SAP Auction Analytics empowered Kolkata Knight Riders with decision making capabilities during Indian Premier League Auction 2014.
Large sums of money are spent buying cricketers at the Indian Premier League’s annual player trading event. According to the Financial Times, the league’s eight teams spent $34 million in just one day, three times more than the previous year. While the lucrative nature of the Premier League means that teams have more money to spend, the competitive nature of the bidding process often push the teams, also called franchisees, to make unrealistic and impulsive bids.
In the case of franchisee Kolkata Knight Riders (KKR), the team was looking to buck the trend of rash spending and gain a competitive advantage by providing its management with technology that would make their decision-making more efficient. Toward this, they chose SAP Auction Analytics to provide real-time actionable insights: “We constantly explore new ways and technologies to provide our players and management with the best set of tools to compete,” said Venky Mysore, managing director and CEO, KKR.
Applying Predictive Analytics to Uncover Alternative Talent
The predictive analytics capability of SAP HANA technology that is the base for SAP Auction Analytics helped derive intelligence on the players featured in the auction and provided significant insights to pick alternative players. Typically before the auction, a franchisee will outline a strategy on the team composition and identify players who fit into the strategy.
SAP Auction Analytics helped the franchisee in two phases. During the pre-auction phase, the franchisee used the tool to analyze individual players along multiple dimensions and during the auction, it worked as a live dashboard, streaming information and visibility of players available for bidding and how the other franchisees fared. Previously, KKR faced the challenge to easily and quickly analyze player data from a wide range of cricket resources. In addition, they wanted an application that is easy to use and comes with predictive analytical capabilities.
Going Once, Going Twice, Sold on SAP HANA
Realizing that KKR was on the lookout for new tools and technology to help it gain a competitive advantage during the player auction, SAP showcased its auction analytics solution in a pilot. The driver was to create an application that gave complete flexibility to KKR to build their own strategy, with a simplistic interface and offering a live dashboard to provide a real-time view of all the teams. The application was designed in a way to become the base on which other analytics application in cricket can be built.
The team quickly found that it fit their requirements. SAP Auction Analytics provides a complete view of all the teams during the auction process. The system also provides a real time view of various parameters like the number of foreign and Indian players, matching cards used, money spent on each player by each franchisee participating in the auction and money available for bidding.
The SAP Auction Analytics application can be extended to pre-match, in-game, and post-match analysis, allowing a team to adjust its game strategy even during a match. The tool can also be used as a base on which other analytics software can be built on. “SAP as a leader in providing innovative software solutions is an ideal partner to equip us with technology that can aid in effective decision making during the auction,” said Mysore.