EA103 Extend Your Analytics Capabilities on SAP HANA Using SAP Predictive Analysis Vishwanath Belur, Product Manager, SAP PI BIT Oct 2013

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1 EA103 Extend Your Analytics Capabilities on SAP HANA Using SAP Predictive Analysis Vishwanath Belur, Product Manager, SAP PI BIT Oct 2013

2 Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. 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. 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 particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent SAP AG or an SAP affiliate company. All rights reserved. 2

3 Agenda Advanced Analytics - Use Cases & Customer Pain Points SAP Vision for Advanced Analytics Overview of SAP Predictive Analysis and its capabilities Overview of KXEN InfinityInsight SAP Predictive Analysis - Demonstration Predictive Analytics in SAP Applications SAP Predictive Analysis Rapid Deployment Solution Roadmap 2013 SAP AG or an SAP affiliate company. All rights reserved. 3

4 Advanced Analytics Use Cases Forecasting How do historical sales, costs, key performance metrics, and so on, translate to future performance? How do predicted results compare with goals? What anomalies might exist and conversely what groupings or clusters might exist for specific analysis? Anomalies Challenges Key Influencers What are the main influencers of customer satisfaction, customer churn, employee turnover, and so on, that impact success? What are the correlations in the data? What are the cross-sell and up-sell opportunities? Relationships Trends What are the trends: historical / emerging, sudden step changes, unusual numeric values that impact the business? 2013 SAP AG or an SAP affiliate company. All rights reserved. 4

5 1 0 Customer Pain Points in Advanced Analytics Inefficiencies driven by slow response speeds & complexity ANALYSTS BUSINESS & IT Cache Talent Shortage Order Processing Operational Reporting RT Risk & Fraud Trend Analysis Sentiment Analytics Predictive Analytics Pattern Recognition Cache Cache Cache Cache Cache Operational Datastore Data Warehouse Sensors Mobile Archives Social & Text High TCO High Latency Spatial Processing Geo-Spatial 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

6 Advanced Analytics from SAP Reduce Decision Latency with Advanced Analytics Operationalize predictive & optimization models across the enterprise Bringing Predictive Analytics to a broad spectrum of users Integrated Platform, Open & Flexible R Integration SAP HANA Predictive Analysis Library (PAL) SAP Predictive Analysis KXEN SAP ADVANCED ANALYTICS 2013 SAP AG or an SAP affiliate company. All rights reserved. 6

7 The Forrester Wave Big Data Predictive Analytics Solutions, Q1 A leader in predictive SAP is a newcomer to big data predictive analytics but is a Leader due to a strong architecture and strategy. Comprehensive and holistic approach to Big Data SAP also differentiates by putting its SAP HANA in-memory appliance at the center of its offering, including an indatabase predictive analytics library (PAL), and offering a modeling tool that looks a lot like SAS Enterprise Miner and IBM SPSS Modeler. The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change SAP AG or an SAP affiliate company. All rights reserved. 7

8 SAP Brings BI and Advanced Analytics Together Search Explore Explorer Web Explorer Mobile SAP Lumira Cloud Share Loc al Vie w Enterprise Information Assets Design Model Acquire Transform Visualize SAP Lumira KXEN SAP Predictive Analysis Build Govern 2013 SAP AG or an SAP affiliate company. All rights reserved. 8

9 SAP Predictive Analysis... Complete data discovery, visualization, and predictive analytics solution... Integrated with SAP Lumira for data acquisition, data manipulation and visualization capabilities is one integrated solution for advanced data analysis and interactive data visualizations identifies trends, insights and discovers hidden patterns in the data SAP Predictive Analysis Data Discovery Rich Visualizations Predictive Analytics 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

10 SAP Predictive Analysis Self Service for Analysts and Data Scientists Provide Business Analysts with sophisticated algorithms to take the next step in understanding their business and modeling outcomes Overview 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 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

11 SAP Predictive Analysis Feature Description Integration with SAP Lumira Data acquisition from a variety of data sources SAP HANA (offline and online), universes, RDBMS, SAP ERP, XLS, CSV Data preparation, manipulation and visualization Simplified UI for predictive analysis Operates in HANA and non-hana scenarios HANA 1.0 SPS5 PAL support 20 algorithms HANA R support 5 algorithms out of the box Offline R support 13 algorithms out of the box Predictive specific visualizations Automatically created predictive algorithm specific visualizations Time series chart, regression chart, cluster viewer, decision tree and tag cloud Customization support Custom R script support in HANA and non-hana Ability to run any R algorithms Enhance model consumption Export PAL models as SQL procedure Export and import models as PMML and proprietary format (SPAR) Saving predictive data and visualizations Save data in SVID and automatic recreation of predictive specific algorithms visualizations on opening of SVID Multi language support English, French, German, Japanese, Simplified Chinese, Russian, Portuguese, Spanish 2013 SAP AG or an SAP affiliate company. All rights reserved. 11

