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Business Analytics: The Big Leap Forward
Timo Elliott September 2011
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If You’re Not on Twitter, You’re Missing Half the Fun…
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4
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Holding Supercomputers in Your Hands
“The iPad 2 could have stayed on the list of the world’s fastest supercomputers through 1994”
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Drowning in Information?
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Whatever You’re Trying to Do, Analytics is the Answer
Brand Performance Analysis
Brand Loyalty Increase Sales Speed to Market Optimize Inventory
Mobile Analytics – Speed of Information
Net Margin Analysis
Improve Performance
Sales Marketing Product Innovation Finance
Trade Promotion Effectiveness
Budgeting, Planning & Consolidation
Sales & Operations Planning
Marketing Mix Analysis
Customer Sentiment Analysis
Supply Chain Performance Management
Customer Profitability Analysis
Operational Visibility
Sales Analytics Product Portfolio Management
On-Shelf Availability Analysis
Supply Chain
CRM – Embedded Analytics
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Business Analytics Provides Great Value
Data is extremely important for competitive advantage
Data makes an important contribution to customer relations efforts
Business information has helped manage costs or improve operations
Executives believe companies can benefit greatly from using data, especially information generated within the company
Agree: 69% Agree: 77% Agree: 70%
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Surging Growth in Business Analytics
2009 2010
+3.8%
+13.4%
Gartner: worldwide BI, analytics and performance management software revenue
BI Growth more than tripled between 2009 and 2010!
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Analytics is an Ever-Increasing Share of IT Budget
2009 2010 2011
3.9%
+4.1%
+4.3%
Gartner: worldwide BI, analytics and performance management software revenue
“BI spending has far surpassed IT budget growth overall for several years”
Dan Sommer, Gartner
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IT Spending Per Head Rising Fast
New revenue generated from IT initiatives (enterprise innovation, context-aware computing, social networks, etc.) will become the primary factor determining CIOs compensation.
Information-smart businesses will increase recognized IT spending per head by 60%.
“Enterprise leaders and stakeholders must change their way of thinking that “lower is better” for IT spending per employee”
Gartner Predicts 2011 2011 2015
+60%
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Business Analytics Around the World
Business Analytics Market Growth 2010
3.0%
3.7%
6.7%
17.8%
18.3%
19.5%
22.9%
Eastern Europe
Japan
Western Europe
North America
Middle East and Africa
Latin America
Asia/Pacific
13.2%
11.6%
Gartner Market Share Analysis: Business Intelligence, Analytics and Performance Management Software, Worldwide, published March 2011
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Business Analytics Market (BI, EPM, Analytic Applications) Share of Market, 2010
Business Analytics Market Shares
SAP
Oracle
SAS Institute
IBM
15.6%
13.2%
11.6%
23%
Gartner Market Share Analysis: Business Intelligence, Analytics and Performance Management Software, Worldwide, published May 2011
14 14
Market Consolidation Continues
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Analytic Applications
Governance, Risk, and
Compliance
Enterprise Performance Management
Business Intelligence
Data Warehousing
Enterprise Information
Management
Business Analytics Solutions from SAP
Analytic Capabilities
Collaboration
Data Sources Access
Services and Best Practices
The Office of Tomorrow, in 1945: “Intricate calculations of quotas or sales by territories will be turned out at the touch of an assistant’s finger. Records will appear as if by magic from files.”
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Data vs Information vs Knowledge vs Wisdom
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Business Analytics Has Struggled to Keep Up
“Where are you going? Ah -- If I were you, I wouldn’t start from here”
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Reporting
“Typical” Business Intelligence Today
Slow
Painful
Expensive
Operational Data Store
Data Warehouse
Indexes
Aggregates
Data Business Applications
Copy
ETL Calculation Engine Business Intelligence
Query Results Query
Slow
Painful
Expensive
Operational Data Store
Data Warehouse
Indexes
Aggregates
Data Business Applications
Copy
ETL
Calculation Engine Business Intelligence
Query Results Query
Data Marts
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It’s like an Onion…
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What’s the Problem?
Slow Disks & CPUs
I/O Bottleneck
Expensive Memory
Optimized for Transactions
BI is an Afterthought
30 Year-Old Database Design Principles
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A Revolution…
Credit Suisse, “The Need for Speed”
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Today’s Disks Can’t Keep Up With Processing Power
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In-Memory Computing Costs Have Plummeted
BT Tower 152m
Cost of 1 Mb of memory in 2000: ≈£1
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In-Memory Computing Costs have Plummeted
Cost of 1 Mb of memory today: ≈ ½ p
My daughter: 1.30m
And shrinking, and shrinking, and shrinking….
