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Big Data Analytics Drive Data to Decision Timo Elliott, SAP, February 2013 Publi c

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Keynote presentation from the SAP Analytics Innovation Tour, ANZ -- turning big data into decisions, using signal data to make business change

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Page 1: SAP Analytics Innovation Tour ANZ

Big Data AnalyticsDrive Data to DecisionTimo Elliott, SAP, February 2013 Public

Page 2: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 2

2

TODAY’S PRINCIPAL BUSINESS METRICS

ARE OVER A CENTURY OLD

• Financial statements• Balance sheets• Net income

Page 3: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 3

SOME PEOPLE WOULD

EASILY RECOGNIZE THEM

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© 2013 SAP AG. All rights reserved. 4

TRADITIONAL FINANCIAL METRICS

ARE BACKWARD-LOOKING

MostEstablishedKPIs too

Page 5: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 5

WHEN WE REALLY NEED

TO BE LOOKING FORWARD

Page 6: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 6

Mobile

CRM Data

Planning

Opportunities

Transactions

CustomerSales Order

Things

Instant Messages

Demand

Inventory

Big Data

BUT TYPES AND VOLUMES OF DATA

HAVE GROWNRADICALLY

Sales Order

Things

MobileDemand

Big Data

CRM Data

CustomerPlanning Transactions

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1.8

TODAY WE MEASURE AVAILABLE DATA IN

ZETTABYTES

90% OF THE DATA IN THE WORLD TODAY

has been created in the last two years alone

IN 2011, THE AMOUNTOF DATA SURPASSED

ZETTABYTES

1.8 ZETTABYTES

BILLION 32 GB iPads

57.5= =$34.4 TRILLION =

COMBINED GDP OF:

• US• Japan• China• Germany

• France• UK• Italy

**IDC Digital Universe Study Extracting Value from Chaos

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© 2013 SAP AG. All rights reserved. 8

BIG DATA DE-HYPED

“Big data” is high-volume, -velocity, and -variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making.

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Brand SentimentHigher NPS

:-)Predictive Maintenance

Less Downtime

Network OptimizationLower Cost

Fraud DetectionLower Risk

Propensity to ChurnGreater Retention

Product RecommendationMore Sales

Risk Mitigation, Real-timeRetain Market Value

360O Customer ViewLoyal Customers

Asset TrackingIncrease Productivity

Personalized CareLoyal Customers

Real-time Demand/Supply ForecastMore Efficient

Insider ThreatsGreater Security

WHAT IF YOU COULD TURN NEW SIGNALSINTO BUSINESS VALUE?

Brand SentimentHigher NPS

:-)Predictive Maintenance

Less Downtime Network Optimization

Lower Cost

Propensity to ChurnGreater Retention

Real-time Demand/Supply ForecastMore Efficient

360O Customer ViewLoyal Customers

WHAT IF YOU COULD TURN NEW SIGNALSINTO BUSINESS VALUE?

Asset TrackingIncrease Productivity

Personalized CareLoyal Customers

Product Recommendation

More Sales

Risk Mitigation, Real-timeRetain Market Value

Insider ThreatsGreater Security

Fraud DetectionLower Risk

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© timoelliott.com

“When you two have finished arguing your opinions, I actually have data!”

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IN-MEMORY

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FASTER

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SMARTER

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Expected IT Benefits of In-Memory Technology

Source: IDC SAP HANA Market Assessment Survey, 2011

SIMPLER

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THE NEW INFORMATION CONSUMER…

Responsive

EngagingAccessible

75%by 2020

10%today

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© 2013 SAP AG. All rights reserved. 24Public

Plan

Act

Past

FutureStructured

Unstructured

BREAKING DOWN BARRIERS

“New Reality: In-memory computing is ripping up the rules”- Gartner

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AGILITY ENTERPRISE

SocialAnalytics MobileBig Data Cloud

POWER

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INNOVATION

SAP VISUAL INTELLIGENCE

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Extend your analytics capabilities where you want to be…

Sense & Respond Predict & Act

RawData

CleanedData

Standard Reports

Ad Hoc Reports &

OLAP

Generic Predictive Analytics

Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?

What is the best that could happen?

Com

petit

ive

Adv

anta

ge

Analytics Maturity

The key is unlocking data to move decision making from sense & respond to predict & act

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“SAP is a newcomer to big data predictive analytics but is a Leader due to a strong architecture and strategy.” Forrester

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MOBILE

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ANALYTICS

OPERATIONS

Faster Smarter Simpler

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© 2013 SAP AG. All rights reserved. 37Public

Real-Time Data Platform

SAP Real-Time Data PlatformExtreme Data Management Capabilities to

transact | move | store | process | analyze | deliver

ERPCustom

AppsPlanning Analytics

BigData

EDWEDWEDW/DM

Cloud SCMMobile

Information Governance

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DATA QUALTY

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Applications for Data Stewards

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Business Solutions

Retail

High Tech

Oil & Gas

Consumer Products

Telco

Etc.

