Business Intelligence, for many companies, has often meant structured operational and historical reporting. End users often complain about lack of flexibility, timeliness and their inability to turn data into actionable information. While this is still important and often critical to day-to-day operations, recent changes to the portfolio of SAP’s BusinessObjects suite of analytical and exploration tools has set SAP apart from the competition in many areas. The power of advanced analytics, made available as self-service to end users, opens up many opportunities to not only report on data, but also integrate meaningful information into business processes. Combined with SAP HANA, a real-time, in-memory database that enables organizations to process "big data" in support of transactional processing, operational reporting, advanced analytics and predictive modeling, the information available to your organization is even more valuable.
2. 2
Introduction
Advanced Analytics and the value of integration with SAP
HANA
What do you truly know? Where does Advanced
Analytics provide the biggest benefits?
One tool or the right toolset?
3. 3
Agenda
Business Impact of Analytics
Overview of SAP’s BusinessObjects Business Intelligence Suite
SAP Analysis Applications
SAP Lumira
SAP Predictive Analysis
SAP InfiniteInsight
SAS Integration (forthcoming)
Demonstration
Bringing Value to the Business
Resources and Next Steps
Q&A
5. 5
Comparison of Business Intelligence and Analytics
BI tools have been used for years to report on historical
data
Predictive analytics is different, using advanced statistics
to find patterns that traditional BI tools may not reveal
Big data, coupled with statistical capabilities, provide self-
service and have enabled end-users to develop higher
quality predictive models
This combination, and embedding the models into
business processes, allows firms to discover, deploy, and
profit from the knowledge they gain
6. 6
Business Intelligence vs. Predictive Analytics
Where are you?
Where do you want
be?
Where is your
competition headed?
7. 7
Insights through Predictive Analytics
The vast majority (85%) of those currently using
predictive analytics report it having had a positive impact
on their business
Sales (46%), finance (44%) and marketing (42%) are the
three functions seen to currently benefit most from the
use of predictive analytics
The key benefits of using predictive analytics are
considered to be better business performance in the
future (61%), greater insight into business dynamics
(50%) and making greater use of data already available
(49%)
Source: Loudhouse Research
8. 8
Business Benefit Examples of Predictive Analytics
Source: SAP and Ventana Research
Instantly predict market trends and customer needs
Create customized offer for each segment and channel
Predict how market-price volatility will impact
production plans
Foresee changes in demand and supply across your
entire supply chain
Proactively manage your workforce by attracting and
retaining talent
9. 9
Business is Paying Attention to Predictive Analytics
Key Points:
90% of organizations agree that predictive analytics (PA) give
them a competitive advantage
60% of those surveyed agree that PA is currently an investment
priority, while 80% think it will be a crucial investment in the next
5 years
Those who invested in PA are seeing a quick return on
investment – 30% reporting a major impact from PA in the first 6
months, with 50% reporting similar benefits 6-9 months out
95% have seen an increase in the volume of data they are dealing
with over the last year (“big data”)
Businesses say they are using PA to exploit opportunities rather
than minimize risk – predicting customer needs and market
trends are seen as the most valuable scenarios for PA
Source: Loudhouse research agency study in 2013, sponsored by SAP
SAP Newsbyte – Dec. 4, 2013
11. 11
Analytics Solutions from SAP
Agile
Visualization
Advanced
Analytics
Big Data
Mobile
Collaboration
Cloud
Enterprise
Business Intelligence
Today’s
Focus
14. 14
Product Overview - Lumira
Freedom to visualize your data, discover
new insights, and share stories
Available as a separate product or embedded as part of
Predictive Analysis
Transform data – acquire data from corporate and personal
sources
Visualize and discover insights – rich library of chart types;
extend, embed and customize with SDK; and discover related
insights and influencers
Share stories – build engaging stories using storybooks and
infographics, using mobile, web and desktop
Lumira Server now available for processing big data in real time
15. 15
Product Overview – Predictive Analysis
Identify the KPIs that will drive the greatest revenue
growth and profitability
Easily share financial intelligence with key stakeholders
for immediate decision making
Use predictive analytics to improve financial performance
from strategy to execution
Reduce financial risk through cash analyses with
predictive modeling and visualization
Improve accounting with predefined content, advanced
analyses, and ad hoc reporting
16. 16
Feature Summary – Predictive Analysis
Some key advanced analytical features available in PA
include:
23 statistical algorithms (and growing)
Apriori in demo today
Integration with the HANA predictive analytics library
(PAL)
Support for open source “R” language
Integration of Lumira within PA to build data visualization
on top of analysis
19. 19
Demonstration – SAP Predictive Analysis
Example: Apriori Algorithm “Association Analysis”
Apriori
Classic predictive analysis algorithm
Used to uncover hidden patterns and correlations
among a set of items
Popular Use Cases
Amazon “Frequently Bought Together”
Transactional data (Sales Order items)
Measures
Support
Proportion of transactions in the data set which contain a particular item set (Ex: 1/5 , 1 out of 5
transactions contain an item set)
Confidence
Measure tells you how often a customer buys Item B when they buy Item A.
Lift
Used to judge the strength of the association rule
For example if we have high support and high confidence then we get a strong association, but this can
be deceptive because we can have a high level of confidence even when they are independent
Lift ratio = confidence of the rule / the confidence assuming Item B and Item A are independent
22. 22
Best Practices
Consider the broad indicator over the precise measurement
Is measurement to the 4th decimal necessary or will a more general
indicator suffice?
Make sure leadership is aligned with strategic priorities and see
activities the same way
Keep measurements and KPIs to a reasonable and actionable
number
Once you’ve determined what the right measures are, be prepared for
them to change as your organization does
In most cases, the organization is already collecting the data you
need; you just need to know how to use it
Present the right data to the right people in the right way
Look for opportunities to embed information in business processes
23. 23
Resources
Product Roadmaps – available on SCN or SAP.com
Watch short SAP Videos on YouTube – look for channels related
to SAPAnalytics Training or SAP HANA Academy. You’ll find a
series of related topical sessions that are quite informative.
SCN – browse around – there’s great material
http://scn.sap.com/community/predictive-analysis
Dickinson + Associates LinkedIn Page:
https://www.linkedin.com/company/68054?trk=prof-exp-
company-name
24. 24
Next Steps
Identify areas where Predictive Analytics can provide
business value?
Download the trial versions of SAP Lumira – watch for
other software as it becomes available
Talk with other businesses about what they are doing with
advanced analytics
26. 26
Service Offerings
SAP Strategy +
Implementation
Process
Optimization
Services
SAP
Upgrade
Services
Support
Desk
Professional
Staffing
ERP
Mobility
Analytics
27. 27
Dickinson + Associates
Troy Mahr
Manager, Business Intelligence
troy.m@dickinson-assoc.com
586-747-0242
Jonathan Ross
Consultant
jon.r@dickinson-assoc.com
312-496-7577