Price/performance of in-memory has
DOUBLED in last 9 months
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In-Memory Computing
Operational Data Store
Data Warehouse
Indexes
Aggregates
Data Business Applications
Copy
ETL
Calculation Engine Business Intelligence
Query Results Query
Up to 1,000x faster No optimizations required
Data Marts
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Row vs. Column Databases
My Filing System
My Wife’s Filing System
Row-based Column-based
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Row-Based Data
Wasted space, and a full scan to aggregate any particular field
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Column Data
More efficient data storage, better compression, faster queries
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Data Warehouse Data Warehouse
Column Databases
Operational Data Store
Data Warehouse
Data Business Applications
Copy
ETL
Calculation Engine Business Intelligence
Query Results Query
Up to 1,000x faster More data in less space
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Data Warehouse
Massively Parallel Hardware
Operational Data Store
Data Business Applications
Copy
ETL
Business Intelligence Query Results
Query
Up to 1,000x faster Optimized for hardware – especially good for column stores
Calculation Engine
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Red Bull
Data Size: 1.5 TB ‡ 300 GB
Data Load: 50 mins ‡ 2 mins
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In-Database Processing
user changes a plan value
52 weeks x 500 branches = 26000 values
26000 database writes 1 database write
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A Database Designed for Business
Volume Driver Cycles Driver Forecast Driver Forecast Agents Grow Seasonal Complex Assortment Planning Cumulate Days Days Outstanding Discounted Cash Flow De-cumulate Delay Delay Debt
Delay Stock Annual Depreciation Annual Depreciation Diminishing Balance
Depreciation Sum of Year Depreciation Year To Date Statistical YOY/ YOY Difference Forecast Dual Driver Forecast Sensitivity Feed Feed Overflow Forecast Funds Future Value
Inflated Cash Flow Internal Rate of Return Moving Median Number of Periods Net Present Value Outlook Payment Present Value Lag Last Lease Lease Variable Linear Average Forecast Mix Moving Average/Sum
Proportion Rate Repeat Seasonal Simple Seasonal Simulation Stock Flow Stock Flow Reverse Stock Flow Batch Time Time Sum Max Value Minimum Value Transform Rounding
Up until now, there’s been a false separation between application logic and database functionality
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In-Database Analytics
Forecasting Clustering Anomalies
Influencers Trends Meaningful or Random?
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Data Warehouse
In-Database Analytics
Operational Data Store
Data Business Applications
Copy
ETL
Business Intelligence Query Results
Query
Up to 1,000x faster Push processing down to dedicated hardware, less traffic
Analytic Appliance
Calculation Engine
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Integrating Flows of Data
Incremental loads, replication
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Integrating Flows of Data
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Streaming Data
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Real-Time Data
Operational Data Store
Copy
ETL
Real-time replication — why have a separate operational data store?
Data Business Applications
Analytic Appliance Business Intelligence
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Real-Time Analytics on Big Data
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6.6
41.9
HANA
Traditional DB
Data Compression with HANA (GB)
3.2
5.1
5.1
1050
1320
2660
Query 1
Query 2
Query 3
Query Run-Time (Seconds)
6.3x Data Compression
369x Average Query Speed-Up
No Schema Changes
Same Data
Same SQL
Immediate Benefits
Large Bank – 1 Month of Customer Information
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The Basis For Applications of The Future
Copy
Business Applications
Analytic Appliance Business Intelligence
Use a single appliance for both analytics and applications
Data
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Applications of the Future
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Virtuous Circle of Technology
In-Memory
Columnar Databases
Hardware Acceleration
Calculation Engine
Columnar storage increases the amount of data that can be stored in limited memory (compared to disk)
Column databases enable easier parallelization of queries
In-memory processing gives more time for
relatively slow updates to column data
In-memory allows sophisticated calculations
in real-time
Hardware acceleration makes sophisticated
calculations like allocations possible
Each technology works well on its own, but combining them all is the real opportunity — provides all of the upside benefits while mitigating the downsides
“By 2012, 70% of Global 1000 organizations will load detailed data into memory as the primary method to optimize BI application performance.”
- Gartner
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Extended Architecture
Business Applications Analytic Appliance
Business Intelligence
Cloud computing Unstructured and personal data Mobile revolution Collaboration
“If things seem under control, you’re just not going fast enough.”
-Mario Andretti
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In-Memory Computing is Like Digital Photography
A transformative technology that slowly but surely upturns the whole industry
Faster, Easier, More Convenient
Evolved Faster Than The Alternatives
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It’s All About Flexibility and Evolution
“It's not the strongest that survive, nor the most intelligent, but the ones most responsive to change.”
Charles Darwin
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Reality Is, and Always Will be, Messy
Different information sources
Different levels of expertise
Different access devices
Different time horizons
Different levels of analytic need
Different project phases
Risk Politics
But new architectures mean simplification and new opportunities
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What About Flash Disk / SSDs?
