2018-2019 Corporate OverviewEverywhere. For Everyone.Analytics in Action

analytics for everyone

analytics everywhere

analytics in action

analytics for society

about sas

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Fifty years ago, it took 400,000 scientists, technicians, mathematicians and engineers to turn the idea of landing on the moon into a reality. They had to create new materials, technologies and mathematical models to reach that goal. As a software developer in the Apollo program, I was a part of that generation that learned how math, science and technology can transform the world.

Today, we live in a time where zettabytes of data and massive computing capabilities continue to provoke new possibilities. Our smartphones contain more computing power than Apollo 11. We are witnessing a renewed focus on data and analytics driven by the combination of increased computing power, a more connected world and powerful artificial intelligence technologies like computer vision, natural language processing and machine learning.

SAS helped pioneer some of these developments and is continuing to maintain that focus with a $1 billion investment toward building the future in AI and advanced analytics. We are excited about the possibilities ahead of us.

We can take an idea like building a smarter city and expand it into a global effort to combat climate change. We can provide new insights to help fight disease and improve health. We can automate mundane tasks and help everyone be more productive, creative and strategic.

The opportunities are immense.

At the same time, organizations are struggling to source talent with the skills needed to tap into the rich potential of analytics and AI. So we are helping to prepare the next generation of data scientists – those who will be shaped by a world where artificial intelligence and analytics are at the heart of human progress. SAS remains committed to education, and we are putting the latest technology into the hands of those who will shape our future.

At SAS, we are vested in providing the technology to help you achieve your moonshot ambitions. This year’s report details the path to analytics everywhere, and how we are putting analytics into action for everyone in order to help make your data-driven decisions a reality.

Sincerely, Jim Goodnight CEO of SAS

The same spirit that put a man in space 50 years ago is what we’re witnessing today. Our focus on data and analytics is now being driven by the combination of increased computing power, a more connected world and more powerful technologies.

At SAS, we’re helping chart a new course for humanity through a SAS® Platform that’s never been more flexible and open. We’re empowering everyone to innovate with analytics – from business users and data scientists, to students and educators. To support our vision to make analytics accessible to everyone, we’re aligning behind five key principles.

Our flexible UX makes it easy for anyone to access, use and contribute to analytics, while our openness and integration maximizes and protects your SAS investment. We are infusing learning and automation throughout our solution portfolio. While at the same time, providing mechanisms for digital guardianship. Finally, analytics orchestration helps you tie it all together.

Many SAS customers are already seeing the benefit of using data, analytics and AI to transform their operations and customer experiences. Throughout this report, you’ll read stories of analytics in action – customers using data effectively but responsibly to build better connections with customers, citizens and business partners.

This is a new galvanizing moment for humanity. We once again find ourselves in a race where human ingenuity and technology can solve previously unsolvable problems. Whatever your moonshot is, we’re excited to share how we’re helping make dreams a reality.

01analytics for everyone

Health breakthroughs driven by DNA analysisNevada struggles with poor health outcomes and excess costs. Seeking to reverse this trend, the Renown Institute for Health Innovation launched the Healthy Nevada Project – one of the first community-based population health studies in the United States. After collecting DNA from 35,000 citizens, project data scientists applied SAS machine learning and AI capabilities to the DNA results, forming connections between participant genetic informa-tion and varying environmental factors, such as air and water quality, to see who might be predisposed to certain conditions. By combining genetic data, environmental data and individual health information, researchers and physicians are gaining new insight into population health, enabling personalized health care while improving the health and well-being of entire communities in Nevada.

“ If we understand why people are at risk for certain diseases because of their DNA, we actually might be able to do something about it. We can give them the information, help them change their behavior and understand how to address those preconceived risk factors.”

Dr. Anthony Slonim | President and CEO | Renown Health

02From the moment you wake up, your life is enhanced by invisible forces. Smart devices use machine

learning to get you out the door on time. While at work, automation is quietly revolutionizing how we

do business. At SAS, we see three major forces among the many technologies shaping the world. Each

by itself is powerful. But together, even more so.

Artificial intelligence is the science of training systems to emulate human tasks through learning and automation. Automation has always been used to increase productivity, increase safety and make better use of resources. Today, we’re not only automating by augmenting human power with machine power – we’re automating by performing tasks and making decisions through algorithms derived from processing immense quantities of data.

Cloud computing paves the way for the most disruptive process in business today – digital transformation. The success of a technology increases as it becomes more accessible. Cloud computing centralizes resources while decentralizing interfaces – making data and analytics more accessible across organizations. This democratizing of technology forms the basis of the Analytics Economy, a data-driven economy in which analytics creates value.

The Internet of Things is the future of technology. Billions of connected devices – from industrial machines to smart cars to smart watches – use built-in sensors to gather data. This connectivity is our new reality. As humans, we previously connected physically with cars and trails. Today, we connect digitally, giving rise to vast oceans of data on the edge, in motion and at rest. Analytics and AI are the methodologies we bring to bear to transform this data into intelligence.

Society is constantly evolving. Advances in these technologies are simply inevitable. In 2018, SAS placed these technologies at the heart of our business model – with analytics as the through line. This is because analytics is transformative technology. At the same time analytics is itself transformed by technology. And now analytics is also a driver and shaper of technology. In the next section, we’ll share more about these transformational technologies and how our customers are using them to put analytics in action.

analytics everywhere

“ Our data-driven world is hungry for analytics. We want to bring it to life, make it real, put it in action – without adding to the hype. Analytics is no longer the domain of just statisticians and data scientists. Today, everyone can contribute. Everyone can consume and produce – wherever they are.”

