© 2011 SAP AG. All rights reserved. 1

Unleashing the Power of

Collective Insight Predictive Analytics from SAP

October 8, 2014

Nicolas Plocharski

Sales Director – MEE, Predictive Analytics

Easy ~ Fast ~ Efficient

© 2011 SAP AG. All rights reserved. 2

Disclaimer

This document contains confidential or proprietary business information. If you have received this document in error, you are hereby notified that any review, copying, or distribution of it is strictly prohibited. This document is governed by the terms of the SAP partner agreement, including the partner confidentiality obligations and any unauthorized disclosure will be deemed a violation thereof. The information in this document is provided solely for use within the scope of the partner agreement or as expressly authorized by SAP. It is subject to changes at any time. No part of this material may be reproduced or transmitted in any form or for any purpose to third parties. This document contains informational material and among others things is opinion derived from SAP and industry analyst research, methodologies, intended strategies and experience. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date specified or the date of this document.

Analytics solutions from SAP

Agile

Visualization

Advanced

Analytics

Big Data

MobileCloud

Enterprise

Business Intelligence Collaboration

© 2011 SAP AG. All rights reserved. 4

The Reality of the Internet of Everything

1 billion Facebook

users

4 billion YouTube

views per

day

Data

doublesevery 18

months

15 billionweb-enabled

devices

5 billion in emerging

middle

class

© 2011 SAP AG. All rights reserved. 5

Unlocking the value of “Dark Data”

10%

75%

Use Analytics

Today

Need

Analytics

by 2020

Ability to manage and

consume all data is

getting harder

Not utilizing all the

information out

there

Not leveraging the power

of collective insight

Missing new

insights

IT is not agile enough

and the business wants

to get involved

=

© 2011 SAP AG. All rights reserved. 6

Sense and respond are no longer enough

Challenging to

detect

meaningful

signals in big

data

Severe analytics

skills shortage 50-60% shortfall for

experienced data analystsDun & Bradstreet and McKinsey Global Institute analysis

68% of organizations

that used predictive

realized a competitive

advantage

Difficult to apply

predictive

algorithms

to anticipate

business trends

© 2011 SAP AG. All rights reserved. 7

Advanced Analytics – SAP Vision

Operationalize

predictive &

optimization

models across the

enterprise

Reduce Decision

Latency with

Advanced Analytics

Bringing Predictive

Analytics to a broad

spectrum of users

Embed Smart, Agile Analytics into Decision

Processes to Deliver Business Impact

Easy Fast Efficient

© 2011 SAP AG. All rights reserved. 8

Technical

Script-based

Technical

In-memory

Script-based

Semi-Technical

Modeling/Viz

UI-based

Functional

Automated Modeling

UI-based

Predictive Analytics at SAP

© 2011 SAP AG. All rights reserved. 9

Predictive Analytics Solutions from SAP

PAL/AFL/R

Integration

SAP HANA

Search Rules Engine Text MiningPredictive

Analysis Library

Business

Function LibrarySpatial

SAP Predictive Analytics

+

SAP Predictive

Analysis + Lumira

SAP

InfiniteInsight

© 2011 SAP AG. All rights reserved. 10

Predictive Analytics – The concept

Use HistoricalDATA to detect

behaviors

Predict usingcurrent DATA

Control & Maintain

© 2011 SAP AG. All rights reserved. 1111

What are we talking about ?

Classification

Who will (buy | fraud | churn …) next (week | month | year…) ?

Regression

How will the (revenue | # churners) be next (week | month..)?

Forecasting

How will the (revenue | # churners…) be over next year on a monthly

basis ?

Recommendation engines

Provides recommendations on websites or to retailers

Segmentation

What are the groups of customers with similar (behavior | profile …)?

Link Analysis

Analyze interactions to identify (communities | influencers…)

© 2011 SAP AG. All rights reserved. 12

Model IndustrializationEach step of the process has been automated

In-database Automated

Dataset Production

Automated model creation

Classification Regression

Clustering Forecasts

In-database Deployment

Deployment in other apps

Model productionization

Control Recalibration

Batch production

© 2011 SAP AG. All rights reserved. 13

SAP InfiniteInsight

Link analysis & Recommendations

There is unused useful information in links

Analysis of people-to-people links

– Telecom: improved churn detection, viral propagation of events, rotational

churn and MultiSIM detection

– Public Security

Analysis of people-to-product links

– Recommendation engines with enhanced market Basket Analysis

Analyse automatically, produce new data to improve quality of any other predictive

