Contents

Preface ....................................................................................................................................................... 15

PART I Introduction

1 Machine Learning and Intelligent Enterprise 23

1.1 What Is Machine Learning? ............................................................................................... 25

1.2 Transition from the Digital Era to the Intelligent Era ........................................... 25
1.3 Intelligent Enterprise Use Cases ..................................................................................... 26
1.3.1 Intelligent Invoice Matching ............................................................................... 26
1.3.2 Smart Recruiting ..................................................................................................... 27
1.3.3 Service Ticket Intelligence ................................................................................... 27
1.3.4 Product Similarity Matching ............................................................................... 27
1.3.5 Brand Impact ............................................................................................................ 28
1.3.6 Robotic Process Automation .............................................................................. 28
1.3.7 Virtual Assistance ................................................................................................... 29
1.4 SAP’s Intelligent Enterprise Strategy ............................................................................ 29
1.4.1 Intelligent Suite ....................................................................................................... 30
1.4.2 Digital Platform ....................................................................................................... 31
1.4.3 Intelligent Technologies ....................................................................................... 31
1.5 SAP’s Machine Learning Technologies and Applications ..................................... 32
1.5.1 Embedded Machine Learning Applications ................................................... 32
1.5.2 SAP Intelligent Robotic Process Automation ................................................ 33
1.5.3 SAP Conversational Artificial Intelligence ...................................................... 34
1.5.4 SAP Data Intelligence ............................................................................................ 34
1.5.5 Embedded Machine Learning within SAP HANA ......................................... 35
1.6 Summary ................................................................................................................................... 36

2 Machine Learning Fundamentals 37

2.1 Basic Probability Concepts ................................................................................................ 37

2.1.1 What is Probability? ............................................................................................... 38
2.1.2 Conditional Probability and Independence ................................................... 47

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2.1.3 Random Variables .................................................................................................. 49 3.6.3 Model Fine-Tuning ................................................................................................. 168

2.1.4 Density and Distribution Function ................................................................... 54 3.6.4 Diagnostic Checks .................................................................................................. 168
2.1.5 Expectation ............................................................................................................... 60 3.6.5 Validation Set Approach ...................................................................................... 170
2.1.6 Variance and Standard Deviation ..................................................................... 61 3.6.6 K-Fold Cross Validation ........................................................................................ 171
2.1.7 Covariance and Correlation ................................................................................ 62 3.7 Deploying the Model ........................................................................................................... 172
2.2 Basic Machine Learning Concepts .................................................................................. 63 3.8 Summary ................................................................................................................................... 173
2.2.1 Different Types of Machine Learning Scenarios .......................................... 63
2.2.2 Types of Learning .................................................................................................... 65
2.3 Machine Learning Algorithms ......................................................................................... 66
2.3.1 Linear Regression Analysis .................................................................................. 66
4 Machine Learning on SAP HANA 175

2.3.2 Classification ............................................................................................................ 85

2.3.3 Cluster Analysis ....................................................................................................... 113 4.1 SAP HANA Machine Learning Components ............................................................... 175
2.3.4 Other Machine Learning Techniques ............................................................... 125 4.1.1 SAP HANA Predictive Analysis Library ............................................................. 177
4.1.2 SAP HANA Automated Predictive Library ....................................................... 181
2.4 Summary ................................................................................................................................... 137
4.1.3 SAP HANA Extended Machine Learning Library ........................................... 184
4.1.4 R Integration ............................................................................................................ 188
4.2 Summary ................................................................................................................................... 204
3 Implementation Lifecycle 139

3.1 Understanding the Implementation Lifecycle ......................................................... 140

3.1.1 Cross Industry Standard Process for Data Mining ....................................... 140
5 Machine Learning with SAP Data Intelligence 205

