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BI+A Conference: Your Analytics Future: Looking Beyond Tomorrow

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Presentation at the BI+A Conference in Huntington Beach, California, March 2018 -- top analytics trends that you should care about!

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BI+A Conference: Your Analytics Future: Looking Beyond Tomorrow

  1. 1. Timo Elliott, SAP February 2018 Your Analytics Future: Looking Beyond Tomorrow
  2. 2. 2© 2017 SAP SE or an SAP affiliate company. All rights reserved. Analytics is more strategic than ever Artificial intelligence is taking over the world It’s time to monetize your data Some steps to step it up It’s not about technology Conclusion Agenda
  3. 3. Analytics is more strategic than ever
  4. 4. 4© 2017 SAP SE or an SAP affiliate company. All rights reserved. “The world’s most valuable resource is no longer oil, but data.” The Economist
  5. 5. 5© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  6. 6. 6© 2017 SAP SE or an SAP affiliate company. All rights reserved. “Data is the new oil? No: Data is the new soil” David McCandless
  7. 7. 7© 2017 SAP SE or an SAP affiliate company. All rights reserved. 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
  8. 8. 8© 2017 SAP SE or an SAP affiliate company. All rights reserved. Analytics is at the center of new digital business models
  9. 9. 9© 2017 SAP SE or an SAP affiliate company. All rights reserved. We are used to processes generating data for analytics BUSINESS PROCESS BUSINESS INTELLIGENCE A big change
  10. 10. 10© 2017 SAP SE or an SAP affiliate company. All rights reserved. But digital transformation is about analytics creating new processes BUSINESS PROCESS BUSINESS INTELLIGENCE A big change
  11. 11. 11© 2017 SAP SE or an SAP affiliate company. All rights reserved. Every customer journey is now essentially a separate “process”, driven by data Effectively creating and managing flexible, on-the-fly processes is an essential part of digital business – and is powered by analytics
  12. 12. 12© 2017 SAP SE or an SAP affiliate company. All rights reserved. “The translytical data platform creates new business opportunities” Forrester Translytics / HTAP / OLTAP Q4 2017 Real-time analytics = fast enough to make a real difference in a business process
  13. 13. 13© 2017 SAP SE or an SAP affiliate company. All rights reserved. “Mindreading” call centers
  14. 14. Artificial Intelligence is taking over the world
  15. 15. 15© 2017 SAP SE or an SAP affiliate company. All rights reserved. At one level, nothing new … I helped launch Business Objects BusinessMiner in 1996 – 20 yrs. ago! “Data Mining for the Masses”
  16. 16. 16© 2017 SAP SE or an SAP affiliate company. All rights reserved. But now algorithms really are taking over Voice transcription Lip reading Image Descriptions
  17. 17. 17© 2017 SAP SE or an SAP affiliate company. All rights reserved. Detailed example: image recognition Source: https://www.eff.org/ai/metrics
  18. 18. 18© 2017 SAP SE or an SAP affiliate company. All rights reserved. Thankfully, still some things AI is awful at (for now…) Source: https://www.eff.org/ai/metrics
  19. 19. 19© 2017 SAP SE or an SAP affiliate company. All rights reserved. What’s in a name? Old! Partisan(?) (deep learning is part of ML, using neural networks)
  20. 20. 20© 2017 SAP SE or an SAP affiliate company. All rights reserved. Artificial intelligence AI is a “sociotechnical construct” indicating machine capabilities which solve complex tasks that were recently only possible by humans (equally well or better) Technical disciplines that solve business problems through the extraction of knowledge from data. Deep learning Machine learning Data Science Big Data Advanced Analytics Predictive Analytics Data mining
  21. 21. 21© 2017 SAP SE or an SAP affiliate company. All rights reserved. Predictive analytics: easy first step Model deployed using In-Database-Apply Customer Database Hancock, John M 38 D Y 4.2 N Y Doe, Jane F 45 M Y 9.4 N N Red, Simply F 18 S N 2.1 N Y SQL Dataset w/ Scoring Business Users can get on-the-fly scoring without even knowing they are using predictive algorithms BI Artifact (or even just a dataset) SAP BI (3.x/4.x) Embedded into any application SQL (Or any other application)
