Adding artificial intelligence and machine learning to

your (IoT) applications

Nemery Philippe
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“By 2020, more than half of major new business

processes and systems will incorporate some
element of the IoT.” Gartner “Unexpected Implications Arising From the Internet of Things” report – 2016

“Analytics are essential to the success of IoT

systems. They are arguably the main point of the
IoT.” Oxford Economics “Iot Adoption” report - 2016

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Tomorrow Shift Now !

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© 2014 SAP AG. All rights reserved. 4
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Market trends – Digital transformation

Emerging systems of intelligence

Artificial intelligence and Embedded machine Conversational applications:

machine learning, IoT, insights learning, analytics providing the new user experience
built-in guidance

By 2018, 75% of enterprise By 2019, APIs will be the By 2019, natural-language

and ISV development will primary mechanism generation will be a standard
include AI or ML. to connect data, algorithms, feature of 90% of modern BI
– IDC and decision services. platforms.
– IDC – Gartner

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WHY ?
Increase revenue with superior sales targeting and execution

Re-imagine business processes with digital intelligence

Improving quality time at work for employees

Increased customer satisfaction with superior service

Enabling product, process & business model innovations

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Tomorrow Shift Now !

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SAP Analytics Enables

the Intelligent Enterprise

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Smart Digital Business

Collaboration

Integration Mobile Microservices

Intelligently connecting People, Things and Businesses

Machine Learning UX IoT Artificial Intelligence

Real-time APIs
Analytics

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Machine Learning enables the intelligent enterprise

We integrate learning from data into SAP 76% of the world’s

transaction revenue
applications and platforms to help businesses
grow, optimize processes, 25 industries

assist employees, 12 lines of business

and make customers happy. The world’s largest
business network

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Machine Learning enables the intelligent enterprise

Text Video

Speech
Image

… and more

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Machine Learning & Artificial Intelligence Services

EMPOWER everyone

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Functional services - Business services – Applications –

Data Scientist Developers Business Analysts
Ready to use
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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

SAP Predictive Analytics

- Enable Business Analysts & Citizen Data Scientists to Automated Modeler Expert Analytics (VCF)
create predictive models through simplified approach
Train
- Automate the end-to-end process - data preparation, model
model training and model deployment are fully automated
- Ensure the output is ready to consume by business
users.
Prepare Apply
- Wide range of in-database & in application scoring options to data model
enable deployment everywhere
- In application deployment through Predictive Analytics Data Manager
integrator (PAI)
Predictive Factory
Capture
feedback

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Challenges in paper production.

• Paper production runs as a continuous process.

• Any production stop is a cost.

• Any deviation from the quality target will potentially lower the sales price or even
render the entire reel unsellable.

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1. Decrease production losses

2. Increase plant utilization
3. Reduce time-to-quality, in
particular for rarely and never-
before produced materials
4. Monitor, guarantee and
possibly improve continuous
quality standards.

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Cox Communications: Business Reducing Driver Turnover and Delivering personalized banking
users are creating predictive Creating a Safer Workforce by experiences for 4.5 million people with
models to supercharge customer automating end to end process insights in the hands of business
Relationships users

14% 80% 15%

Reduction in
400% 250%
More products Reduction in Higher hit rate for non- Larger hit rate for
per customer model creation driver turnover in
mortgage loans savings products
household time first year

28% 42X <6

Months to ROI
200%
Reduction in Greater Increased hit rate for
customer churn throughput for payoff insurance products
rate central analysts

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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

SAP HANA In-Database ML and Application Development Platform

- Strategic Data Platform for all SAP Applications

- Machine Learning Libraries allowing in-memory and co-located
Algorithms Push Machine
transactional and analytics processing And Data
Learning close to
- Predictive Analytics Library Data
 Over 90+ algorithms, covering Classification, Regression, Clustering, Association analysis,
Time series forecasting, Link analysis, Recommender systems, Outlier detection, statistical
and data pre-processing functions
Algorithms
- Integration / Extensibility designed to run in-
 SAP HANA R integration and Google Tensorflow integration
memory
 Streaming Analytics embedded machine learning
 Application function library (AFL) SDK embedding custom C++ functions
 SAP Application-specific function libraries for optimization and demand forecasting
Parallel processing for fastest
in SAP Supply Chain- and SAP Retail Applications predictions, forecasts, …

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Solving the Big Data Analytics Riddle

Predictive Quality in Manufacturing Processes and Solution
Yield Management.  SAP HANA Platform incl. Dynamic Tiering, Smart Data Access and the Predictive Analytics
Library (PAL)

