business analytics: the big leap...

Business Analytics: The Big Leap Forward

Timo Elliott September 2011

2

If You’re Not on Twitter, You’re Missing Half the Fun…

5

Holding Supercomputers in Your Hands

“The iPad 2 could have stayed on the list of the world’s fastest supercomputers through 1994”

6

Drowning in Information?

7

Whatever You’re Trying to Do, Analytics is the Answer

Brand Performance Analysis

Brand Loyalty Increase Sales Speed to Market Optimize Inventory

Mobile Analytics – Speed of Information

Net Margin Analysis

Improve Performance

Sales Marketing Product Innovation Finance

Trade Promotion Effectiveness

Budgeting, Planning & Consolidation

Sales & Operations Planning

Marketing Mix Analysis

Customer Sentiment Analysis

Supply Chain Performance Management

Customer Profitability Analysis

Operational Visibility

Sales Analytics Product Portfolio Management

On-Shelf Availability Analysis

Supply Chain

CRM – Embedded Analytics

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Business Analytics Provides Great Value

Data is extremely important for competitive advantage

Data makes an important contribution to customer relations efforts

Business information has helped manage costs or improve operations

Executives believe companies can benefit greatly from using data, especially information generated within the company

Agree: 69% Agree: 77% Agree: 70%

9

Surging Growth in Business Analytics

2009 2010

+3.8%

+13.4%

Gartner: worldwide BI, analytics and performance management software revenue

BI Growth more than tripled between 2009 and 2010!

10

Analytics is an Ever-Increasing Share of IT Budget

2009 2010 2011

3.9%

+4.1%

+4.3%

Gartner: worldwide BI, analytics and performance management software revenue

“BI spending has far surpassed IT budget growth overall for several years”

Dan Sommer, Gartner

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IT Spending Per Head Rising Fast

New revenue generated from IT initiatives (enterprise innovation, context-aware computing, social networks, etc.) will become the primary factor determining CIOs compensation.

Information-smart businesses will increase recognized IT spending per head by 60%.

“Enterprise leaders and stakeholders must change their way of thinking that “lower is better” for IT spending per employee”

Gartner Predicts 2011 2011 2015

+60%

12

Business Analytics Around the World

Business Analytics Market Growth 2010

3.0%

3.7%

6.7%

17.8%

18.3%

19.5%

22.9%

Eastern Europe

Japan

Western Europe

North America

Middle East and Africa

Latin America

Asia/Pacific

13.2%

11.6%

Gartner Market Share Analysis: Business Intelligence, Analytics and Performance Management Software, Worldwide, published March 2011

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Business Analytics Market (BI, EPM, Analytic Applications) Share of Market, 2010

Business Analytics Market Shares

SAP

Oracle

SAS Institute

IBM

15.6%

13.2%

11.6%

23%

Gartner Market Share Analysis: Business Intelligence, Analytics and Performance Management Software, Worldwide, published May 2011

14 14

Market Consolidation Continues

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Analytic Applications

Governance, Risk, and

Compliance

Enterprise Performance Management

Business Intelligence

Data Warehousing

Enterprise Information

Management

Business Analytics Solutions from SAP

Analytic Capabilities

Collaboration

Data Sources Access

Services and Best Practices

The Office of Tomorrow, in 1945: “Intricate calculations of quotas or sales by territories will be turned out at the touch of an assistant’s finger. Records will appear as if by magic from files.”

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Data vs Information vs Knowledge vs Wisdom

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Business Analytics Has Struggled to Keep Up

“Where are you going? Ah -- If I were you, I wouldn’t start from here”

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Reporting

“Typical” Business Intelligence Today

Slow

Painful

Expensive

Operational Data Store

Data Warehouse

Indexes

Aggregates

Data Business Applications

Copy

ETL Calculation Engine Business Intelligence

Query Results Query

Slow

Painful

Expensive


Data Warehouse

Indexes

Aggregates


Copy

ETL

Calculation Engine Business Intelligence

Query Results Query

Data Marts

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It’s like an Onion…

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What’s the Problem?

Slow Disks & CPUs

I/O Bottleneck

Expensive Memory

Optimized for Transactions

BI is an Afterthought

30 Year-Old Database Design Principles

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A Revolution…

Credit Suisse, “The Need for Speed”

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Today’s Disks Can’t Keep Up With Processing Power

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In-Memory Computing Costs Have Plummeted

BT Tower 152m

Cost of 1 Mb of memory in 2000: ≈£1

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In-Memory Computing Costs have Plummeted

Cost of 1 Mb of memory today: ≈ ½ p

My daughter: 1.30m

And shrinking, and shrinking, and shrinking….

