inn webinar analytics - digital success final

Data & Analytics: Keys to Digital Success

Insurance Networking News Webinar

Pat Saporito, SAP

Cindy Maike, Hortonworks

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Digital economy: The next economic revolution

1850

Industrial

economy

2020

Digital

economy

1990

Internet

economy

IT

economy

1970

$0.36T

$12.10T

All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8

MacroTrends Brief.

$27.50T

Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

$90.0T

Gross

world

product


Hyper-connectivity is everywhereInnovators connecting people, devices and business


Société de Transport de Montréal


Big Data & Internet of Things

Great Promise, Rarely Delivered


Nucleus Research, Gartner, Fortune Magazine

Dark Data

The Missing Value

10%

75%

Use Analytics

Today

Need

Analytics

by 2020

Ability to manage

and consume all data

is getting harder

Not utilizing

all the

information

out there

Bottom Line: Not leveraging the

power of collective insight

Missing new

insights

IT is not agile enough

and the business

wants to get involved

=

Expect great demand from a “data democracy”, not just “data elite”


What if you could turn new signals into business value…

Proactive Health/Wellness

Management

Custom Products

Extraordinary Policy/Contract

& Claims Service

Customer and Producer

Sentiment &

Engagement

Underwriting & Pricing,

Real Time

Predictive Risk Management

Fraud Detection, Real

Time

Telematics / Usage Based

Insurance

Insider Threats

Risk Mitigation,

Real-time

Asset Optimization Distribution Management

:-)

… and deliver Sense & Respond applications for Internet of Things


YE

ST

ER

DA

Y

Agent / Broker

INSURER Reinsurance

Prop. & Cas.

Consumer

Weak

customer

connection

Based on

statistical

assumptions

Life

Health

Strong

agent

connection

Investment Regulated

INSURERReinsurance

Increased

regulation

Configurable

understandable

Products & Services

Investment

International

$

$

$

$

Blurring lines of

business & services

SecurityProviders

WealthManagers

Healthcare providers

Service & devicesuppliers…

Car Companies

Consumer

Centric

PARNTERSHIPS(or COMPETITORS?)

Local

Connected

Networked

No

connection

to object /

behavior

OMNICHANNEL

Advisor / Agent

Web / Bank / Retailer

Social

Service provider

Aggregator

Standardized

complex

products

TO

MO

RR

OW

CA

PA

BIL

ITIE

S

Operational AgilityDigital Orchestration Full analytic transparency

Big Data & Analytics

Rapid Implementation / Agility

New Digital World


SAP HANA Platform

Enabling the end-to-end value chain

SPATIAL

PROCESSING

ANALYTICS, TEXT,

GRAPH, PREDICTIVE

ENGINES

CONSUME

COMPUTE

STORAGE

SOURCE

INGEST

Application

Development

Environment

Transformations & Cleansing

Smart Data Integration Smart Data Quality

StreamProcessing

Smart Data Streaming

STREAM

PROCESSING

LogsTextOLTP Social MachineGeoCore SensorStore & forward

Smart Data Access

Virtual Tables

User Defined Functions

1010100

1010110

1001110

Dynamic Tiering

Aged datain Disk

In-Memory

Data model& data

Calculation Engine

Fastcomputing

Column Storage

High performance analytics

Series Data Storage

Store time-series data

Reporting &Dashboards

High Performance Applications

Data Exploration& Visualization

Ad hoc & OLAP Analytics

PredictiveAnalytics

Enterprise Performance Management

Governance Risk &

Compliance

Hadoop / NoSQL

MapReduce

YARN

HDFS

© Hortonworks Inc. 2011 – 2015. All Rights Reserved

The Universe of Data is Exploding….

MOBILE

DEVICES

HUMAN

CONTENT

INTERNET

OF

THINGS

Source: http://www.emc.com/leadership/digital-universe/2014iview/executive-summary.htm

Like the physical universe, the

digital universe is large – by

2020 containing nearly as

many digital bits as there are

stars in the universe. It is

doubling in size every two

years, and by 2020 the digital

universe – the data we create

and copy annually – will reach

44 zettabytes, or 44 trillion

gigabytes.

If the Digital

Universe were

represented by

the memory in a

stack of tablets,

in 2013 it would

have stretched

two-thirds the

way to the Moon.

By 2020, there

would be 6.6

stacks from the

Earth to the

Moon.