15X
9000X
16X
Cost-effective, but not a revolution
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What About Big Data / NoSQL / Hadoop?
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HANA Applications Available in H2 2011/2012
Strategic Workforce Planning Smart Grid Analytics
■ COPA case (includes financial line item reporting)
■ CRM & ECC Content (Q2 2011)
■ Inventory Movement
■ Billing Management
■ Smart Grid Analytics
■ SAP BW Powered by HANA
■ SAP BPC Powered by HANA
■ Order to Cash analysis
■ Trade Promotions Management
■ Sales Pipeline Analyzer
■ Banking: Bank Analyzer
■ Demand Signal Repository
20+ SAP Projects - H2 2011 for Ramp-up & GA Early 2012
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Preconfigured software Includes financial, sales, purchasing, shipping, and master data reporting
Rapid and affordable Deliver in as little as 6 – 8 weeks, using SAP consulting Flexibly priced
Clear path to real-time operational analytics Ready for access by SAP BusinessObjects, Excel, mobile devices…
HANA RDS Operational Reporting
Fast, powerful operational reporting
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Accelerate month-end process Speed profitability reporting to accelerate financial performance and efficiency
Powerful insights Flexible reporting to maximize profitability at customer, product, and SKU level
Easy deployment Easily deployed with no disruption
SAP CO-PA Accelerator
Turbo charge profitability reporting
and allocations
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Uses ALL data available Open receivables, open payables, open shipments, purchase orders, etc. From SAP and non-SAP systems
More accurate payment predictions Based on actual customer history, not just payment terms
Track performance By company, region, customer, etc.
Full cycle approach Model & simulate impact of non-payment, re-integrate into pricing and contracts
SAP Dynamic Cash Management
Real-time visibility into your company’s
cash position
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Oops
€55.5 Billion
€3.6 Billion
€331 Billion
₤3 Million
$84 Million
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Data Qwality is a Real Problem
33% Lost a customer or new business deal as a result of missing data
30% Lost business due to the mishandling of data
30% Of operating revenue is wasted through process failure and information rework
4% Rate data quality as excellent 63% Have no idea how much data
quality might be costing 17% Have no plans to start a data
quality initiative
88% See data as a strategic asset
Sources: Vanson Bourne; Larry English; The State of Data Quality Today
BUT
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Collaborative Information Governance
Data quality score metrics
Latest quality score Quality trend
Scorecard to measure DQ from a Data Steward’s perspective
Key Quality Dimensions (KPI for data)
Drill into scorecard details
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Business-Lead Data Cleansing
Empowers data stewards/domain experts to develop custom data cleansing solutions for any data domain Cleansing Package Builder is available within Information Steward
Cleansing Package Builder
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SAP BusinessObjects Financial Information Management
Powerful connectivity, mapping and loading designed for the business user
Easy and repeatable Easy to use, speedy and simple to deploy
Enhances productivity, makes data integration simple
Reliable, repeatable, consistent solution at lower cost
Quality, confidence and compliance Improve insight while lowering compliance costs
Deep understanding of performance data via drill-to-origin capability as well as drill-to-source in SAP ECC
Greater trust and lesser risk in collecting, mapping and loading data
Superior connectivity Integration with SAP and non-SAP data sources
Enables “closed-loop” strategy to execution performance management via EPM–to–EPM integration
Improve EPM processes, reduce cycle times, facilitate compliance
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Information Governance
Alliander
Boehringer Ingelheim
Vodaphone
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Real-Time Data Quality
If everything’s incremental, when do we do data cleansing?
Levels of quality
In-db cleansing
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What About Social Data?
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What About Unstructured Data?
Column stores are good at storing text data.
Can push the text analytics algorithms into the appliance, more flexibility
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Medtronic
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Experience.SAP.com
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End-User Enablement
Data Warehouse
Application Data Department Data
Personal Data
From “self-service BI” to “self-service Data Warehousing”
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Information Composer
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Use the Power to Improve Ease of Use
No longer query – wait – analyze – format …
Iterative feedback loop allows instant feedback and learning
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80
81
Progressive Expertise
View Reports Strategic Analysis
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Mobility
Did somebody say “ubiquity”?!
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We Are All Tom Cruise Now…
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BusinessObjects Mobile
88
Try the new “Experience SAP” Mobile Application
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Altron Allied Electronics
“The days of our users and execs being in the office have gone. They work from home or on the road.
We had to develop a solution that gets information out to where our people are. Everything we do is mobile first.
In addition, it’s less cumbersome and cheaper to buy and use a tablet than any other form.”
Debra-Lynn Marais Group Information Manager
Altron Allied Electronics
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Voice Recognition is Getting Siri-ous
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Next Up: Brain Waves!