3.1.2 Define, Measure, Analyze, Improve, Control ................................................. 141

3.1.3 Analytics Solutions Unified Method for Data Mining/ 5.1 Data Science Project Lifecycle .......................................................................................... 207
Predictive Analytics ................................................................................................ 142 5.2 Managing the Data Science Project Lifecycle ........................................................... 209
3.1.4 Key Components in a Machine Learning Project Lifecycle ....................... 142
5.3 SAP Data Intelligence .......................................................................................................... 210
3.2 Knowing the Business ......................................................................................................... 143 5.3.1 SAP Data Intelligence Versus SAP Data Hub ................................................. 211
3.3 Understanding and Exploring Data ............................................................................... 144 5.3.2 Architecture .............................................................................................................. 212
3.3.1 Checking Data Quality .......................................................................................... 147 5.3.3 Values of SAP Data Intelligence ......................................................................... 215
3.3.2 Checking Summary Statistics ............................................................................. 151 5.4 Key Capabilities ...................................................................................................................... 216
3.3.3 Visualizing Data ...................................................................................................... 153 5.4.1 Metadata and Governance ................................................................................. 217
3.4 Preparing Data ........................................................................................................................ 156 5.4.2 Machine Learning Scenario Manager .............................................................. 218
3.4.1 Data Conversion ..................................................................................................... 157 5.4.3 Machine Learning Data Manager ..................................................................... 220
3.4.2 Dimensionality Reduction ................................................................................... 160 5.4.4 AutoML ....................................................................................................................... 221
3.4.3 Variable Transformation ...................................................................................... 161 5.4.5 Machine Learning Tracking ................................................................................. 223
5.4.6 SAP Data Intelligence Modeler and Built-in Operators ............................. 227
3.5 Developing the Model ......................................................................................................... 163
5.5 Migrating to SAP Data Intelligence from SAP Data Hub ..................................... 235
3.6 Evaluating and Fine-Tuning Model ............................................................................... 165
3.6.1 Model Overfitting ................................................................................................... 165 5.6 Summary ................................................................................................................................... 236
3.6.2 Model Performance ............................................................................................... 166

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PART II Building Machine Learning Applications 8.4 Business Entity Recognition ............................................................................................. 339

8.5 Data Attribute Recommendation .................................................................................. 341

6 SAP HANA Predictive Analysis Library and 8.5.1 Test Run of the Data Attribute Recommendation Service ....................... 344

R Integration 241 8.6 Invoice Object Recommendation ................................................................................... 347

8.7 SAP Service Ticket Intelligence ........................................................................................ 348

6.1 SAP HANA Predictive Analysis Library .......................................................................... 241 8.7.1 Test Run of the Service Ticket Intelligence Service ..................................... 350
6.1.1 Prerequisites and Installation ............................................................................ 241
8.8 Summary ................................................................................................................................... 352
6.1.2 SAP HANA PAL Procedures ................................................................................... 243
6.1.3 Calling SAP HANA PAL Procedures .................................................................... 250
6.1.4 Model Evaluation ................................................................................................... 260
6.2 R Integration ............................................................................................................................ 266 9 Building Scenarios Using Jupyter Notebook 353
6.2.1 Prerequisites and Installation ............................................................................ 266
6.2.2 R Packages ................................................................................................................. 267 9.1 Adding a Notebook ............................................................................................................... 354
6.2.3 Calling R Functions from SAP HANA ................................................................ 268 9.2 SAP Data Intelligence Python SDK ................................................................................. 357
6.2.4 Model Evaluation ................................................................................................... 275 9.2.1 Setting Up and Leveraging the SAP Data Intelligence SDK ...................... 358
6.3 Summary ................................................................................................................................... 278 9.2.2 SAP Data Intelligence Python SDK .................................................................... 358
9.2.3 Popular Python Libraries ...................................................................................... 359
9.2.4 Various Library Options ........................................................................................ 360
9.3 Use Case ..................................................................................................................................... 361
7 Developing Applications with SAP HANA
9.3.1 Setting Up the Scenario ........................................................................................ 363
Predictive Analysis Library 279
9.3.2 Scripting ..................................................................................................................... 367
9.3.3 Data Plotting ............................................................................................................ 371
7.1 Introduction to the Use Case ............................................................................................ 279 9.3.4 Code Execution ........................................................................................................ 372
7.2 Building a Predictive Analytics Application Using SAP HANA PAL .................. 280 9.4 Summary ................................................................................................................................... 374
7.2.1 Understanding the Business Problem and the Data .................................. 281
7.2.2 Data Preparation .................................................................................................... 291
7.2.3 Model Building ........................................................................................................ 293
7.2.4 Model Validation and Refinement ................................................................... 300 10 Automated Machine Learning Data Science
7.2.5 Model Deployment ................................................................................................ 307 Automation 375
7.2.6 Interpretation and Displaying Results ............................................................ 311
7.3 Summary ................................................................................................................................... 315 10.1 AutoML on SAP Data Intelligence .................................................................................. 376

