Exploring SAP Analytics Cloud (SACE 11): Simulating Data with SAP Analytics Compass

🎯 Objective

After this lesson, you will be able to:

• Describe the difference between Compass simulations and Time Series forecasts.

• Identify when to use each method.

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🧭 What is SAP Analytics Cloud Compass?

Compass is a simulation tool in SAC that allows you to model the impact of uncertainty in key business drivers on a target KPI (e.g., Operating Income).

🔑 Key Features:

• Uses Monte Carlo simulation.

• Explores probable outcomes using random variations.

• Requires a defined relationship between drivers and targets in the SAC model.

• No historical data trend required.

• Fast setup — no complex math or IT support needed.

📈 Use Compass when asking:

"What happens if a key driver changes unexpectedly?"

📌 Example:

What are the probable results of Operating Income if COGS is between $10M–$20M?

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⏳ What is a Time Series Prediction?

Time Series Prediction uses historical trends to forecast future values.

🔑 Key Features:

• Requires sufficient historical data.

• Detects patterns and trends over time.

• No need for a defined relationship between drivers and KPIs.

📈 Use Time Series when asking:

"What happens if things continue as they are?"

📌 Example:

What is the forecasted Operating Income if the 4-year COGS trend continues?

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🔄 Comparison Summary

Feature	Compass Simulation	Time Series Prediction
Requires historical data?	❌ No	✅ Yes
Requires defined driver-KPI relationship?	✅ Yes	❌ No
Based on trends?	❌ No	✅ Yes
Simulates uncertainty?	✅ Yes	❌ No
Example use case	Risk and scenario analysis	Trend-based forecasting
Method used	Monte Carlo Simulation	Statistical trend projection

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🔁 Can You Use Both Together?

Yes! You can combine both methods to enhance your analysis:

1. Use Time Series to forecast based on past trends.

2. Use Compass to simulate uncertainty around key drivers in the forecasted version.

📌 Example:

• First, forecast next year’s Operating Income using time series.

• Then, simulate the potential variance if COGS or FX rates change unexpectedly.

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✅ When to Use Each

Situation	Use
You have trend data and want to forecast based on it	Time Series
You want to analyze risks or uncertainty in drivers	Compass
You want both foresight and risk context	Use Both