analytics: innovation in real-time

Analytics: Innovation in Real-TimeTimo Elliott May 2012

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What’s New? World Volatility

© 2012 SAP AG. All rights reserved. 3Internal

The Road Ahead

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“Organizations earn $10.66 for every $1 spent on analytics”Source: Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011

“The age of software was fun –welcome to the age of data…”

© 2012 SAP AG. All rights reserved. 5Internal

Business Analytics Market (BI, EPM, Analytic Applications)Share of Market, 2011

Business Analytics Market Shares

SAPOracle

SAS Institute

IBM

15.6%

13.2%

11.6%

23%

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

© 2012 SAP AG. All rights reserved. 6Internal

Technology Trends

© 2012 SAP AG. All rights reserved. 7Internal

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High-Resolution Management

“Right now, your company has:• 21st-century, Internet-enabled business processes• mid-20th-century management processes• all built atop 19th-century management principles.”

– Gary Hamel

Remove BottlenecksGive business people what they’ve been asking for

© 2012 SAP AG. All rights reserved. 10Internal

Business / IT Tension

I need my reports NOW!

But the system can’t

cope!

© 2012 SAP AG. All rights reserved. 11Internal

Colgate-Palmolive

Able to run detailed profitability analysis for the first time

© 2012 SAP AG. All rights reserved. 12Internal

Provimi

“3-3-3 Just do it!”

Increased working capital by €20 Million

© 2012 SAP AG. All rights reserved. 13Internal

Red Bull

Improved data compression, load times:1.5 TB 300 GB, 50 mins 2 mins

© 2012 SAP AG. All rights reserved. 15Internal

Danone

Sustainability reporting on

35,000 products

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Walkers Crisps

Identified new cost savings

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Medtronic

Combine structured and unstructured data for

business value

© 2012 SAP AG. All rights reserved. 18Internal

What About Social Data?

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Social Analytics

Combine inventory and social media data to understand trends

© 2012 SAP AG. All rights reserved. 20Internal

Mobility: Holding Supercomputers in Our Hands

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

(And the new iPad is at least twice as fast!)

© 2012 SAP AG. All rights reserved. 21Internal

Altron Allied Electronics

Mobile-first analytics strategy: cheaper, easier,

happier users

© 2012 SAP AG. All rights reserved. 22Internal

. Dependent factors

Hidden relationship

Limitation of regression model

Forecasting based on multiple factors

Cornell Bookstore

Predictive analytics on out-of-stock books

© 2012 SAP AG. All rights reserved. 23Internal

Health Intelligence

© 2012 SAP AG. All rights reserved. 24Internal

Hand Washing

© 2012 SAP AG. All rights reserved. 25Internal

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Can You Remove Bottlenecks in Your Business?

Flexibility

Unstructured dataSustainability

Social dataAccess on the move

Transparency

Data Volume/ Complexity

It’s not about knowing, it’s about doing

© 2012 SAP AG. All rights reserved. 29Internal

Fresh Direct

“Our Food is Fresh.Our Customers Are Spoiled”

© 2012 SAP AG. All rights reserved. 30Internal

© 2012 SAP AG. All rights reserved. 31Internal

React to changes in time to make a difference

© 2012 SAP AG. All rights reserved. 32Internal

Parking Ticket Optimization

Leverage spatial

data

© 2012 SAP AG. All rights reserved. 33Internal

Fruit Ratings

Provide data to customers to improve loyalty

© 2012 SAP AG. All rights reserved. 34Internal

Houghton Mifflin Harcourt

Better planning for competitive

advantage

© 2012 SAP AG. All rights reserved. 35Internal

Charité University Hospital

Rethink processes using mobile devices

© 2012 SAP AG. All rights reserved. 36Internal

© 2012 SAP AG. All rights reserved. 37Internal

Customer Intimacy

© 2012 SAP AG. All rights reserved. 38Internal

Customer Analytics

© 2012 SAP AG. All rights reserved. 39Internal

Detective Controls

Fraud detection and control

Continuous risk assessment

Audit at the speed of business

© 2012 SAP AG. All rights reserved. 40Internal

Telemetry for the Rest of Us

© 2012 SAP AG. All rights reserved. 41Internal

Intelligent Shoes

© 2012 SAP AG. All rights reserved. 42Internal

Intelligent Pills

© 2012 SAP AG. All rights reserved. 43Internal

Intelligent Airports

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>1m data points per day and growing (~10% customers with smartphones)

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Intelligent Roads

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Snail Tracking

Creative interpretation of a transponder-wearing snail

© 2012 SAP AG. All rights reserved. 46Internal

Snail Tracking

© 2012 SAP AG. All rights reserved. 47Internal

Smart Meters

1.8 Million Smart Meters by 2015

© 2012 SAP AG. All rights reserved. 48Internal

Efficiency Savings: $70 million over three years

© 2012 SAP AG. All rights reserved. 49Internal

Electricity Theft

77,000 homes, $100 Million a Year, 3% of bills

© 2012 SAP AG. All rights reserved. 50Internal

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Millions of daily consumption profiles contain valuable information about customer behavior for a better energy management

typical size: millions of daily profiles1Instead of exploring millions of individual profiles it is sufficient to take a look at the typical pattern in the data to understand user behavior. Those pattern are the basis for other follow-up processes

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In-memory pattern recognition algorithm crunches typical load profiles out of those huge amount of data to “summarize” those data and categorize user behavior.

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© 2012 SAP AG. All rights reserved. 51Internal

Zigbee

© 2012 SAP AG. All rights reserved. 52Internal

Medical Example Here

Provide instant feedback

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Can You Rethink Your Business?

Geographic Analysis

Predictive, Risk-Based PlanningCustomer Interaction Applications

Mobile ApplicationsSensor Data

Customer-Facing Benchmarks

Real-Time Decisions

Flip Business ModelsLead industry change

© 2012 SAP AG. All rights reserved. 55Internal

Analytics First

An author with a novel idea…

© 2012 SAP AG. All rights reserved. 56Internal

© 2012 SAP AG. All rights reserved. 57Internal

AOK

The Good Health Organization

© 2012 SAP AG. All rights reserved. 58Internal

Personalized Offer Testing

© 2012 SAP AG. All rights reserved. 59Internal

Can You Flip Your Business Model?

Customized, Personalized

Work With Your EcosystemIterative, Real-Time Improvements

Turn Products Into Services

“Unthinkable Apps”

© 2012 SAP AG. All rights reserved. 60Internal

The New Analytic Possibilities Are Endless…

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

Understand what your customers and potential customers are saying about you, right nowPredict cash flows to manage collections, risk and short-term borrowing in real time

© 2012 SAP AG. All rights reserved. 61Internal

We Have Faulty Perceptions

© 2012 SAP AG. All rights reserved. 62Internal

So Be Humble!

© 2012 SAP AG. All rights reserved. 63Internal

“The stone age was marked by man's clever use of crude tools; the information age, to date, has been marked by man's crude use of clever tools.”

© 2012 SAP AG. All rights reserved. 65Internal

www.experiencesaphana.comExperience SAP HANA:

© 2012 SAP AG. All rights reserved. 66Internal

Conclusion

Time to rethink your analytic technologyBig data, mobile, social, collaboration, cloud…

Time to rethink your businessLook for new opportunities to: eliminate bottlenecks, rethink business processes, flip business models

You can start todayDon’t be left behind

Thanks!

Email:timo.elliott@sap.com

Analytics Blog:timoelliott.com

You Should Follow Me on Twitter: @timoelliott