAP SE or an SAP affiliate company. All rights reserved. Analytics has always been at the heart of business. But now it’s at the heart of products and services themselves. 3. Information has become part of what you sell
  11. 11. 13© 2018 SAP SE or an SAP affiliate company. All rights reserved. Gartner: Top 10 Strategic Technology Trends for 2018 Intelligent Intelligent Apps & Analytics AI Foundations Intelligent Things Digital Cloud to the Edge Digital Twins Conversational Platform Immersive Experience Mesh Event-Driven Blockchain Continuous Adaptive Risk and Trust … source: gartner.com/smarterwithgartner
  12. 12. 14© 2018 SAP SE or an SAP affiliate company. All rights reserved. Analytics is at the center of new digital business models
  13. 13. 15© 2018 SAP SE or an SAP affiliate company. All rights reserved. 4. Monetizing data: from information to income Monetizing information in new ways is at the heart of the business models of the future
  14. 14. What has changed in the new world of analytics
  15. 15. 17© 2018 SAP SE or an SAP affiliate company. All rights reserved. “The world’s most valuable resource is no longer oil, but data.” The Economist
  16. 16. 18© 2018 SAP SE or an SAP affiliate company. All rights reserved.
  17. 17. 19© 2018 SAP SE or an SAP affiliate company. All rights reserved. “Data is the new oil? No: Data is the new soil” David McCandless
  18. 18. 20© 2018 SAP SE or an SAP affiliate company. All rights reserved.
  19. 19. 21© 2018 SAP SE or an SAP affiliate company. All rights reserved. General Motors vs. Tesla 2011 2018 $58Bn $55Bn $2.5Bn $51Bn 9,600,000 cars in 2017 100,000 cars in 2017 (average market cap) Data + new business models General Motors Tesla
  20. 20. 22© 2018 SAP SE or an SAP affiliate company. All rights reserved. Self-Improving Products All products, services, and processes will improve automatically Data Learn Improve
  21. 21. 23© 2018 SAP SE or an SAP affiliate company. All rights reserved. Blurring of Operations and Analytics: Translytics / HTAP / OLTAP “The translytical data platform creates new business opportunities” Forrester Q4 2017 Real-time analytics = fast enough to make a real difference in a business process
  22. 22. 24© 2018 SAP SE or an SAP affiliate company. All rights reserved.
  23. 23. 25© 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP Leonardo “Analytic Application” by Vestas Wind Turbines “Enterprise software at the speed of startups”
  24. 24. 26© 2018 SAP SE or an SAP affiliate company. All rights reserved. Make analytics and decision-making a robust, end-to-end, continuously improving process Rethinking the end-to-end analytics journey Question finding Collaboration Incentives Consensus building
  25. 25. 27© 2018 SAP SE or an SAP affiliate company. All rights reserved. Who owns the data?! GDPR (effectively) shifts ownership rights to data to the individuals who provided it. Longer term, this could have profound effects on data economics… Data sovereignty (& GDPR)
  26. 26. 28© 2018 SAP SE or an SAP affiliate company. All rights reserved. Your customers can download their data… …and upload it to competitors / new entrants Data portability as an opportunity
  27. 27. How to directly monetize your data
  28. 28. 30© 2018 SAP SE or an SAP affiliate company. All rights reserved. From the 3Vs to the 3Ms “By 2020 – 10 percent of organizations will have a highly profitable business unit specifically for productizing and commercializing their information assets.” Gartner Monetizing Information Generating measurable economic benefits from or attributable to available information assets Managing Information Applying traditional asset management principles and practices to information Measuring Information Gauging and improving information’s economic characteristics
  29. 29. 31© 2018 SAP SE or an SAP affiliate company. All rights reserved. 31© 2017 SAP SE or an SAP affiliate company. All rights reserved. Connect YOUR ENTERPRISE DATA Discover NEW BUSINESS VALUE Accelerate YOUR DIGITAL TRANSFORMATION We help customers create new revenue streams and new business models from data. Data Network
  30. 30. 32© 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP Leonardo Technologies Internet of Things Big Data Data Network Blockchain Analytics Machine Learning SAP Data Network is part of SAP Leonardo
  31. 31. 33© 2018 SAP SE or an SAP affiliate company. All rights reserved. Introducing SAP Data Network Live Customer CloudLive Insights SAP Data Network
  32. 32. 34© 2018 SAP SE or an SAP affiliate company. All rights reserved.
