The Big Trends in Big Data

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The Big Trends in Big Data Timo Elliott, Global Innovation Evangelist, SAP @timoelliott

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Agenda Big Data Directions Using Big Data to Improve The Customer Experience Using Big Data to Empower Employees Using Big Data to Optimize Resource Use Using Big Data for Business Networks Wrap-up

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Big Data Directions

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Discuss “IT no longer supports your business strategy — it is your business strategy”

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The World Has Turned Upside-Down Transient, flexible Permanent, fixed OPERATIONS ANALYTICS

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Analytics Moves to the Core

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Information Becomes a Profit Center Real-time, highly personalized Business Ownership Product ? Customer Experience Iterative, ever-changing

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What Is Big Data? The Google Summary …

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Big Data Is Not Only About “Big” Data “My analytics are becoming more difficult because of the variety and types of data sources (not just the volume)” Source: Paradigm4 data scientist survey 2014 www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf

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Process data Human data Machine data Big Data Adds New Data Opportunities

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Big Data is “Signal” Data

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Descriptive: What happened? Diagnostic: Why did it happen? Predictive: What will happen? Prescriptive: How can we make it happen? Hindsight Insight Foresight Predictive Reaches Maturity

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Companies Don’t Use Most of Their Data Today Source: Forrsights Strategy Spotlight: Business Intelligence And Big Data, Q4 2012. Base: 634 business intelligence users and planners

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Transactions Are Still a Big Part of Big Data “Which types of data do you anticipate using in the next year?” Source: Paradigm4 data scientist survey 2014 www.paradigm4.com/wp-content/uploads/2014/06/P4-data-scientist-survey-FINAL.pdf

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Big Data Is Heading for the “Trough of Disillusionment” Source: Gartner, August 2014, www.gartner.com/newsroom/id/2819918

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Benefits from Big Data Initiatives # 5 Identified new product opportunities (6%) #4 More reliable decision making (9%) #3 Improved operational efficiency (11%) #2 Identified new business opportunities (31%) #1 “DON’T KNOW” (51%) Source: Information Difference Research Study Dec 2013: “Big Data Revealed” http://helpit.com/us/industry_articles/big_data_revealed.pdf

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Hadoop and Other “NoSQL” Technology Enterprise “Data Lakes” and “Data Hubs”

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Hadoop is Complementary, Not a Replacement Source: Gartner

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A Typical Example of DW and Hadoop Integration

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OLTP + OLAP = HTAP “Hybrid transaction/analytical processing will empower application leaders to innovate via greater situation awareness and improved business agility. This will entail an upheaval in the established architectures, technologies and skills driven by use of in-memory computing technologies as enablers.” Gartner, 2014 Source: Gartner 2014, “Hybrid Transaction/Analytical Processing Will Foster Opportunities for Dramatic Business Innovation” HTAP = Hybrid transaction/analytical processing A single system for both OLTP (operational) and OLAP (analytical) processing. Data is stored once, in-memory, and so instantly available for analytics.

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With HTAP, the Operational Schema Looks Like a DW SAP HANA SAP HANA Live (Virtual Data Model) Customer Service Risk Management Team Finance and Operations Account Administration Executive Management Customers Channel Suppliers Accounting Forecasting Inventory Products Pricing Planning

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Data Warehouse HTAP Hadoop Big Data Architecture Directions: Short Term Where does data arrive? When does it need to move? Where does modeling happen? What can users do themselves? What governance is required?

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Metadata abstraction Increasingly automated Learning algorithms Content & Process Included Data Warehouse HTAP Hadoop Big Data Architecture Directions: Long Term Where does data arrive? When does it need to move? Where does modeling happen? What can users do themselves? What governance is required? Integrated Data “System” (cloud & on-premise)

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Opportunity Areas for Innovation Big Data initiatives are typically in one of the following areas: Hyper-personalize Customer Experience Plan & optimize Resources in Real Time Engage & empower Workforce of the Future Harness the intelligence of Networked Economy

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Using Big Data to Improve the Customer Experience

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80% of CEOs think they deliver a superior customer experience Source: The New Yorker – but only 8% of customers agree.

