1. Copyright © 2012, SAS Institute Inc. All rights reserved. POWERING UP ANALYTICS WITH BIG DATA - THE SAS WAY! -PRIYA SARATHY, PH.D ANALYTIC SALES CONSULTANT, SAS

2. Copyright © 2012, SAS Institute Inc. All rights reserved. SALUTE TO THE WORLD RUN BY STATISTICIANS Play

3. Copyright © 2012, SAS Institute Inc. All rights reserved. AGENDA High Performance Analytics (HPA) Meeting Challenges The What? Understanding the Analytic paradigm Shift High Performance Analytics – the SAS way What is the business value add

4. Copyright © 2012, SAS Institute Inc. All rights reserved. MEETING CHALLENGES

5. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS WHAT IS HPA DELIVERING What is HPA about? Evolving business needs Why does business need it? Leveraging information to compete in the market Raise revenue/ profits Reduce costs and inefficiencies

6. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS GREW FROM THE NEED FOR BIG DATA ANALYTICS! Big Data Analytics Big Analytics Big Data BI BI Reactive Proactive Analytic Capabilities Large Big Data Size

7. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS HPA IS IMPACTING BUSINESS PERFORMANCE IN MANY AREAS Data Analysis, Variable Selection, Modeling – millions of customers scored in batch Reduce the time to complete all these tasks from 167 hours to 84 seconds!!! Probability of Default on Mortgage Market risk solution that simulates market states to derive the value at risk Understand exposures by counterparties / instrument, Rapidly respond to crisis and adjust your positions accordingly Recalculate entire risk portfolio in 12 minutes –down from 18 hours!! Stress Testing Portfolio Multiple offers, millions of customers, Regional, response history, business rule constraints. Optimization across cross-sell, upsell offers can run several hours Speed up computation from 5.5 hours to 2 minutes. Next Best Offer

8. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS WHAT CONVERSATIONS ARE YOU INVOLVED IN? More data analyzed for fraud – more quickly and accurately than ever – across all departments from inside a single enterprise data warehouse. Trade monitoring-unauthorized trades, Commercial fraud –ACH, Wire, Warranty, Customer fraud - payroll, claims fraud. Fraud Detection Multi level relationships, Segments, global markets Accuracy in demand forecasting, daily to weekly forecast updates across several models Promote inventory flow from 24 months by 85% Forecasting Inventory Management Household Targeting, Retail bank Campaigns, Customer Acquisition Model Data Analysis, Variable Selection, Modeling Real time offers – coupons, cross sell offers Retail Marketing Sports retailer, Location-based analytics and CLV modeling with real time updates, pattern and behavioral analysis = > 60% increase in response rates. Airline operations: 8-10 hours of modeling, lagged data creating suboptimal decisions – faster insights, greater accuracy from multiple iterations, reduce operation cost. Real Time Relationship Marketing

9. Copyright © 2012, SAS Institute Inc. All rights reserved. WHAT DO OTHERS THINK? DATA MEASUREMENT IS THE MODERN EQUIVALENT OF THE MICROSCOPE* 28 year Asst. professor at Stanford combined math with political science in his undergraduate and graduate studies, seeing “an opportunity because the discipline is becoming increasingly data-intensive.” His research involves the computer-automated analysis of blog postings, Congressional speeches and press releases, and news articles, looking for insights into how political ideas spread. At the World Economic Forum last month in Davos, Switzerland, Big Data was a marquee topic. A report by the forum, “Big Data, Big Impact,” declared data a new class of economic asset, like currency or gold. It’s not just more streams of data, but entirely new ones- countless digital sensors worldwide in industrial equipment, automobiles, electrical meters and shipping crates- measure and communicate location, movement, vibration, temperature, humidity, even chemical changes in the air.. * Quote from Professor Brynjolfsson The Age of Big Data, By STEVE LOHR, NYT

10. Copyright © 2012, SAS Institute Inc. All rights reserved. THE WHAT?

11. Copyright © 2012, SAS Institute Inc. All rights reserved. THE NEW NORMAL – WHAT IS HPA DOING TO ANALYTICS? Analyze 100% of data More/New variables More model iterations Manage complex models More models (per domain area) More questions/ideas/scenarios to evaluate Multiple deployment options: batch, real-time Continuously monitor model effectiveness and retrain The Things you can Think!

12. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS HPA COMBINES THE THREE PILLARS TO DELIVER RESULTS Data: Leveraging technology to collect, access and manage data Analytics: Adapting to new technology, In- memory, Grid, In-database Platform: Positioning analytics within industry leaders technology solutions

13. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS ADVANCED ANALYTICS AND FAST COMPUTING CAPABILITIES ARE BROUGHT TOGETHER WITH SAS HPA In a recent National Post interview with Jim Goodnight, the SAS CEO explains it like this:interview with Jim Goodnight There's a lot of business processes that will be changing because of the speed at which we can do analytics; using a thousand processes in parallel to do these computations can make it possible to do huge problems that we would never have been able to do before because it would take too long on a single processor. A big part of how HPA gets its speed: it breaks larger problems down into smaller pieces.

14. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS From Sampling to Populations analysis 50 Attributes to 500+ Attributes Reduce run times 18 Hrs - 30 minutes Build more complex models 3 month Lagged modeling to Real time updates Structured data to combining unstructured data Shortening model lifecycle More frequent updates, model iterations real time scoring impacting business bottom-line HPA HELPS REMOVE LIMITATIONS You will have more time to think!

15. Copyright © 2012, SAS Institute Inc. All rights reserved. UNDERSTANDING THE ANALYTIC PARADIGM SHIFT

16. Copyright © 2012, SAS Institute Inc. All rights reserved. Data Analysis 45% Model Build 30% Validation & Implementation 10% Monitoring & Results Reporting 15% MODEL LIFECYCLE HOW MUCH TIME DO YOU SPEND ON YOUR MODELS? Where would you like to spend more time?

17. Copyright © 2012, SAS Institute Inc. All rights reserved. RESPONSIBILITIES OF AN STATISTICAL ANALYST MODEL BUILDING PARADIGM SHIFT Extract, Transform, Load data Data massaging/ mining Aggregating, normalizing data Identifying Analytic approach Building Samples Building Models Creating Scoring Code Validation Reports/ model documentation Implementation for Production Results monitoring Update, refresh, or rebuild model Extract, Transform, Load data Data massaging/ mining Aggregating, normalizing data Identifying Analytic approach Building Samples Building Models Creating Scoring Code Validation Reports/ model documentation Implementation for Production Results monitoring Update, refresh, or rebuild model IT – shifting responsibilities to EDW/ DW Data Quality Data integration ODS Production implementation Analyst – building models Access to more and better data Need for documentation and transparency Greater number of business solutions Changing market and data dynamics impacting frequency of build and update IT – shifting responsibilities to EDW/ DW Data Quality Data integration ODS Production implementation Analyst – building models Access to more and better data Need for documentation and transparency Greater number of business solutions Changing market and data dynamics impacting frequency of build and update

18. Copyright © 2012, SAS Institute Inc. All rights reserved. Data Analysis 25% Model Build 60% Validation & Implementation 10% Monitoring & Results Reporting 5% MODEL LIFECYCLE CHANGING ROLES AND RESPONSIBILITIES New technology, new tools New business processes New competitive demands

19. Copyright © 2012, SAS Institute Inc. All rights reserved. THE FARFALLE MODEL THE BASIC STRUCTURE OF ANALYTIC FUNCTION Source: IDC, 2012 70% of the effort in analytics is typically on the information management side of the model. Analytical teams in the middle are small but crucial for translating the data assets into actionable insights. The organization change side highlights the attributes of behavior changes needed by business users. Analytics as a commodity

20. Copyright © 2012, SAS Institute Inc. All rights reserved. VOLUME VARIETY VELOCITY VALUE TODAYTHE FUTURE DATA SIZE Working with a Tsunami of data

21. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS – THE SAS WAY

22. Copyright © 2012, SAS Institute Inc. All rights reserved. SAS ® HIGH- PERFORMANCE ANALYTICS EMBRACING NEW TECHNOLOGY, BUILDING NEW STRENGTHS Visual Analytics

23. Copyright © 2012, SAS Institute Inc. All rights reserved. CLIENT FRAME PHYSICAL LAYOUT SCALABLE ANALYTIC CAPABILITY DATA FRAME SAS Analytic & Scoring Accelerators RDMBS Shared / Clustered File HADOOP MID-TIER SAS Analytic & Scoring Accelerators COMPUTING FRAME Node 2 Node 1 SAS Metadata Servers Node n [Controller Node n cores]

24. Copyright © 2012, SAS Institute Inc. All rights reserved. SAS Clients Operational Data Sources SAS Server SAS Grid Enterprise Data Warehouse Enterprise Data Warehouse SAS HPA Server Root SAS HPA Server HDFS, TD, GP Worker PHYSICAL LAYOUT GRID & HPAS

25. Copyright © 2012, SAS Institute Inc. All rights reserved. HIGH PERFORMANCE ANALYTICS CHANGING THE WAY ANALYTICS IS DONE BOTTOMS UP Data Preparation Data ExplorationAnalytics DS2 SORT SUMMARY/MEANS FREQ RANK HPLOGISTIC HPREG HPLMIXED HPFOREST HPNEURAL HPREDUCE HPNLIN

26. Copyright © 2012, SAS Institute Inc. All rights reserved. Text Mining Parsing large- scale text collections Extract entities Auto. stemming & synonym detection Topic discovery Predictive Analytics & Data Mining Binary target & continuous no. predictions Linear & Non- Linear modeling Complex relationships Tree-based ClassificationOptimization* Local search optimization Large-scale linear & mixed integer problems Econometrics Time Series Probability of an event(s) Severity of random event(s) SAS ® HIGH- PERFORMANCE ANALYTICS SERVER AREAS OF MODEL DEVELOPMENT THAT BENEFIT *Currently only available for Teradata and EMC Greenplum