Oliver Schabenberger | Executive Vice President, Chief Operating Officer and Chief Technology Officer | SAS

Artificial intelligence (AI) has been an integral part of SAS software for years. Today we help customers in every industry capitalize on advancements in AI, and continue embedding AI technologies like machine learning, computer vision, natural language, deep learning, and forecasting and optimization in solutions across the SAS portfolio.

analytics everywhere

artificial intelligence

AI is in our DNA. Long before it dominated headlines, AI was an integral part of SAS software. Today we build upon decades of research to embed AI capabilities across our portfolio. Moving beyond the domain of the tech glitterati, AI is transforming society before our very eyes. Modern applications of AI have given us self-driving cars and virtual assistants, and have helped us detect fraud and manage resources like electricity more efficiently.

SAS delivers AI in many ways. From machine learning, to computer vision, to natural language processing, to forecasting and optimization, we develop the tools to push business forward. At SAS, AI is not a standalone product but a surge of intelligence to our existing products. Much like Siri was added as

a feature to a new generation of Apple devices, we inject AI capabilities into our software to help organizations boost productivity and unlock new possibilities. Automation, conver-sational platforms, bots and smart machines can be combined with large amounts of data to improve many technologies at home and in the workplace, from security intelligence to investment analysis.

Practically every industry has something to gain from artificial intelligence. Retailers now use virtual shopping capabilities to offer personalized recommendations and discuss purchase options with consumers. In banking, AI enhances the speed, precision and effective-ness of human efforts, and is used to identify which transactions are likely to be fraudulent.

And in the public sector, governments are using AI in critical services like protecting at-risk children, supporting national defense and making cities smarter – for the benefit of citizens.

The promise of genuine AI and its potential for humankind has arrived. For this reason, we’ve announced a $1 billion investment in AI over the next three years. The investment will focus on R&D innovation, education initiatives addressing customer needs and expert services to optimize customer return on AI projects.

AI-enhanced customer card experience with smarter chatbotsLotte Card, a credit card company with the largest distribution network in Korea, aimed to help its millions of customers in real time and automate call-center employee workloads. Through machine learning and natural language processing, Lotte Card’s developers worked with SAS to design a smarter chatbot, aligning closely to execute the project from data preparation to production deployment.

“ The AI techniques that SAS offers have allowed us to build a more intelligent, more evolved chatbot. Since implementing it, our call center team can provide faster customer service with almost no wait time.”

Lim Sung-wook | Big Data Team Leader | Lotte Card

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Artificial intelligence and IoT analytics keep aircraft operational for crucial missionsThe C-130 Hercules is a versatile and ubiquitous aircraft, used by 70

countries for a variety of missions including search and rescue, scientific

research and medical evacuations. Lockheed Martin – manufacturer of the

iconic plane – is maximizing uptime for its customers by using machine

learning and advanced analytics.

The company does this by collecting data from 600 sensors located through-

out each aircraft. Data from more than 400 C-130 planes goes into a central

repository where artificial intelligence (AI), IoT and advanced analytics are

applied to predict when parts will fail – insight that helps customers proactively

stock the right parts and keep aircraft operational for more lifesaving

missions. The system also learns from the fleet’s collective maintenance

history to form a real-time best practice for aircraft maintenance.

During a pilot program, intelligent diagnostics saved Lockheed Martin’s

largest customer 1,400 hours of downtime – time that can now be used as

flying time in support of mission requirements. This successful deployment

of AI and analytics has propelled Lockheed Martin to scale the program to

other customers as an add-on service and apply similar methodologies to

optimize scheduled maintenance and reduce production costs.

Detecting tumors faster and more accurately than humansAmsterdam UMC partners with SAS on an AI medical-imaging project to help identify patients with colorectal liver cancer who are candidates for lifesaving surgery. Colorectal cancer is the third-most common cancer worldwide, and in about half of patients it spreads to the liver. Using SAS AI-trained models, Amsterdam UMC physicians will be able to identify with greater accuracy patients who respond well to chemotherapy and become candidates for surgery.

The manual review of medical images of tumors and lesions is time-consuming. A medical-image application on the SAS Platform, using computer vision and predictive analytics, provides evaluation criteria that is more objective, accurate and automated than the current manual review. This application facilitates an improved understanding of disease progres-sion that can save patient lives, save physician time, and provide radiologists with an objective response assessment metric that will provide patients with the best possible care.

“ With SAS, we’ve reduced data cleanup times by 95%, which has allowed us to spend more time on the actual analytics. With this solution suite and a very small team of data scientists, we have been able to quickly produce results that we believe will reduce downtime and cost for our customers. Our work with SAS has taken us from being a reactive sustainment organization to a proactive organization.”

Mike Isbill | Fellow of Data Analytics | Lockheed Martin

“ We are currently using this technology with colorectal liver cancer patients; however in the future it has the potential to be used in the assessment of many solid tumor types, including breast and lung cancer. In the future, we may be able to predict the outcome of surgery and overall patient survival, and by combining these new capabilities with other data collected from patients, such as genomic data, we can potentially compute a more comprehensive response or survival score.”

Geert Kazemier | Professor of Hepatobiliary Surgery and Transplantation and Clinical Director of Cancer Center Amsterdam | Amsterdam University Medical Centers, the Netherlands

Energy retailer learns powerful lessons with SAS® ResultsAustralian energy company Red Energy was looking to infuse analytics into its billion-dollar business. But it didn’t know where to start. The company decided to test SAS Results to reveal market opportunities for its burgeoning solar and battery division, and to accelerate learnings for its internal analytics operation. Supported by cloud computing, SAS worked alongside Red Energy to guide them on which data to collect and how that data could fuel marketing campaigns – all while feeding intelligence back into the platform to inform future decisions. Red Energy has since applied these lessons elsewhere in the business and discovered that hiring experts from outside industries can improve the customer experience.

“ With SAS Results, you quickly work out that you’re not as good as you think you are. If you want to truly understand your customers before your market is disrupted, be open to learning from experts from outside industries.”

