hana Predictive Analytics

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Predictive AnalyticsCustomer Successes

Introduction

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OthersIntroduction Telecommunications Retail Banking | Insurance Media

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www.sap.com/predictive

Utilizing Big Data from machines and the Internet, andtechnology innovations in mobile and in digital and socialmedia, organizations can empower the digital nativegeneration with real-time intelligence. Facts can replaceinstinct to drive better decisions and fuel businesstransformation.

Best-run organizations empower increasing numbers of

employees with real-time business intelligence, whichprovides relevant insights to drive informed decisions andactions.

Chief information ocers are leading enterprise-widetransformation by establishing a foundation thatsupports collaboration and dissemination of informationacross desktop and mobile devices.

In addition, business managers are nurturing their teamsby building analytical skills and enabling collaborationacross stakeholders, both internally and externally.

In these organizations, the analysis and exploration ofalternative options fuels creative and strategic thinking,enabling all decision makers to work as one team –developing trust, respect, and pride in the organization.

From strategy to planning and execution, alignmentacross the organization provides decision makers withcritical visibility into trends. With the ability to simulateconditions, decision makers can model changes basedon future projections, making decisions to adjust tochanging global and local environments. The result canbe a signicant improvement in generating public value.

Better Decisions to Transform the Business

© 2014 SAP SE or an SAP aliate company. All rights reserved.


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An integrated set of analytics solutions from SAP hasbeen designed from the ground up to enable you tofully exploit the new reality – from data to decision.Our solutions enable you to combine the power ofpredictive processing using the SAP HANA® platformwith intuitive modeling, advanced data visualization,and model automation provided by predictive analyticssolutions from SAP.

Massive data sets can be either analyzed in-databaseusing the numerous native algorithms and R integrationavailable in SAP HANA and SAP® Predictive Analysissoftware, or in a more automated fashion using theSAP InniteInsight® solution.

With predictive analytics solutions from SAP, you canbuild predictive models to gain unprecedented insightinto your customers – from acquisition through cross-sell,

up-sell, churn prevention, and generally taking the nextbest action with every interaction, across every customerchannel.

The modeler feature in SAP InniteInsight automates thebuilding of sophisticated predictive models for a vastamount of data-mining functions.

With clicks, not code, scorer functionality in the solution candeploy optimized scoring equations directly in-database.

SAP InniteInsight brings even more productivity to SAP

customers, enabling them to ask more “what if” questionsand ending up with hundreds or even thousands of predic-tive models.

The SAP InniteInsight Social application provides aunique spectrum of social network analysis capabilitiesso that you can understand social inuence and behaviorsacross customer communities.

Technology in the SAP InniteInsight Recommendation

application for the recommendation engine is based onlink analysis and provides unprecedented speed to ana-lyze huge volumes of transactions.

New Approach to Predictive Analytics




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Telecommunications

6 Mobilink

8 Cox Communications

10 Belgacom Group

12 Banglalink

14 Vodafone Netherlands

15 XL

Retail

17 Eldorado

19 Groupe SAMSE

21 Dinos Cecile

22 HSE24

Banking | Insurance

24 AAA

26 Aviva

28 Monext

Media

30 Skyrock.com

Others

32 CIR food

34 eBay

36 Tipp24

38 Kaeser

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by industry




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24 AAA

26 Aviva

28 Monext

12 Banglalink

10 Belgacom Group

32 CIR food

8 Cox Communications

21 Dinos Cecile

34 eBay

17 Eldorado

19 Groupe SAMSE

22 HSE24

38 Kaeser

6 Mobilink

30 Skyrock.com

36 Tipp24

14 Vodafone Netherlands

15 XL

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Company Mobilink | Headquarters Islamabad, Pakistan | Industry Telecommunications | Products and Services Fixed line and wireless broadband communication services;

data services | Employees 7,000 | Revenue US$1.1 billion

www.mobilinkgsm.com

Bringing people together via innovative communication solutions is how Mobilinkaims to become Pakistan’s leading telecommunications provider. Faced with explosive

market growth and erce competition, the company needed to protect itself againstcustomer churn by oering the right services to the right customers at the right time.That meant making sense of customer data from nearly 35 million subscribers and200,000 retailers across 10,000 cities, towns, and villages.