Insurance Industry Big/Small Data Challenges

F R A G M E N T E D D ATA

Data is Everywhere

P R E D I C T I V E M O D E L I N G

Too Little Data

I N C O M P L E T E D ATA D I S C O V E R Y

New data sources & unstructured data at scale

“….data is our Currency. Data to an insurance company is like carbon fiber to a

golf club company…”, Pawan Divakarla -- Big Data Business Leader, Progressive

Insurance.

Source: ISO & Earnix (Jan ’14)


Simplistic View of Internet of Anything (IoAT) & Data Flow

The Data Flow Thing

Process and

Analyze DataAcquire Data

Store Data


Realistic View of Managing Flow of Enterprise Data

Global interactions with customers, partners, systems and things

spanning different volume, velocity, bandwidth, and latency needs


Internet of Anything Adds New Requirements

• Businesses need trusted, real-

time insights from full-fidelity data

• Applications need access to both

data in motion and data at rest

• IT needs to capture multi-

directional IoAT data flows from

point to point

• Challenge: the IoAT perimeter is

jagged and outside the data

center


Key is to Find the Value in Data…..

A N Y D ATA

Existing and new datasets

B U S I N E S S VA L U E

Understand Data ‘Richness”

A N A LY T I C A L VA L U E

Method of Analysis

Ease of Access

Real-time

Impact (Footprint)

Transformative

All of the Above

Click-

streamSensor

Social Mobile

Geo-

Location

Server

Log

NEW SOURCES

EXISTING SOURCES

Po

licy

Cla

im

CR

M

Loss

C

on

tro

l

Age

ncy

Bill

ing

Rat

ing

Do

cum

ent

Reporting

Monitoring

Predictive

Discovery/Learning

Preventive


Advanced Analytics is enabling Customer Centric Insurers

Customer Experience/Centricity Framework

ACTION“Drive Value”

Act in a manner that will optimize value

realization for the Customer

STATE“Know Mindset”

Understand the factors that are driving the need

for the customer interaction at hand

IDENTITY“Know Customer”

Uniquely identify each customer, manage their

profile, and make it readily available

INSIGHT“Know What to Do””

Leverage data and analytics to develop and

use critical customer insights

STATE

What is the reason for the interaction?

INSIGHT

What analytics can help inform the situation?

ACTION

What are the optimal actions

to take?

IDENTITY

Who are you interacting with?


Big Data & Analytics Architecture


Accelerate how you Acquire, Analyze & Act on insights

SAP HANA PLATFORM

Analytics

& Rptg

Predictive

Modeling

Text

Mining

Spatial

Processing

Petabyte

Storage

Data

Acquisition

In-memory

ProcessingHadoop

etc

Agile

Visualization

Advanced

Analytics

Enterprise

Business Intelligence

SAP ANALYTICS


Plan for the digital economy now

Growth

Efficiency

Activate(e.g., devices, equipment,

employees, products,

channel, suppliers,

customers)

Optimize(e.g., infrastructure utilization,

speed to market, customer

service, capital, workforce)

Transform(e.g., business models,

customer experience,

offerings, processes,

production, distribution)

The new enterprise



Critical Needs for Digital Success Transformation

Define a Digital Strategy

• What does digital mean to

your organization? Your

customers? Your

partners?

• How does digital relate to

your strategic

plans/initiatives?

• What are digital

Opportunities? Risks?

Develop a Digital Culture

• Business Processes

• Skills and Behaviors

• Agility

Review your Digital

Capabilities

• Data management

• Analytics

• Data bases


Learn More

Click here to visit Digitalist Magazine

Visit SAP for Insurance to learn more SAP insurance solutions

Explore SAP Analytics

Get information on applied insurance analytics

Learn about SAP partner Hortonworks and the insurance industry

http://www.digitalistmag.com/

http://go.sap.com/solution/industry/insurance.html

http://go.sap.com/product/analytics.html

http://www.amazon.com/Applied-Insurance-Analytics-Framework-Technologies/dp/0133760367/ref=sr_1_1?s=books&ie=UTF8&qid=1447417637&sr=1-1&keywords=applied+insurance+analytics

http://hortonworks.com/partner/sap/

http://hortonworks.com/industry/insurance/

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

Pat SaporitoGlobal COE for Analytics

SAP Labs

+1 (201) 681-9671

[email protected]

Cindy MaikeGeneral Manager Insurance

Hortonworks

+1 (913) 484.6000

[email protected]