Ramy Soussou | General Manager of Sales and Marketing | Red Energy

Cloud computing is an invisible force that improves our lives on a daily basis. Every time you stream a song on Spotify or upload a document to Google Drive, you benefit from the cloud. Likewise, SAS empowers organizations to have a seamless cloud experience. We do this by offering a growing range of cloud offerings and deployment patterns. As the world’s leader in data and analytics, SAS gives you the power and freedom to innovate, manage risk and be agile in the cloud.

SAS re-configured its services to address the growing interest in a “cloud first” approach to analytics, AI, data visualization and data management. Innovative deployment options now serve any business need. For example, SAS for Containers was unveiled in 2018 to help data science teams with a flexible and efficient way to execute SAS workloads and IT teams to be agile and take advantage of cost-efficient cloud infrastruc-tures. And with SAS® Results, a cloud-based results-as-a- service offering, customers provide the data, a specific business problem and a scope of work, and SAS delivers answers you can act on. Our advancements in cloud technology have led to another year of double-digit cloud revenue growth: up from 15% in 2017 to 24% in 2018.

Analytics creates value. But to cash in, organizations must ensure resources like data, insights and analytics software are available across the enterprise. Cloud computing is about centralizing resources while decentralizing access to data and analytics. This accessibility of technology drives digital transformation. But every organization has different needs. By offering our award-winning software and services on the SAS Cloud or third-party cloud providers like AWS, Azure or Google, we give organizations the ultimate flexibility to optimize the performance and value of their analytics ecosystem.

Paving the way for digital transformation, cloud computing is giving organizations faster access to data, software and capabilities. Cloud is a major driver of innovation across all industries, and SAS offers a range of flexible deployment options to meet any business need.

analytics everywhere

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Personalizing a magical fan experience with AI and predictive analyticsAs one of the most analytically savvy teams in sports, the Orlando

Magic is upping its game by using mobile app data and machine

learning to personalize marketing campaigns and analyze game data.

The system centers around a new team app which provides fans with

convenient services such as in-seat ordering, digital payments and

turn-by-turn directions to seats.

Streaming app data is combined with historical customer data for

marketing purposes. At this point, the Orlando Magic use the in-memory

analytics engine of SAS® Viya® to model the data and predict what

products and services fans are likely to purchase. Personalized

offers are then automatically sent to fans via push notifications,

website banners and emails. Machine learning models feed on the

customer data to forecast ticket demand and optimize revenue.

Courtside, the Magic are moving from big data to big results with a

cloud deployment of SAS Visual Data Mining and Machine Learning

powered by SAS Viya on Amazon Web Services. The team stores and

analyzes 20 years of data from more than 18 data sources on 100,000

players. Analytics are used for player acquisitions, lineup rotations and

training decisions, among a growing list of more strategic decisions.

“ We’ve been believers in analytics for a long time. But we’re getting much more sophisticated in how we use analytics to personalize the fan experience and grow our business. We continue to outscore the league average in fan experience and improve our year-over-year satisfaction scores. With SAS, we’re delivering an experience our fans can’t find anywhere else.”

Jay Riola | Senior Vice President of Business Strategy | Orlando Magic

Improving eye health via clearer data analysisThe importance of data integrity is most evident when bringing a new therapy to market. To sell a new drug, pharmaceutical companies must request approval from geographically managed medicine review agencies, like the Food and Drug Administration in the US.

Japan-based Santen knows this process – and its reliance on trustworthy data – all too well. During the creation of its global development process, the company recognized the need for data reliability and access, regardless of where employees work. With SAS Life Science Analytics Framework running in the cloud, Santen now has a centralized system for both the analysis and the data behind it. Team members can manage data, run audit reports and see how work is progressing. And the cloud-based infrastructure helps team members work around the clock from multiple countries and time zones.

While the impact of cloud computing on daily operations has been impressive, Santen is most proud of how the benefits have affected the lives of customers who use their therapies for conditions like glaucoma, dry eye, ocular allergy, uveitis and other ocular diseases. Patients receive treatments faster because Santen can develop new therapies – and get them approved–faster. With cloud-based analytics from SAS, the drug maker is in a better position to improve the eyesight and health of millions of people worldwide.

“ There is direct impact on patients, as they are able to receive treatments they need quickly because we can develop new therapies – and get them approved – faster. With cloud-based analytics from SAS, we’re in a better position to develop innovative treatments to improve the eyesight and health of people worldwide.”

Nina Worden | Director of Statistical Programming | Santen

IoT data with AI reduces downtime, helps truckers keep truckingUnplanned downtime can exact a great toll on fleet operators and customers who depend on timely deliveries. Volvo Trucks North America, including its Mack Trucks division, is strengthening its portfolio of uptime-boosting services by enhancing remote diagnostics with an advanced analytics platform from SAS. The platform supports Volvo’s AI efforts and provides greater capabilities for remote diagnostics users, allowing for more precise analysis and decision making. With the SAS Platform, Volvo Trucks can process millions of records in real time which, on average, helps reduce diagnostic time by 70% and repair time 21%.

While these IoT services help customers recover from problems faster, analytics keeps problems from arising at all. The trucking company uses SAS to analyze equipment usage and devise optimized maintenance plans for vehicles. Analytics is applied to examine common traits of trucks in the field so improvements can be made in the design of the truck.

“ With SAS, we’re working smarter – we’re seeing things that exist in our information that we couldn’t find before, so we can do things more efficiently and effectively, and drive better results for our customers.”

David Pardue | Vice President of Connected Vehicle and Uptime Services | Mack Trucks

SAS makes analytics for the connected world.

