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What you need to know about Predictive Analytics

By: Gaurav Singh

The best explanation of Predictive Analytics which came from the Chief Analytics Officer at Swift Capital, predictive is simply the 80/20 rule. We know 80% of our revenue will come from 20% of our prospects. And 80% of pipeline will come from 20% of our campaigns. Predictive identifies the 20%.

We are living in an era where data is extremely valuable and Business Intelligence is gaining importance. Data in its raw form is not valuable but it contains valuable information. Historically analyzing data wasn’t easy even using computers, but with growth of data mining tools and machine learning where a machine can take historical and current information and apply it to a model to define future trends, we are seeing an increase in predictive analysis.

Many organizations use predictive analytics in different manner. For example

  • Universities use predictive analytics to determine student drop outs and used these predictions to intervene successfully.
  • Energy companies predict electricity demand in order to predict system failure and to build new power grids.
  • Automobile companies are learning from the data so they can predict when driver is not alert due to distraction, fatigue or intoxication and take action such as sounding an alarm

Most of the companies do descriptive (what happened?) or diagnostic (why did it happen?) analytics but think about acting before something happens. Reaching a client before they decide to defect, know before an employee leave, or simulate supply chain to have right amount of inventory. Organizations can no longer focus solely on delivering the best product or service. To succeed, they must uncover hidden customer, employee, vendor, and partner trends and insights; anticipate behavior and then take proactive actions; and empower the teams with intelligent next steps to exceed customer expectations. Having predictive information can provide your organization an analytics maturity and competitive advantage.


SAP’s predictive analytics solution went through multiple iterations and today SAP provides two solutions for it.


SAP Predictive Analytics

An on premise solution with full connectivity to Big Data, third party sources and native integration to SAP ecosystem. SAP Predictive analytics comes loaded with out of the box models, capable of integrating with third party algorithms like R and machine learning capability. This tool helps you get

  • Accurate results in days not in weeks. It enables you to be more productive and get accurate results by automating the entire predictive modeling process. The tool offers self-service using a guided workflow to create models in just minutes through automation.
  • Utilize mathematical models that can extract knowledge from data with their ability to see, read, listen, understand, adopt, retrain, and interact. With machine learning, you hypothesize a model that solves specific use cases, and that model can adopt to the respective changes in the data —in other words, it’s learning and training itself.
  • Gain easy access to variety of models. Build your own model by using automation and configuration features. Maintain multiple models with just few clicks.



SAP Analytics Cloud (SAC)

A cloud based solution which provides predictive analytics in addition to data discovery and planning. SAC capabilities are built on  SAP Cloud Platform and is powered by SAP HANA. The predictive capabilities are directly integrated in the planning interface and have Lumira visualizations capabilities. Some of the key benefits of using a SAP’s cloud based analytics are:

  • Discover key influencers of your KPIs such as revenue, churn, and productivity.
  • Explore interactive charts and graphs, automatically generated based on your query.
  • Create time series forecasts to predict future results based on historical data.
  • Use Smart Assist to get data insights at any level of detail – from a data point to a model – powered by


There are many tools in the market for Predictive Analytics but SAP leads the space with integration of SAP systems and third party data sources. The factory based approach and machine learning combine with scoring capability of the models, SAP have created a leading product for any size organization.

Method360 has the proven ability to help organizations capitalize on the strategic value of trusted data. Our Proof of Concept allows our team to take any business scenario and build out a SAP Predictive Analytics solution around it. The resulting solution allow clients to have a better understanding of how Predictive Analytics can align business strategy with operational decision making. Most importantly, an organization will be empowered to dispense information in an effective and actionable format to the right people at just the right time.


If you are interested please contact

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