Price/performance of in-memory has

DOUBLED in last 9 months

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In-Memory Computing


Data Warehouse

Indexes

Aggregates


Copy

ETL


Query Results Query

Up to 1,000x faster No optimizations required

Data Marts

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Row vs. Column Databases

My Filing System

My Wife’s Filing System

Row-based Column-based

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Row-Based Data

Wasted space, and a full scan to aggregate any particular field

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Column Data

More efficient data storage, better compression, faster queries

30

Data Warehouse Data Warehouse

Column Databases


Data Warehouse


Copy

ETL


Query Results Query

Up to 1,000x faster More data in less space

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Data Warehouse

Massively Parallel Hardware



Copy

ETL

Business Intelligence Query Results

Query

Up to 1,000x faster Optimized for hardware – especially good for column stores

Calculation Engine

32

Red Bull

Data Size: 1.5 TB ‡ 300 GB

Data Load: 50 mins ‡ 2 mins

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In-Database Processing

user changes a plan value

52 weeks x 500 branches = 26000 values

26000 database writes 1 database write

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A Database Designed for Business

Volume Driver Cycles Driver Forecast Driver Forecast Agents Grow Seasonal Complex Assortment Planning Cumulate Days Days Outstanding Discounted Cash Flow De-cumulate Delay Delay Debt

Delay Stock Annual Depreciation Annual Depreciation Diminishing Balance

Depreciation Sum of Year Depreciation Year To Date Statistical YOY/ YOY Difference Forecast Dual Driver Forecast Sensitivity Feed Feed Overflow Forecast Funds Future Value

Inflated Cash Flow Internal Rate of Return Moving Median Number of Periods Net Present Value Outlook Payment Present Value Lag Last Lease Lease Variable Linear Average Forecast Mix Moving Average/Sum

Proportion Rate Repeat Seasonal Simple Seasonal Simulation Stock Flow Stock Flow Reverse Stock Flow Batch Time Time Sum Max Value Minimum Value Transform Rounding

Up until now, there’s been a false separation between application logic and database functionality

37

In-Database Analytics

Forecasting Clustering Anomalies

Influencers Trends Meaningful or Random?

38

Data Warehouse

In-Database Analytics



Copy

ETL

Business Intelligence Query Results

Query

Up to 1,000x faster Push processing down to dedicated hardware, less traffic

Analytic Appliance

Calculation Engine

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Integrating Flows of Data

Incremental loads, replication

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Integrating Flows of Data

41

Streaming Data

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Real-Time Data


Copy

ETL

Real-time replication — why have a separate operational data store?


Analytic Appliance Business Intelligence

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Real-Time Analytics on Big Data

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6.6

41.9

HANA

Traditional DB

Data Compression with HANA (GB)

3.2

5.1

5.1

1050

1320

2660

Query 1

Query 2

Query 3

Query Run-Time (Seconds)

6.3x Data Compression

369x Average Query Speed-Up

No Schema Changes

Same Data

Same SQL

Immediate Benefits

Large Bank – 1 Month of Customer Information

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The Basis For Applications of The Future

Copy

Business Applications

Analytic Appliance Business Intelligence

Use a single appliance for both analytics and applications

Data

47

Applications of the Future

48

Virtuous Circle of Technology

In-Memory

Columnar Databases

Hardware Acceleration

Calculation Engine

Columnar storage increases the amount of data that can be stored in limited memory (compared to disk)

Column databases enable easier parallelization of queries

In-memory processing gives more time for

relatively slow updates to column data

In-memory allows sophisticated calculations

in real-time

Hardware acceleration makes sophisticated

calculations like allocations possible

Each technology works well on its own, but combining them all is the real opportunity — provides all of the upside benefits while mitigating the downsides

“By 2012, 70% of Global 1000 organizations will load detailed data into memory as the primary method to optimize BI application performance.”

- Gartner

50

Extended Architecture

Business Applications Analytic Appliance

Business Intelligence

Cloud computing Unstructured and personal data Mobile revolution Collaboration

“If things seem under control, you’re just not going fast enough.”

-Mario Andretti

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In-Memory Computing is Like Digital Photography

A transformative technology that slowly but surely upturns the whole industry

Faster, Easier, More Convenient

Evolved Faster Than The Alternatives

54

It’s All About Flexibility and Evolution

“It's not the strongest that survive, nor the most intelligent, but the ones most responsive to change.”

Charles Darwin

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Reality Is, and Always Will be, Messy

Different information sources

Different levels of expertise

Different access devices

Different time horizons

Different levels of analytic need

Different project phases

Risk Politics

But new architectures mean simplification and new opportunities

57

What About Flash Disk / SSDs?

15X

9000X

16X

Cost-effective, but not a revolution

58

What About Big Data / NoSQL / Hadoop?