As connected devices are born by the billions, we’ve

made it easier to extract value from IoT data – whether

that data is at the edge, in motion or at rest. Our

edge-to-enterprise platform bridges IT and operation-

al environments, while spanning the entire analytics life

cycle. From visualization and statistical modeling to

descriptive, predictive and prescriptive analytics, SAS

delivers deep expertise in IoT analytics – including AI,

machine learning and deep learning – to help you

reduce risk and gain real business value.

From our global IoT division comes a solution perfected to harness the value of IoT data. With SAS Analytics for IoT, you can integrate, transform, visualize and analyze IoT data throughout your connected ecosystem. Embedded in this solution is SAS Event Stream Processing. Customers from startups to global enterprises increasingly rely on this technology to convert torrents of streaming data into real-time intelligence.

Real-world IoT applications continue to flourish. Use cases tend to center on improving operational efficiencies or driving market effectiveness. For Volvo Trucks and Mack Trucks, sensor data and AI solutions from SAS are used to predict maintenance issues and minimize unplanned downtime. While high-tech manufacturer Konica Minolta Japan uses SAS to analyze streaming data from IoT devices to better forecast demand and improve customer satisfaction. Applications are many, but one thing is clear: Analytics is the path to value for IoT.

The impact of IoT on the world has been significant – and it’s only getting started. Industries and individuals alike are awakening to the enormous value in IoT data. SAS has orchestrated a strong partner ecosystem to help organizations blaze new trails to monetization with purpose-built IoT hardware and software. In a connect-ed world, IoT is the future of technology.

Whether your data is at the edge, in motion or at rest, make fast, confident decisions – while reducing data transport and storage costs. SAS Analytics for IoT covers the full IoT analytics life cycle – from data capture and integration to analytics and deployment.

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internet of things

Predicting and preventing medical device downtime with IoT analyticsGlobal medical technology leader Siemens Healthineers uses SAS machine learning and IoT capabilities to analyze urgent data generated by its systems worldwide. The data comes from a variety of devices like magnetic resonance imaging and computed tomography systems. SAS helps predict system problems and potential downtime several days in advance of a failure.

Siemens Healthineers also uses the SAS Platform to reduce downtime for its clinical chemistry analysis. Laboratory testing of blood and other fluids has evolved into an automated, high-volume process that allows modern labs to test thousands of samples per day. Doctors, clinicians and researchers rely on timely and accurate results for patient health, so any downtime is unacceptable. The predictive maintenance component of the system, designed using SAS, helps ensure productivity remains as high as possible. With SAS, the system can perform up to 440 tests per hour, the highest productivity per square meter in the industry.

Because the system feeds on data to maximize uptime, IoT sensors are integrated into the process and connected to the Siemens Healthineers database. 58 system components are now monitored and reported on using SAS Visual Analytics. Overall, this innovative approach to predic-tive maintenance has boosted system uptime by 36 percent, marking a tremendous leap forward in the science of laboratory diagnostics.

“ Our goal is to maximize the uptime of our medical equipment at the customer site. Automated and scalable analytics are crucial to help us offer good decision support to our service-delivery organization and to actively drive the digitalization of health care. SAS helps us optimize our service processes, save spare parts and reduce troubleshooting time.”

Dr. Mirko Appel | Head of Analytical Services in the Customer Services Organization | Siemens Healthineers

Transforming auto insurance in the age of the connected consumerRome-based Octo Telematics provides big data and analytics services

for the insurance and automotive industries. The company collects

120,000 miles of driver data every minute, including vehicle-use data

(such as how fast a driver accelerates and brakes) and crash data. This

huge amount of data has helped it create the world’s largest driving

behaviors database.

Octo Telematics works with SAS to deliver multidimensional analytics

and real-time data services such as risk scoring. These services help

insurance customers better evaluate risk, price their premiums appropri-

ately and assess accidents accurately. With incentives to improve driving

behavior, insurers can encourage safer drivers and have more relevant

interactions with their policyholders.

Beyond risk assessment, Octo Telematics also uses analytics to simplify

and accelerate claims handling. Traditionally, insurance claims made

after car accidents have relied on subjective accounts given after the

fact. With sensor data streaming from connected cars, factors such

as the precise force and direction of the impact, spare parts needed,

and the context of the crash are visible to all parties, helping avoid

disputes between claimants and allowing insurers to complete claims

50 percent faster.

“ Octo is helping transform the insurance business in the age of the connected consumer. Our solutions help insurers provide more precise policies while encouraging safer drivers and roadways. Delivering intelligence through SAS’ best-of-breed analytics is at the heart of what we do. In shifting from static to dynamic or streaming data, insurers can achieve what we call the ‘internet of insurable things.’”

Gianfranco Giannella | COO | Octo Telematics

Analytics is reshaping nearly every industry. At SAS, we’re cultivating the analytics economy by removing barriers and enabling better decision making. Today, SAS software is everywhere, from rugby teams in New Zealand to consumer lenders in Vietnam to the biggest banks in developed and developing economies world-wide. This proliferation of data-driven intelligence is the result of two converging forces: soaring data volumes due to sensors and connected devices, and easier implementation of powerful technologies like advanced analytics and AI.

The result is better decision making across the enterprise. By enabling everyone to benefit from analytics – the business analyst, the field engineer, police officers at HQ and on the street – SAS is helping organizations make smarter decisions, resulting in stronger communities and bottom lines. This is true across more than 83,000 SAS customer sites in 147 countries.

When it comes to highlighting these customer successes, this report is a drop in the ocean. We can only touch on a fraction of the industries we serve. But analytics use cases are flourishing, and we’ve shared a few interesting blurbs throughout this report. For every industry that prospers with analytics, three stood above the rest in 2018: retail, government and banking.

