How can I optimize my customer relationship landscape; how can I leverage the BW analytics potential to provide for the best campaigns, promotions, pricing strategies?
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Hannah Smalltree, Editorial Director
SAP BW comes with a powerful data mining engine that enables complex analytics of OLTP data. The SAP BW Business content in 3.3 comes with powerful data mining algorithms like clustering, ABC analysis , classification that enables smart data mining and subsequently feeding the information into SAP R/3 or CRM for subsequent processing. To launch successful pricing strategies it is essential to study the response of various customer groups to various pricing programs. Using the BW analytics toolkit, it is possible to build data associateion data sets that can the be fed back into the OLTP engine. The way to approach this by using a new functionality within SAP BW called APD (Application process designer). This is a visual data processing composition engine that enables organization of data flows and updates into the OLTP database. Using this functionality, condition tables can be updated. Here is an example to hightligh the above. A CPG company wants to study the potential pricing impact of a new product. Using data mining past pricing trends are studied and the infomration is used to update the pricing condition tables. This information is then sucked into the order management process and creative discounts, promotions or "buy 1 get 1 free" suggestions are made accordingly.
This was first published in January 2005
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