Evolution of SAP Analytics with SAP InfiniteInsight A Partner Community Event Mike Watschke, Predictive COE September 9, 2014 2014 SAP AG. All rights reserved. 2 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight Predictive Analytics Roadmap SAP InfiniteInsight & HANA Integration Partner Pricing Tips and tricks for implementation Agenda 2014 SAP AG. All rights reserved. 3 What is Predictive Analytics from SAP? SAP Predictive Analytics is: A comprehensive, leading suite of products from SAP. An advanced area of analytics designed to provide more intelligent, more forward-looking (anticipatory), and more actionable analysis. SAP Predictive Analytics is designed to: Help companies make better decisions. Derive better insight and optimize customer relationships. Make more meaningful and proactive sense of Big Data. Answer difficult questions that BI is not equipped for. SAP Predictive Analytics is a suite of products sold only as a bundled solution! 2014 SAP AG. All rights reserved. 4 Technical Script-based Technical In-memory Script-based Semi-Technical Modeling/Viz UI-based Functional Automated Modeling UI-based What could happen? Whats the best that could happen? What happened? When did it happen? What is Predictive Analytics from SAP? 2014 SAP AG. All rights reserved. 5 Business Benefits and Impact Typical KPIs addressed Churn rate Marketing campaign response rate Click through and conversion rate Failure rate (maintenance) Customer satisfaction Number of website page views Number of new customers ARPU (Average Revenue Per User) Fraud rate How SAP Predictive Analytics will solve them Build predictive models for every customer interaction Segment customers Recommend relevant products Prevent fraud Detect early signals Salvage customers Increase i n sales Increase in conversions 40x Increase in campaign conversion rates 260% 8.5% 2014 SAP AG. All rights reserved. 6 SAP Infini teInsight Provide Business analysts and Data scientists with a fully automated process Data preparation Create 1000s of derived attributes Define metadata once Builds analytic dataset automatically Predictive modeling / Data mining Regression / Classification Segmentation Forecasting Association rules Social Network Analysis Advanced model deployment and management 2014 SAP AG. All rights reserved. 7 SAP Predictive Analysis (includes Lumira codeline) 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 2014 SAP AG. All rights reserved. 8 Beating the Competiti on Traditional Predictive Solutions (such as SAS and IBM) Time-intensive, manual processes. Linear relationship between model accuracy and analyst time Hard to maintain, share and port model code or workflow diagrams Stati stical library where the right algorithm must be selected, tested and fine- tuned Hard Isolated Slow Statistici ans pre- select vari ables, hence excluding information Manual 1 2 3 4 5 2014 SAP AG. All rights reserved. 9 Positi oning against the Competi tion SAP Predictive Analytics Reduce decision latency wi th real- time insight Apply actions to information, processes, and apps Bring Advanced Analytics to a broad spectrum of users Easy Actionable Fast Sel f-service application of the right model with the best fit Automated 2014 SAP AG. All rights reserved. 10 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight User Interface Enhancement New Database Support Security Enhancement Engi ne Enhancement Composi te Variables Geo-referenced Data Integration more Agenda 2014 SAP AG. All rights reserved. 11 User Interface Enhancement Compliance Crystal Blue User Interface Theme Accessibility Keyboard navigation Mnemonics Navigation shortcuts Font Size, High Contrast Mode, report style sheet. Usability Ribbon in several panels Data Manipulation User Interface Enhancement Merge Panel Redesign Domain Edition Redesign Graph Visualization User Interface Enhancement communities' temporal evolution visualization Temporal graph duplication Community browsing enhancement 2014 SAP AG. All rights reserved. 12 New Database Support Big Data: Hadoop/Hive 11 & 12 support Hadoop Hive 12 full support Hadoop Hive 11 limited support due to hive limitations Connectivity through Data Direct ODBC driver Explorer/Advanced Data Manipulation (ADM) Scorer Greenplum 4.2 support Connectivity through ODBC driver Explorer/ADM Scorer 2014 SAP AG. All rights reserved. 13 Security Enhancement InfiniteInsight 7.0 now uses Single Sign On (SSO) Authentication on Linux (only) The Linux Server must rely on Kerberos for Authentication. SSO Client Layers have been deployed on Windows Linux J ava Web Start Added a new argument in the remote Corba Api Authentication token is passed to all api calls. 2014 SAP AG. All rights reserved. 