100% of Fortune 500 companies in these areas rely on SAS

®: Commercial banking

Aerospace manufacturing

E-commerce Computer services Retail banking

Health insurance

Pharmaceutical

Big Data Enterprise Insights Platform

Risk Management

Analytics

Analysts rank SAS as a leader in:

Fraud Detection

Data Integration

Data Quality

Machine Learning

Customer Analytics

AI-Based Text Analytics

03analytics in action

Intelligent automation turns merchandising into competitive advantageEvery shopper knows the frustrations of liking an article of clothing, only to discover your size isn’t available. Department store chain Belk wants its customers to find what they’re looking for every time they shop. To do this, the retailer uses SAS omnichannel analytics to stock the right products at its 300 stores. The intelligent automation of merchandising helps Belk better predict sales to avoid stock outs, allowing future orders and allocations to be adjusted based on demand rather than historical sales alone. By automating these merchandising decisions, Belk has more time to innovate and provide a better customer experience.

“ It’s eye-popping to see the tool in action. Belk has nearly 300 stores and, in a matter of seconds, SAS delivers exactly what we need. The performance of the application has been top-notch since the first day.”

Tim Carney | Director of Planning and Allocation | Belk

Customer-centricity is paramount for retailers, making tools for gathering customer insight indispensable. Retailers use omnichannel analytics to improve each step of the customer journey. This includes optimizing the supply chain, enhancing marketing campaigns with customer analytics and personaliz-ing shopping experiences with artificial intelligence. No longer a luxury for early adopters, these capabilities are a necessity in a retail world upended by global competition and record-low prices.

Real-time and predictive analytics allow retailers to take control of their destiny. Retailers can now understand and predict customer behavior with remarkable accuracy. UK e-retailer Shop Direct uses SAS predictive analytics to learn from consumer browsing behavior and adjust what products are displayed on their websites in real time. The result is a better shopping experience for customers and higher revenue for Shop Direct.

AI and machine learning are now widely used to personalize the shopping experience. Facial recognition technology coupled with big data and analytics can identify customers as they enter stores and immediately recommend clothing styles based on existing knowledge of the client. AI is equally impactful in e-commerce. German retailer Conrad Electronic struggled to recognize website visitors, limiting behavior- based bannering to only 3% of shoppers. Now, with neural networks – a field of AI which learns from real-time informa-tion – the retailer can identify 60% of visitors, increasing the relevancy of banners and boosting online sales.

Margin erosion is a concern for today’s retailers, increasing the need for greater automation. Machine learning algorithms and natural language processing are useful tools for enhancing product launch forecasts – reducing forecast time from weeks to days and improving accuracy by 28% for one retailer. Automation has also streamlined the supply chain. Staff at health and beauty retailer Matas now save 90 minutes a day thanks to automating the product replenishment process. With advanced analytics, the retailer now uses historical data, item delivery time and season as real-time inputs to inform product distribution. Stores have fewer stockouts, and staff can dedicate more time to customer service.

In the battle for customers, retailers are arming themselves with cutting-edge technology. SAS helps retailers apply customer analytics, AI and IoT to every step of the customer journey to form better connections and create an excellent shopping experience.

analytics in action

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Cracking cases quickly with advanced analyticsCriminals beware: The Delaware State Police department is tracking down suspects faster with SAS Analytics. The department uses the SAS Platform to aggregate data from organizational records, collision investigations, traffic citations, criminal incidents and calls for service from every law enforcement agency in the state. It then makes these records searchable and indexable – even providing a visual display of patterns and proximity. The platform can be searched using as little as the nickname of a possible criminal. Everyone at the department – from rookie cops to veteran detectives – now relies on the SAS technology to expedite and enhance criminal investigations.

“ SAS allows the rookie cop to have the same type of institutional knowledge as a 30-year detective. This never would have been possible years ago.”

Lieutenant William Crotty | Delaware State Police

Technology is often applied to save an organization time or money. Certainly this use of analytics has its place in the world. But analytics in government is different. Citizens are often the beneficiaries, as government leaders increasingly rely on data to make better policies, protect citizens, improve public health and save taxpayer dollars. A government agency was the first SAS customer more than 40 years ago. Today, more than 650 govern-ment ministries, departments, offices and agencies use SAS for the good of society.

Of all the altruistic uses of analytics today, perhaps none is more important than protecting vulnerable children. Child welfare agencies now use AI capabilities, such as text analytics and natural language processing, to identify at-risk children and recommend interventions to prevent abuse before it occurs. New Hanover County (NC) is one of those agencies. During bad months, the county would process 300 reports of child abuse. The county turned to SAS to integrate data from criminal justice and public health databases. By applying analyt-ics-based risk scoring, caseworkers receive alerts to relevant changes to risks affecting a child in their charge – enabling them to help the most vulnerable children first. This is not only creating more permanent, safer homes for children, but it’s lowering paid placements in foster homes, a benefit expected to save taxpayers hundreds of thousands of dollars annually.

Analytics is also used by central and national govern-ments to support national defense and humanitarian relief efforts. Military and intelligence agencies deploy predictive maintenance to ensure mission readiness, as well as safety and response agility. Lockheed Martin uses AI, IoT and advanced analytics from SAS to predict when aircraft parts will fail, keeping more planes airborne for vital missions worldwide. By applying machine learning algorithms and IoT analytics, officials can learn from the collective maintenance records of a fleet and formulate a real-time best practice for airplane maintenance. For Lockheed Martin’s biggest client, this innovation prevented 1,400 hours of downtime in three months.

From basic data management to advanced analytics like AI, SAS transforms how government agencies use data to reduce costs, safeguard citizens and improve quality of life.