MobilinkBoosting Campaign Response Rates Up to 380%with the SAP InniteInsight Solution




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The company’s top objectives • Outpace the competition with a next-best-activity approach that oers the right

incentive to the right customers at the right time • Use Big Data and predictive analytics to build customer trust, improve loyalty,

decrease churn, and maintain prot margins

The resolution

• Quickly deployed the SAP InniteInsight solution for its excellent predictive

capabilities, user-friendly interface, and compatibility with other solutions afterreviewing options from other vendors like SAS and SPSS • Built predictive models combined with clustering techniques and social network

analysis of Big Data, gaining key insight into customer behavior

The key benefts

• More targeted and eective promotions and campaigns, increasing usage of value-addedservices such as text messages, ringtones, and music

• Lower attrition by predicting as well as preventing churn • Better insight into both large and small communities of interest, enabling viral marketing

in new segments to acquire new customers, boost adoption of new products andservices, and reduce churn

8XIncrease in uptake of customerretention oers, from 0.5% toabout 4%, and at a fraction ofthe cost

380%Boost in campaign responserates, thanks to social networkanalysis


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Company Cox Communications Inc. | Headquarters Atlanta, Georgia | Industry Telecommunications | Products and Services Cable entertainment and

broadband services | Employees 50,000 | Revenue US$15 billion

http://ww2.cox.com

As the third-largest cable entertainment and broadband provider in the United States,Cox Communications pioneered the bundling of television, Web, and telephone

services, allowing consumers to consolidate services with one provider. To help improvecustomer service and bring more people’s digital lives to life, Cox needed the technologyto personalize oers for more than 6 million subscribers across 28 regions.

Cox CommunicationsSupercharging Customer Relationshipswith the SAP InniteInsight Solution




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14%More products per customerhousehold

28%Reduction in customer

churn rate

80%Reduction in model creationtime

42XGreater throughput for central

analysts (from 40 to 1,680predictive models annually)

The company’s top objectives • Build predictive models to help create personalized oers more quickly and

accurately for more than 6 million subscribers across 28 regions • Double direct mail campaign conversions

The resolution

• Deployed the SAP InniteInsight solution for predictive analytics, includingsegmentation, classication, regression, and data aggregation

•

Streamlined market analysis company-wide through a central analytics teamcovering all 28 regions

The key benefts

• Scalable solution to support both short- and long-term marketing needs, includingpredictive modeling for customer acquisitions, retention, lifetime valuation, andevent-based marketing

• Precise, accurate, and fast polling of 10 million observations and 800 variables toidentify customer-related issues, including propensity to purchase, likelihood of churn,and prospective credit risks

Cox Communications




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Company Belgacom Group | Headquarters Bruxelles, Belgium | Industry Telecommunications | Products and Services Fixed line, wireless,

television, and Internet communication services | Employees 15,859 (2012) | Revenue €6.4 million (2012)

www.belgacom.com

For telephone, Internet, and television services, the people of Belgium rely on Belgacom.But in this highly competitive industry, the window of opportunity to introduce new prod-

ucts is narrow. With the SAP InniteInsight solution, Belgacom has automated data miningtools that help it better understand customer needs and provide personalized service andcampaigns across all channels. This means more satised customers staying connectedwith Belgacom.

Belgacom GroupDelivering Next-Best Action Across AllCustomer Channels with SAP InniteInsight




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Company Banglalink Digital Communications Ltd. | Headquarters Dhaka, Bangladesh | Industry Telecommunications | Products and Services Integrated telecommunication

services – voice and data services, traditional and broadband mobile, and xedtechnologies | Employees 2,500 | Revenue US$550 million

www.banglalinkgsm.com

Since 2005 Banglalink Digital Communications Ltd. has positioned itself as one ofBangladesh’s leading mobile phone operators by improving people’s lives through

aordable telecommunication services. In order to bring mobile telecommunications tothe masses, Banglalink used the SAP InniteInsight solution. By building predictive mod-els, Banglalink is able to preserve valuable revenue by combating customer churn andimproving the overall customer experience.