14 Engine Enhancement Ordinal Binning Ordinal variables statistics representation has changed. Now Ordinal variables are cut into bins. The maximum number of bins of a given ordinal variable is 20 (default value). No Ki/Kr regression compared to previous version representation. Purpose Empty bins are now represented on the training dataset in order to handle them when finding unseen values when scoring. Non robust ordinal categories are now grouped in single segments. Debriefing of an ordinal variable is easier Speed and memory usage enhancement Ordinal variables with large dictionary are now limited to 20 bins (default value). It limits the memory usage and speed up the compression process. Representation of an ordinal variable in previous versions Representation of an ordinal variable in 7.0 2014 SAP AG. All rights reserved. 15 Engine Enhancement Regression Improvements Input Encoding For continuous target (regressions) the input variables encoding are no more based on the target segment frequency (normal profit). Input variables encoding is now based on the target mean. Ki/Kr and profit curves are computed based on target mean profit. Categories and groups with higher target means are more profitable. Compression groups together categories with similar target means. Purpose This target mean based encoding is more natural and consistent for regressions than the previously used normal profit. Normal Profit encoding for a variable in previous versions Target Mean encoding for the same variable in 7.0 2014 SAP AG. All rights reserved. 16 Engine Enhancement Regression Improvements Model Selection For continuous target (regressions) the model selection is no more based on the L2. The model selection is based on the Ki/Kr. Only possible because now all inputs are encoded based on the target mean (previous slide). Now the modeling engine (classification and regression) is fully non-parametric. Significant improvements in modeling quality compared to previous release (based on our benchmarks) The 7.0 release encoding is more consistent for the modeler estimator. In the 7.0 release, the Ki/Kr of the estimator is better than all individual Ki/Kr of each inputs which was not the case on previous releases. Previ ous Releases 7.0 Release 2014 SAP AG. All rights reserved. 17 Composite Variables Composite Variables does offer the possibility to cross existing variables in order to create new ones. Pair variables cross. Multiple variables cross. Geo-location variables cross (detailed after). The created crossed variables are named: CompoVarName_VarName1_VarName2. o CompoVarName is the prefix name of the composite variable. o VarName1 is the first variable name. o VarName2 is the second variable name. 2014 SAP AG. All rights reserved. 18 Geo-Referenced Data Integration Location-Aware Natively identifies the location of a person or transaction using latitude and longitude and translates that data into a new variable type, called geographic tiles or regions. Support of a new Storage type Angle. Need to use composite variables to create position variable. Automatically computes tiles with additional information Tile coordinates, Weighted count, Tile Frequency, Density. Several export format support KML, GML, Shape_File Associated color and opacity can be set to Frequency, Positive Target (only on supervised modelling) and Density. 2014 SAP AG. All rights reserved. 19 Geo-Referenced Data Integration Co-Location Detects transactions or events occurring in the same location during the same period of time. Proximity Graph Type in Social Module dedicated to Geo-Referenced Data. o Target Node is a composite position variable o A size of a tile is mandatory to define the granularity of the processing. o Needs unique identifiers. o Can be supervised or not. Synchronous policy o This policy will control how the neighbors of a neighbor are considered. o For Synchronous policy, a neighbor of a neighbor is only included in the graph for each dates couple that verify the maximum time delta (under the defined threshold). 2014 SAP AG. All rights reserved. 20 Geo-Referenced Data Integration Path Identification Creates a sequence of geo-localized positions from time-based transactions to extract patterns of events. Sequence policy A sequence of N tiles is considered if this sequence was detected M times (no matter the number of user). The next transition limit is the maximum number of next events that will be considered. 2014 SAP AG. All rights reserved. 21 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight Predi ctive Analytics Roadmap SAP InfiniteInsight & HANA Integration Partner Pricing Tips and tricks for implementation Agenda 2014 SAP AG. All rights reserved. 