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Analytics powers anti-money laundering effortsWhen you think of Iceland, you don’t think of financial crimes – but it happens. With 120,000 customers and a 39% market share in Iceland, Landsbankinn is a globally systemic important bank (G-SIB) and therefore must comply with strict requirements regarding money laundering, criminal financing and other illegal activities. The bank relies on SAS Anti-Money Laundering to reduce false positives and streamline investigations. Before SAS, Landsbankinn had a screening system that flagged about 1,000 false positive transactions each day. With advanced analytics from SAS, the bank reduced that number to 100 to 150 per day, allowing compliance staff to stop wasting time on false positives and focus more on investigating true crimes.

“ It’s not possible for us to look manually at all transactions, so we needed a system like SAS to help us identify suspicious transactions. Our team now runs more efficiently, and people who were once sifting through false positives can work on other things.”

Thordur Orlygsson | Chief Compliance Officer | Landsbankinn

Artificial intelligence enhances the speed, precision and effectiveness of human efforts. In financial institutions, AI techniques can be used to identify which transactions are likely to be fraudulent, adopt fast and accurate credit scoring, as well as automate manually intense data management tasks. Facing a plethora of disruptive forces, banks are innovating their way to survival. It’s why over 90 percent of the top 100 global banks use SAS.

Banks worldwide are transforming to create new digital pathways between customers and the business. Think chatbots and smart services. Marketers at Seacoast Bank are using customer data and analytics to calculate each customer’s lifetime value, insight which informs how much the bank should invest in serving that customer. It then applies machine learning models to personalize and automate marketing campaigns, delivering a triple-digit ROI.

Many banks rely on cloud computing for speed and agility. One SAS customer uses SAS Viya on Google Cloud to boost productivity and improve the customer experience. The cloud-based platform from SAS gives the bank access to open source and proprietary machine learning algorithms, which it uses to personalize customer communication. The cloud deployment – with Hadoop as a data store – has also cut processing times in half. Faster results mean faster decisions, a competitive differentiator when grappling with agile fintechs and global tech giants.

Fraud and risk remain key priorities for banks, and SAS continues to serve these markets with best-in-class technology. Like their global counterparts, smaller banks aren’t immune to these operational challenges. Iceland’s top bank Landsbankinn reduced the number of false positives for suspicious activities by 10 times with SAS Anti-Money Laundering. And in Vietnam, VietCredit relies on SAS to aggregate customer data from social networks, telco and utility providers, and e-commerce vendors to inform lending decisions on an emerging middle class without a credit history. For banks every-where, the spirit of innovation is worth its weight in gold.

Perhaps no industry profits more from SAS than banking. Analytics use cases span nearly every solution category, as banks increasingly rely on technology to bolster customer relationships, manage risk, detect fraud, comply with regulations and more.

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banking

We believe in the power of data and analytics to improve the human condition. Whether that’s donating software to humanitarian groups, volunteering in local communi-ties or educating the next generation of data scientist we hustle to help those in need.

SAS is a key player in the Data for Good movement, encouraging use of data in meaningful ways to solve humanitarian issues around poverty, health, human rights, education and the environment.

As the need for analytics becomes increasingly apparent for corporations and nonprofits alike, there remains a persistent skills gap that inhibits development of this needed talent. By 2024, the US economy could be short as many as 250,000 data scientists, according to a McKinsey Global Institute study. Too few students are interested in earning the degrees needed to fill the jobs of the future. And too few are college-ready when they graduate from high school.

SAS is committed to integrating technology into all levels of education to bridge the skills gap. SAS is passionate about changing that. We partner with educators, school leaders, communities, businesses and policymakers to reverse these trends and find opportunities to support learners.

Through our popular Curriculum Pathways® program, educators are introducing literacy and technology programs to children at earlier ages. Apps like CodeSnaps use robots to teach basic coding skills in a fun and engaging way. At the university level, SAS offers free academic software, teaching and learning materials, analytic degree and certificate programs and scholar-ships to entice more analytics graduates. A commitment to investing $1 billion in AI over the next three years will in part focus on skilling up the workforce and helping prepare the next generation.

Now more than ever, we’re committed to building a global community of innovators through education to solve the challenges of tomorrow.

04analytics for society

Providing a smooth transition for military veteransEach year, hundreds of thousands of service members transition back into civilian life. For many, this is a time of uncertainty around establishing a new career and securing needed resources and support for a successful transition. Launched in 2011 at Syracuse University, the Institute for Veterans and Military Families (IVMF) is committed to advancing the lives of veterans and their families. The institute uses SAS Analytics to drive programs and operations, enabling greater insights into impact on those it serves. With a central analytics and data management platform, the IVMF can generate and distribute insights more quickly across the organization and to stakeholders and partners. This allows the staff to focus on more strategic best practices for their data management and reporting efforts, helping to drive decision making with strong measurement and evaluation. Underpinning the technology is SAS Viya, an analytics framework that allows everyone–data scientists, business analysts, developers, executives, funders and stakeholders– to collaborate and realize innovative results faster.

“ One obligation we have when they take off that uniform should be to knock down as many barriers as possible. Everything we do at the IVMF is about knocking down those barriers, and SAS is key to this mission.”

Dr. Mike Haynie | Vice Chancellor for Strategic Initiatives and Innovation, Syracuse University | Executive Director, Institute for Veterans and Military Families

Users of free Curriculum Pathways®

3.5M

The rise of new, advanced technologies demands the generation of new, advanced skills. SAS strives to meet that demand by helping people from around the world skill-up to take advantage of the analytics economy. SAS makes it easy to build these highly coveted skills by targeting worldwide education initiatives in STEM to ensure the next generation of innovators has the knowledge and abilities to succeed. For elementary and secondary school-aged learners, SAS offers free digital tools, resources and interactive apps through Curriculum Pathways.