  33. 33. 35© 2018 SAP SE or an SAP affiliate company. All rights reserved. Helps you create new revenue streams and new business models from data. SAP Data Network
  34. 34. 36© 2018 SAP SE or an SAP affiliate company. All rights reserved. From Information to Income Is your data warehouse… …considered a profit center? Why not?
  35. 35. 37© 2018 SAP SE or an SAP affiliate company. All rights reserved. “For years we’ve heard executives regularly talking about information as one of their most valued corporate assets. Yet we rarely see any inkling of their organizations doing the things to or with information that would lead you to believe that it’s an asset. Executives need to decide that they’re not just going to talk about information as being one of their most important assets, but actually act like it is.” Doug Laney, Gartner “Data is one of our greatest assets” — but…
  36. 36. 38© 2018 SAP SE or an SAP affiliate company. All rights reserved. Data is still not treated like a strategic asset 5% 28% 26% 20% 21% Strongly Disagree Disagree Neutral Agree Strongly Agree “My organization values our information as a strategic asset – in words and actions” Source: audience survey, Gartner Data & Analytics, London, 2017
  37. 37. 39© 2018 SAP SE or an SAP affiliate company. All rights reserved. • Information is an actual asset; information has both potential and realized value • Information’s value can be quantified • Information should be internally accounted for • Information’s net realized value should be maximized • Information’s value should be used to help prioritize and budget IT • Business initiatives and information should be managed as an asset Infonomics “Most companies have a better inventory of their office furniture than their own information assets!” Doug Laney, Gartner
  38. 38. 40© 2018 SAP SE or an SAP affiliate company. All rights reserved. ENHANCE CUSTOMER EXPERIENCE Extract insights from data to enable better decision making across product, service, marketing, sales and aftercare IMPROVE BUSINESS EFFICIENCY Seamlessly embed predictive modeling, simulation capabilities and recommendation engines into business processes DEVELOP NEW REVENUE STREAMS Harvest corporate data to reach new customers or existing customers in new ways Data monetization
  39. 39. 41© 2018 SAP SE or an SAP affiliate company. All rights reserved.
  40. 40. 42© 2018 SAP SE or an SAP affiliate company. All rights reserved. Relevant to every industry Telecommunications Automotive Construction Consumer Insight Driver Insight Project Insight Retail Health Care High Tech Shopper Insight Treatment Insight Nutrition & Fitness Insight
  41. 41. 43© 2018 SAP SE or an SAP affiliate company. All rights reserved. How do companies use data today? Only use own data, 47% Buy data and share data, 22% Only buy data, 27% Only sell data, 1% Economist intelligence unit: The Business of Data, 2015
  42. 42. 44© 2018 SAP SE or an SAP affiliate company. All rights reserved. “In this era of ‘big data’, businesses can now profit from the information they possess in ways unimaginable just a decade ago. Many business leaders, however, are hesitant or unprepared to seize upon these new opportunities.” The Economist Intelligence Unit, The Business of Data
  43. 43. 45© 2018 SAP SE or an SAP affiliate company. All rights reserved. What are the biggest challenges? 2% 3% 10% 11% 11% 12% 12% 13% 13% 14% 14% 15% 21% 25% Our data has little value Don't know Insufficient resouces Lack expertise No clear business case No standards for sharing IT resistance Worries about public reaction No challenges Not a priority Departments keep control Regulatory restrictions Worry about security Fear giving insights to competition Economist intelligence unit: The Business of Data, 2015
  44. 44. 46© 2018 SAP SE or an SAP affiliate company. All rights reserved. Why SAP? We already have the framework — you can leverage it DATA INFORMATION INSIGHTS ACTION VALUE
  45. 45. 47© 2018 SAP SE or an SAP affiliate company. All rights reserved. Data Sources Live Insights Partner Services/Apps SAP Customer Social CoI 3rd Party Other Export Results Model Analyze Signal Enrich Combine Classify Import Anonymize Store Security&Administration Industries Commercialization Usage Metering Visualization Distribution Data Science Data Storage Data Ingestion
