A guest blog post from Scott Schlesinger, Principal, Ernst & Young LLP
In July 2015, EY announced its EY Warranty Analytics service offering for the SAP HANA® platform. The service includes EY’s advanced analytics for use with SAP® technology to monitor warranty claims, with the goals of identifying fraudulent activity, reducing costs and improving quality.
Automobile manufacturers spend approximately 2% to 3% of their annual revenues paying warranty claims. Aside from the direct financial impact of those reimbursements, those claims also carry substantial indirect costs from degradation of a company’s brand image, reduced customer loyalty, and potential legal liability. Unfortunately, any analysis of warranty claims must begin “after the fact,” but data can take 90 to 120 days to move through legacy systems to the point of analysis. This is too slow to identify issues proactively and respond to reduce the risk.
Compounding this challenge is the Internet of Things (IoT), which has revolutionized how automotive, aerospace, and industrial equipment manufacturers design, manufacture and support their products. As products become smart and more connected, manufacturers have access to billions of streaming data points. Shop floor equipment, on-board diagnostic systems, social media and other interactive channels generate these newer sources of data, but to turn those into actionable intelligence, carmakers need new tools and methods.
Hortonworks Connected Data Platforms Speed Warranty Analysis with IoT Data
Open and connected data platforms from Hortonworks enable automotive companies to leverage Apache Hadoop® to quickly create actionable intelligence from massive amounts of structured and unstructured warranty data. With modern data applications developed around the extended Hadoop ecosystem, automotive leaders can look deeply into detailed warranty data, anticipate product failures, and resolve them proactively in the design process to avoid costly repairs or negative impacts to their brand.
Hortonworks Data Platform (HDP™) is the industry’s only secure, cost-effective, open source Apache™ Hadoop® distribution based on a centralized architecture (YARN). It offers consistent enterprise services for resource management, security, operations, and governance and provides a reliable, repeatable and simple framework for managing the flow of data into and out of Hadoop. Hortonworks Data Flow (HDF) works alongside HDP to collect, curate, analyze and deliver real-time data to data stores to make it available for analysis. For automotive companies, HDF provides the ability to quickly, easily, and securely move distributed IoT data of differing formats, schemas, protocols, speeds and sizes to HDP to create a scalable end-to-end solution.
EY, SAP and Hortonworks Offer a New Solution for Warranty Analytics
Using HDP as its backbone data collection platform, EY, SAP and Hortonworks have teamed to provide a next generation Warranty Analytics solution which allows automotive companies to leverage large volumes of both structured and unstructured data and convert yesterday’s impossible warranty challenges into today’s actionable intelligence. Built on SAP HANA, HDP, SAP Vora and SAP Predictive Analytics software, the EY service offering supports a full view of relevant data and robust analytics that accelerate decision making and innovation. Organizations can proactively identify and replace defective components, reduce costly product recalls, better manage warranty spend, set reserves, detect potential fraud, and improve customer satisfaction.
To learn more about the integrated value of SAP HANA and Hortonworks Connected Data Platforms, register now for the EY and Hortonworks webinar on June 16: “Getting Ahead of Warranty Claims with Next Generation Analytics.”