Big Data Leads to Big Insights

Colin Dover, Platform & Analytics Center of Excellence

© 2013 SAP AG. All rights reserved. 2

© 2013 SAP AG. All rights reserved. 3

Global Economic Fragility is the New Normal

Source: IMF World Economic Outlook Update, 1/23/13

Wrenching

Change,

Happening in

Moments

Scant

Competitive

Opportunity

Continuous

Technology

Disruption

Irreversible

Economic Inter-

dependence

Focus on Risk

and Regulations

Significant Implications to Prospects of Growth

Nucleus Research, Gartner, Fortune Magazine

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

Bottom Line: Not leveraging the

power of collective insight

Missing new

insights

IT is not agile enough and

the business wants to get

involved

=

Every company deserves a “data scientist”

Big Data’s Promise…

$300

Billion in potential

annual value to

US Health Care

- more than

double the total

annual health

care spending in

Spain

€250B in potential

annual value to

Europe’s Public

Sector admin. -

more than GDP

of Greece

$600

Billion in potential

annual

Consumer

surplus from

using personal

location data

globally

McKinsey: Big Data - The Next Frontier report. Sept. 2011

60% potential

increase in

Retailers’

operating

margins possible

with Big Data

…requires thinking “out of the box”

What if you could turn

new signals into business value

:-) Brand Sentiment

360O Customer View

Product

Recommendation

Propensity to Churn Real-time Demand/

Supply Forecast

Predictive Maintenance

Fraud Detection

Network Optimization

Insider Threats

Risk Mitigation,

Real-time

Asset Tracking Personalized Care

CANCER PATIENTS RECEIVE

TREATMENT OPTIMIZED

TO THEIR DNA

BIG DATA DIVERTS DRIVERS BEFORE

FATAL ACCIDENTS

HAPPEN

DRIVERS RACE PAST RIVALS FUELED BY BIG DATA

BIG DATA Success Demands Full Coverage

Accessible

Deep

Simple Real Time

Broad

• Answer complex questions on granular data

• Predict the best next action

• On any device or to any user • Self service and intuitive

interactions

• No data preparation • No pre-aggregates • No tuning

• Real-time streams of data • Ask a question, get an

immediate answer

• Massive data scale • Many data types

© 2013 SAP AG. All rights reserved. 18

Data

Connectors

ETL

Streaming

Analytics

Advanced

Analytics

Line of

Business

Apps

BI &

Reporting

Visualization

&

Exploration

Industry

Apps

Big Data

Development

Tools

In-memory &

petabyte-scale

SAP makes Big Data Real

Real-time. Real Results.

SAP makes Big Data real

Big Data Science Services

SAP HANA Platform

SAP

Data Services

Data

Connectors

SAP Sybase ESP

Acquire

Act

Analyze

Sybase IQ Hadoop SAP HANA

Spatial Predictive Text Analysis

Visualize and Act

Industry/LOB Apps Custom Apps Analytic Apps

SQL XS Engine R

SAP Big Data Apps & Analytics

Real-Time Real World Real Results

© 2013 SAP AG. All rights reserved. 23

SAP Big Data Maturity Model U

se c

ase s

op

his

ticati

on

Without a strategic Use Case, there is NO technical requirement for Big Data Analytics

No Big Data Project, no benefits seen

Search for a significant item in big data

Understand the big picture from all available data

Generate change in response to shifts in data automatically or manually

Use big Data to predict outcomes and adjust processes accordingly

Coping Understanding Managing Innovating Ignorance

Condition Based Maintenance

Demand Signal Management Customer Engagement

Shopper Insight

Sentiment Intelligence

Fraud Management

Apply Big Data Industry and LoB Apps

SAP Big Data real world startups

Interactive dashboards map allows

real-time interaction with the

monitored objects Demo video:

http://spr.ly/Centerity

Enables organizations to develop

deep understanding of customer

behavior from millions of individual

data transactions -  Dramatically

improving customer retention and

satisfaction

Web based/cloud based allows

for anywhere at anytime

accessibility to manage energy

intelligently reducing production

and energy costs

Provides consistent customer

experience across all channels.