12 Customizing SAP Predictive Analysis Add your custom R script as a component Predictive Analysis provides an interface for users to add a new R component using a wizard Type the R script or import it from a file Add parameters required for the script (including model saving option) Use the visualizations available in R as part of the script New R component can be created both in HANA online and non-hana online scenarios 2013 SAP AG or an SAP affiliate company. All rights reserved. 12

13 SAP Predictive Analysis Approaches SAP HANA Predictive Analysis Library algorithms SAP Predictive Analysis (PA) native algorithms Open Source R integration algorithms R Integration for SAP HANA algorithms Analysis performed by SAP HANA (no movement of data) - controlled by SAP PA Data is brought to SAP PA and analysis is performed in the client Data is brought to SAP PA and analysis is performed in the client Analysis is done on R server attached to SAP HANA and controlled by SAP PA 2013 SAP AG or an SAP affiliate company. All rights reserved. 13

14 KXEN, an SAP Company - KXEN s InfiniteInsight Overview Prepare Data Build Model Deploy Model Schedule Refresh Regression Classification Segmentation Forecasting ADS Creation Data Manip & Prep Text Analytics Link Analysis Viral Marketing Influencers Products Targeted Ads Website Content In-Database (Optimized SQL for Teradata, SAP Hana, etc.) Inline (C++, PMML, Java, SAS, etc.) Refresh ADS Retrain Model Apply Scores Notify on Exception 2013 SAP AG or an SAP affiliate company. All rights reserved. 14

15 Application Function Library (AFL) Pre-delivered commonly utilized business, predictive and other types of algorithms for use in projects or solutions that run on SAP HANA. The technology framework enabling the use of these algorithms is called the Application Function Library. HANA Clients (App Server, Analytics Technology, etc) SAP HANA SQLScript Parameter Table AFL Technology includes Application Functions Written in C++ and delivered as AFL content by SAP Predictive Analysis- and Business Function Library have been released in SPS05 as AFL content, new in SPS06 the Data Quality Functions Library Application Functions (C++) Predictive Analysis Library AFL Framework Business Function Library 2013 SAP AG or an SAP affiliate company. All rights reserved. 15

16 PAL Algorithms supported in HANA 1.0 SPS06 Association Analysis Time Series Analysis Apriori Single Exponential Smoothing Apriori Lite Double Exponential Smoothing Triple Exponential Smoothing Cluster Analysis ABC Classification Outlier Detection DBSCAN K-Means Kohonen Self Organized Maps Inter-Quartile Range Test (Tukey s Test) Variance Test Anomaly Detection Classification Analysis Link Prediction C4.5 Decision Tree Analysis CHAID Decision Tree Analysis Common Neighbours; Jaccard s Coefficient; Adamic/Adar; Katzβ K Nearest Neighbour Multiple Linear Regression Polynomial Regression Exponential Regression Bi-Variate Geometric Regression Bi-Variate Logarithmic Regression Logistic Regression Naïve Bayes Data Preparation Sampling Binning Scaling Convert Categorical to Binary Other Y X Z Weighted Scores Table 2013 SAP AG or an SAP affiliate company. All rights reserved. 16

17 What is R? R is a software environment for statistical computing and graphics Open Source, programming language plus a run-time environment Over 3,500 add-on packages; ability to write your own functions Widely used for a variety of statistical methods: linear and non-linear models, statistical tests, time series analyses, classification and clustering, predictive, etc. More algorithms and packages than SAS + SPSS + Statistica Who is using it? Growing number of data analysts in industry, government, consulting, and academia Cross-industry use: high-tech, retail, manufacturing, CPG, financial services, banking, telecom, etc. Why are they using it? Free, comprehensive, and many learn it at college/university Offers rich library of statistical and graphical packages 2013 SAP AG or an SAP affiliate company. All rights reserved. 17

18 R Integration for SAP HANA & SAP PA Functionality Overview Establishes a communication channel between HANA and R for fast data exchange SAP PA SAP PA embeds R script within SQL script and submit entire query to the HANA database. SQL R script HANA takes care of decapsulating R script from SQL script and sends it to R server As the plan execution reaches R-node, a separate R runtime is invoked using Rserve and input tables of R node passed to R process using improved data transfer mechanism. SAP HANA R script R Server 2013 SAP AG or an SAP affiliate company. All rights reserved. 18