  22. 22. 22© 2017 SAP SE or an SAP affiliate company. All rights reserved. Predictive trends At “peak of inflated expectations” Predictive is a lower priority than data discovery/self-service, data quality, governance, … But higher use of predictive is … predicted The top users of predictive are now BI Experts & Business Analysts – not data scientists Biggest challenges: greater volume & variety of data, operationalizing predictive, usability, skills/understanding
  23. 23. 23© 2017 SAP SE or an SAP affiliate company. All rights reserved. Situational Awareness What do I need to do right now? Prediction What can I expect to happen? Suggestion What do you recommend? Notification What do I need to know? Perception What’s happening now? Artificial intelligence-powered processes Automation What should I always do? Prevention What can I avoid? Requires: • Large amounts of robust training data • Decision process expertise • Embedding in process flows
  24. 24. 24© 2017 SAP SE or an SAP affiliate company. All rights reserved. Machine learning everywhere Source; McKinsey & Company Machine Learning has broad potential across industries and use cases “the value of the potential benefits of automation—calculated as a percentage of operating costs— could range from between 10– 15% for a hospital emergency department to 25% for aircraft maintenance, and to more than 90% for mortgage origination.”
  25. 25. 25© 2017 SAP SE or an SAP affiliate company. All rights reserved. It’s mostly about automation Source: http://gartner.com/SmarterWithGartner “In 2018, half a billion users will save two hours a day thanks to AI-powered tools.” Gartner But also about AI = Augmented Intelligence
  26. 26. 26© 2017 SAP SE or an SAP affiliate company. All rights reserved. Artificial intelligence + analytics = “smart data discovery” Preparing data Finding patterns Sharing and operationalizing
  27. 27. 27© 2017 SAP SE or an SAP affiliate company. All rights reserved. « Une grande responsabilité est la suite inséparable d’un grand pouvoir » – Voltaire Beware: ethics ahead! (or if you prefer: “with great power comes great responsibility” -- Spiderman’s Uncle Ben)
  28. 28. 28© 2017 SAP SE or an SAP affiliate company. All rights reserved. Minimum: make sure there’s monitoring + overrides! https://www.linkedin.com/pulse/risks-unfettered-ai-tony-bain “Implementing machine learning systems with real world influence, without a “sanity” override can lead to undesired consequences.”
  29. 29. It’s time to monetize your data
  30. 30. 30© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  31. 31. 31© 2017 SAP SE or an SAP affiliate company. All rights reserved. General Motors vs. Tesla 2011 2017 $58Bn $55Bn $2.5Bn $51Bn 10,000,000 cars in 2016 76,000 cars in 2016 (average market cap)
  32. 32. 32© 2017 SAP SE or an SAP affiliate company. All rights reserved. Virtuous circle of data – start now! Best data Best products Most customers
  33. 33. 33© 2017 SAP SE or an SAP affiliate company. All rights reserved. From the Vs to the Ms “By 2020 – 10 percent of organizations will have a highly profitable business unit specifically for productizing and commercializing their information assets.” Gartner
  34. 34. 34© 2017 SAP SE or an SAP affiliate company. All rights reserved. Despite everything, data is still not treated as 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
  35. 35. 35© 2017 SAP SE or an SAP affiliate company. All rights reserved. “Most people have a better inventory of their office furniture than their own information assets” Doug Laney, Gartner First step: an information Inventory
  36. 36. 36© 2017 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
  37. 37. 37© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  38. 38. 38© 2017 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 SAP Live Insights Platform for Selling Data
  39. 39. 39© 2017 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
  40. 40. 40© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  41. 41. 41© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  42. 42. 42© 2017 SAP SE or an SAP affiliate company. All rights reserved.
  43. 43. 43© 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP Data Network www.sapdatanetwork.com
  44. 44. Some steps to step it up
  45. 45. 45© 2017 SAP SE or an SAP affiliate company. All rights reserved. Design Thinking for Analytics Rethink data: what other data could you be capturing or accessing? Rethink your customers: how can we help more people use this data? Identify problems: what’s stopping people from getting value from data?
