SAPInsider Singapore: How Big Data Shapes Technology Strategies and Drives Business Transformation

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How Big Data Shapes Technology Strategies and Drives Business Transformation

Timo ElliottSAP

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

Agenda

Big Data Directions

Using Big Data to Improve The Customer Experience

Using Big Data to Empower Employees

Using g Big Data to Optimize Resource Use

Using Big Data for Business Networks

Wrap-up


Big Data Directions


Information Becomes a Profit Center

Real-time, highly

personalized

Business Ownership

Product Customer Experience

Iterative, ever-changing


Analytics Moves to the Core


Process data Human data

Machine data

Big Data Adds New Data Opportunities


Descriptive:What happened?

Diagnostic:Why did it happen?

Predictive:What will happen?

Prescriptive:How can we make it happen?

Hindsight Insight Foresight

Predictive Reaches Maturity


Companies Don’t Use Most of Their Data Today

Source: Forrsights Strategy Spotlight: Business Intelligence And Big Data, Q4 2012. Base: 634 business intelligence users and planners

Unstructured50TB

Semi-structured

2 TB

Structured12 TB

Only

12%used today

Average data volume per company

9 TB 75 TB

0.6 TB 5 TB

4 TB 50 TB

SMBs: LEs:


Big Data Is Not Only About “Big” Data

“My analytics are becoming more difficult because of the variety and types of data sources (not just the volume)”

Source: Paradigm4 data scientist survey 2014www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf

http://www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf


Transactions Are Still a Big Part of Big Data

“Which types of data do you anticipate using in the next year?”

Source: Paradigm4 data scientist survey 2014www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf

http://www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf


What Is Big Data? The Google Summary …

nonsense


Big Data Is Heading for the “Trough of Disillusionment”

Source: Gartner, August 2014, www.gartner.com/newsroom/id/2819918

http://www.gartner.com/newsroom/id/2819918


Benefits from Big Data Initiatives

# 5 Identified new product opportunities (6%)

#4 More reliable decision making (9%)

#3 Improved operational efficiency (11%)

#2 Identified new business opportunities (31%)

#1 “DON’T KNOW” (51%)

Source: Information Difference Research Study Dec 2013: “Big Data Revealed” http://helpit.com/us/industry_articles/big_data_revealed.pdf

http://helpit.com/us/industry_articles/big_data_revealed.pdf


Hadoop and Other “NoSQL” Technology

Enterprise “Data Lakes” and “Data Hubs”


A Typical Example of DW and Hadoop Integration


OLTP + OLAP = HTAP

“Hybrid transaction/analytical processing will empower application leaders to innovate via greater situation awareness and improved business agility. This will entail an upheaval in the established architectures, technologies and skills driven by use of in-memory computing technologies as enablers.”

Gartner, 2014

Source: Gartner 2014, “Hybrid Transaction/Analytical Processing Will Foster Opportunities for Dramatic Business Innovation” www.gartner.com/doc/2657815/hybrid-transactionanalytical-processing-foster-opportunities

HTAP = Hybrid transaction/analytical processing

A single system for both OLTP (operational) and OLAP (analytical) processing. Data is stored once, in-memory, and so instantly available for analytics.

https://www.gartner.com/doc/2657815/hybrid-transactionanalytical-processing-foster-opportunities





With HTAP, the Operational Schema Looks Like a DW

SAP HANA

SAP HANA Live (Virtual Data Model)

Customer Service

Risk Management Team

Finance and Operations

Account Administration

Executive Management

Customers Channel Suppliers Accounting ForecastingInventory Products Pricing Planning


Data Warehouse

HTAPHadoop

Big Data Architecture Directions: Short Term

Where does data arrive?

When does it need to move?

Where does modeling happen?

What can users do themselves?

What governance is required?

BI Tools


Metadata abstraction

Increasingly automated

Learning algorithms

Content & Process IncludedData Warehouse

HTAPHadoop

Big Data Architecture Directions: Long Term






Integrated Data “System” (cloud & on-premise)

BI Tools

Metadata abstraction

Increasingly automated

Learning algorithms

Content and Process Included

HTAPHadoopIntegrated Data “System” (cloud and on-premise)BI

Tools







Opportunity Areas for Innovation

Big Data initiatives are typically in one of the following areas:

Hyper-personalizeCustomer Experience

Plan & optimizeResources in

Real Time

Engage & empowerWorkforce of the

Future

Harness the intelligence ofNetworked Economy


Using Big Data to Improve the Customer Experience


80% of CEOs think they deliver a superior customer experience

Source: The New Yorker

– but only 8% of customers agree.


Real-Time Retail Insights


Social Data


Unstructured Data

1 patient every 4s = 7M/year

Combine structured and unstructured data for complaint handling and patient

experience reporting


OmniChannel


Sharing Data with Customers

© 2014 SAP AG. All rights reserved. 28


Experience Intelligence Center

Event Interception Business Transformation

Optimizing the Customer Experience

http://www.sustainy.com/wp-content/uploads/2009/05/florida-disney-world-epcot-center.jpg

http://disney-desktop-wallpaper.com/walt-disney-world/mickey-sorcerer-hat.jpg


Optimizing the Customer Experience (cont.)


