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SAP Advanced Analytical Capabilities
Beyond Business Intelligence
Troy Mahr
Jon Ross

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Introduction
 Advanced Analytics and the value of integration with SAP
HANA
 What do you truly know? Where does Advanced
Analytics provide the biggest benefits?
 One tool or the right toolset?

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Agenda
 Business Impact of Analytics
 Overview of SAP’s BusinessObjects Business Intelligence Suite
 SAP Analysis Applications
 SAP Lumira
 SAP Predictive Analysis
 SAP InfiniteInsight
 SAS Integration (forthcoming)
 Demonstration
 Bringing Value to the Business
 Resources and Next Steps
 Q&A

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Business Impact of Analytics

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Comparison of Business Intelligence and Analytics
 BI tools have been used for years to report on historical
data
 Predictive analytics is different, using advanced statistics
to find patterns that traditional BI tools may not reveal
 Big data, coupled with statistical capabilities, provide self-
service and have enabled end-users to develop higher
quality predictive models
 This combination, and embedding the models into
business processes, allows firms to discover, deploy, and
profit from the knowledge they gain

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Business Intelligence vs. Predictive Analytics
 Where are you?
 Where do you want
be?
 Where is your
competition headed?

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Insights through Predictive Analytics
 The vast majority (85%) of those currently using
predictive analytics report it having had a positive impact
on their business
 Sales (46%), finance (44%) and marketing (42%) are the
three functions seen to currently benefit most from the
use of predictive analytics
 The key benefits of using predictive analytics are
considered to be better business performance in the
future (61%), greater insight into business dynamics
(50%) and making greater use of data already available
(49%)
Source: Loudhouse Research

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Business Benefit Examples of Predictive Analytics
Source: SAP and Ventana Research
Instantly predict market trends and customer needs
Create customized offer for each segment and channel
Predict how market-price volatility will impact
production plans
Foresee changes in demand and supply across your
entire supply chain
Proactively manage your workforce by attracting and
retaining talent

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Business is Paying Attention to Predictive Analytics
Key Points:
 90% of organizations agree that predictive analytics (PA) give
them a competitive advantage
 60% of those surveyed agree that PA is currently an investment
priority, while 80% think it will be a crucial investment in the next
5 years
 Those who invested in PA are seeing a quick return on
investment – 30% reporting a major impact from PA in the first 6
months, with 50% reporting similar benefits 6-9 months out
 95% have seen an increase in the volume of data they are dealing
with over the last year (“big data”)
 Businesses say they are using PA to exploit opportunities rather
than minimize risk – predicting customer needs and market
trends are seen as the most valuable scenarios for PA
Source: Loudhouse research agency study in 2013, sponsored by SAP
SAP Newsbyte – Dec. 4, 2013

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SAP’s BusinessObjects
Business Intelligence Suite

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Analytics Solutions from SAP
Agile
Visualization
Advanced
Analytics
Big Data
Mobile
Collaboration
Cloud
Enterprise
Business Intelligence
Today’s
Focus

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SAP’s Strategic Focus on Analytics Solutions

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BusinessObjects Solutions

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Product Overview - Lumira
 Freedom to visualize your data, discover
new insights, and share stories
 Available as a separate product or embedded as part of
Predictive Analysis
 Transform data – acquire data from corporate and personal
sources
 Visualize and discover insights – rich library of chart types;
extend, embed and customize with SDK; and discover related
insights and influencers
 Share stories – build engaging stories using storybooks and
infographics, using mobile, web and desktop
 Lumira Server now available for processing big data in real time

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Product Overview – Predictive Analysis
 Identify the KPIs that will drive the greatest revenue
growth and profitability
 Easily share financial intelligence with key stakeholders
for immediate decision making
 Use predictive analytics to improve financial performance
from strategy to execution
 Reduce financial risk through cash analyses with
predictive modeling and visualization
 Improve accounting with predefined content, advanced
analyses, and ad hoc reporting

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Feature Summary – Predictive Analysis
Some key advanced analytical features available in PA
include:
 23 statistical algorithms (and growing)
 Apriori in demo today
 Integration with the HANA predictive analytics library
(PAL)
 Support for open source “R” language
 Integration of Lumira within PA to build data visualization
on top of analysis

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Integration Overview – Predictive Analysis

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Infinite Insight - “Insights”
Source: SCN Blog Entry

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Demonstration – SAP Predictive Analysis
Example: Apriori Algorithm “Association Analysis”
Apriori
 Classic predictive analysis algorithm
 Used to uncover hidden patterns and correlations
among a set of items
Popular Use Cases
 Amazon “Frequently Bought Together”
 Transactional data (Sales Order items)
Measures
 Support
 Proportion of transactions in the data set which contain a particular item set (Ex: 1/5 , 1 out of 5
transactions contain an item set)
 Confidence
 Measure tells you how often a customer buys Item B when they buy Item A.
 Lift
 Used to judge the strength of the association rule
 For example if we have high support and high confidence then we get a strong association, but this can
be deceptive because we can have a high level of confidence even when they are independent
 Lift ratio = confidence of the rule / the confidence assuming Item B and Item A are independent

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Bringing Value to the Business

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Best Practices
 Consider the broad indicator over the precise measurement
 Is measurement to the 4th decimal necessary or will a more general
indicator suffice?
 Make sure leadership is aligned with strategic priorities and see
activities the same way
 Keep measurements and KPIs to a reasonable and actionable
number
 Once you’ve determined what the right measures are, be prepared for
them to change as your organization does
 In most cases, the organization is already collecting the data you
need; you just need to know how to use it
 Present the right data to the right people in the right way
 Look for opportunities to embed information in business processes

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Resources
 Product Roadmaps – available on SCN or SAP.com
 Watch short SAP Videos on YouTube – look for channels related
to SAPAnalytics Training or SAP HANA Academy. You’ll find a
series of related topical sessions that are quite informative.
 SCN – browse around – there’s great material
 http://scn.sap.com/community/predictive-analysis
 Dickinson + Associates LinkedIn Page:
https://www.linkedin.com/company/68054?trk=prof-exp-
company-name

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Next Steps
 Identify areas where Predictive Analytics can provide
business value?
 Download the trial versions of SAP Lumira – watch for
other software as it becomes available
 Talk with other businesses about what they are doing with
advanced analytics

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Dickinson + Associates BI Offerings

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Service Offerings
SAP Strategy +
Implementation
Process
Optimization
Services
SAP
Upgrade
Services
Support
Desk
Professional
Staffing
ERP
Mobility
Analytics

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Dickinson + Associates
Troy Mahr
Manager, Business Intelligence
troy.m@dickinson-assoc.com
586-747-0242
Jonathan Ross
Consultant
jon.r@dickinson-assoc.com
312-496-7577