Extending Analytics With Predictive Analysis

Extend Your Analytics Capabilities with Predictive

Analysis! Mike Watschke, Global Center of Excellence, SAP Analytics

Thomas Kuruvilla, Solution Management, Predictive Analysis

© 2012 SAP AG. All rights reserved. 2 Confidential

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Agenda

SAP Analytics Overview

Predictive Analytics – Needs & Challenges

SAP Predictive Analysis

Predictive Analysis & SAP HANA Synergies

Summary


Enterprise Performance

Management

Governance, Risk,

and Compliance Enterprise Information

Management

Planning, Budgeting, and

Forecasting

Financial Consolidation

Strategy Management

Profitability and Cost

Management

Disclosure Management

Analytic Capabilities

Historical | Real-time | Forward-looking | Collaborative | Highly Formatted

Enterprise Data

Sources

Governance, Risk,

and Compliance Enterprise Information

Management

Data

Warehousing

Industry

Financial Services | Public Sector | Healthcare | Manufacturing |

Consumer Products | Retail | Telco | Utilities

LoB

Service, Sales, & Marketing | Procurement | Supply Chain | HR |

Finance | IT | Sustainability

Enterprise GRC

Global Trade

Services

Access Risk

Management

Continuous Transaction

Monitoring

Data Services

Master Data

Management

Event Processing

Content Management

Information

Governance

SAP HANA

Big Data

Enterprise Data

Warehousing

High-performance

Analytic Solutions

Data Mart Solutions

Enterprise Portals

MS Office On Demand Services

Browsers Mobile

Other Application/

Data Sources SAP Social Media

Content Unstructured

Content

OLAP Servers, Data

Warehouses & Marts

Embedded Content

MS

Excel

Business

Intelligence

OLAP Analysis

Reporting

Data Discovery

Dashboards

Mobile

Predictive Analytics

Analytic Applications


Agenda





Summary


What if …

. . You could identify hidden revenue opportunities

within your customer base through predictive

analytics?

. . . You could retain your high-value

customers/employees/vendors/partners with the

right retention offers?

. . . Your call center agents could delight customers

with the best next-step recommendations?

. . . You could increase cross-sell and up-sell

effectiveness through cross-channel

coordination?

. . . You could build long-term

customer/employee/vendor/partner relationships

with intelligent interactions?


Extend Your Analytics Capabilities

ANALYTICS MATURITY

CO

MP

ET

IV

E A

DV

AN

TA

GE

Sense & Respond Predict & Act

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Generic

Predictive

Analytics

Predictive

Modeling

Optimization

What happened?

Why did it happen?

What will happen?

What is the best

that could happen?

The key is unlocking data to move decision making from sense & respond to predict & act


Challenges

Forecasting

Key

Influencers

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?

Predictive Analytics Needs & Examples


Business and Industry Use Cases where SAP has helped

How Predictive Analytics is Used in Industry

Predict likelihood of disease to begin early

treatment; identify clinical trial outcomes.

Healthcare

Identify revenue forecast based on customer

opportunities and pipeline execution.

CRM Sales

Identify key behaviors of customers likely to

leave the bank; improve credit risk analysis.

Banking

Identify potential leads among existing

customers and intelligently market to them

based on individual preferences and histories

CRM Marketing

Intelligent selection of store locations based

on demographics; inventory planning.

Retail

Forecast demand and usage for seasonal

operations; provide anticipated resources.

Utilities

Predict community movement and trends that

affect taxing districts; anticipate revenue.

Government

Forecast demand on system load for capacity

planning and customer scale.

Telco


Agenda

• SAP Analytics Overview

• Predictive Analytics – Needs & Challenges

• SAP Predictive Analysis

• Predictive Analysis & SAP HANA Synergies

• Summary


SAP Predictive Analysis is…

… a statistical analysis and data mining solution that enables you to build predictive models

and visually interact with the data to discover hidden insights and relationships in your data,

and thereby provide the basis for making predictions about future events.

… statistical analysis and data mining is generally referred together as ‘predictive analysis’,

hence the product name.

Intuitively design complex

predictive models

Visualize, discover, and

share hidden insights

Unleash the value of

Big Data


Intuitively design complex predictive models

• Read and write from data stored in SAP HANA, Universes, IQ, and

other sources

• Drag-and-drop visual interface for data selection, preparation, and

processing

• Predictive library with R integration



Visualize, discover, and share hidden insights

• Advanced visualization designed where you’d expect it – natively from

within the modelling tool

• Share insights via PMML and with other BI client tools



Agenda





Summary



SAP

HANA

Predictive

Analysis

Prediction x Real-time + Big Data = Competitive Advantage

Leverage the complementary capabilities of both Predictive Analysis

and SAP HANA

Integrated and optimized for interoperability, enabling the combination of real-time and

operational analytics, access to big data, and predictive capabilities

If it’s available through SAP HANA, it can be used for data mining and predictive

analysis – gain real-time access to BPC, BW, ERP, Analytic Applications, and more


Predictive Analysis Integration with SAP HANA - Today

• Simplified UI/UX for predictive analysis in SAP HANA

• SAP HANA as source of data for In Database Predictive Analysis

• SAP HANA table as source

• SAP HANA view as source

• Attribute View

• Analytical View

• Calculation View

• Sample and filter the data in SAP HANA

• Visualize the data in Predictive Analysis

• SAP HANA as source of data through JDBC

• Apply algorithms on the data and perform the analysis

• Visualize the results

• Persist the results back to SAP HANA as tables


Fully unleash SAP HANA predictive capabilities

• Employ SAP HANA in-database predictive algorithms

• Leverage 3,500+ open-source predictive algorithms via SAP HANA R

integration



Predictive Analysis & SAP HANA – A Perfect Marriage

Ideal for Predictive Queries

Column Store

Compression

In-Memory Optimized

SAP Optimized

SAP In-Memory Computing

Platform

Deepest Insight

Intelligent Answers

Fast Performance

No Data Left Behind

SAP Integrated

Competitive Advantage

UI for Predictive Queries

Business Focus

Low Learning Curve

SAP HANA Optimized

SAP Optimized & Integrated

Analytics Integration Options

Predictive

Analysis

SAP

HANA


Agenda





Summary


Unique Benefits of SAP Predictive Analysis

Integration to SAP HANA and Sybase IQ

Integration to SAP Analytics Suite

Planned Integration to SAP ERP via BW support

Competitively Priced

Enterprise & Department Ready


Thank You!

Contact information:

Mike Watschke [email protected]

Thomas B Kuruvilla: [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Extending Analytics With Predictive Analysis