MarketsandMarkets reports that the global spending on predictive analytics will top $5 billion by 2018.
According to a survey conducted by Ventana Research, the increasing importance of predictive analytics is due in large part to its success when applied to core, data-rich business functions that directly impact revenue.
(More than half of survey participants indicate that predictive analytics is very important to their business and two-thirds of participants report being “satisfied” or “very satisfied” with their use of predictive analytics.)
Planning, budgeting, forecasting, and consolidating financials are core, data-driven activities that every business must execute in some way, shape or form. These activities are also instrumental in achieving a competitive advantage, identifying new revenue opportunities, increasing profitability, improving customer service and driving operational efficiencies -- all of which are named top benefits of predictive analytics by participants in the Ventana Research survey (68%, 55%, 52%, 45% and 44%, respectively).
The natural fit between predictive analytics and planning, budgeting, forecasting, and consolidating processes is driving a growing number of organizations to select financial performance management as ground zero for implementing predictive analytics.
SAP Business, Planning and Consolidation (BPC), the centerpiece of SAP’s Enterprise Performance Management (EPM) portfolio, combines planning, budgeting, and forecasting capabilities with management and legal consolidation functionality in a single application, providing business users with the intuitive, role-based tools, structured processes and centralized data they need to integrate corporate and departmental planning, shorten budget cycle time, close the books faster and ensure compliance with regulatory and financial standards.
In March of 2012, SAP launched SAP BPC on HANA (version for SAP NetWeaver), turbo-charging this already proven and popular solution and delivering speed improvements on big-data reporting of up to 200x.
With more than 6,500 customers, SAP BPC is rapidly emerging as a leading financial performance management solution.
BPC’s proven functionality and unique design suit it perfectly for integration with SAP Predictive Analysis, a complete data discovery, visualization and predictive analytics solution launched in 2012.
SAP Predictive Analysis delivers an intuitive experience with enough power for data scientists to conduct sophisticated analysis using big data, yet simple enough to allow business analysts to conduct forward-looking analysis using departmental data.
Leveraging predictive analytics to discover hidden insights and relationships contained in SAP BPC data enables accurate predictions about future events by exploring “what if” scenarios, such as:
- What if you could identify hidden revenue opportunities within your customer base through predictive analytics?
- What if you could retain your high-value customers/employees/vendors/ partners with the right retention offers?
- What if your call center agents could delight customers with the best next-step recommendations?
- What if you could build long-term customer/employee/vendor/partner relationships with intelligent interactions?
A sample of industry-specific use cases for predictive analytics with SAP BPC powered by HANA include:
- Retail and Consumer Products -- Predict product demand based on historical trends at a region, store and/or past product performance.
- Financial Services -- Predict deposit revenue based on demographic data, interest rate projections and historical regression trends.
- Utilities -- Predict utility consumption based on historical usage of customer cluster groups and environmental forecasts.
- Public Sector -- Predict tax revenue based on historical demographic trends and economic assumptions.
SAP’s combined investment in its performance management, big data and analytics solutions is generating tremendous business value for SAP customers, and SAP partners such as NTT DATA who have invested heavily and have demonstrable expertise in these solution areas are well-positioned to help businesses and organizations of all sizes reap big value from big data.
Contact NTT DATA today to see how our SAP Solution Centers help our customers build a business case for implementing predictive analytics with SAP BPC powered by HANA.
Post Date: 3/27/2015