BanglalinkHolding revenue and improving customer experience

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Vodafone Netherlands

Targeting Customers with More-Relevant Oers

Company Vodafone Netherlands | Headquarters Amsterdam, Netherlands | Industry Telecommunications | Products and Services Telecommunication services, including

postpay consumer and enterprise, xed, prepay, and machine to machine

www.vodafone.nl

“Predictive analysis is important, because it enables

a company to make the most of their marketing spend.

We use SAP InniteInsight to ensure that our oers

are more relevant to our customers, so we don’t overcontact them.”

Viliah Overwater, Senior Modeling Analyst, Vodafone Netherlands



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200%Increase in campaignconversion rate

28%Increase in prediction accuracy

when targeting social “inuencers”

66.6%Reduction in attrition withhighest-value subscribers and8.2% reduction overall

25%Approximate growth incustomer base

102%Return on investment

XL

Top objectives

• Outpace the competition in a competitive and near-saturated market • Generate more-protable customer relationships and improve retention and loyalty

Why the SAP® InfniteInsight® solution

• Predictive modeling to analyze data on over 40 mill ion subscribers and determinecharacteristics like product and churn propensity

• Preferred over competing solutions and traditional retention and loyalty managementstrategies because it is fast to deploy, user-friendly, and contributes to the agility ofmarketing operations

Key benefts

• Ability to build predictive models in just a few hours

• Matching of customer eligibil ity, inventory availability, and protability to prioritizeoer presentations and deploy a next-best-activity solution

• Campaign optimization to maximize retention, cross-sell, and up-sell acrossmarketing channels, increasing revenue and subscriber usage

• Proactive identication and targeting of customers at risk of churning well

before the loss




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Company Eldorado LLC | Headquarters Moscow, Russia | Industry Retail | Productsand Services Consumer electronics and domestic appliances | Employees 15,000 |

Revenue €2.4 billion (2012)

www.eldorado.ru

For electronics, appliances, computers, and more, Russians head to Eldorado. Operating700 stores and franchises, more than 30 Internet units, and 120 order and pickup points,

the retailer must manage large data volumes to improve sales forecasting, exploithidden revenue potential, and slash inventory costs. To make the most of its Big Datawith predictive analytics, Eldorado uses the SAP InniteInsight solution.

Eldorado

Boosting Sales Forecast Accuracywith the SAP InniteInsight Solution

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Eldorado

Objectives

• Analyze data stored in the SAP 360 Customer

solution from over 1.5 million point-of-sale

transactions for more than 420 product groups

and sales of over 8,000 products each month

• Improve forecast precision to boost sales and reduce

inventory costs

Why SAP

• Trusted technology partner with a proven record

of delivering success across the industry

• Ability to further utilize real-time access to large

volumes of data already available with the SAP

Business Warehouse application powered by SAP

HANA and the SAP Planning for Retail application

• Ease of use, precision of predictive models, and

innovative automated tools available with the

SAP InniteInsight solution

Benefts

• Building approximately 500 predictive models a

month, a task impossible with traditional modeling

techniques that required weeks or months to build a

single model

• Creating forecasts for assortment planning, shelf

replenishment, pricing and promotion analysis, store

clustering, store location selection, and sales and

purchasing planning

• Achieving up to 82% accuracy in sales forecasts, a

10% improvement over prior forecasting techniques

Future plans

• Migrate further SAP applications to SAP HANA,

leveraging the full potential of in-memory computing

technology

• Continue to expand and evolve the business using

world-class IT systems and innovation

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Company Groupe SAMSE | Headquarters Grenoble, France | Industry Retail | Products and Services Distribution of building materials and tools | Employees 5,000 |

Revenue €1.138 million

www.groupe-samse.fr

Whether embarking on a major development project or xing up a private home,contractors and do-it-yourself homeowners in France rely on tools, materials, andpersonalized advice from Groupe SAMSE. With the SAP InniteInsight solution, GroupeSAMSE can build predictive models to analyze and use huge amounts of customer datagathered every day. With a 220% increase in marketing campaign responses, GroupeSAMSE is clearly oering customers exactly what they need.

