Anp101 - Sap Businessobjects Predictive Analytics - What You Really Need To Know
Anp101 - Sap Businessobjects Predictive Analytics - What You Really Need To Know
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directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice.
The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality.
This presentation 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. This presentation is for informational
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially
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Principles of predictive
How predictive analytics improves future outcomes
The missing link in most predictive implementations
Additional topics
Predictive options in SAP HANA
Predictive in Big Data – SAP’s Native Spark Modelling
In these examples,
the value of the predictive model is
delivered in the business context
of the consumer.
Everything we touch…
1 1 1
8 Hour
30 Seconds Airline operations
10 Seconds
Call center inquires
1 Day
1 Minute
1 Minute
Re-compute Finance
3 Days
10 Minutes
10 Minutes
Supply chain updates
Document Transfers
3 Days 2 Minutes
45 Seconds Phone Activation
supply by 2018”
Refresh data warehouse
1 Week 1 Hour
Trade settlement
5 Days 1 Day
7 6 5 4
10 10 10 10 1,000 100 10 1 0 Seconds
Transactions Machines Dun & Bradstreet and McKinsey Global Institute analysis
Operational
Customers margin Growth
How do you personalize each How do you improve your performance How do you create new products,
interaction across all channels? across thousands of processes and decisions? services, and business models?
* “The Digital Advantage: how digital leaders outperform their peers in every industry”: CapGemini and MIT Sloan
Churn Reduction • Predictive Maintenance • Fraud and Abuse Detection • Cash Flow and Forecasting • Life Sciences
Customer Acquisition • Load Forecasting • Claim Analysis • Budgeting Simulation • Health Care
Lead Scoring • Inventory/Demand • Collection and Delinquency • Profitability and • Media
Product Recommendation Optimization • Credit Scoring Margin Analysis • High Education
Campaign Optimization • Product Recommendation • Operational Risk Modeling • Financial Risk Modeling • Public Sector /
Customer Segmentation • Price Optimization • Crime Threat • Employee Retention Social Sciences
Next Best Offer/Action • Manufacturing Process Opt. • Revenue and Loss Analysis Modeling • Construction and Mining
• Quality Management • Succession Planning • Travel and Hospitality
• Yield Management • Big Data and IoT
Results:
A B C
Understanding Customers
SAP
Predictive Improving Performance
Analytics
Driving New Revenues
Public
SAP Predictive Analytics
i
ANP160
SAP BusinessObjects Predictive Analytics
101: Discovery Session (2 hr Hands on)
i
ANP600
Start Developing with SAP HANA Cloud
SAP BusinessObjects Predictive Analytics Predictive Services (CodeJam)
Predictive Factory
Business Analysts
Data Scientists
Citizen Data Scientists
Tracy, the business analyst uses Automated Analytics (and APL) John, the data scientist uses Expert Analytics (and PAL/R)
rom a Identify
Start f Handle Start from a outliers
ss g
busine missin data science
on and values Identify
questi problem and
a correlations
follow
comple nd
te choose an
-e algorithm and
end-to
s
proces set its
parameters
Automated Analytics Interface Expert Analytics Interface
Derived
Identified
Business
Identified
Problem
Business
Write Code
Problem
Results
Results
Aggregate Identify Features
+ Develop Debrief for
Prepare Relevant
Models models Database
Data Variables Encode Execution
Variables
2. Produce
candidate models
Business
Identified
Problem
Business
Write Code
Problem
Results
Results
Aggregate Identify Features
+ Develop Debrief for
Prepare Relevant
Models models Database
Data Variables Encode Execution
Variables
Typical approach to
predictive automation:
Stack several algorithms and
“hope for the best”
• Precise, accurate, and fast polling of 10 million observations and 800 variables
to identify customer-related issues, including:
• Propensity to purchase
• Likelihood of churn
• Prospective credit risks
• Created personalized offers more quickly and accurately for more than 6 million
subscribers across 28 regions
• Doubled direct mail campaign conversions
Public
How Does Predictive Analytics Work?
