How SAP Can Help You Predict the Future
14 Sep, 2018
Predicting the future is fraught with risks. Scenarios change every second and there are too many variables that make predicting less than fool-proof. Even so, businesses need to be able to make predictions and foresee probable outcomes. In the past other than crossing their fingers and reposing their faith in a glowing crystal ball, they had no way by which to make predictions. With digital transformation taking center-stage and with ERP systems gathering more data, learning from them and getting more intuitive predictions do not seem as daunting a task as it used to be. SAP, of course, is usually the first choice for business to run their mission-critical ERP systems. So then, the burden of forecasting falls on SAP systems. And while SAP is no glowing crystal orb, it does have a few tricks up its sleeve when it comes to predictions. Let’s look at how SAP can help you predict the future.
Smart Predict is an SAP Analytics Cloud feature that uses predictive analytics to answer business questions about the future even without in-depth knowledge into predictive techniques.
Traditional predictive methods require you to select algorithms and set complex parameters. Smart Predict, on the other hand, focuses on the type of business problem that needs solving. Smart Predict uses machine learning techniques to build scores of predictive models based on your data. It then automatically selects the most accurate and stable model to provide reliable predictions.
Smart Predict helps you train predictive models and apply them to information in both business intelligence and planning scenarios all within SAP Analytics Cloud. All you need to do is train the predictive model. Smart Predict makes this process quite predictive quite easy. All that you need is a clear understanding of your data and the questions you want to be answered. Smart Predict uses complex predictive techniques in the background to train your predictive model. Once the model has been trained you can check the model accuracy and see the details in a comprehensive debrief. The debrief can then be used to decide whether the model can be relied upon to inform good business decisions or you can fine-tune it further to achieve more accurate results. Check out the video below to know how to find the best classification predictive model using Smart Predict.
Once your model is finalized you can immediately apply it to new data to generate predictive insights. These predictive insights can be used alongside your business intelligence and planning information to create compelling stories in SAP analytics cloud. Smart Predict provides an easy, transparent and dependable method to predict the future.
Predictive Analytics integrator (PAi)
Predictive capabilities have been integrated in the S/4HANA Cloud since the1705 release and S/4HANA on premise since 1709. The Predictive Analytics integrator or PAi allows S/4HANA Cloud to access the predictive capabilities within the digital core effortlessly. Customers can use the predictive content delivered out-of-the-box by SAP S/4HANA Cloud or they can create their own predictive scenarios specific to their specific business needs. PAi enables SAP Applications such as SAP S/4HANA to build predictive use cases specific to their business directly to their customers. Customers can then efficiently manage the lifecycles of these models by retraining and debriefing these models directly within the applications.
PAi delivers new predictive content across many business areas such as Finance, Procurement, Sales, etc. Some of these predictive scenarios already available for customers to use are given below.
Other than these out-of-the-box scenarios, customers/partners can adapt predictive use cases or create new ones based on their own business needs.
What Predictive Analytics can do for you
Predictive analytics is certainly no magic window that allows you a peek into the future. It cannot predict the stock market or government policy changes that may affect your business. And it certainly cannot predict whether a sudden hurricane will throw your daily lives and best-laid plans into disarray.
What it can do is help you to make business decisions with ease and confidence. Regardless of what decision you are trying to reach, predictive analytics powered by SAP helps you plan based on what’s most likely to happen. Simply put, predictive analytics can help you visualize, determine and share untapped opportunities and unseen risks in real time.
If you are interested in learning how best to make SAP’s predictive analytics work for you just let us know and we are happy to help!