59

HANA Applications Available in H2 2011/2012

Strategic Workforce Planning Smart Grid Analytics

■ COPA case (includes financial line item reporting)

■ CRM & ECC Content (Q2 2011)

■ Inventory Movement

■ Billing Management

■ Smart Grid Analytics

■ SAP BW Powered by HANA

■ SAP BPC Powered by HANA

■ Order to Cash analysis

■ Trade Promotions Management

■ Sales Pipeline Analyzer

■ Banking: Bank Analyzer

■ Demand Signal Repository

20+ SAP Projects - H2 2011 for Ramp-up & GA Early 2012

60

Preconfigured software Includes financial, sales, purchasing, shipping, and master data reporting

Rapid and affordable Deliver in as little as 6 – 8 weeks, using SAP consulting Flexibly priced

Clear path to real-time operational analytics Ready for access by SAP BusinessObjects, Excel, mobile devices…

HANA RDS Operational Reporting

Fast, powerful operational reporting

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Accelerate month-end process Speed profitability reporting to accelerate financial performance and efficiency

Powerful insights Flexible reporting to maximize profitability at customer, product, and SKU level

Easy deployment Easily deployed with no disruption

SAP CO-PA Accelerator

Turbo charge profitability reporting

and allocations

62

Uses ALL data available Open receivables, open payables, open shipments, purchase orders, etc. From SAP and non-SAP systems

More accurate payment predictions Based on actual customer history, not just payment terms

Track performance By company, region, customer, etc.

Full cycle approach Model & simulate impact of non-payment, re-integrate into pricing and contracts

SAP Dynamic Cash Management

Real-time visibility into your company’s

cash position

64

Oops

€55.5 Billion

€3.6 Billion

€331 Billion

₤3 Million

$84 Million

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Data Qwality is a Real Problem

33% Lost a customer or new business deal as a result of missing data

30% Lost business due to the mishandling of data

30% Of operating revenue is wasted through process failure and information rework

4% Rate data quality as excellent 63% Have no idea how much data

quality might be costing 17% Have no plans to start a data

quality initiative

88% See data as a strategic asset

Sources: Vanson Bourne; Larry English; The State of Data Quality Today

BUT

66

Collaborative Information Governance

Data quality score metrics

Latest quality score Quality trend

Scorecard to measure DQ from a Data Steward’s perspective

Key Quality Dimensions (KPI for data)

Drill into scorecard details

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Business-Lead Data Cleansing

Empowers data stewards/domain experts to develop custom data cleansing solutions for any data domain Cleansing Package Builder is available within Information Steward

Cleansing Package Builder

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SAP BusinessObjects Financial Information Management

Powerful connectivity, mapping and loading designed for the business user

Easy and repeatable Easy to use, speedy and simple to deploy

Enhances productivity, makes data integration simple

Reliable, repeatable, consistent solution at lower cost

Quality, confidence and compliance Improve insight while lowering compliance costs

Deep understanding of performance data via drill-to-origin capability as well as drill-to-source in SAP ECC

Greater trust and lesser risk in collecting, mapping and loading data

Superior connectivity Integration with SAP and non-SAP data sources

Enables “closed-loop” strategy to execution performance management via EPM–to–EPM integration

Improve EPM processes, reduce cycle times, facilitate compliance

69

Information Governance

Alliander

Boehringer Ingelheim

Vodaphone

70

Real-Time Data Quality

If everything’s incremental, when do we do data cleansing?

Levels of quality

In-db cleansing

71

What About Social Data?

72

What About Unstructured Data?

Column stores are good at storing text data.

Can push the text analytics algorithms into the appliance, more flexibility

74

Medtronic

75

Experience.SAP.com

76

End-User Enablement

Data Warehouse

Application Data Department Data

Personal Data

From “self-service BI” to “self-service Data Warehousing”

77

Information Composer

78

Use the Power to Improve Ease of Use

No longer query – wait – analyze – format …

Iterative feedback loop allows instant feedback and learning

81

Progressive Expertise

View Reports Strategic Analysis

83

Mobility

Did somebody say “ubiquity”?!

84

We Are All Tom Cruise Now…

86

BusinessObjects Mobile

88

Try the new “Experience SAP” Mobile Application

89

Altron Allied Electronics

“The days of our users and execs being in the office have gone. They work from home or on the road.

We had to develop a solution that gets information out to where our people are. Everything we do is mobile first.

In addition, it’s less cumbersome and cheaper to buy and use a tablet than any other form.”

Debra-Lynn Marais Group Information Manager

Altron Allied Electronics

90

Voice Recognition is Getting Siri-ous

91

Next Up: Brain Waves!