22 Planned Innovations Future Direction Today SAP Infi niteInsight: Classification, Regression, Clustering algorithms available in PA SAP HANA: Support of DBSCAN Algorithm. ( Density based Clustering ) Support of SVM Algorithm Support of Silhouette Calculation for Cluster Results (e.g. the quality of the cluster ) Improvement of univariate Statistics information with HANA Online. Automatic Decimal to double conversion. HANA Partition Component Export model based on HANA PAL as stored procedure to HANA DB Visualization Improvements Improved confusion matrix for classification algorithms This is the current state of planning and may be changed by SAP at any time. (Release 1.17.2) SAP Predictive Analysis Product road map overview - key themes and capabilities Consumption of Models in Lumira Desktop and Lumira Cloud Improvements for handling large/Big Datasets, without requiring partitioning BW connectivity & modeling online and offline OEM/SDK support for Partners and customers Improve HANA PAL support - Custom online component to call any HANA PAL from desktop PA -Charting improvements General improvements with R, installation process, bug fixes Installer improvements Unified UI for Predictive Full integration of SAP Predictive Analysis and SAPII suite Customization Run HANA SQL script Pervasive casual user workflows Easy model consumption and maintenance Simplified predictive workflows Application consumption API SDK Exporting models as text rules & stub code Advanced predictive capabilities Ensemble modeling Model and algorithm comparison Auto node and auto modeling Large data volume visualization 2014 SAP AG. All rights reserved. 23 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight Predictive Analytics Roadmap SAP InfiniteInsight & HANA Integration Partner Pricing Tips and tricks for implementation Agenda 2014 SAP AG. All rights reserved. 24 In-Memory Predictive Analytics with SAP HANA SAP HANA In-memory In-database Predictive Analysis 1 Predictive Analysis Libraries (PAL) Accelerate predictive analysis and scoring with native in-database algorithms delivered out-of-the-box. Graphical Modeli ng HANA Studio for app developers. Pre-built commonly utilized business & predictive algorithms to facilitate a faster and easier development. 2 R Integrat ion Execute R scripts via high performing parallelized connection. Embed R scripts as part of overall query plan. SAP Lumira SAP Predictive Analysis SAP InfiniteInsight Partner Tools & Solutions In-Memory Processing Engine SQL Engi ne Text Engine Calculation Engine PAL 1 R-Scripts 2 Association Analysis Cluster Analysis Classification Analysis Time Series Analysis Outlier Detection Link Prediction Data Preparation R-Engine HANA Studi o Modeler 2014 SAP AG. All rights reserved. 25 Enterprise Data CRM Teradata/Other Hadoop F l e x i b l e C o n s u m p t i o n E x t r a c t , T r a n s f o r m , L o a d a n d S t a g e ERP Cloud Social How i t works Data to Decisions Agile Analytics SAP HANA SAP BI HTML 5 Mobile Apps API ByOT Integration with HANA allows real- time, high performance predictive processes and analytics Automated, results-driven predictive modeling for data scientists and business users alike Publish results to BI, embed within apps, generate actionable scores within DB, more
Leverage any data source enterprise, departmental, cloud, 3 rd party, unstructured, more
Infi niteInsight Predictive Solution Any Data Source Direct Direct 2014 SAP AG. All rights reserved. 26 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight Predictive Analytics Roadmap SAP InfiniteInsight & HANA Integration Partner Pri cing Tips and tricks for implementation Agenda 2014 SAP AG. All rights reserved. 27 SAP InfiniteInsight Edge, Modeling Edition Standard Regional uplifts apply Standard Partner Edge Discounts apply Upgradeable to Full Use InfiniteInsight Modeler Can be sold by direct sales and partners Restrictions Maximum of 2 users Cannot be used with any other predictive components (engine, social, recommendation) 20K EUR / NUL SKU: 7017140 SAP Inf. Insight Modeler (1 NUL) 2014 SAP AG. All rights reserved. 28 SAP InfiniteInsight Edge, Analytics Edition Standard Regional uplifts apply Standard Partner Edge Discounts apply Upgradeable to Full Use InfiniteInsight as long as all the included options are also purchased Can be sold by direct sales and partners Restrictions Single package purchase Maximum of 500GB data Maximum of 8 cores for Sybase IQ Maximum of 4 cores for Data Integrator Predictive capabilities cannot be used for data outside of IQ Can be only used with Edge BI analytics edition SAP IQ (8 cores) 100K EUR SKU: 7017141 Edge Data Integrator (4 cores) SAP Inf. Insight Engine (8 cores) SAP Inf. Insight Modeler (2 NUL) 2014 SAP AG. All rights reserved. 29 SAP InfiniteInsight short overview Whats new with SAP InfiniteInsight Predictive Analytics Roadmap SAP InfiniteInsight & HANA Integration Partner Pricing Tips and tricks for implementation Agenda 2014 SAP AG. All rights reserved. 30 Predictive Process Discovery to Deployment Typically 45 60% of Project Effort / Time Data Loading, Volume, Complexity, and Processing Performance Limits: Load Exploration Preparation New and Changing Data Sets Batch vs. Near- and Real-time Data Typically 15 - 30% of Project Effort / Time Data Volume, Complexity and Speed of Processing Limits: Model Selection Test / Validation Data Volume, Complexity and Speed of Processing Limits: App Performance Appropriate Tools For Users Typically 15 - 25% of Project Effort / Time Move Model Into Production One-time? / On- going? 