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SAP Advanced Analytical CapabilitiesBeyond Business Intelligence

Troy Mahr

Jon Ross

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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?

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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

Business Impact of Analytics

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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

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Business Intelligence vs. Predictive Analytics

Where are you?

Where do you want

be?

Where is your

competition headed?

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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

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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

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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

SAP’s BusinessObjects Business Intelligence Suite

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Analytics Solutions from SAP

Agile

Visualization

Advanced

Analytics

Big Data

Mobile

Collaboration

Cloud

Enterprise

Business Intelligence

Today’s

Focus

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SAP’s Strategic Focus on Analytics Solutions

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BusinessObjects Solutions

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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

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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

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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

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Integration Overview – Predictive Analysis

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Infinite Insight - “Insights”

Source: SCN Blog Entry

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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

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Bringing Value to the Business

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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

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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

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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

Dickinson + Associates BI Offerings

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Service Offerings

SAP Strategy + Implementation

Process Optimization

Services

SAP Upgrade Services

Support Desk

Professional Staffing

ERP

Mobility

Analytics

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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