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94 * Requires IT integration using built-in APIs and SAP StreamWork enterprise edition if advanced security is required
Decision-Making, Not Just Data Gathering
Try it now! sapstreamwork.com
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Connecting Islands
“The big failure of social business is a lack of integration of social tools into the collaborative workflow.”
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Collaboration in Applications
98
Collaboration in Analytics
99
Collaboration in Strategy Management
Partner integration between SSM and Streamwork
100
Collaboration in Business Process Design
102
Social Intelligence Needs The New Architectures
Expertise location — Relationship Mining — Social Network Analysis
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SAP Social Intelligence
Status Feeds, Discussion Threads
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SAP Social Intelligence
Expertise location — Relationship Mining — Social Network Analysis
105
SAP Social Intelligence
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Did You Know?
116
The REAL Big Leap Forward
© SAP 2008 / Page 116
Breadth and Sophistication of Possible Analytical Tasks
Perc
enta
ge o
f Use
rs D
oing
or
Thin
king
abo
ut th
ese
task
s
Quantitative Thinking Gap
Huge opportunity to make business people more productive and efficient, increase their satisfaction, save money for the company, and drive more revenue.
117
The SAP difference
Lightning Fast Easy Trusted
Anytime Industry/LoB Expertise
Collaborative
118
Conclusion
Analytics industry revolution Every company in the industry heading the same direction Don’t be the last one shooting on film
Time to rethink how you do analytics Back end: simplification, new real-time opportunities Front end: mobile first, collaboration
You can start today The technology is real
Thanks!
Email: timo.elliott@sap.com BI Blog: timoelliott.com
You Should Follow Me on Twitter: @timoelliott
http://timoelliott.com/blog�
Slide Number 1If You’re Not on Twitter, You’re Missing Half the Fun…Slide Number 3Slide Number 4Holding Supercomputers in Your HandsDrowning in Information?Whatever You’re Trying to Do, Analytics is the AnswerBusiness Analytics Provides Great ValueSurging Growth in Business AnalyticsAnalytics is an Ever-Increasing Share of IT BudgetIT Spending Per Head Rising FastBusiness Analytics Around the WorldBusiness Analytics Market SharesMarket Consolidation ContinuesBusiness Analytics Solutions from SAPSlide Number 16Data vs Information vs Knowledge vs WisdomBusiness Analytics Has Struggled to Keep Up“Typical” Business Intelligence TodayIt’s like an Onion…What’s the Problem?A Revolution…Today’s Disks Can’t Keep Up With Processing PowerIn-Memory Computing Costs Have PlummetedIn-Memory Computing Costs have PlummetedIn-Memory ComputingRow vs. Column DatabasesRow-Based DataColumn DataColumn DatabasesMassively Parallel HardwareRed BullSlide Number 33In-Database ProcessingA Database Designed for BusinessIn-Database AnalyticsIn-Database AnalyticsIntegrating Flows of DataIntegrating Flows of DataStreaming DataReal-Time DataReal-Time Analytics on Big DataLarge Bank – 1 Month of Customer InformationSlide Number 45The Basis For Applications of The FutureApplications of the FutureVirtuous Circle of TechnologySlide Number 49Extended ArchitectureSlide Number 52In-Memory Computing is Like Digital PhotographyIt’s All About Flexibility and EvolutionReality Is, and Always Will be, MessySlide Number 56What About Flash Disk / SSDs?What About Big Data / NoSQL / Hadoop?HANA Applications Available in H2 2011/2012HANA RDS Operational ReportingSAP CO-PA AcceleratorSAP Dynamic Cash ManagementSlide Number 63OopsData Qwality is a Real ProblemCollaborative Information GovernanceBusiness-Lead Data CleansingSAP BusinessObjects Financial Information ManagementInformation GovernanceReal-Time Data QualityWhat About Social Data?�What About Unstructured Data?MedtronicSlide Number 75End-User EnablementInformation ComposerUse the Power to Improve Ease of UseSlide Number 79Slide Number 80Progressive Expertise Slide Number 82MobilityWe Are All Tom Cruise Now…�BusinessObjects�MobileSlide Number 87Try the new “Experience SAP” Mobile ApplicationAltron Allied ElectronicsVoice Recognition is Getting Siri-ousNext Up: Brain Waves!Slide Number 92Decision-Making, Not Just Data GatheringConnecting IslandsSlide Number 96Collaboration in ApplicationsCollaboration in AnalyticsCollaboration in Strategy ManagementCollaboration in Business Process DesignSocial Intelligence Needs The New ArchitecturesSAP Social IntelligenceSAP Social IntelligenceSAP Social IntelligenceDid You Know?The REAL Big Leap ForwardThe SAP differenceConclusionSlide Number 119
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