94 * Requires IT integration using built-in APIs and SAP StreamWork enterprise edition if advanced security is required

Decision-Making, Not Just Data Gathering

Try it now! sapstreamwork.com

95

Connecting Islands

“The big failure of social business is a lack of integration of social tools into the collaborative workflow.”

97

Collaboration in Applications

98

Collaboration in Analytics

99

Collaboration in Strategy Management

Partner integration between SSM and Streamwork

100

Collaboration in Business Process Design

102

Social Intelligence Needs The New Architectures

Expertise location — Relationship Mining — Social Network Analysis

103

SAP Social Intelligence

Status Feeds, Discussion Threads

104


Expertise location — Relationship Mining — Social Network Analysis

105


111

Did You Know?

116

The REAL Big Leap Forward

© SAP 2008 / Page 116

Breadth and Sophistication of Possible Analytical Tasks

Perc

enta

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f Use

rs D

oing

or

Thin

king

abo

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ese

task

s

Quantitative Thinking Gap

Huge opportunity to make business people more productive and efficient, increase their satisfaction, save money for the company, and drive more revenue.

117

The SAP difference

Lightning Fast Easy Trusted

Anytime Industry/LoB Expertise

Collaborative

118

Conclusion

Analytics industry revolution Every company in the industry heading the same direction Don’t be the last one shooting on film

Time to rethink how you do analytics Back end: simplification, new real-time opportunities Front end: mobile first, collaboration

You can start today The technology is real

Thanks!

Email: [email protected] BI Blog: timoelliott.com

You Should Follow Me on Twitter: @timoelliott

http://timoelliott.com/blog�

Slide Number 1If You’re Not on Twitter, You’re Missing Half the Fun…Slide Number 3Slide Number 4Holding Supercomputers in Your HandsDrowning in Information?Whatever You’re Trying to Do, Analytics is the AnswerBusiness Analytics Provides Great ValueSurging Growth in Business AnalyticsAnalytics is an Ever-Increasing Share of IT BudgetIT Spending Per Head Rising FastBusiness Analytics Around the WorldBusiness Analytics Market SharesMarket Consolidation ContinuesBusiness Analytics Solutions from SAPSlide Number 16Data vs Information vs Knowledge vs WisdomBusiness Analytics Has Struggled to Keep Up“Typical” Business Intelligence TodayIt’s like an Onion…What’s the Problem?A Revolution…Today’s Disks Can’t Keep Up With Processing PowerIn-Memory Computing Costs Have PlummetedIn-Memory Computing Costs have PlummetedIn-Memory ComputingRow vs. Column DatabasesRow-Based DataColumn DataColumn DatabasesMassively Parallel HardwareRed BullSlide Number 33In-Database ProcessingA Database Designed for BusinessIn-Database AnalyticsIn-Database AnalyticsIntegrating Flows of DataIntegrating Flows of DataStreaming DataReal-Time DataReal-Time Analytics on Big DataLarge Bank – 1 Month of Customer InformationSlide Number 45The Basis For Applications of The FutureApplications of the FutureVirtuous Circle of TechnologySlide Number 49Extended ArchitectureSlide Number 52In-Memory Computing is Like Digital PhotographyIt’s All About Flexibility and EvolutionReality Is, and Always Will be, MessySlide Number 56What About Flash Disk / SSDs?What About Big Data / NoSQL / Hadoop?HANA Applications Available in H2 2011/2012HANA RDS Operational ReportingSAP CO-PA AcceleratorSAP Dynamic Cash ManagementSlide Number 63OopsData Qwality is a Real ProblemCollaborative Information GovernanceBusiness-Lead Data CleansingSAP BusinessObjects Financial Information ManagementInformation GovernanceReal-Time Data QualityWhat About Social Data?�What About Unstructured Data?MedtronicSlide Number 75End-User EnablementInformation ComposerUse the Power to Improve Ease of UseSlide Number 79Slide Number 80Progressive Expertise Slide Number 82MobilityWe Are All Tom Cruise Now…�BusinessObjects�MobileSlide Number 87Try the new “Experience SAP” Mobile ApplicationAltron Allied ElectronicsVoice Recognition is Getting Siri-ousNext Up: Brain Waves!Slide Number 92Decision-Making, Not Just Data GatheringConnecting IslandsSlide Number 96Collaboration in ApplicationsCollaboration in AnalyticsCollaboration in Strategy ManagementCollaboration in Business Process DesignSocial Intelligence Needs The New ArchitecturesSAP Social IntelligenceSAP Social IntelligenceSAP Social IntelligenceDid You Know?The REAL Big Leap ForwardThe SAP differenceConclusionSlide Number 119

business analytics: the big leap...

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