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ANP104 –

Massive Predictive Analytics

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

Speakers

Bangalore, October 5 - 7

Paul Pallath, Chief Data

Scientist, Advanced

Analytics Products

Las Vegas, Sept 19 - 23

Erik Marcadé - Vice

President, Advanced

Analytics Products

Barcelona, Nov 8 - 10

Erik Marcadé - Vice

President, Advanced

Analytics Products

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3 Public

Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of

SAP. Except for your obligation to protect confidential information, 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

presentation or any related document, or to develop or release any functionality mentioned therein.

This presentation, or any related document 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 presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality.

This presentation 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 presentation is for informational

purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this

presentation, except if such damages were caused by SAP’s intentional 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.

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4 Public

Agenda

• Predictive Analytics and Machine Learning Overview

• What is Massive Predictive Analytics?

• A Small Word on Automation

• Some Examples

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Predictive Analytics and

Machine Learning Overview

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6 Public

There is no such thing as an analytics continuum!

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Agile

Visualization

Predictive

Analytics

Prescriptive

Analytics

What happened?

What will happen?

Why did it happen?

User

En

gag

em

en

t

Maturity of Analytics Capabilities

Self Service BI

What should I do?

Chasm!!!

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7 Public

There is no such thing as an analytics continuum!

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Agile

Visualization

Predictive

Analytics

Prescriptive

Analytics

What happened?

What will happen?

User

En

gag

em

en

t

Maturity of Analytics Capabilities

Self Service BI

What should I do?

Humans make decision

Data is aggregated for

visualization

UI integration at best

Why did it happen?

Chasm!!!

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8 Public

There is no such thing as an analytics continuum!

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Agile

Visualization

Predictive

Analytics

Prescriptive

Analytics

What happened?

Why did it happen?

What will happen?

User

En

gag

em

en

t

Maturity of Analytics Capabilities

Self Service BI

What should I do?

Machines propose/make

decision

Data is de-normalized,

flattened, fine grain

Process integration at last

Chasm!!!

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9 Public

$10B $3B

$1B

Worldwide Market Sizes… (Guesstimates)

Content/

Unstructured

Analytics

Advanced/

Predictive Analytics Query

Reporting

Agile Viz

Analytics

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10 Public

SALES &

MARKETING OPERATIONS FRAUD

AND RISK

FINANCE

AND HR

OTHER

SECTORS

• Churn Reduction

• Customer Acquisition

• Lead Scoring

• Product Recommendation

• Campaign Optimization

• Customer Segmentation

• Next Best Offer/Action

• Predictive Maintenance

• Load Forecasting

• Inventory/Demand

Optimization

• Product Recommendation

• Price Optimization

• Manufacturing Process Opt.

• Quality Management

• Yield Management

• Fraud and Abuse Detection

• Claim Analysis

• Collection and Delinquency

• Credit Scoring

• Operational Risk Modeling

• Crime Threat

• Revenue and Loss Analysis

• Cash Flow and Forecasting

• Budgeting Simulation

• Profitability and

Margin Analysis

• Financial Risk Modeling

• Employee Retention

Modeling

• Succession Planning

• Life Sciences

• Health Care

• Media

• High Education

• Public Sector /

Social Sciences

• Construction and Mining

• Travel and Hospitality

• Big Data and IoT

Solving real world problems by optimizing resources and improving margins

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What is Massive Predictive

Analytics?

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12 Public

What is Massive Predictive Analytics?

MASSIVE PREDICTIVE FACTORY

P R E D I C T I V E F O R

THE MASSES!

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Major Investment Areas

A B C

The Predictive Factory

Predictive IP

Big Data

Cloud

On Premise

P

</>

10101010

00100110

0111

High and Low Touch UX’s

Functional

Delivery

Embedded in Processes and Apps

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14 Public

Crucial Need: Managing a Massive Number of Models

• No coding, just configuration!

• Full predictive lifecycle

• Modeling automation

• Inclusive

The Predictive Factory P

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15 Public

More Users through Predictive Automation.. Open to Data Scientists!

</> Low and High Touch

User Experiences

• Low touch user interface using wizard-based

approach and automated

• High touch user interface supporting open

languages

• Interoperability between both

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16 Public

More Models With Generic/Specialized IP. Monetize your IP.

A B C

Predictive

Intellectual Property

• Generic proprietary algorithms

• Niche proprietary algorithms

• Niche predictive IP to be available via a

marketplace

• Open to data science standards and available

resources

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17 Public

Massive Consumption through Cloud. Extend the Native Capabilities.