Bringing OLTP and OLAP data models on HANA, leverages predictive analytics to predict thousands
of signals in real-time
CART Decision Tree model run in PAL using the analytics ready unit centric view HANA data
Compared against running the classification model in SAP HANA PAL to other algorithms.
CART is familiar to Intel data scientists, and provides the best speed for real time monitoring
http://www.intel.com/extremeanalytics

Challenge Benefits
• Mission: Intel manufactures hundreds of millions of microprocessors, and each  Isolate defective products during wafer sort/singulation, and take them out of the
microprocessor has potentially billions of transistors on one microprocessor. production process.
 Minimize scrapping “good” units
• As Intel runs through the manufacturing and test cycle, Intel generates nearly a trillion  Scale to analyze billions of rows and thousands of columns
test data records and thus requires to operate on petabytes of data to analyze and  There are potentially millions of $$$ in savings on assembly and packaging costs
improve manufacturing processes.  Move from batch processing (5 hr. latency) to real-time in HANA
• Predict thousands of manufacturing signals in real time  Save engineers’ time so they can focus on more value add activities: solving
problems (vs. pivoting tables)
• Identify defective products earlier in the production cycle
• Improve product yield
• Reduce time to ramp-up new manufacturing processes
Customer success: Intel
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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

SAP Cloud Platform (SCP) Predictive Services

Tabular • SCP Core Services

• REST based services deployed into SCP instances
• Clustering
• Forecast • SAP Predictive Analytics automated technology.
• Recommendation Service
• Key Influencers
• Outliers • PAi REST
• Scoring Equation
• What-if • Seamless consumption of models by Business application.
• PAi REST (PA Application
• Business process works out of the box.
Integrator for Cloud Deployments)
• Model trains automatically on customer data.
• Customer can manage the lifecycle of the model using SAP PA without development cycles.
• The customer’s data science team can configure & customise the model using SAP PA

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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

Pre-trained Services
Text Video
• Leverage pre-trained ML services via simple Web APIs allowing
immediate usage
• Explore a rich set of ML services such as image classification or topic Speech
detection as building blocks for creating your own intelligent app
Image
Bring your own model*
• Deploy, publish and run your own TensorFlow ML Model as a web service
• Manage your model’s status, monitor resource consumption and validate quality periodically
• Leverage features such as authentication and scalability

Customize model*
• Re-train and tailor image and text classification services based on your own data
• Simple APIs for retraining ML models – no extensive machine learning knowledge required

SAPience.be TECHday 2017 Machine Learning Foundation *planned for Q4/2017

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Tabular Image & Video Text Speech & Audio

General ▪ Time series change point ▪ Image classification ▪ Topic detection

availability detection ▪ Customizable image ▪ Text classification
End-Oct ▪ Similarity scoring classification ▪ Text feature extraction
▪ Image feature extraction ▪ Customizable text classification

Alpha Oct ▪ Time series forecasting ▪ Product image classification ▪ Machine translation ▪ Speech-to-text*
▪ Multi-dimensional time series ▪ Human detection service ▪ Language detection ▪ Text-to-speech*
forecasting ▪ Object detection service ▪ Product text classification
▪ Multi-dimensional data ▪ Document clustering
clustering
▪ Generic classification (tabular
and text)

Road map ▪ Time-to-failure forecasting
▪ Association rule learning
▪ Customizable recommender
▪ Image segmentation ▪ Sentiment analysis ▪ Voice recognition (speaker
▪ Face detection ▪ Named entity recognition identification)
▪ Document optical character ▪ Hate speech detection
recognition ▪ File-to-text conversion
▪ Image text extraction
▪ Image NER/extraction
▪ Apparel detection

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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

Machine Learning Foundation

TechEd 2017 Announcements - Deep Learning

Services – TensorFlow
Text Video
• Deploy, Manage and Customize in SAP Cloud
• Deploy, Manage and Monitor run your own TensorFlow Model on ML foundation
• Leverage and benefit from the platform capabilities of ML foundation like authentication and
Speech scalability
• Use your existing data assets to retrain ML foundation’s image or text classifier
Image
• Simply access ML foundation’s API for retraining – no extensive machine learning knowledge
required
… and more • Benefit from having a classifier that is tailored to your own business
• Leverage ML foundation’s capabilities to serve your training jobs

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SAP’s Machine Learning automatically classifies product images and enables faster customer
interaction with precise information on potential product repair cost or item substitution.

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Jewelry Matching with SAP Leonardo Machine Learning Foundation

First Flow Graph of Application

Product Catalog Product Catalog

Images Image Feature Feature Vectors
Extraction Service
DB DB

Result

Image Feature
Similarity Scoring
Extraction Service

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Architecture and Data Flow

Setup
1)REST client receives product
data from jewelry company.
Persist data on database with
• ID
• Material Number
• Image BLOB

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Architecture and Data Flow

Setup
1)REST client receives product
data from jewelry company.
Persist data on database.
2)REST client sends ZIP with
Image Blobs and IDs to Image
Feature Extraction. Results
contain JSON with Feature
Vectors.