27. Copyright © 2012, SAS Institute Inc. All rights reserved. IN-MEMORY HIGH PERFORMANCE ANALYTICS HPA VA

28. Copyright © 2012, SAS Institute Inc. All rights reserved. 84 SECONDS DATA EXPLORATION MODEL DEVELOPMENT MODEL DEPLOYMENT FINANCIAL SERVICES CUSTOMER ACQUISITION USE CASE Current Process High-Performance Process One algorithm (Neural Network) Multiple algorithms (e.g. Forest, Logistic Reg., etc.) 1 model per day 1 model per 30 minutes 5 hours to process model 3 minutes to process model Model lift of 1.6% Model lift of 2.5%

29. Copyright © 2012, SAS Institute Inc. All rights reserved. Think left and think right and think low and think high. Oh, the thinks you can think up if only you try! Oh the things you can find, if you don't stay behind! Dr. Seuss (On Beyond Zebra!, 1955)

30. Copyright © 2012, SAS Institute Inc. All rights reserved. SAS ® HIGH- PERFORMANCE ANALYTICS SERVER KEY DIFFERENTIATORS Only in-memory offering in the market delivering high- end analytics, including text mining and optimization Addresses the entire model development and deployment lifecycle 36 years of proven technology...faster. Opens up vast array of possibilities to get value from big data

31. Copyright © 2012, SAS Institute Inc. All rights reserved. ADDITIONAL CASE STUDIES

32. Copyright © 2012, SAS Institute Inc. All rights reserved. TOP FIVE WAYS HIGH-PERFORMANCE ANALYTICS WILL TRANSFORM MARKETING Faster, more sophisticated, effective segmentation segmentation tests can be run against the entire populations in order to determine the best campaign interaction methods Real-time, relevant next-best customer actions or offers This results in a more relevant offer or customer interaction surfacing at the “point of need” in real-time Instant deployment and management of marketing models that give you a sustainable advantage companies to quickly and efficiently update their numerous models without submitting a slow overnight batch update process. 1:1 real-time experiences to bolster brand connections The outcome is more precise, real-time interactions with consumers at the “point of need.” Optimized marketing for broader business impact Now businesses can not only determine the customer and financial impacts of their campaigns faster but also adapt instantaneously to market, competitive and customer changes.

33. Copyright © 2012, SAS Institute Inc. All rights reserved. UNITED HEALTHCARE GROUP HEALTHCARE PAYER BUSINESS ISSUE Electronic medical records (EMRs) driving a data explosion Utilize all of the unstructured text (records, case notes, emails, transcripts, etc.) How to improve quality and cost of care? “Create Healthier Lives” SOLUTION SAS ® High-Performance Analytics Server including HP Text Mining Greenplum Data Computing Appliance RESULTS Reduce model processing time from four hours to 10 seconds. Reduce misclassification rates from 30% to 10% Historical models improved with more than 10% lift I can now tell that a prescription will harm a patient before you write it… I can tell that a customer is dissatisfied before you lose him or her... I can now determine that a claim is fraudulent before you pay it… “ SAS is helping make our member services the best in the industry, In less than one hour, we can load a huge table (169 million row dataset), find the best variables, compare different models and pick the best model. I would not attempt to model a dataset this large without SAS HPA Server.” Mark Pitts Director of Data Science, Solutions and Strategy

34. Copyright © 2012, SAS Institute Inc. All rights reserved. Worker Node 1 Worker Node 2 Worker Node N Root Node (Teradata Managed Server ) Root Node (Teradata Managed Server ) SAS HIGH- PERFORMANCE LEVERAGING DATABASE APPLIANCE FOR HPA Request is sent to the root node inside the appliance

35. Copyright © 2012, SAS Institute Inc. All rights reserved. Worker Node 1 Worker Node 2 Worker Node N Root Node SAS HIGH- PERFORMANCE ANALYTICAL COMPUTATION AND DATA REQUEST SENT TO THE WORKER NODES

36. Copyright © 2012, SAS Institute Inc. All rights reserved. Root Node SAS HIGH- PERFORMANCE DATA REQUEST SENT TO THE DATABASE. DATA SLICE MOVED INTO MEMORY

37. Copyright © 2012, SAS Institute Inc. All rights reserved. SAS HIGH- PERFORMANCE ANALYTIC PROCESSING WITH INTERNODE COMMUNICATION Root Node

38. Copyright © 2012, SAS Institute Inc. All rights reserved. Root Node SAS HIGH- PERFORMANCE WORKER NODE RETURNED TO THE ROOT NODE. JOB IS COMPLETE.