Many Decisions Are Hidden Micro decisions Organisations do not realise how many they make Every strategic decision has many operational consequences Each customer interaction can be many decisions Manual decisions Hidden under manual processes Decisions that are being taken every day by front-line staff Conflicting decisions Different parts of your organisation treat customers differently A longer time horizon might drive a different decision Decisions are made inconsistently Missing or default decisions Decisions that you do not think you can take and so you do the same thing every time The policy was set a long time ago and was never updated

Micro decisions

Organisations do not realise how many they make

Every strategic decision has many operational consequences

Each customer interaction can be many decisions

Manual decisions

Hidden under manual processes

Decisions that are being taken every day by front-line staff

Conflicting decisions

Different parts of your organisation treat customers differently

A longer time horizon might drive a different decision

Decisions are made inconsistently

Missing or default decisions

Decisions that you do not think you can take and so you do the same thing every time

The policy was set a long time ago and was never updated

More Sophisticated Analytics Improve Results Decision Optimisation Predictive Modeling Descriptive Analytics How do I use data to learn about my customers? Who are my best/worst customers? How are those customers likely to behave in the future? How do they react to the myriad ways I can “touch” them? How do I leverage that knowledge to extract maximum value from my marketing investments? Knowledge - Description Action - Prescription X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

Swiftly Delivering Analytics Is Challenging Data Mining Tools Analytic Staff Builds Models Adjusting for Sample Bias Identifying Segments Creating Variables Capturing Patterns Forecasting Performance Explaining Predictions Software Development Tools IT Staff Codes and Tests Analytics for Production Reports Business owners approve analytics Specification Model Inputs Equation etc. Production Applications Campaign Management etc. Complying with Regulations Time Consuming Coding and Testing Degrading Performance Data Table(s)

Adaptive Control and Decision Analysis Champion-Challenger Try new approaches Evaluate performance Promote success Learning Strategy Design experiments Try designed approaches Evaluate Performance Promote success Decision Optimisation Formally model Vary Constraints Simulate Optimal Approach

Champion-Challenger

Try new approaches

Evaluate performance

Promote success

Learning Strategy

Design experiments

Try designed approaches

Evaluate Performance

Promote success

Decision Optimisation

Formally model

Vary Constraints

Simulate Optimal Approach