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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1
SAP Predictive Analytics
What’s the best that COULD happen?
Bringing predictive analytics to the end user
SAP Forum Belgium – September 9, 2015
Waldemar Adams @adamswSVP & GM Analytics SAP Europe, Middle-East & Africa
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
Predictive Analytics - Best of times during challenging times!
Prediction is very difficult, especially when it is about the future
(Niels Bohr 1885-1962)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
It’s No Longer Sense and Respond …
Ever Faster Decision Cycle
AnalyticalSkill Gap
“Demand for deep analytical talent in the US
could be 50 to 60% greater than its projected
supply by 2018”McKinsey Global Institute
1 11
Transactions
Conversations
Machines
MassiveAmount of Data
Gartner
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
How Business Analytics need to evolve!Enabling decision making across your business
End-to-end loop
Easy adoption
Easy to use
Time to value
Business focused
Self-service enabled
Transact in real-time
RawData
CleanedData
Standard Reports
Ad Hoc Reports &
OLAP
Agile Visualization
Predictive Modeling
Optimization
What happened?
Why did it happen?
What will happen?
What isthe best that
could happen?
Co
mp
eti
tiv
e A
dv
an
tag
e /
Us
er
En
ga
ge
me
nt
Maturity of Analytics Capabilities
Self Service BI
Generic Predictive Analysis
Pre
dic
tiv
e I
ns
igh
t
Predict and actSense and respond
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
The Secret To Predictive For The Masses
Business Intelligence Advanced Analytics
Predictive PrescriptiveDescriptive DiagnosticExploratory
Analytics
Powered By HumansFor Humans
Powered By MathsFor Processes
Powered By MathsFor Humans
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
Classic Analytics
Address All the Business Questions
Which products are being sold?
Who is buying them?
Advanced Analytics
What is a good customer? Which types of customers do I
have? Which products are sold
together?
Which customers are likelyto buy our products?
Which customers are likely to leave?
Which customers are likely to be frauders?
How many products are we likely to sell?
Which machines are likely to need maintenance?
What product should I propose?
Which customer should I target?
When should I maintain my machine?
What is the next best action to perform?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
Anticipate What Comes Next and Drive Better Decisions… Today!
Social Network
Customer DataAutomobiles Machine
DataSmart Meter Point of Sale MobileStructured
Data Click Stream Location-based DataText Data
IMHO, it’s great!
RFID
68% of organizations that used predictive analytics realized a competitive advantage
Ventana Research
52% use predictive analytics to increase profitability
55% use predictive analytics to create new revenue opportunities
45% use predictive analytics for customer services
43% use predictive analytics for product recommendations
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
There is a disconnect between the BI and Advanced Analytics world
Today, Predictive Analytics is an Island
EIMBI
PMDM
PA
Cleaned Data
Raw Data
Reporting
Analysis
Discovery
Dashboards
ChasmSp
ecia
lizat
ion
Sophistication / Skill Set
LOBETL
ETL
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
BI
EIMBICleaned Data
Raw Data
Reporting
Analysis
Discovery
Dashboards
Spec
ializ
atio
n
Sophistication / Skill Set
“Invisible Analytics” in BI
PMDM
PAAutomated Predictive
LOBETL
Bringing Predictive Analytics To Business Users is Key
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
SAP Analytics Solution Portfolio
Discover
CloudAny Device
Social Collaboration Big Data
EnterprisePerformanceManagement
Governance,Risk, and
Compliance
Inform
Anticipate Plan
BusinessIntelligence
PredictiveAnalytics
Real-timeBusiness
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
“I’m building churn models for every region”MS Statistics, Berkeley
Data Scientist
.01%
“I need explain to the CEO why sales are down in EMEA”MBA, U of Pennsylvania
Data Analyst
~3% 97%
Business User
“The app needs to tell me what offer to make in real time”BS French Literature, UC Davis
Opportunity to Broaden Access to Predictive
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
Ask yourself: Your Potential for Business Optimization
:-)Brand Sentiment / Marketing Mix /
Channel Affinity
Optimize the action plans for medical visitors
Product Recommendation /Market Basket / Cross- & Up-Sell
Customer Attrition Mgt / Win Back Strategy / Churn
Real-time Demand/Supply / Sales Forecast
Predictive Maintenance / Quality Control / Manufacturing Process
Optimization
Fraud Prevention & Detection / Collection Mgt
Network Optimization Insider Threats
Risk Mitigation / Compliance Mgt
Predictive Asset Management /Supply Chain Optimization
Satisfaction Management /HR Developmet
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
Challenges
Forecasting
KeyInfluencers
Trends
Anomalies
Relationships
How do historical sales, costs, key performance metrics, and so on, translate to future performance? How do predicted results compare with goals?