Groupe SAMSE

Improving Marketing, Risk Prevention, and InventoryForecasting with the SAP InniteInsight Solution

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Dinos Cecile

Company Dinos Cecile Co.,Ltd. | Headquarters Tokyo, Japan | Industry Retail | Products and Services Catalog and Mail-order retailing | Employees 1,343 |

Revenue YEN 12.19 billion (~ US$ 1.12 billion)www.dinos-cecile.co.jp



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HSE24

Positively Inuencing Customer Buying Behaviorwith Better Analytics Software and SAP HANA®

Company Home Shopping Europe GmbH (HSE24) | Headquarters Ismaning, Germany | Industry Retail | Products and Services Fashion, jewelry, beauty and home products |

Employees Approximately 2,900 (including external call center and logistics personnel) | Visitors €515 million (2012) www.hse24.de

“With saw an opportunity with SAP HANA to inuence our customers’ buying behavior

and reduce product return rates. Each year over 11.5 million HSE24 parcels are sent

out to 1.5 million customers. As a mail-order business, we estimate that decreasing our

return rate by only 1% could lead to a seven-digit euro savings on the bottom line.”

Michael Kuenzel, VP of IT, Home Shopping Europe GmbH (HSE24)



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HSE24

Real-timeAggregation of customerdata that provides a completeview of every customer

MeaningfulCustomer interaction that ismore powerful and eective

TargetedMarketing campaigns that focuson unique customer segments

RelevantOers that more accuratelyaddress customer demands

The company’s top objectives

• Become a world-class customer sales and service organization • Reduce customer mail order returns • React to demand in real time

The resolution

• Deployed SAP® Predictive Analysis software and the SAP Audience Discoveryand Targeting analytic application powered by SAP HANA®

• Established a plan to migrate the SAP Customer Relationship Management

application to SAP HANA as the second phase of the SAP HANA implementationproject

The key benefts

• 360-degree view of customer information, helping ensure more focused,

targeted campaigns and customer interactions

• Instant access to all customer data, enabling marketers to take appropriatemeasures toward reducing return rates

• Meaningful customer interactions, helping create oers that are relevant to

consumers and more accurately reect unique demands



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AAA

Steering the Way to Better Customer Understanding

Company American Automobile Association (AAA) | Headquarters Orlando, Florida | Industry Insurance | Products and Services Roadside assistance; automotive, travel,

and nancial services | Employees >40,000www.aaa.com

When getting behind the wheel, millions of Americans rely on the American AutomobileAssociation (AAA) for travel assistance, insurance, and emergency towing. To optimizeservice from the 44 AAA motor clubs across the United States and Canada, the AAANational Oce assembled a centralized “action center” to provide better insight intomember needs. With next-generation predictive analytics using the SAP InniteInsightsolution, AAA can get members what they need when they need it most.

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Monext

Protecting Business and Consumers fromOnline Fraud

Company Monext SAS | Headquarters Courbevoie, France | Industry Banking |Products and Services Payment and money card processing solutions and services |

Employees 480 | Revenue €67 million (2011)www.monext.eu

“SAP InniteInsight will give us a real competitive advantage, saving hundreds of

millions of euros annually.”

Annabelle Gerard, Business Intelligence and Data Mining Analyst, Monext SAS

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Skyrock.com

Monetizing Social Networking withSAP InniteInsight Recommendation

When it comes to online content, people trust their friends to know what they will like.Oering its members a free, personal Web space to create blogs, add proles, andexchange messages with other registered members, Skyrock.com is one of the

fastest-growing social network sites in the world. But the company needed a way toleverage all that customer data and monetize its rapid growth.

