Predictive analytics in decision management systems

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To ensure that Decision Management Systems are analytic and adaptive you must embed the results of data mining and predictive analytics in them. In this webinar you will learn what can be discovered using data mining and predictive analytic techniques and how this can be applied to the decision-making embedded in Decision Management Systems. The role of analytics in predicting risk, fraud and opportunity and the importance of continuous improvement and learning is also be covered.

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  • Informative article on the importance of predictive analytics in decision making to ensure smooth functioning of the business. Read whitepapers and attend a IBM webinar on Business Intelligence @ ' http://ibm.co/Hv89FB '
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Predictive analytics in decision management systems

  1. 1. The use of Predictive Analytics in DecisionJames Taylor Management CEO Systems
  2. 2. Your Presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 9 years championing Decision Management and developing Decision Management Systems ©2012 Decision Management Solutions 1
  3. 3. Real Decision Management Systems ©2012 Decision Management Solutions 2
  4. 4. AGENDA 1 2 Introducing Decision Management The role of predictive analytics 3 Predictive Analytics in Decision Systems Management 4 5 6 Systems Building in Questions? How to Learn Predictive More and Wrap Analytics Up
  5. 5. Introducing DecisionManagement Systems
  6. 6. Decision Management Systems Automate ClaimsPersonalize the experience Detect fraud Create loyalty Target Cross-Sells And more… ©2012 Decision Management Solutions 5
  7. 7. Decision Management Systems Agile Analytic Adaptive ©2012 Decision Management Solutions 6
  8. 8. The Role of Predictive Analytics
  9. 9. Analytics Predict RiskHow risky isthis customer’sapplication forservice…And how shouldwe price it? ©2012 Decision Management Solutions 8
  10. 10. Analytics Predict Fraud How likely is this claim to be fraudulent…. and what should we do about it? ©2012 Decision Management Solutions 9
  11. 11. Analytics Predict OpportunityWhat represents thebest opportunity tomaximize loyalty andrevenue?And when shouldwe promote it? ©2012 Decision Management Solutions 10
  12. 12. Case: RetailerBusiness challenges Solution BenefitsGrocery chains are Tailored promotions Increased revenuebattling for market integrated with Deep knowledge ofshare loyalty program customers acrossCustomer loyalty is Integrated system formatsessential for growth from back office to More effectiveLoyalty to the brand, point of sale promotionalnot a single store Consistently campaignsformat compelling offers across channels
  13. 13. Predictive Analytics inDecision Management Systems
  14. 14. Analytics Inform Decision-making10 5 0 Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 ©2012 Decision Management Solutions 13
  15. 15. Time To Look Forward ©2012 Decision Management Solutions 14
  16. 16. Successful Analytics Used in every transactionPervasive At the point of contact/delivery In operational decision making From reporting to prediction and forecastingPredictive Data mining Predictive analytics and scoringActionable Decisions being made, actions being taken Decision Management Systems Decision Support Systems ©2012 Decision Management Solutions 15
  17. 17. Predictions Are Not Enough Those who know first, win Those who ACT first, win Provided they act intelligently ©2012 Decision Management Solutions 16
  18. 18. Analytics Must Drive ActionOperational Systems Decision Management Systems link Decision analytics to operational systems Analytic Systems ©2012 Decision Management Solutions 17
  19. 19. Decision ManagementSystems deploy and apply predictive analytics ©2012 Decision Management Solutions 18
  20. 20. Case study: InsurerBusiness challenges Solution BenefitsUse analytics to Model and Find the decisionsimprove underwriting decompose decisions that could be Map decisions to impacted andEmbed analytics in refocused analyticclaim processing systems and organizations effortapplication Constrained analytic effort to ensure successful implementation
  21. 21. Building In Predictive Analytics
  22. 22. 3 Steps to Decision Management Discover Build Improve ©2012 Decision Management Solutions 21
  23. 23. Discover High ROI DecisionsRisk decisions Customer decisions How risky is this deal How profitable might this and what should we do? customer be? Predict risk of a bad Predict response, outcome opportunity, potential Rigorous, regulated Rapidly evolving Fraud decisions How likely is this to be fraudulent? Predict risk of fraud “Black box” ©2012 Decision Management Solutions 22
  24. 24. Build Predictive Analytics Analytic Insight Data Data Data Visualization Management Preparation & Analysis Data Store Model Monitoring Modeling Model Model Validation Repository Deployment Decision Service Model Package Generated Model Tuning Code Model Scoring Engine Logging Operational Data Store ©2012 Decision Management Solutions 23
  25. 25. Deploy Across the Enterprise Application Context Business Intelligence Business Process Enterprise Event Processing Management Application Performance Management Data Decision ServiceInfrastructure Decision Business Predictive Predictive Rules Analytics Optimization Analysis Analytics Enterprise Platform ©2012 Decision Management Solutions 24
  26. 26. Improve for Increasing ROI ©2012 Decision Management Solutions 25
  27. 27. and for Adaptive Systems ©2012 Decision Management Solutions 26
  28. 28. Experiment To Learn And Adapt ©2012 Decision Management Solutions 27
  29. 29. Case study: Cable TVBusiness challenges Solution Benefits1.2M households Predictive analytics to 13-18% cross-sell hitMany single-product predict churn, cross- rate on averagehouseholds sell Up to 40% cross-sellWhole industry Business rules use analytics and data to success rate for somesuffers from lowloyalty and 20%+ drive dynamic scripts Teams using thecustomer churn Embedded in call scripts have moreIncreasing center application to salescompetition and improve decision making Reduced churn by 20-changing regulations 30% ©2012 Decision Management Solutions 28
  30. 30. Questions?
  31. 31. Wrap Up
  32. 32. Decision Management Systems Agile Analytic Adaptive ©2012 Decision Management Solutions 31
  33. 33. Begin With The Decision In Mind Find the decisions that matter to your business and model them ©2012 Decision Management Solutions 32
  34. 34. Embed Predictive Analytics Decision Build predictive analytic models and embed them in operational systems ©2012 Decision Management Solutions 33
  35. 35. Learn More Decision Management Workshops in Europe Systems Berlin, June 4 and 5 decisionmanagementsolutions.com/ London, June 11 and 12 book Decisions and Decision Management Identifying decisions Design of decisions Managing decision logic Report on platform Decisions in systems technologies Getting started decisionmanagementsolutions.com/ decision-management-technology Details at http://www.enterprise-design.eu http://www.ruleshub.com ©2012 Decision Management Solutions 34
  36. 36. Thank You James Taylor, CEOjames@decisionmanagementsolutions.com 35

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