19 Demo

20 Benefits of SAP Predictive Analysis Simplicity Flexibility Speed Lower TCO Scalability From transactional data direct to Business Analytics platform, making the architecture cleaner, simpler and more. Build your analysis without strong dependencies of IT people. All needed information will be available at your fingertips. High performance analytical platform based on in-memory computing to provide you faster answers to your customer needs. No cost of building data marts or data warehouses, no need of cubes, no duplicated data in the analytics environment and faster time to market Be prepared to data growth caused by Big Data explosion. Exploit all available information about your customers to improve your results. Changing landscapes and new opportunities 2013 SAP AG or an SAP affiliate company. All rights reserved. 20

21 Options to use SAP Predictive Analysis 2013 SAP AG or an SAP affiliate company. All rights reserved. 21

22 Social & Links Product KPI Customer Predictive Analytics Algorithms to Use Entity Question Algorithm Ex. Algorithms Buy/No Buy Fraud/Not Fraud Classification Logistic Regression SVMs Chaid/Decision Trees Estimated Income Gold Customers Regression Clustering Profiling Multi-Variate Regression Neural Networks Ridge Regression K-Means Clustering Hierarchical Clustering Self organizing Maps Sales by Quarter Time Series Forecasting ARIMA ARMA Garch Recommendation Market Basket Association Rules Apriori Algorithm FP-growth Algorithm Collaborative Filtering Viral Marketing Influencers Social Network Analysis Modularity Maximization Minimum-cut method Girvan-Newman 2013 SAP AG or an SAP affiliate company. All rights reserved. 22

23 Predictive Analytics in SAP Applications Customer Engagement Intelligence Net Margin Analysis Shopper Insight Condition Based Maintenance Sentiment Intelligence Demand Signal Management Situational Awareness Fraud Management 2013 SAP AG or an SAP affiliate company. All rights reserved. 23

24 Empower the Modern Marketer with SAP Customer Engagement Intelligence SAP Solution Elements SAP Predictive Analysis to optimize marketing campaigns SAP Audience Discovery & Targeting turning analytical insight into action for campaign management powered by SAP HANA Business Benefits Better understanding of customer behavior by leveraging Big Data as an asset Improve ROI of campaigns by targeting the right audience Champion the delivery of a personalized consumer experience across channels Real-time reporting on campaign success Marketing optimization to drive revenue and margin 2013 SAP AG or an SAP affiliate company. All rights reserved. 24

25 SAP Predictive Analysis Product Road Map overview key themes and capabilities Integration with SAP Lumira Data acquisition and manipulation Simplified UI for predictive analysis HANA and non-hana scenarios HANA PAL & HANA R support Open Source R support Predictive specific visualizations Customization Support Custom R script support Enhance Model Consumption PAL models as SQL procedure Export and import models as PMML/SPAR Saving Predictive data & predictive viz in SVID Multi Language Support TODAY Planned Innovations Future Direction (Release ) New HTML5 PA client Increase the reach SPS6 PAL algorithm parity Partner and Ecosystem Adoption Component SDK Eclipse PA plugin for test and debug Save & Share Saving user created viz Sharing predictive data Advanced Predictive Capabilities & Viz Model comparison Lift and Gain Charts Enable Business Application consumption Exporting HANA analyses as Result views Scheduling and Refresh of PA Analyses Integration of KXEN Modules Customization Run HANA SQL script from PA KXEN Explorer and Modeler features in unified PA Lightweight predictive features during data exploration Key Influencers, Feature selection etc UI for KXEN Modules in SAP HANA Enable Business Application consumption API SDK Exporting models as text rules & stub code Advanced Predictive & Statistical Capabilities Ensemble modeling Model and Algorithm comparison Auto node and auto modeling Large Data Volume Visualization This is the current state of planning and may be changed by SAP at any time SAP AG or an SAP affiliate company. All rights reserved. 25

26 SAP PA Rapid Deployment Solution Overview Mining your customer, sales, manufacturing, and other data to find and leverage hidden revenue opportunities Trusting the reliability of your pipeline and revenue forecasting Understanding your actual customer and market segments Evaluating the success of marketing campaigns Evaluating the likelihood of equipment failure Responding rapidly to real-time customer buying patterns 2013 SAP AG or an SAP affiliate company. All rights reserved. 26

27 SAP PA Rapid Deployment Solution Go live in as little as 4 to 6 weeks! Use of SAP standard data models Deploy standard SAP HANA delivery units per chosen domain Deploy predictive analysis files (SAP Lumira format) for relevant domain Deploy SAP BusinessObjects Explorer configuration for relevant domain A special step-by-step guide describes each activity during the deployment 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

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