Company Skyrock.com | Headquarters Paris | Industry Media | Products andServices Social network, blog, and media sharing services | Employees 80 |

Visitors 12 million per monthwww.skyrock.com

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eBay

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Determine with 100% accuracythat a signal is positive at97% condence

Automated

early signaldetectionsystem on SAP HANA

Business challenges • Increase the ability to separate signal from noise to identify key changes to the health

of eBay’s marketplace • Improve the predictability and forecast condence of eBay’s virtual economy • Increase insights into deviations and their causes

Technical challenges

• Inability to detect critical signals from 100 petabytes of data in eBay’s enterprise datawarehouse

• Highly manual process requiring analyst intervention, because one model does not tall metrics

Key benefts

• Automated signal detection system powered by predictive analytics on SAP HANA

selects the best model for metrics automatically, increasing accuracy of forecasts

• Reliable and scalable system provides real-time insights allowing data analysts to

focus on strategic tasks

• Decision tree logic and exibility to adjust scenarios allows eBay to adapt the best

model for its data

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More

information



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Tipp24

Quadrupling Marketing Campaign Performance with theSAP® InniteInsight® Solution

Company Tipp24.com | Headquarters London | Industry Sports and entertainment | Products and Services Online lotteries

www.tipp24.com

To understand its customers better and to improve the accuracy of marketing activities,Tipp24.com, one of Europe´s leading licensed lottery intermediaries, turned to predictiveanalytics. Using the SAP® InniteInsight® solution for predictive modeling, the company

was able to improve its targeting accuracy by 300%. That means introducing the rightgame to the right player and hopefully making dreams come true.




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Tipp24

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Top objectives • Better understand the customer l ifecycle to nurture high-value customers,

increase up-sell and cross-sell opportunities, and reduce churn • Gather detailed customer behavior data to optimize marketing campaigns • Enable ecient predictive modeling across all marketing activities and customer

channels

Why the SAP® InfniteInsight® solution

• Better performance and scalability when compared to SAS software and SPSS

software from IBM • Ability to identify customer behavior patterns to improve satisfaction • Ability to predict which customers are at risk of becoming inactive and which

inactive customers are likely to become active again

Key benefts

• Optimizes campaigns and the customer lifecycle across multiple channels,including telephone, direct mail, and e-mail

• Enables proactive relationship management with existing and potential

high-value customers

• Reduces churn and increases overall customer lifetime value


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300%Improvement in targeting accuracy,including identifying likely playersfor weekly, monthly, or permanenttickets for specic lotteries

25%Reduction in target audiencesize for any individual campaign,thanks to more-precise analytics

90 %Less time to build and deploypredictive models (fromweeks to days), increasing the

productivity of the analytics team


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KAESER

Transforming Operations with SAP® Business Suite powered bySAP HANA®

Company Kaeser Kompressoren SE | Headquarters Coburg, Germany | Industry Industrial machinery and components | Products and Services Compressed air systems

and compressed air consulting services | Employees 4,400 | Revenue €600 million (2012) | Partner SAP® Consulting organization www.kaeser.com



“We will leverage the full power of SAP HANA to enhanceexisting business processes, introduce entirely new ones,and reduce total cost of ownership. We are o to a verygood start with the smooth and fast migration of SAP

CRM to SAP HANA, which will be follow ed by other SAPBusiness Suite applications and custom solutions.”

Falko Lameter , CIO, KAESER KOMPRESSOREN

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KAESER

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Objectives

• Create an innovative IT environment that supports the move toward a solution- provider business model

• Enhance existing business processes and leverage the power of Big Data andpredictive maintenance to become more proactive, customer oriented, andcompetitive

• Leverage the SAP HANA® platform to transform and simplify the entire SAP solutionlandscape

Technical implementation• Successful migration of the SAP Customer Relationship Management (SAP CRM)

application to SAP HANA in just 2.5 months and with just 1.5 days of downtime• Great collaboration with SAP during all phases of the project

Future plans

• Launch predictive maintenance capabilities with a custom solution based onSAP CRM powered by SAP HANA to step up customer service

• Migrate all SAP Business Suite applications, such as the SAP ERP, SAP Supply ChainManagement, and SAP Business Warehouse applications, to SAP HANA

• Deploy SAP CRM powered by SAP HANA in the cloud with other cloud oerings likethe SAP Jam™ social software platform to enable a mobile and social CRM strategy


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SuccessfulSuccessful and smoothproduction launch of SAP CRMpowered by SAP HANA

FasterFive times faster databaseresponse times

SimplerSimpler and more agile ITlandscape and businessprocesses

SolidFoundation for predictivemaintenance



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