Analysis

Action

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Store operations

Omni-channel experience

Customized promotions

Optimized inventory

Intelligent Retail

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CUSTOMER SPOTLIGHT

HSE24• Cross-sell based on the

consumer, not just the product

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CUSTOMER SPOTLIGHT

BURBERRY• Improve customer experience

and loyalty• Become #1 IT-driven fashion

retailer• Personalized Burberry client

iPad app

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© 2013 SAP AG. All rights reserved. 45

CUSTOMER SPOTLIGHT L’Oréal• Be a trusted advisor for

customers

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Coinstar

• Inventory Optimization

• Real time Offers

• Servicing

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INTELLIGENT BANKING

Customer-centric banking

Aggregated risk

Liquidity risk management

Prevent Fraud, Money Laundering

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Improve patient outcome

Improve doctor/patient relationships

More preventative healthcare

Higher quality of life for patients

INTELLIGENT HEALTHCARE

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Mitsui Knowledge IndustryHealthcare – Speed Research & Improve Patient Support

Business Challenges

Reduce delays and minimize the costs associated with new drug discovery by optimizing the process for genome analysis

Improve and speed decision making for hospitals which conduct cancer detection based on DNA sequence matching

Technical Implementation

Leveraged the combination of SAP HANA, R, and Hadoop to store, pre-process, compute, and analyze huge amounts of data

Provide access to breadth of predictive analytics libraries

Benefits

For pharmaceutical companies, provide required new drugs on time and aid identification of “driver mutation” for new drug targets

Able to provide a one stop service including genomic data analysis of cancer patients to support personalized patient therapeutics

Our solution is to incorporate SAP HANA along with Hadoop and R to create a single real-time big data platform. With this we have found a way to shorten the genome analysis time from several days down to only 20 minutes.

Yukihisa Kato, CTO and Director of MITSUI KNOWLEDGE INDUSTRY

408,000x

faster than traditional disk-based systems in a technical PoC

216x faster by reducing genome analysis from several days to only 20 minutes making real-time cancer/drug screening possible

“ ”

Page 44: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 52

INTELLIGENT FINANCE

Real-time performance management

Fast financial close

Efficient payables and receivables

Treasury exposure management

Real-time compliance

Page 45: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 53

SAP SUITE ON HANASOLUTIONS FOR FINANCE

INNOVATION

Performance Management

Financial Close

Treasury Management

Finance Operations

Compliance

POWERED BY SAP HANA

REAL-TIME PERFORMANCE

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SAP FRAUD MANAGEMENTINNOVATION

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INTELLIGENT CITIES

Citizen safety and security

Smarter city governance

Sustainable cities

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NFL

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NBA.com/stats

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BigpointGaming Industry - Predictive Game Player Behavior Analysis

Business Challenges

Increase conversion rates from free paying player Increase the average revenue per paying player Decrease churn – keep paying players playing longer

Technical Challenges

Leverage real-time data processing in SAP HANA and classification algorithms with R integration for SAP HANA to deliver personalized context-relevant offers to players

Analyze vast amounts of historical and transactional data to forecast player behavior patterns

Benefits

Real-time insights Per player profitability analysis and increased understanding of

player behavior Increase data volume and processing capabilities to

communicate personalized messages to players

At Bigpoint in the Battlestar Galactica online game, we have more than 5,000 events in the game per second which we have to load in SAP HANA environment and to work on it to create an individualized game environment to create offers for them. In this co-innovation project with SAP HANA, using Real Time Offer Management Bigpoint, we hope to increase revenue by 10-30%.

Claus Wagner, Senior Vice President SAP Technology, Bigpoint

“ ”

5,000 events per second loaded onto SAP HANA (not possible before)

10-30% increase in revenue per year

Interactive data analysis leading to improved design thinking and game planning

Page 54: SAP Analytics Innovation Tour ANZ

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A Platform for Everyone

Free developer licenses, easy access to HANA in the Cloud

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Instantly predict market trends and customer needs

Predict how market price volatility will impact your production plans

See changes in demand or supply across your entire Supply Chain immediately

Monitor and analyze all deviations and quality issues in your production process

Provide exactly the right offers and service levels to every customer

Have a continuously-updated window onto future sales, showing changes in real time

Understand what your customers and potential customers are saying about you, right now

Predict cash flows to manage collections, risk and short-term borrowing in real time

THE POSSIBILITIES ARE ENDLESS…

Design Thinking

Page 58: SAP Analytics Innovation Tour ANZ

DATA TO DECISION

Analytic applications from SAP

Analytic solutions from SAP

Business Intelligence

Databases

Enterprise Performance Management

Governance, Risk, Compliance

Industry Line of Business

In-memoryInformation

managementReal-timedata platform

AnalyzeCapture Engage

DATA TO DECISION

Page 59: SAP Analytics Innovation Tour ANZ

© 2013 SAP AG. All rights reserved. 68PublicBuilt by Sanjay Poonen, Copyright SAP, Representative figures based off CIO interviews, showing approximate proportional quantities of IT spending in Analytics

TCO Reductionby Approx 60%

Traditional Stack

SAP HANA Insights

Relational DB

ETL

BI tools

Predictive

DBA and IT Costs

Analytic DB

DBA and IT Costs

BI Suite

HANA Enterprise

Predictive

SAP HANA Insights

Introducing SAP HANA Insights

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Teamwork

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IT’S TIME FOR ANALYTICS LIKE NEVER BEFORE

Page 62: SAP Analytics Innovation Tour ANZ

Thank you

Timo Elliott, SAP

Email: [email protected]: @timoelliottBlog: timoelliott.com