  46. 46. 46© 2017 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
  47. 47. 47© 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP HANA Express Edition Fast Prototypes
  48. 48. 48© 2017 SAP SE or an SAP affiliate company. All rights reserved. 35% 40% 23% 2% Increasing significantly Increasing slightly No change Decrease Big Data It’s time to invest in big data What is your company’s plan for investment in Big Data in the next year? Source: Constellation Research
  49. 49. 49© 2017 SAP SE or an SAP affiliate company. All rights reserved. It’s time to move to the cloud 45% 32% 20% 3% Increasing significantly Increasing slightly No change Decrease Cloud Source: Constellation Research What is your company’s plan for investment in Cloud in the next year?
  50. 50. 50© 2017 SAP SE or an SAP affiliate company. All rights reserved. “Cloud computing is perceived as less secure. This is more of a trust issue than based on any reasonable analysis of actual security capabilities. Cloud myths slow us down, impede innovation and scare us, thus distracting us from real progress, innovation and outcomes.” Gartner But what about security?! Source: Gartner
  51. 51. 51© 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP Analytics Strategy Assessment Discovery, prioritization, and recommendations for addressing business pains and a successful enterprise analytics strategy conducted in four concise repeatable steps: Business needs by LOB/function assessment Strategy component definition and execution assessment Prioritized business need and strategy component gaps Solution and process capabilities recommendations Business Needs Strategy Execution Gap Analysis Recommendations & Roadmap https://sapanalytics-strategy-assessment.com/
  52. 52. It’s not about technology!
  53. 53. 53© 2017 SAP SE or an SAP affiliate company. All rights reserved. What goes wrong? people and process! Source: Gartner, basis of approx. 2000 assessments from 2010 to 2016 Overall: 2.7 Business outcomes: 3.16 People: 2.62 Program Management: 2.82 Process: 2.54 Technology & data: 2.75
  54. 54. 54© 2017 SAP SE or an SAP affiliate company. All rights reserved. It’s all about culture … 1% 8% 6% 45% 40% Strongly Disagree Disagree Neutral Agree Strongly Agree “The most significant internal roadblock that I face in my role is culture and change management” Source: audience survey, Gartner Data & Analytics, London
  55. 55. 55© 2017 SAP SE or an SAP affiliate company. All rights reserved. Don’t fight back, be a co-conspirator! Analytics centers of excellence Federation, not centralization Air traffic control, not flying planes It’s time to embrace self-service Shadow analytics: 40% of users are using an equal amount or more of homegrown applications Source: Forrester, Business-Driven Agile Enterprise Business Intelligence (BI) , 2014
  56. 56. 56© 2017 SAP SE or an SAP affiliate company. All rights reserved. BI Competency Centers vs. Analytic Communities of Excellence • Acquire and model the data • Create data warehouses • Create semantic models • Author reports • Grant access • Provision, certify data, enable access • Innovation lab • Identify common requirements • Consult on new projects • Provide pool of experts, including advanced analytics • Evangelize best practices, success stories • Facilitate training and skills advancement BICC: Do Most ACE: Do Some -- Enable More “We fly the planes” “We provide the airport & control tower”
  57. 57. 57© 2017 SAP SE or an SAP affiliate company. All rights reserved. Some tips There are no magic tools. It will always take effort People will always want more than you can provide People want self-service without education. Not possible. Giving people the best paintbrush in the world will not make them Picasso Iteration has to be welcomed, not penalized Develop data visualization expertise Your job is to make people think Take human behavior into account
  58. 58. Conclusion
  59. 59. 59© 2017 SAP SE or an SAP affiliate company. All rights reserved. Analytics is more strategic than ever Artificial intelligence is taking over the world It’s time to monetize your data Some steps to step it up It’s not about technology Conclusion What we covered
  60. 60. 60© 2017 SAP SE or an SAP affiliate company. All rights reserved. Community & dialog Conferences, user groups, SAP events…. SAP Community network, blogs, social media….
  61. 61. Thank you! Timo Elliott timo.elliott@sap.com timoelliott.com @timoelliott timoelliott.com/blog/cartoons

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