• All-in-one SAP BusinessObjects Cloud

• Guided Machine Discovery

• HCP, Predictive Services targeting partners

and integrators

Cloud

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18 Public

Massive Number of Models on Massive Data Volumes

10101010

00100110

0111 Big Data

• Data Preparation compatible with ultra-wide

data sets

• Distribution of algorithms on scale-out

architectures

• Integration into Big Data streaming

environments

0

2

4

6

8

10

12

PA 2.4 PA 2.5 PA 3.0

Time on Hadoop/Spark

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Massive Deployment requires a Simplified Product Design

APL

Desktop Automated Java

Swing Client

Expert (HTML/Java)

KxShell

Predictive Factory

- Fiori Automated UI5

scheduling app

Automated Java

Swing Client,

KxCORBAShell

Client

Server

Unmanaged

SDK (CORBA)

Predictive Analytics 3.x

Sapphire 2016

Server

BIP managed

Predictive Factory

- Fiori

Automated & Expert UI5

app (successor

authoring)

Automated Java

Swing Client

(legacy features),

KxHTMLShell

Client

APL

Predictive Analytics 4.x

Future

On premise,

HANA (XSA)

SDK

HTML/services

Evolutions

Existing

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20 Public

Predictive for the Masses through Integration Capabilities

Embedded in Processes

and Apps

Predictive Analytics Integrator

• Leveraging powerful predictive libraries (APL, PAL,

R) in HANA

• Included in every deployment of the Integrating app

• Out-of-the-box lifecycle management of predictive

models (retrain, score, test)

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A Small Word on Automation

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Traditional Approach

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

What competition does

for automation:

Stack several algorithms

and hope for the best

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Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

Data Manager

• Generate SQL for HANA, Hadoop, Hive,

SparkSQL, and all major databases

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24 Public

Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

Auto-algorithms

• Auto-Algorithms make this section

obsolete

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Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

Auto-algorithms

• Numbers, strings, dates

• Categorical, continuous, textual

• Date parts

• Composite variables (example: position

from latitude and longitude)

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26 Public

Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

Auto-algorithms

• Classification, regression, clustering,

times series, key influencers

• Link analysis, recommendations

• HANA (APL)

• Hadoop (Scala)

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27 Public

Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

Auto-algorithms

• All descriptive statistics available

• Key influencers, decision trees, segments,

optimal binning and banding

• Communities

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Value of SAP BusinessObjects Predictive Analytics Automation

Problem

Identified

Aggregate & prepare

data

Identify relevant variables

Derived features &

encode variables

Develop models

Debrief models

Write code for

database execution

Business

Results

In-Database Apply:

• Automated SQL generation

• Optimized with data manager

• HANA: Streaming (CCL)

• Hadoop: Streaming (Java)

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Some Examples

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Some Examples

• ~1600 models

retrained every

month for product

appetency

Large video provider

• 400 models in 11

families for more

than 6 years for

demand forecasting

Chemical company

• 400 models for sales

pipeline accuracy

improvement (built in

5 days…)

High tech company

• 15,000 models for

objects routing

Transportation company

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SAP TechEd Online

Continue your SAP TechEd

education after the event!

Access replays of

Keynotes

Demo Jam

SAP TechEd live interviews

Select lecture sessions

Hands-on sessions

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Further information

Related SAP TechEd sessions:

ANP101 - SAP BusinessObjects Predictive Analytics – What You Really Need To Know – 1hr Lecture

ANP105 - Turning Big Data and IoT into Intelligence You Can Actually Use – 1hr Lecture

ANP108 - Predictive Business Intelligence: Give Your BI the Gift of Foresight – 1hr Lecture

ANP160 - SAP BusinessObjects Predictive Analytics 101: Discovery Session – 2hrs Hands-On Workshop

ANP205 - SAP BusinessObjects Cloud Brings Predictive Tools to the Business Analyst – 1hr Lecture

ANP260 - Massively Automate Predictive Models with Predictive Factory and SAP HANA – 2hrs Hands-On Workshop

ANP270 - SAP BusinessObjects Planning and Consolidation with Predictive Analytics – 2hrs Hands-On Workshop

ANP360 - Integration and Scripting with SAP BusinessObjects Predictive Analytics – 2hrs Hands-On Workshop

ANP600 - Start developing with the SAP HANA Cloud Platform predictive services – 1hr CodeJam

ANP806 - Road Map Q&A: SAP BusinessObjects Predictive Analytics – 1hr Session

SAP Public Web

scn.sap.com/community/predictive-analytics

sap.com/predictive

SAP Education and Certification Opportunities

https://training.sap.com/shop/sap-search?q=predictive+analytics

Watch SAP TechEd Online

www.sapteched.com/online

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Please complete your

session evaluation for

ANP104

Contact information:

Erik Marcadé VP Advanced Analytics Products [email protected]

Feedback

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© 2016 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate

company) in Germany and other countries. Please see http://www.sap.com/corporate-en/about/legal/copyright/index.html for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its

affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and

services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as

constituting an additional warranty.

In particular, SAP SE or its affiliated companies have 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 SE’s or its affiliated companies’ strategy and possible future

developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies 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. 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.