2014 SAP AG. All rights reserved. 31 Core Predictive (and related) Components SAP Data Services SAP HANA SAP InfiniteInsight CRM/ERP, 3 rd Party Apps SAP BusinessObjects Files Databases Cloud or on-premise R integration PAL integration Big Data and departmental ready Use Explorer to create analytical record even if HANA is used Zero in on a specific use case that shows business value and improvement Web & Others Write scores and logic back to source or CRM/ERP/custom Prove uptick from historical to future if solution deployed Publish predictive results and viz analysis to Lumira/PA.mobile, etc. 2014 SAP AG. All rights reserved. 32 Your Go-To Partner site supporting Predictive Analytics. https://partneredge.sap.com/en/products/infi/about.html For more i nformati on Thank You! Addendum 2014 SAP AG. All rights reserved. 35 SAP Predi ctive Analytics helps compani es make better decisions, derive better i nsight and optimize customer relationships by deploying predictive analytics on the mountai ns of data compani es have in their data warehouse and CRM systems. Our end-to-end sol utions unl eashes the power of bi g data to deliver massive improvements in speed and agility. We optimize every step in the customer l ifecycle includi ng acquisition, cross-sel l, up-sel l, retenti on and next best activity as well as i n fraud, risk and operations. Elevator Pitch 2014 SAP AG. All rights reserved. 36 SAP ERP/CRM/Cloud opportunities & installed base Move from BI to Advanced Analytics: Existing BusinessObjects and Lumira customers HANA: sell with HANA or up-sell on top of it since HANA is a predictive facilitator and run-time engine for in-memory, fast predictions on Big Data Coexist with SAS/IBM with customers already doing Predictive Top Selli ng Scenari os 2014 SAP AG. All rights reserved. 37 Predictive Analytics brings business value, so start the use case with business, not IT Shift from technology to solution selling an Advanced Analytics solution from SAP entails HANA, Predictive Analytics, BI, and possibly analytics applications, Rapid Deployment solution, and related Need for more data, hence Predictive Analytics sells more HANA Helps sell more apps and industry solutions Expanding the Footpri nt 2014 SAP AG. All rights reserved. 38 Handli ng Objecti ons Is the quality of the models as good as it was developed using SAS? Yes. SAP InfiniteInsight aims at answering business issues, and builds accurate models quickly. A number of model iterations are produced, each with varying degrees of predictive power and confidence, and customers can choose the one that meets their requirements. SAP InfiniteInsight lacks a wi de choice of algorithms i n its statistical library. The approach is fundamentally different: InfiniteInsight is not a statistical workbench but a solution who makes predictive analytics usable by business analysts, and not only data scientists. SAP has two predi ctive tools Why is that? SAP acquired a leading predictive solution in 2013. There is a public roadmap where we have committed to delivering the best of the features and usability between the two tools in one suite going forward. 2014 SAP AG. All rights reserved. 39 WHAT CUSTOMERS CARE ABOUT Line of Business Head of CRM VP of Sales Business Analyst, IT Operations Customer Service Head of BI Data Scientist Pain Poi nts & Business Drivers The business is demanding solutions to answer questions like Why and Whats likely to happen next Tools on the market today are designed for data scientists, not analysts nor business users There is a skills shortage of those can develop models Inability to provide proactive and actionable predictive results to business users Volume and Velocity of the data growing faster than our ability to drive insights Can you proactively detect and address customers who are at risk of leaving? Are you able to identify and retain your high-value customers with the right retention offers? Can you increase your cross-sell and up-sell effectiveness through cross-channel coordination? Do you currently use any predictive analytics tools like SAP Predictive Analysis, SAS, SPSS, R, or other predictive software solutions? Where would you consider yourself/your organization on a PA Maturity scale (1-10)? Discovery Questions Executives CMO CIO CFO Qualifying Opportuniti es 2014 SAP AG. All rights reserved. 40
The model building
process, including data prep and analysis, now takes 1 to 2 weeks 100% accuracy that a signal is positive at 97% confidence The user doesnt have to really worry about which algorithm is the best. Data Scientist Data Analyst Business User 700 models Built for churn and X-sell
Viliah Overwater, Snr.
Modeling Analyst, Vodafone NL 82% accuracy in sales forecasts, a 10% improvement "SAP InfiniteInsight has given us a scalable approach to create accurate forecasts across our business. Elena Zhukova, Head of Analytics, Eldorado LLC Gagandeep Bawa, Manager, North America FP&A at eBay Inc. Predictive Analytics Delivers High Return