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Personalized Service

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Simplifying Systems

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Real-Time Retail Insights

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Social Data

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Unstructured Data “The improved information flow allows Medtronic to address product performance issues efficiently, accurately, and effectively and to detect trends at an earlier stage.”

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New Products and Services

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Network Analysis Churn model accuracy improved by 47% with social

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Sharing Data with Customers

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Using Big Data to Empower Employees

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Worldwide, Only 13% of Employees Are Engaged at Work Source: Gallup State of the Global Workplace Report 2013

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Empowering Individual Performance Adapting to the analytics needs of your employees

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“Self-Service” Analytics

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Analytics Collaboration

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Collaborative Analytics

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Using Big Data to Optimize Resource Use

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Unilever “if we knew then what we know now, we would have started deploying SAP HANA much earlier, because it’s so important for business... We think it’s even more disruptive than we initially thought — we’ve only just started”  Marc Bechet, VP Global IT ERP, Unilever

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Textile Rubber & Chemical Company 500 Employees, 4 internal IT staff Business Suite on HANA

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Textile Rubber & Chemical Company Primary Goal: Simplification One source for all data within SAP, no separate transactional and reporting databases, less infrastructure to maintain, no need to learn BW and ETL solutions SAP BusinessObjects and SAP Suite on HANA considered “better fit” than BW Live in four weeks. 65 SAP users today, growing to 150 Speed increases “were just a bonus”, but real-time KPIs a big hit "With HANA Live, in 5 mins we could see more information than we could in the last 7 months” “Administration of HANA is minimal at this point — it’s really been a pressure to work with it” ”Users just felt speed increase: 4x faster is the slowest we've seen compared to ASE” Recently implemented SAP Suite on HANA

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Big Data Process Mining

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Wearable devices have grown by 2x month over month since October 2012. Source: Mary Meeker’s Internet Trends, 2013 Photo: Intel Free Press

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The “Datafication” of Daily Life

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Unexpected Uses of Existing Data Source: https://jawbone.com/blog/napa-earthquake-effect-on-sleep/

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Data, Data, Everywhere

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Sensors Allow Tracking of the Previously Untrackable

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Sensors + Cloud + Mobile + Analytics 1. Install flow sensors on your beer lines 2. The sensors beam data to box plugged into the internet 3. Data sent to HANA in the cloud 4. Mobile interfaces to analyze consumption http://weissbeerger.com/

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Sensors + Cloud + Mobile + Analytics (cont.)

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Networked Crane Safety

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Crane Safety

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Sensors + Analytics + Predictive Maintenance

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Making It Easier to Add Sensors

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Using Big Data for Business Networks

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Networked economy: the next economic revolution All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.

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Information Ecosystems 60

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Business Networks Are Becoming Information Networks Ariba Network More than 1M suppliers in more than 190 countries around the world   Transact with suppliers – The Network handles over $460 billion per year in commerce   Reduce supply costs – Customers save a combined total of $82M daily

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The SAP Big Data Strategy

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SAP Big Data Architecture Developer/Designer Data Analyst/Scientist

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Three Core Areas of Big Data Strategy

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Data Ingestion\ Acquisition Smart Data Access Transfer Datasets SAP IQ Web / Sensor Call Center Other Data Sources SAP SLT / Rep Server SAP Data Services SAP SQL Anywhere SAP ESP Hadoop Adapter Hadoop Hive SAP ERP BW Hortonworks Data Platform Intel Distribution for Hadoop Partner Hadoop Distributions The SAP HANA Platform and Hadoop

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Front-End Tools Adapted to Different Needs PREDICT Advanced Analytics ENGAGE Enterprise BI VISUALIZE Agile Visualizations

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Big Data Applications — E.g., Risk, Sensing, …

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Design Thinking

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7 Key Points to Take Home Big Data is a huge opportunity Get closer to your customers through better insight and hyper-personalization Use “datafication” to make better use of resources Empower your employees to make better decisions Leverage your business networks Big data is the heart of your next IT platform — simplicity and flexibility are essential The biggest barriers are ideas and culture — use design thinking to help

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Thank you Timo Elliott, SAP timo.elliott@sap.com Twitter: @timoelliott Blog: timoelliott.com

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