Analytics: Innovation in Real-Time

Analytics: Innovation in Real-Time
Timo Elliott May 2012

What’s New? World Volatility

2

The Road Ahead

© 2012 SAP AG. All rights reserved. Internal 3

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

“Organizations earn $10.66 for every $1 spent on analytics”
Source: Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011 4

Business Analytics Market Shares

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

SAP 23%
Oracle
15.6%

SAS Institute
13.2%

IBM
11.6%

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

Technology Trends


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 Bottlenecks
Give business people what they’ve been asking for

Business / IT Tension

But the
I need my
system can’t
reports NOW!
cope!


Colgate-Palmolive

Able to run detailed profitability
analysis for the first time


Provimi

“3-3-3 Just do it!”

Increased working capital
by €20 Million


Red Bull

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

Danone

Sustainability
reporting on
35,000 products


Walkers Crisps

Identified new cost savings

16

Medtronic

Combine structured and
unstructured data for
business value

What About Social Data?


Social Analytics

Combine inventory and social media data to understand
trends

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!)


Altron Allied Electronics

Mobile-first analytics
strategy: cheaper, easier,
happier users


Cornell Bookstore

. Dependent factors

Hidden relationship

Limitation of regression model

Forecasting based on multiple factors

Predictive analytics on out-of-stock books

Health Intelligence


Hand Washing


Can You Remove Bottlenecks in Your Business?

Data Volume/ Complexity
Flexibility
Sustainability
Unstructured data
Social data
Access on the move
Transparency

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

Fresh Direct

“Our Food is Fresh.
Our Customers Are Spoiled”


React to changes in time to make a difference

Parking Ticket Optimization

Leverage
spatial
data


Fruit Ratings

Provide data to customers to improve loyalty

Houghton Mifflin Harcourt

Better planning
for competitive
advantage


Charité University Hospital

Rethink
processes using
mobile devices


Customer Intimacy


Customer Analytics


Detective Controls

Fraud detection and control

Continuous risk assessment

Audit at the speed of business


Telemetry for the Rest of Us


Intelligent Shoes


Intelligent Pills


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

© 2012 SAP AG. All rights reserved.
43 Internal 43

Intelligent Roads


Snail Tracking

Creative interpretation of a transponder-wearing snail

Snail Tracking


Smart Meters

1.8 Million Smart Meters by 2015


Efficiency Savings: $70 million over three years


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


Smart Meter Analysis

0 hrs 24 hrs
0 hrs
0,06
0,05 24 hrs
0,04
0,03
0,06
0,02
0,05
0,01
0,04
0
0,03
0,02
0,01
0,04
0
0,03

0,02
0,04
0,01
0,03
consumption

0
0,02

0,01
consumption

0,05
0
0,04

2 In-memory pattern recognition
0,03
0,05
0,02
[kWh]

0,04
0,01

algorithm crunches typical load
0,03
0
0,02
[kWh]

0,01

0
1,00E-01

8,00E-02

6,00E-02
profiles out of those huge amount
of data to “summarize” those data
1,00E-01
4,00E-02
8,00E-02
2,00E-02
6,00E-02
0,00E+00
4,00E-02

2,00E-02

0,00E+00
and categorize user behavior.
0 ,0 5

0 ,0 4

0 ,0 3

3 Instead of exploring millions of individual
0,05
0 ,0 2
0,04
0 ,0 1
0,03
0
0,02

0,01 profiles it is sufficient to take a look at the
1 0

typical size: millions of daily profiles typical pattern in the data to understand
user behavior. Those pattern are the basis
Millions of daily consumption profiles contain for other follow-up processes
valuable information about customer behavior for
a better energy management


Zigbee


Can You Rethink Your Business?

Real-Time Decisions
Geographic Analysis
Customer Interaction Applications
Predictive, Risk-Based Planning
Mobile Applications
Sensor Data
Customer-Facing Benchmarks

Flip Business Models
Lead industry change

Analytics First

An author with a novel idea…

AOK

The Good Health Organization


Personalized Offer Testing


Can You Flip Your Business Model?

Turn Products Into Services
Customized, Personalized
Iterative, Real-Time Improvements
Work With Your Ecosystem

“Unthinkable Apps”

The New Analytic Possibilities Are Endless…

Instantly predict market trends Provide exactly the right offers
and customer needs and service levels to every
customer
Predict how market price Have a continuously-updated
volatility will impact your window onto future sales,
production plans showing changes in real time
See changes in demand or Understand what your
supply across your entire customers and potential
Supply Chain immediately customers are saying about
you, right now
Monitor and analyze all Predict cash flows to manage
deviations and quality issues collections, risk and short-
in your production process term borrowing in real time


We Have Faulty Perceptions


So Be Humble!


“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.”


Experience SAP HANA:
www.experiencesaphana.com


Conclusion

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

Time to rethink your business
Look for new opportunities to: eliminate bottlenecks, rethink business
processes, flip business models
You can start today
Don’t be left behind


Thanks!
You Should Follow Me on Twitter: @timoelliott

Email:
timo.elliott@sap.com

Analytics Blog:
timoelliott.com

Analytics: Innovation in Real-Time

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