Teaching and learningWhether you’re a teacher, professor, student, academic researcher or independent learner, we offer anyone in a teaching and learning environment free and low-cost options for accessing our world-class analytics software, training resources and online communities. For institutions wanting in-house software and data for teaching and academic research, the Education Analytical Suite provides comprehensive SAS foundational technologies via reduced-cost enterprise licenses. The new SAS Viya for Learners offers free access to AI and machine learning for academic institutions.

Degrees and certificationsWe have partnered with colleges and universities to develop more than 70 master’s and undergraduate degrees and more than 170 joint certificate programs in analytics and related disciplines. We make it easy for educators to teach SAS by providing free workshops to help them get started. The SAS Academy for Data Science offers online, flexible training to help people earn valuable credentials like SAS Certified Big Data Professional, SAS Certified Advanced Analytics Professional and SAS Certified Data Scientist. Global customer demand for certification from SAS continues to grow with more than 143,000 SAS credentials awarded. In 2018, 56% of SAS certifications earned were outside the US. New SAS certifications in computer vision, natural language processing and other advanced technologies build to a new professional-level credential, SAS Certified Professional: AI and Machine Learning. This new credential is designed for individuals who wish to showcase their AI and analytics talent using open source and SAS tools to garner insight from data.

CommunitiesOur customers are not only critical to SAS innovation but also in helping those who want to expand their analytics knowledge. Our users share a vibrant online community where they exchange extensive SAS expertise or look for help through presentations, hands-on workshops and access to SAS experts. In SAS’ hosted online communities, practitioners receive technical advice for how to use our software, as well as “best practice” guidance for how to approach analytical problems. The SAS Analytics U and SAS Certification communities connect students and independent learners with resources to develop and certify their SAS skills. These connections – made among professional and student users around the globe – help to advance the experience and expertise of SAS practitioners.

Master’s and Undergraduate

degree programs

Posts in the Learn SAS forums

70+

3,700+

Education institutions using, teaching and learning with SAS

3,000+

SAS is committed to developing the next generation of innovators. By supporting efforts that prepare more graduates for college, work and success, SAS plays a vital role in providing education around analytics to the global community.

analytics for society

education

With GatherIQ,™ SAS is bringing global issues into the classroomThe free app details 17 Global Goals set by the United Nations for a better world, and shows what organizations are doing to address them. The app can inspire the next generation of change makers to help solve sustainability issues by coaching educators and students with thought-provoking information, visual data and rich interactive content. Along the way, users can unlock donations for nonprofits working toward the goals themselves.

SAS is committed to helping customers use data to do good, in addition to helping them achieve their business goals. With our help, medical facilities and research organizations can impact patient treatments and outcomes; financial institutions can ensure no bias in loan decisions; and government programs can protect populations at risk of opioid addiction.

There is widespread evidence that big data analytics also helps achieve short- and long-term development goals around the world. Poverty, disease, hunger, illiteracy and many other global development challeng-es all benefit when analytics are applied. Around the globe, people are banding together and using data to help solve some of the world’s most challenging issues. Crowdsourcing data and analytical talent is offering a fresh perspective – and positive action – on pressing problems.

For example, data sharing is helping bring new drugs to market for cancer patients. Analytics is helping law enforcement pinpoint where human trafficking victims are most likely to be located. Child welfare agencies are using data to fight child abuse and improve outcomes for children and families.

To further encourage this collaboration and make it easy to impact change in the world, SAS launched Gather IQ.™ The free app details 17 Global Goals set by the United Nations for a better world, and shows how to take personal action to help achieve them. This year, we are introducing GatherIQ to middle school and high school classrooms where students have not yet connected what is happening in their math class to what is happening in the world. Helping a child or classroom of students look at a global challenge that resonates with them through a STEM lens will help them make a deeper connection to the value and possibilities of data and analytics.

SAS was founded on the principal of using analytics to change the world and remains committed to helping solve critical global issues using data and analytics.

Some people look at data and see numbers. Others look at numbers and see the potential to improve lives.analytics

for society

#data4good

gatheriq.analytics

Preventing substance use disorder and overprescribingTo combat the ongoing opioid epidemic, the US Department of Health and Human Services (DHHS) published a toolkit for using prescription drug claims data to analyze patients’ opioid levels and identify those at risk of opioid misuse or overdose. The methodologies used to identify over- prescribers when applied to Medicare Part D data include the SAS software code used by the DHHS Office of the Inspector General (OIG) in its extensive work on opioids.

Using SAS code, OIG found about 71,000 Medicare beneficiaries at serious risk of opioid misuse or overdose. Almost 58,000 people received opioid amounts “more than two and a half times the dose that the Centers for Disease Control (CDC) recommends avoiding.” The analysis uncovered about 15,000 beneficiaries who “appeared to be doctor shopping – i.e., they received high amounts of opioids from multiple prescribers and pharmacies.”

The toolkit provides guidance on conducting data quality control checks, investigating patients with specific conditions and pinpointing at-risk patients. The code may be modified to fit the needs of different users and applied to state Medicaid data or a variety of other sources.

A data-driven approach to suicide preventionSuicide is the leading cause of death for Australians aged 15-44 years. Determined to understand and slow this horrific trend, the Black Dog Institute introduced LifeSpan, a new approach to suicide prevention. Black Dog’s research found that previous approaches to suicide preven-tion were fragmented and often not based on solid evidence. This came as LifeSpan itself was grappling with disparate data sets from emergency services, health services, universities and government agencies.

SAS helped Black Dog Institute implement an analytics framework for evaluating the success of its suicide prevention initiative. By applying analytics, LifeSpan now has unprecedented data quality and the ability to measure the program’s impact across trial sites. As the program matures, text analytics and data mining will be applied to 1,000 new media articles a month, enabling LifeSpan to measure the evolution of media coverage on suicide, and track whether its efforts have shifted the perceptions of suicide across trial sites.

“ We can’t effectively fight the opioid problem if we don’t understand it. Data and analytics are critical to getting citizens the help they need, and thwarting the illegal trafficking of these drugs.”

