What is encoding in SAP BI-RA-PA - SAP Predictive Analytics?

SAP Term: encoding

• Component: BI-RA-PA

• Component Name: SAP Predictive Analytics

• Description: Process of putting a sequence of characters letters, numbers, punctuation, and certain symbols into a specialized format for efficient transmission or storage.

Smart SAP Assistant

• Key Concepts: 
  Encoding is a process used in SAP Predictive Analytics to convert categorical data into numerical data. This is done by assigning a numerical value to each category, which allows the data to be used in predictive models. This process is also known as “feature engineering” or “feature extraction”. 
  
  How to use it: 
  In order to use encoding in SAP Predictive Analytics, you must first identify the categorical variables in your dataset. Once you have identified the categorical variables, you can then assign a numerical value to each category. This can be done manually or using an automated tool such as the “Encode” function in SAP Predictive Analytics. 
  
  Tips & Tricks: 
  When encoding categorical variables, it is important to ensure that the numerical values assigned to each category are meaningful and consistent. For example, if you are encoding a variable with three categories (A, B, and C), it may be helpful to assign the values 1, 2, and 3 respectively. This will make it easier to interpret the results of your predictive models. 
  
  Related Information: 
  For more information on encoding and feature engineering in SAP Predictive Analytics, please refer to the official documentation here: https://help.sap.com/viewer/predictive-analytics/3.2/en-US/f9f8d7a7c9e04d6f8b3a5b2c9f1e4d6a.html