What are the main influencers of customer satisfaction, customer churn, employee turnover, and so on, that impact success?
What are the trends: historical/emerging, sudden step changes, unusual numeric values that impact the business?
What are the correlations in the data? What are the
cross-sell and up-sell opportunities?
What anomalies might exist and
conversely what groupings or clusters
might exist for specific analysis?
High Value Use Cases for Predictive Analytics
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Big Data
Discovery
SAP HANA (Hadoop…)
SAP Predictive Analytics
SAP Lumira
Innovate with data, across the enterprise
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
SAP Predictive Analytics Approach
SAP PredictiveAnalytics
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
SAP Predictive Analytics – The Difference
Before SAP PredictiveAnalytics
After SAP PredictiveAnalytics
Answer any/all questions with any/all data sources –
No limits!
In-database automateddataset production -No data movement!
Automated modeling and tuning process -
Focus on accurate results,
not algorithms or code!
Native in-database and application/process
deployment -Embed and consume for
immediate results!
On-going model management and recalibration -
No rework necessary!
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
Instant insight for decision makers No learning curve Access from a browser or your mobile
Understand and preparing your data with Lumira
Agility for business analysts Access and mash up data from multiple sources Visualize data and share your insights
Scale and trust for IT and management Scale to thousands of users with BI Platform Govern access to data and assets
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18
SAP Lumira Overview
Mash up data• Access data from corporate, personal and web sources• Quickly cleanse, combine, and enrich data
Visualize and discover insights• Visually explore you data • Rich library of visualizations, extensible with SDK• Get faster insights with suggested visualizations and
key influencers
Share your story• Build engaging stories using storyboards and infographics• Share insights on mobile, web, and desktop
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19
SAP Predictive Analytics Overview
Insert predictive algorithms into business processes
Extensive predictive library plus R and Hadoop integration
Packaged business applications
Optimized for SAP HANA
Cloud-ready services
Agnostic big data aware
SAP BW
Integrated in business apps (cloud services, SDK, API, APL)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
Predictive Analytics Solutions from SAP
Transactions
SAP Predictive Analytics 2.x
Data Preparation
Expert Analysis
Automated AnalysisVisualization
RecommendationScoring Social
SDK/API Model Management
Connectors
Cloud / On-Premise
Predictive Analysis Library
Automated Predictive Library R-Scripts
In-Memory Processing Engine 25+ Industries 11+ LoBs
O&G, Manufacturing
& Utilities
Public Sector & Healthcare
Financial & Insurance Services
TelecommunicationsRetail & Consumer Products
Predictive ApplicationsSAP HANA
Relational Databases Big Data Sources CRM/ERP Stores Cloud ServicesApplications
Any Data Source
R
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
Key Messages Simplified
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23
SAP as the Market Leaderhttp://discover.sap.com/leading-in-predictive-analytics
Hurwitz
Victor“fast time to value and
ability to supportvery large data sets.”
Victory Index Report
Forrester
Leader“SAP is a leader due to a
strong architectureand strategy.”
Big DataPredictive Wave
Howard Dresner
Top Vendor“The top vendors for advanced
and predictive analyticsinclude SAP.”
The Wisdom of Crowds
Thank you! [email protected] @adamsw
SAP PREDICTIVE ANALYTICS
Anticipate risks & opportunities in real-time
REAL-TIME PREDICTIVE ANALYTICS FOR BIG DATA
Productive predictive solutions for all
DEMOCRATIZE PREDICTIVE ANALYTICS
Incorporate Predictive Analytics into Industry LoB Apps & business processes
EMBED PREDICTIVE ANALYTICS
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.