Dr. R. Kirk Jonas | Director | National Governors Association Center for Best Practices

“ Right now, we have the best- quality suicide data available in Australia, ever. It hasn’t been available at this level of detail before. Until now, we haven’t had the knowledge of where suicide incidents are occurring, when they are occurring or how, to the level of precision and accuracy that we do now.”

Helen Christensen | Director and Chief Scientist | Black Dog Institute

Commitment to employees, communities, education and the environment has been rooted in our DNA since day one. It drives the innovation that we provide to our customers and makes a positive impact on the world.

Our customers’ businesses rely on relationship stability and strength in tenure to deliver trusted expertise and innovation. SAS’ world-renowned workplace culture has always directly contributed to innovation and satisfied customers.

This culture of flexibility, trust and values nurtures a dedicat-ed global workforce critical to addressing our customers’ business needs and solving world problems.

SAS has always been committed to innovation, treating employees well, and environmentally friendly business practices. This holistic approach to corporate culture keeps SAS ranked among the best workplaces worldwide, and at the top of myriad lists that acknowledge a commitment to work/life integration, diversity and inclusion.

analytics leader

about SAS

3.8 million kWhRenewable energy

generated annually from solar installations

More than 90 FREE

On-site charging stations for plug-in electric vehicles

78% Of all office and data center space at SAS world headquarters is

LEED® certified. SAS remains dedicated to green building standards, aspiring to LEED certification in both new

construction and renovations.

Women

Gender Equity

IT Professionals

Millennials

Working Parents

Recent Grads

Diversity & Inclusion

2018 WORKPLACE

CULTURE AWARDS

2018 GREAT PLACES TO WORK MULTINATIONAL AWARD

Argentina Australia Austria Belgium Brazil China Europe France Germany Greece Hong Kong IndiaIreland

Italy Japan Luxembourg Malaysia Mexico Portugal Russia Singapore Spain Switzerland TaiwanUK US

Sustainability for a brighter futureFrom the beginning, SAS has been a sustainability innovator through environmental, social and economic efforts. We work closely with employees, suppliers and customers to foster an award-winning, sustainable workplace that has a positive impact on our future.

SAS reduces its environmental footprint with multiyear programs focused on energy conservation and solar projects, emission management, pollution mitigation, water conservation, waste reduction and recycling, procurement and green building.

Culture SAS is continually recognized for providing an inclusive and enriching work environment that ignites employees’ creativity, giving them the opportunity to change the world. SAS is considered a best place to work globally for:

Continue investment in more smart technologies, renewable energy, EV infrastructure and environmentally friendly practices

Report progress in support of the Paris Climate Agreement

BY 2020 more charging stations at HQ

50%

LEED® Gold

certification for all

new buildings

Reduce greenhouse gas emissions

Improve o ce building

e ciencies

for energy

for emissions

BY 2025

25%

40%50%

SAS Environmental Goals

2018 HighlightsAs the leader in analytics, SAS is well-positioned to drive customers into the future with relevant intelligence and a full suite of analytics capabilities. With what analysts have called an unmatched breadth and depth of analytics solutions, SAS shortens the path from data to understanding, and inspiring bold new discoveries that drive progress for the world.

Customers across all industries get solutions that solve real problems with the most impactful intelligence available through analytics. This, coupled with strong empowering leadership and superior global talent, has strongly influenced the private company’s strength and longevity – as evidenced by 43 years of profitability.

In 2018, SAS posted US$3.27 billion in total operating revenue. This was influenced by a 24 percent increase in cloud revenue and strong customer adoption of SAS Viya as customers modernize their analytics environments.

By applying industry-leading analytics to the toughest business problems, SAS’ 2018 investment in artificial intelligence (AI) innovation is paying off for customers. The company also saw strong momentum in banking, manufacturing, retail, life sciences, insurance and education.

SAS partnering efforts influenced more than 43% of new sales and 25 of SAS’ top 50 deals. Overall channel revenue grew by 71.5%.

SAS’ focus on product-led initiatives includes analytics platform, customer intelligence, data management, fraud and security intelligence, IoT, retail and risk. Enabling technology initiatives regarding AI, machine learning, and cloud cut across all aspects of what we do. In 2019, SAS will continue to focus on making ourselves a great company to work with, improving our customers’ experience and reaching customers through our partners and channels.

48.6

REVENUE PERCENTAGES BY REGION

Americas Asia Pacific

Europe, Middle East and Africa

13.8

37.6

Cloud revenue growth

SAS partnering efforts influenced 43% of new sales in 2018.

Americas Asia Pacific Europe, Middle East and Africa

92 of the top 100 companies on the 2018 Fortune 1000 list are SAS customers.

2018 Revenue

43%

total software revenue by region

92

$3.27 billion

24%

SAS COMMITS TIME AND RESOURCES IN AREAS WE BELIEVE

WILL MAKE A LASTING POSITIVE IMPACT

IN THE WORLD

We are committed to:Innovation When people are empowered with knowledge, no challenge is impossible. So we invest nearly twice the percentage of annual revenue in R&D as most major tech companies.

Data for Good From helping resolve critical humanitarian issues and our dedication to green building and conservation initiatives, to changing conversations around behavioral health and protecting at-risk children, we believe data and analytics make lives better.

Education Our commitment to education is a natural extension of where we came from and what we do. SAS supports global education initiatives that promote learning for all and build a global community of innovators.

Diversity and inclusion At SAS, diversity is more than just gender or race. Our culture blends different backgrounds and experiences from 58 countries globally. We want everyone to feel confident in expressing their ideas, and know that they will be respected for their unique contributions and abilities.

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SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2019, SAS Institute Inc. All rights reserved. 106254_G93687.0619

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