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Architecture and Data Flow

Setup
1)REST client receives product
data from jewelry company.
Persist data on database.
2)REST client sends ZIP with
Image Blobs and IDs to Image
Feature Extraction. Results
contain JSON with Feature
Vectors.
3)Persist Feature Vectors on
Database.

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Architecture and Data Flow

Setup
1) REST client receives product data
from jewelry company. Persist data
on database.
2) REST client sends ZIP with Image
Blobs and IDs to Image Feature
Extraction. Results contain JSON
with Feature Vectors.
3) Persist Feature Vectors on
Database.
Runtime Data Flow
1) User uploads broken product
image.

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Architecture and Data Flow

Setup
1) REST client receives product data from
jewelry company. Persist data on database.
2) REST client sends ZIP with Image Blobs and
IDs to Image Feature Extraction. Results
cointain JSON with Feature Vectors.
3) Persist Feature Vectors on Database.

Runtime Data Flow

1) User uploads broken product image.
2) REST client sends broken product image to
Image Feature Extraction.

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Setup
1) REST client receives product data from
jewelry company. Persist data on database.
2) REST client sends ZIP with Image Blobs and
IDs to Image Feature Extraction. Results
cointain JSON with Feature Vectors.
3) Persist Feature Vectors on Database.

Runtime Data Flow

1) User uploads broken product image.
2) REST client sends broken product image to
Image Feature Extraction.
3) REST client sends all persisted Feature
Vectors and broken product Feature Vector
to Cosine Similarity Scoring. Resulting JSON
send to UI and best matches are shown.

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Trial on SAP API Business Hub

Services available on API Business Hub: https://api.sap.com https://api.sap.com/shell/api

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In-Database Machine Learning Machine Learning Services Intelligent Apps & ML Extensions
Data Science Platform

SAP Cash Application SAP Customer Retention SAP Business Integrity Screening-
Next-generation intelligent invoice matching Build customer loyalty through proactive retention Identify fraud behavior
powered by machine learning

• Improves days of sales outstanding
• Integrated with SAP S/4HANA for reduced TCO and time to
value
• Allows shared services to scale as the business grows
• Empowers finance to focus on strategic tasks and service
quality
• Automatically classifies and finds patterns
• Detects at-risk customers
• Provides understanding of root causes and timely
predictions to act
• Ability to focus on cases with highest likelihood of
fraud and ROI
• Integrated with SAP HANA for reduced TCO and time
to value
• Models update as patterns of fraud evolve
• Custom and 3rd-party algorithms to optimize for
customer’s business

SAP Brand Impact Cloud for Customer SAP Service Ticketing-

Reimagine marketing and sponsorship Opportunity Scoring Accelerate customer service in an
engagements omnichannel front office

• Fast: Near real-time • Improve service response times with automated

• Opportunity scoring to find the most likely processing
• Transparent Interactive Interface opportunities to close
• Accurate and scalable to millions of hours • Integrated with SAP Hybris Service Cloud for
• Key Factor Analysis to explain reasons reduced time to value
• Time-annotated impact indicator API for combining data
with CRM, ERP, Web site stats • Allows customer service to scale with increased
digital interactions

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Drink your own Champagne: SAP uses SAP Leonardo

ML Service Ticketing

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SAP Leonardo Machine Learning - When to chose What?

Customer

Train, Deploy and Manage machine Wants develop or embed machine

Wants specific machine applications
learning and predictive models for learning capabilities into their apps or
like invoice matching
specific use cases business process

Cloud On Premise

Predictive Analytics Machine Learning Predictive Analytics Intelligent Apps & ML

or Machine Learning Foundation or SCP Extensions
Foundation Predictive HANA
HANA Services

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SAP Leonardo Machine Learning Strategic Partnerships
Partners Focus Areas Achievements

▪ SAP ML in Nvidia CEO Keynote

▪ Access to latest pre-release hardware
(e.g. DGX station)

▪ Our standard ML framework

(ease of training, enablement)
▪ Working to include GCP APIs
in Leonardo (inbound OEM)

▪ Study & formulate best practices on AI tech ▪ SAP accepted as partner

▪ Advance the public’s understanding of AI
▪ Enables one global answer
▪ Serve as an open platform for discussion
to ML & AI ethics
and engagement about AI and its influences on people
and society

▪ Predictive Analytics integrator acceleration
▪ Enable partners to add and edit machine learning
workflows in SAP Applications
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▪ SAP and Accenture engaged in joint GTM
for Predictive Analytics on integration
topics
▪ Acceleration of core PAI capabilities in
progress
Thank you!

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