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EA103
Extend Your Analytics Capabilities on SAP HANA Using SAP Predictive Analysis Vishwanath Belur, Product Manager, SAP PI BIT
Oct 2013
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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.
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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. 4
Challenges
Forecasting
Key
Influencers
Trends
Anomalies
Relationships
How do historical sales, costs, key
performance metrics, and so on, translate to
future performance? How do predicted
results compare with goals?
What are the main
influencers of customer
satisfaction, customer
churn, employee turnover,
and so on, that impact
success?
What are the trends: historical /
emerging, sudden step
changes, unusual numeric
values that impact the
business?
What are the correlations in
the data? What are the
cross-sell and up-sell
opportunities?
What anomalies might
exist and conversely
what groupings or
clusters might exist for
specific analysis?
Advanced Analytics – Use Cases
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5
Customer Pain Points in Advanced Analytics
Inefficiencies driven by slow response speeds & complexity
ANALYSTS
Talent
Shortage
High
Latency
High
TCO
Order
Processing
Operational
Reporting
RT Risk &
Fraud
Trend
Analysis
Sentiment
Analytics
Predictive
Analytics
Pattern
Recognition
Spatial
Processing
0
1
Operational
Datastore
Data
Warehouse
Sensors
Mobile
Archives
Social & Text
Geo-Spatial
BUSINESS & IT
Cache
Cache
Cache
Cache
Cache
Cache
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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
SAP ADVANCED ANALYTICS
SAP
Predictive Analysis
SAP HANA
Predictive Analysis Library (PAL) R Integration KXEN
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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 in-
database 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.”
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8
SAP Brings BI and Advanced Analytics Together
SAP
Lumira Cloud
Explorer
Mobile Explorer
Web
SAP
Lumira
Search
Explore
Share
Acquire
Transform
Visualize
Design
Model
Build
Govern
Enterprise
Information
Assets
Loc
al
Vie
w
SAP
Predictive
Analysis KXEN
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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. 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
• 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
Overview
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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. 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. 13
SAP Predictive Analysis Approaches
SAP HANA Predictive
Analysis Library
algorithms
Analysis performed by
SAP HANA (no
movement of data) -
controlled by SAP PA
Open Source ‘R’
integration
algorithms
–Data is brought to
SAP PA and analysis
is performed in the
client
SAP Predictive
Analysis (PA) native
algorithms
–Data is brought to SAP
PA and analysis is
performed in the client
R Integration for
SAP HANA
algorithms
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. 14
KXEN, an SAP Company - KXEN’s InfiniteInsight™ Overview
Build
Model
Schedule
Refresh Prepare
Data
Deploy
Model
ADS Creation
Data Manip & Prep
Text Analytics
Link Analysis
Viral Marketing
Influencers
Regression
Classification
Segmentation
Forecasting
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. 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 .
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++)
SQLScript
HANA Clients (App Server, Analytics Technology, etc)
SAP HANA
Business Function Library
Predictive Analysis Library
AFL Framework
…
Parameter Table
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16
PAL – Algorithms supported in HANA 1.0 SPS06
Y
X Z
Association Analysis • Apriori
• Apriori Lite
Cluster Analysis • ABC Classification
• DBSCAN
• K-Means
• Kohonen Self Organized Maps
Classification Analysis • C4.5 Decision Tree Analysis
• CHAID Decision Tree Analysis
• K Nearest Neighbour
• Multiple Linear Regression
• Polynomial Regression
• Exponential Regression
• Bi-Variate Geometric Regression
• Bi-Variate Logarithmic Regression
• Logistic Regression
• Naïve Bayes
Time Series Analysis • Single Exponential Smoothing
• Double Exponential Smoothing
• Triple Exponential Smoothing
Outlier Detection • Inter-Quartile Range Test (Tukey’s Test)
• Variance Test
• Anomaly Detection
Link Prediction • Common Neighbours; Jaccard’s Coefficient;
Adamic/Adar; Katzβ
Data Preparation • Sampling
• Binning
• Scaling
• Convert Categorical to Binary
Other • Weighted Scores Table
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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. 18
R Integration for SAP HANA & SAP PA Functionality Overview
Establishes a communication channel between HANA
and R for fast data exchange
SAP PA embeds R script within SQL script and submit
entire query to the HANA database.
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 PA
SAP HANA R Server
SQL R
script
R
script
Demo
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20
Benefits of SAP Predictive Analysis
Changing landscapes and new opportunities
Build your analysis
without strong
dependencies of IT
people. All needed
information will be
available at your
fingertips.
From transactional
data direct to
Business Analytics
platform, making the
architecture cleaner,
simpler and more.
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.
Simplicity Speed Flexibility Scalability Lower TCO
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21
Options to use SAP Predictive Analysis
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 22
Entity Question Algorithm Ex. Algorithms
Buy/No Buy
Fraud/Not Fraud
Estimated Income
Gold Customers
Classification
Regression
Clustering
Profiling
• Logistic Regression
• SVMs
• Chaid/Decision Trees
• 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
Custo
mer
KP
I P
roduct
Socia
l
& L
inks
Predictive Analytics – Algorithms to Use
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 23
Predictive Analytics in SAP Applications
Customer Engagement
Intelligence
Shopper Insight
Sentiment Intelligence
Situational Awareness
Net Margin Analysis
Condition Based
Maintenance
Demand Signal
Management
Fraud Management
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 24
Empower the Modern Marketer with
SAP Customer Engagement Intelligence
SAP Solution Elements 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
SAP Predictive Analysis to optimize
marketing campaigns
SAP Audience Discovery & Targeting
turning analytical insight into action for
campaign management powered by
SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 25
TODAY Planned Innovations Future Direction
This is the current state of planning and may be changed by SAP at any time.
(Release 1.0.11)
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
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 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. 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. 28
Further Information
SAP Education and Certification Opportunities
www.sap.com/education
Watch SAP TechEd Online
www.sapteched.com/online
SAP Public Web
scn.sap.com
www.sap.com
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 29
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© 2013 SAP AG or an SAP affiliate company. All rights reserved.
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