Drives business impact closing

the loop between social and

traditional channels

Identification of critical fraud patterns

- significant improvements in

compliance. Real-time monitoring

and full transparency through

visualizations of all business

processes

Mobile sales teams and workforce

have fast, easy access to business

critical information to

accelerate the sales pipeline,

improve sales performance and

deliver superior service

Advanced and predictive analytics for LOB executives

Leaders in predictive and advanced analytics solve to big business problems, with flexible

engagement and deployment options

1. Performance and advanced analytics services

2. Select custom solutions

3. Existing reusable/repeatable IP and solutions

PAL* and R

Integration

SAP HANA PIO Science

SAP Business Objects

Dashboards Predictive Analysis

+ +

2

)2/()(

2)( 2

xe

xf

PIO delivering on your business imperatives

Forecasting Sales and Demand

Forecast demand and managing

inventory levels in perishable CPG

Model variant cannibalization and impact

on manufacturer forecasts

Utility load demand forecasting

Optimization

Optimize transport and logistics - recover

from unforeseen disruptions

Optimize depth and timing of retail

markdowns to boost sales

Grow deposits not excessive interest costs

Check and Compliance

Deliver faster response time and higher

throughput of compliance checks to

enable competitive advantage

Tackling public fraud waste and abuse by

analyzing records for tax discovery

Performance and Insights

Maximizing guest / customer experience

Assess the impact of promotions, and

improve profitability

Directional insight on growing revenues

and basket sizes

Connect Big Data insights to real-world issues Apply insights continuously through your people and processes

Analytic Tools Industry/LoB Apps Start Ups

Thank you

10-30% increase in revenue per year

Monitor eBay’s marketplace

health through automated signal

detection powered by predictive

analytics

100% Accuracy that a signal is positive at 97% confidence

+ $1.1M Revenue increase in revenue with 1% increase in retention rate

Faster, earlier intervention

reduces student drop-outs

through analysis of student

behaviors

Use real-time information to

operate its call centers with

greater productivity, a higher

first-call resolution rate, and

a lower cost per transaction.

- 5% Cost reduction In total overall cost

Gain competitive advantage using

predictive analysis of market

segmentation, promotions and

discounts

~2 seconds Execution of all queries from statistical modeling

Offer rapid analysis of social media

channels to track consumers and

influencers, and measure brands

against industry metrics

99% faster Significantly reduced ETL Load time

Revolutionize

passenger transportation and air freight logistics

industry

20 to 3 mins Expected reduction in passenger re-booking

Improve out-of-stock and

loss prevention through real-

time analysis of fraudulent

activity throughout stores

€ 1.2M potential shrink-reduction savings with

improved loss-prevention analytics

Refine sales offers for increased

adoption rate & profitability

$10-25 savings per win-back subscriber - potentially

billions of additional revenue per year

216x

faster DNA analysis results - from 2-3 days to 20

minutes

genomic analysis to enable

personalized treatment for

cancer patients based on their

DNA

Predictive Game Player Behavior

Analysis - 250 million users 60 games

5000 events per second

Provide engagement

for > 380 million fans with

>65 years of statistics available on

website

2X More time spent by fans on NBA website

Predict and Transform the

outcome of races

14,000x faster data analysis – from 5 hours to 1 second

7.5 million rows per minute throughput speeds

Quickly generate key performance

indicatorreports across multiple billing systems

and create a single view of each customer.

99% faster reporting – from 30 minutes to a few seconds

Better access (mobile devices) to

analytical information across the

enterprise, from manufacturing to sales

4 seconds

to query 10M records

Contact and Influence Finder

Application

24x faster 3 hours loading time for data

that once took 3 days

Analyze program and campaign

related data from its clients and

their dealer

Sports Betting: Real-time analysis

of odds offered in each game

45% expansion of market share in the

western Balkans

Proactively monitor trades and

provide auditing for financial

institutions that trade in energy

and commodity markets