10.2 Features of AutoML .............................................................................................................. 376

10.3 AutoML Step-by-Step ........................................................................................................... 377

8 SAP AI Business Services 317 10.3.1 Configuring the Training Data Collection ...................................................... 378
10.3.2 Configuring the Test Data Collection .............................................................. 384
8.1 Overview ................................................................................................................................... 318 10.3.3 Setting Up AutoML ................................................................................................ 385
10.3.4 Testing AutoML ....................................................................................................... 395
8.2 Document Classification .................................................................................................... 319
8.2.1 Test Run of the Document Classification Service ........................................ 322 10.4 Summary ................................................................................................................................... 397

8.3 Document Information Extraction ................................................................................ 332

8.3.1 Test Run of the Document Information Extraction Service ..................... 335

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11 Conversational Artificial Intelligence 399 13 Industry Use Cases for Machine Learning
Applications 457
11.1 Introduction to SAP Conversational Artificial Intelligence ................................. 399

11.2 SAP Conversational AI ......................................................................................................... 401 13.1 Acceptance of Machine Learning across Different Industries ........................... 457
11.2.1 Natural Language Processing Engine .............................................................. 402 13.1.1 Assessing the Impact of Machine Learning ................................................... 458
11.2.2 Intents ........................................................................................................................ 404 13.1.2 Challenges of Machine Learning Applications ............................................. 460
11.2.3 Expressions ............................................................................................................... 405 13.2 Machine Learning Ecosystem ........................................................................................... 461
11.2.4 Entities ....................................................................................................................... 406
13.3 Identifying Industry Use Cases ........................................................................................ 464
11.2.5 Languages ................................................................................................................. 409
13.3.1 Manufacturing Industry ....................................................................................... 465
11.2.6 Channels .................................................................................................................... 412
13.3.2 Customer Service Industry .................................................................................. 469
11.3 Bot Building Techniques ..................................................................................................... 412 13.3.3 Healthcare Service Industry ................................................................................ 473
11.3.1 Bot Building Process .............................................................................................. 413 13.3.4 Finance Industry ..................................................................................................... 476
11.3.2 Bot Connector .......................................................................................................... 417
13.4 Summary ................................................................................................................................... 480
11.3.3 Bot Monitoring and Analytics ............................................................................ 418
11.3.4 SAP Conversational AI APIs ................................................................................. 419
11.4 Building a Chatbot Using SAP Conversational AI .................................................... 421
11.4.1 Let’s Build a Bot! ..................................................................................................... 423 14 Conclusion and Roadmap 481
11.4.2 Setting Up the Bot Project ................................................................................... 424
11.4.3 Creating Intents ...................................................................................................... 425 14.1 Recap ........................................................................................................................................... 481
11.4.4 Setting Up Entities ................................................................................................. 427
14.2 Best Practices ........................................................................................................................... 483
11.4.5 Setting Up Skills ...................................................................................................... 429
11.4.6 Enabling Voice ......................................................................................................... 435 14.3 Roadmap ................................................................................................................................... 484

11.5 Summary ................................................................................................................................... 436 14.4 Summary ................................................................................................................................... 486

The Authors ............................................................................................................................................. 487

PART III Use Cases and Roadmaps
Index .......................................................................................................................................................... 489

12 Integrating Machine Learning with the Internet

of Things and Blockchain 439

12.1 Technology-Driven Transformation .............................................................................. 441

12.2 Data—The Common Theme ............................................................................................. 442

12.3 Use Cases ................................................................................................................................... 445

12.3.1 Supply Chain ............................................................................................................ 445
12.3.2 Healthcare ................................................................................................................ 450
12.4 Summary ................................................................................................................................... 456

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