  46. 46. 48© 2018 SAP SE or an SAP affiliate company. All rights reserved. Live Insights Constant Data Flow • Real-Time • Transactional • Multi sources & Formats Infrastructure & Governance • (Un)+structured • Anonymization • Private & Confidentiality Interconnectivity • Normalization across domains and customers • Insights from connected data Context-Sensitive • White labeling • Extensibility • Ecosystem-enabling Cloud Attributes • Consumption-based • Short update cycles • Easy on-/offboarding DATA INGESTION  Data Quality  Data Cleansing  Streaming Data  Self-service Preparation DATA STORAGE  Metadata Management  Security & Governance  Multi-tenancy DATA SCIENCE  Machine Learning  Computing Framework  Modeling & Algorithms DATA DISTRIBUTION  Content Distribution  One-to-many Cloud Deployments  REST APIs DATA CONSUMPTION  Visualization  Usage Metering  Commercialization  Scalability The platform features Thedatavaluechain Commercialization Usage Metering Visualization Distribution Data Science Data Storage Data Ingestion Key technical features of the platform
  47. 47. 49© 2018 SAP SE or an SAP affiliate company. All rights reserved. Accelerator Data Services … … Geolocation WeatherEconomicDemographic Social Anonymization ValidationAggregation Cleansing … Telecom Automotive Construction Retail Health Care High Tech Live Customer Cloud Data Processing Services Curated, Correlated & Connected Data Sources Industry- Specific Data Sources … Concur Live Hotel Insights SFSF+FG Live Insights for Workforce Fieldglass Live Insights
  48. 48. 50© 2018 SAP SE or an SAP affiliate company. All rights reserved. Establish an information product management function tasked with generating measurable economic benefits from available information assets Steps to monetizing Data: Preparing Develop and maintain an inventory of possible information assets from throughout the organization, as well as from second- and third-party sources Data InventoryProduct Management for Data Monetization
  49. 49. 51© 2018 SAP SE or an SAP affiliate company. All rights reserved. Evaluate alternatives for both direct and indirect information monetization. Identify, adopt, and adapt high-value information monetization ideas from other organizations, especially those in other industries Steps to monetizing data: Ideation Rethink data: what else could this data be used for? Rethink your customers: who else might be interested in this data? Focus on the problems: what’s stopping people from using the data?
  50. 50. 52© 2018 SAP SE or an SAP affiliate company. All rights reserved. Steps to monetizing data: New business models Business Model Canvas: nine business model building blocks, Osterwalder, Pigneur & al. 2010 Data monetization typically involves new partners, customers, and value propositions Don’t forget to take account of the new and different approach to resources – e.g. employee skills
  51. 51. 53© 2018 SAP SE or an SAP affiliate company. All rights reserved. Steps to monetizing data: Test and prototype
  52. 52. 54© 2018 SAP SE or an SAP affiliate company. All rights reserved. Steps to monetizing data: Go to market Establish and cultivate a market for the information asset Prepare and package information, scale for production
  53. 53. 55© 2018 SAP SE or an SAP affiliate company. All rights reserved. Data-driven business models face new and different risks: responsibility for data privacy, data security, strict adherence to regulations in data processing, and data transparency. We handle the red tape for you. Why SAP? PRIVACY SECURITY TRANSPARENCY COMPLIANCE >40 years experience in mission-critical systems. SCALABILITY RELIABILITY TIME TO MARKETDATA SERVICES
  54. 54. 56© 2018 SAP SE or an SAP affiliate company. All rights reserved. Business value from the get go 3 DAYS 4 WEEKS Ideation Piloting 3 MONTHS Value Realization • Prioritize scenarios • Identify value drivers • Deliver Intelligence • Visualize Insights • Test the market • Define commercial model
  55. 55. 57© 2018 SAP SE or an SAP affiliate company. All rights reserved. www.sapdatanetwork.com/Reimagine datanetwork@sap.com www.sapdatanetwork.com/discover www.sapdatanetwork.com/jam For more information on SAP Data Network
  56. 56. Conclusion
  57. 57. 59© 2018 SAP SE or an SAP affiliate company. All rights reserved. • Analytics is more important than ever — not just for “better decisions”, but to fuel the business models of the future • There are new opportunities to use existing data in new ways to drive growth — machine learning, translytic systems, etc. • Data is the most valuable asset in your organization and should be treated as strategically as other company assets driving growth. • Monetizing data is a new opportunity that needs a holistic approach – just like any other product category in the enterprise Key Takeaways
  58. 58. Timo Elliott timo.elliott@sap.com timoelliott.com @timoelliott Thank You! Analytics and Digital Business: New Ways to Turn Information into Income SESSION ID: 10175 Don’t forget to fill out the Session Evaluation on the Mobile App!

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