"Some companies have built their very businesses on their ability to collect, analyse and act on data. Every company can learn from what these firms do." – Thomas H. Davenport
Enterprises live and die on their decision-making; more specifically on its accuracy, timeliness, and effectiveness. Most enterprise decisions are based at least in part on data analysis, so as the quantity and comprehensiveness of available data keeps expanding, the scope of analytic decision-making expands as well.
The advantages of using Analytics in decision making is explained in the paper ‘Analytics in Business’ by the Author.
In this paper, we will discuss on the ways SAP helps in analyzing the data and in decision making activity.
Most companies now have the necessary technology (hardware and software) to take
advantage of an analytic approach to decision making and competition. However, competing on analytics requires much more than just technology. It requires senior management commitment and organizational change.
The SAP Analytics platform comprises the strategic and operational analytical tools delivered in SAP ERP. The platform enables companies to deploy a unified set of analytic and decision support tools for all aspects of their organizations. SAP Analytics takes advantage of Enterprise Services Architecture by desegregating analytics and embedding analytical tools and dashboards within actual business process.
Powered by SAP NetWeaver, SAP Analytics combines features of SAP NetWeaver Business Intelligence (SAP NetWeaver BI) and SAP Strategic Enterprise Management (SAP SEM) to provide an analytical platform for the core functions of an enterprise SAP Analytics delivers over 45 groups of preconfigured analytical processes for sales and marketing, finance, human capital management, operations, and corporate services, including over 750 predefined key performance indicators (KPIs). Organizations can define tailor-made dashboards and reports that suit various roles and individuals in the organizations. Drilling down the reports is possible. The result is smarter applications that fit the individual needs of companies and their employees.
Overview of SAP analytics:
Business users in sales and marketing, finance, operations, human resources, and other administrative roles, can use a single application to inform business decisions, monitor performance, and examine opportunities to improve individual process flows. SAP Analytics delivers value to multiple areas of the enterprise. For example, the Chief Financial Officer can use SAP Analytics to efficiently manage strategy and measure performance against strategic objectives, thereby increasing shareholder value, reducing financial risk through information visibility, and integrating company finances with CRM and supply chain applications. A human resources manager can perform real-time budgeting and planning, plan headcount, and ensure the alignment of individual performance measures with corporate goals. Operations managers can rely on SAP Analytics to accurately forecast demand, monitor procurement costs, analyse inventory levels, dissect processes that influence cash flow, and analyse how to source goods more effectively.
For example, SAP leverages the most accurate forecasting algorithms (seven variants of exponential smoothing) tested in a large scale forecasting competition3. "Forecast accuracy is the most important and advantageous supply chain metric. A one-point improvement in demand forecast accuracy could yield a two-point improvement in perfect order performance.
Conclusion:
SAP gives advance and integrated tools for Analytical decision making. Many companies have gathered a lot of data over the years in SAP or other database. The systems are now matured enough to utilize the huge data for effective decision making. Using data analysis expert help, the data can be transformed into useful information.
An update 29 June 2011 : SAP Renews Reseller Agreement With IBM to Deliver Predictive Analysis Capabilities