analytics application

© 2011 SAP AG. All rights reserved. 14

SAP Predictive Analysis

Provide Data Scientist and

Business Analysts with

sophisticated algorithms to take

the next step in understanding

their business and modeling

outcomes

Perform statistical analysis on your data

to understand trends and detect

outliers in your business

Build models and apply to scenarios to

forecast potential future outcomes

Breadth of connectivity to access almost

any data

Optimized for SAP HANA to support huge

data volumes and in-memory

processing

© 2011 SAP AG. All rights reserved. 15

R Integration

Adoption by the market

R - Integration with SAP Predictive

Analysis

Drag and Drop – No Coding

Custom R Algorithms – Programming

Access to over 5000+ algorithms and

packages

More algorithms and packages than SAS +

SPSS + Statsoft

Embedding R scripts within the SAP HANA

database execution

© 2011 SAP AG. All rights reserved. 16

Run, Grow and Transform the Business – Industry Use Cases

•Next Best Activity

•Cross Sell/Upsell

•Churn Reduction

•Brand Sentiment

& Sales Analytics

•Customer Loyalty

Analysis

•Pricing Optimization

•Product Launch Success

•Brand Sentiment & Sales

Analytics

•Product Launch

Success

•Brand Sentiment

& Sales Analytics

•Regional

Forecasting

•Brand Sentiment &

Sales Analytics

•Next Best Activity

•Cross Sell/Upsell

•Churn Reduction

Customer

Segmentation

Brand Sentiment &

Sales Analytics

•Brand Sentiment &

Sales Analytics

•Credit Scoring

•Compliance

•Credit Scoring

•Compliance

•Predictive Asset

Maintenance

•Credit Scoring

•Compliance

•Retail Outlier

•Credit Scoring

•Compliance

•Credit Scoring

•Compliance

•Predictive Asset

Maintenance

•Master Data Quality

•Fraud

Management &

Prevention

•Optimizing

Product Quality

•Fraud Management &

Prevention

•Optimizing Product

Quality

•Fraud

Management &

Prevention

•Optimizing

Product Quality

•Fraud

Management &

Prevention

•Optimizing Product

Quality

•Tax Fraud

•Credit Card Fraud

•Insurance Fraud

•Fraud Management &

Prevention

•Optimizing Product

Quality

•KPI Forecasting

•Anomaly

detection

•Usage forecasting

•KPI Forecasting

•Anomaly detection

•Demand forecasting

•Store Segmentation

•In-store Workforce

Optimization

•Size and Zone

Optimization

•Market Share Prediction

•KPI Forecasting

•Anomaly

detection

•Usage

forecasting

•KPI Forecasting

•Anomaly detection

•Usage forecasting

•KPI Forecasting

•Anomaly detection

•Usage forecasting

•KPI Forecasting

•Anomaly detection

•Usage forecasting

•Variable Margin

Analysis

•Yield Management

•Equipment

Effectiveness

•Predictive

Commodity

Management

•Improving

Demand Planning

and Inventory

Management

•Out of Stock Prediction

•Inventory and Logistics

Planning

•Out of Stock

Prediction

•Inventory and

Logistics Planning

•Out of Stock

Prediction

•Inventory and

Logistics Planning

•Predictive Commodity

Management

•Improving Demand

Planning and Inventory

Management

Retail CPG

Financial

Services Manufacturing

CRM

Fraud

Operatio

ns

Risk

Supply

Chain

Telecom E-Business

Selected

Customer Cases

Finance

Telecom

Retail

e-Business

MSP

Media

Public

Sector

Energy

& Mfg

Success With Over 500 Leaders Around the World

300% ROI the 1st year, 30% turnover by reducing waste

20% reduction in churn w/ Social Intelligence

400% increase in campaign response rates

300% uplift in targeting accuracy

500% increase in click through rate

30x lift in campaign response rates

260% increase in campaign conversion

Increased revenue 50 € million a one quarter

10 % improvement in forecast accuracy

Activated 50% of inactive accounts in 4 months

85% of fraud identified with 30% consignments

SAP Predictive Analytics Delivers Huge ROI!

© 2011 SAP AG. All rights reserved. 20

Aircraft Manufacturer Improves Engine Reliability

Multiple sensor readings 4X per

second

Terabytes of data per flight

Telematics data in overlapping

time windows.

Predicting unplanned future maintenance

Multiple data formats (maintenance logs, in-flight

sensors, squawks)

© 2011 SAP AG. All rights reserved. 21

SAP Predictive Maintenance and ServiceEfficient maintenance and service offerings

© 2011 SAP AG. All rights reserved. 22

Allegro – Poland - Auction Website Leader

100M+ daily personalized product recommendations

• Response time < 200ms

Boosted e-Commerce KPI’s:

• Page views per visit up 30%

• Click-through rates up 500%

• Conversion rates up 40x

compared to “bestseller” rules

Build social graphs from:

• 20M+ unique website visitors

• 15M listed products, but no catalog

• 500M daily page views

© 2011 SAP AG. All rights reserved. 23

Belgacom Makes The Call With Prospects

Modeling time reduced from months

to days

Up to 4x increase in campaign

response rates

Allowed shift to customer-centric vs.

product-centric marketing

With InfiniteInsight, we can deliver the right offer,

to the right customer at the right time.

- Dr. Jacky Huyghebaert

Customer Intelligence Expert

© 2011 SAP AG. All rights reserved. 24

Customer Name

Customer Street

Customer City

Cut Churn 25% of High Risk

Customers with Retention Offers

10,000+ calls

a day

300% uplift on

all offers

14% of all

offers

accepted

© 2011 SAP AG. All rights reserved. 25

Improve Fraud Detection

Fraud Management

Who? Fraud Manager Risk Manager

To do

what?

Improves fraud detection

rates and reduces

number of false positives

Reduce huge fraud

cost

Benefits Improve detection of

credit card fraud and

fraudulent applications

Discover unknown fraud

patterns

Less false positives,

causing less customer

distress and improved

productivity

Meet ROI goals quickly

Mitigate risks and loss

Anti money laundering

compliance

Focuses manpower on

significant problem

areas

Reduce e-fraud over 1 B$

annual transactions

92% of fraud cases

identified

© 2011 SAP AG. All rights reserved. 26

Thank you!

© 2011 SAP AG. All rights reserved. 27

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SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.