New Products and Services


Using Big Data to Empower Employees


Worldwide, Only 13% of Employees Are Engaged at Work

USA UK Canada France0%

25%

50%

75%

100%

30%

17% 16%9%

Actively DisengagedNot EngagedEngaged

Source: Gallup State of the Global Workplace Report 2013


Getting Data into the Hands of Employees

Adapting to the analytics needs of your employees


“Self-Service” Analytics


Analytics Collaboration


Collaborative Analytics


Using Big Data to Optimize Resource Use

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Wearable devices have grown by 2x month over monthsince October 2012.

Source: Mary Meeker’s Internet Trends, 2013

Photo: Intel Free Press

http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2013


The “Datafication” of Daily Life


Unexpected Uses of Existing Data

Source: https://jawbone.com/blog/napa-earthquake-effect-on-sleep/


The Datafication of Reading


Sensors Allow Tracking of the Previously Untrackable


Sensors + Cloud + Mobile + Analytics

1. Install flow sensors on your beer lines

2. The sensors beam data to box plugged into the internet

3. Data sent to HANA in the cloud

4. Mobile interfaces to analyze consumption

http://weissbeerger.com/


Sensors + Cloud + Mobile + Analytics (cont.)


Using Sensors to Gather Logistics Data


Aggregating Information and Providing to Customers


Sensors + Analytics + Predictive Maintenance


Making It Easier to Add Sensors


Using Big Data for Business Networks


Network Analysis

Churn model accuracyimproved by 47% withsocial


Network Analysis (cont.)


Business Networks Are Becoming Information Networks

SuppliersBuyers

ProcurementSales

FinanceLogistics

Supply ChainSustainabilityCompliance

Partners

Ariba Network

More than 1M suppliers in more than 190 countries around the world

Transact with suppliers – The Network handles over $460 billion per year in commerce

Reduce supply costs – Customers save a combined total of $82M daily


Creating Information Communities


Information Communities

• Interact with consumer in the field• Run mobile marketing campaigns

based on consumer profile and location

• Interact with consumer in real-time anywhere, anytime.

• Design and run mobile marketing campaigns based on consumer profile and location

• Analyze consumer behavior in the field

SAP Precision Retailing

• Receive information, discounts & Special offers

BI

CRM

Merchants

Outings

Transports

Partners


How It Works

Valid at this time

For my profile

(segments)

In the store(s) nearby

Eligible offers

Top x

What time is it ?Where am I?

What is my personal profile?What is my CRM profile?

Select Rate & Order Deliver & Learn

What are my preferences ?Where am I?

What is my personal profile?What is my CRM profile?

The rating is based on the learning engine and on the characteristics of the shopping context, the consumer preferences, and the frequency of presentation.


The SAP Big Data Strategy


SAP Big Data Architecture

Data Connectors

ETL

StreamingAnalytics

AdvancedAnalytics

Line of BusinessApps

BI &Reporting

Visualization&

Exploration

IndustryApps

Big DataDevelopment

Tools

In-memory &petabyte-scale


Big Data Platform

Data Science

Accelerate

Apply Achieve

Big Data Analytics & Apps

Three Core Areas of Big Data Strategy

Big Data Platform

Data Science

Accelerate

Apply Achieve

Big Data Analytics & Apps


Dat

a In

ges

tio

n\ A

cqu

isit

ion

Processing Engine

Application Function Libraries & Data Models

Database Services

(OLTP + OLAP)

Extended Application Services

Integration Services

SAP HANA PLATFORMIn-memory processing platform for real-time transactions + end-to-end analytics that offers massive simplification.

Unified Administration

Application Development

Custom Apps Mobile Apps Big Data Apps

ERP Apps SAP Analytics

Smart Data Access

Transfer Datasets

SAP IQ

Web / Sensor

CallCenter

Other

Data Sources

SAP SLT / Rep Server

SAP Data Services

SAP SQL Anywhere

SAP ESP

Hadoop Adapter

Hadoop Hive

SAP ERPBW

Hortonworks Data Platform

Intel Distribution for Hadoop

Partner Hadoop Distributions

The SAP HANA Platform and Hadoop


Front-End Tools Adapted to Different Needs

DECISION MAKER

DESIGNER

Explore Monitor

Design

Govern DATA Enrich Explain

Plan People

DATA ANALYST/SCI

ENTIST

PREDICTAdvanced Analytics

ENGAGEEnterprise BI

VISUALIZEAgile Visualizations


Big Data Applications — E.g., Risk, Sensing, …


Wrap-Up


7 Key Points to Take Home

1. Big Data is a huge opportunity

2. Get closer to your customers through better insight and hyper-personalization

3. Use “datafication” to make better use of resources

4. Empower your employees to make better decisions

5. Leverage your business networks

6. Big data is the heart of your next IT platform — simplicity and flexibility are essential

7. The biggest barriers are ideas and culture — use design thinking to help

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

Thank you

Timo Elliott, SAP

[email protected]: @timoelliottBlog: timoelliott.com


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