Automatically detect
Apply predictive
Historical data patterns to determine
model to new data
recurrent behaviors
Customers
Propensity Marketing
Products
Risk Finance
Transactions
Fraud Maintenance
Equipments
The New York Times: “For Big-Data Scientists, ‘Janitor Work’ Is Key Hurdle to Insights”
August, 17, 2014
2 Derived Attributes/Features
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Sshhh… Predictive’s Big Secret
Model Automation with Predictive Factory
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The Predictive Process with SAP Predictive Analytics
Model
Management
Maintain
Question
Control
PA INDUSTRIALIZES
DataSource
Design PREDICTIVE
Execute RESULTS PRODUCTION
Manipulation Manipulation
Deploy Results
DATA MANAGER Automated
Modeling
Consumption
Model
GET THE DATASETS Creation
AUTOMATICALLY
WHEN NEEDED
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 38
The Predictive Factory
Key benefits
• Manage thousands of models easily and robustly
• Automate model refresh and application
• No scripting needed
• Multi-User, collaborative experience
Segmented Modelling
• Take a dataset with thousands of segments. e.g.
Retail outlets, market segments, geographies,
products, machines ….
• Build a model for one segment using Automated
Modeler. Import the Model into Predictive Factory
• Segment the model in Predictive Factory to build
models for every other segment with the same
model parameters and configuration
Sales
• Scalable to thousands of segments
North
EMEA APAC MEE
• Supports Time Series in 3.0 America
2. Model retraining/refresh:
• Use original modelling parameters to recreate/retrain models on schedule or trigger
• Ensure scoring is always using the most efficient model possible
3. Model re-application:
Apply models directly to datasets in source databases and re-score all values
Apply scoring equations into source systems with SQL, code, or PMML
4. Model scheduling:
Enable recurring tasks using complex application scenarios (check deviations, alert, retrain model, apply..)
Console with full task management and history
Public
Real-Time reinvents Analytics
Predictive
Data Storage Analytic Tools
Application
SAP Predictive Analytics offers advanced SAP HANA integration and provides in-database
and in-memory computing through dedicated SAP HANA Predictive Libraries : SAP
Predictive
• Create and apply models on very large datasets within SAP HANA or in a Hadoop storage Analytics
transparently connected to SAP HANA.
• Real-time predictions recommendations: integrate predictive models into processes
• Native integration with SAP HANA for ERP and BW, to provide in-applications predictive
modeling.
Technical Whitepaper: Unleash the Power of Predictive Analytics with the SAP HANA Platform
(Also available at www.sap.com/predictive)
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 45
particular purpose, or non-infringement
APL (Automated Predictive Library)
SAP HANA APL functions let you use the data-mining capabilities of the Automated Analytics
engine on the datasets stored in SAP HANA.
APL comprises the following data mining functions:
• Classification/Regression models
• Segmentation/Clustering models
• Time series analysis models
• Recommendation models
• Key Influencers
http://scn.sap.com/community/predictive-analytics/blog/2015/03/02/what-is-the-sap-automated-predictive-library-apl-for-sap-hana
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 46
particular purpose, or non-infringement
SAP HANA
Real-time in-memory predictive analytics platform
SAP HANA
Automated Predictive
Other Native
Predictive Analysis R-Server
Library Libraries
Library
Automated Library
Native integration Embedded predictive
Models in to the Business Suite engine
powered by HANA
Public
Value proposition – Automated + Big data
Business Analysts
Data Scientists
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 50
particular purpose, or non-infringement
Leverage Hadoop + Spark = big data store + application platform
Traditional
Native Application
Application
Data Transfer
Database
Hive QL SQL
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 51
particular purpose, or non-infringement
Existing Process: entire dataset is transferred
Connectivity = SQL only
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 52
particular purpose, or non-infringement
With Native Spark Modelling, processing closer to data in Hadoop
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 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 Customer 53
particular purpose, or non-infringement
Final Thoughts
Public
Accurate results in days, not weeks
For everyone: perfect for Analysts AND Data Scientists
SAP
AUTOMATED ANALYTICS BUSINESSOBJECTS ULTIMATE FLEXIBILITY
Reduce time and skills required PREDICTIVE ANALYTICS FOR ALGORITHMS
to create accurate models with repeatable Use off-the-shelf algorithms or bring
workflow specialized ones – such as R functions
Key links
Contact information:
Please complete your
Ashish C. Morzaria
session evaluation for Director – Advanced Analytics
a.morzaria@sap.com
ANP101.