Using Predictive Analytics: Secrets to Creating a Successful Predictive Enterprise


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Predictive analytic models are not new within many analytical organizations. However, the use of predictive analytics is growing rapidly. Data-driven decision-making initiatives are compelling more and more enterprises to move their analytics efforts beyond the basics. Enterprises must go from measurement and reporting to predictions and decision management. With ever-increasing amounts of historical data ready for mining, the right predictive analytic models can help an enterprise understand future behavior – adherence to medical prescriptions, increased or decreased spending, loan repayment, and more. By driving better decision-making, such insights can be transformative. Join us as we look into best-practices for building a predictive enterprise, technology tips for using and implementing predictive analytics tools, and guidelines for building predictive models.

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Using Predictive Analytics: Secrets to Creating a Successful Predictive Enterprise

  1. 1. Using PredictiveJames Taylor, Analytics: CEO Secrets to Creating a Successful Predictive Enterprise
  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 © Decision Management Solutions, 2011 2
  3. 3. The world is changing Changing ScaleChanging Expectations Changing Interactions ©2011 Decision Management Solutions 3
  4. 4. Staying competitive requires analytics #1 Data #2 Know-how #3 Intelligence ©2011 Decision Management Solutions 4
  5. 5. Beyond strategic to operational Strategic Decisions • Few in number, large impact • Should we acquire this company or exit this market? Tactical Decisions • Management and control, moderate impact • Should we reorganize this supply chain, change risk management approach? Operational Decisions • Day-to-day decisions that affect one transaction or customer • Best offer for this customer? How risky is this loan? Is this claim fraudulent? ©2011 Decision Management Solutions 5
  6. 6. Decisions are critical Manual Not MadeBefore Managed After Not Made Manual Managed New Larger boxes represent more decisions, by volume ©2011 Decision Management Solutions 6
  7. 7. Decisions are everywhere © Decision Management Solutions, 2011 7
  8. 8. In a Predictive Enterprise, analytics are… 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 ©2011 Decision Management Solutions 8
  9. 9. The three legged stool Going Decisions, beyond not just “Aha!” predictions momentsPredictive Predictive IndustrializedAnalytics Enterprise analytics ©2011 Decision Management Solutions 9
  10. 10. Predictive Analytics
  11. 11. Predict RiskHow risky is thiscustomer’sapplication forservice…And how shouldwe price it? © Decision Management Solutions, 2011 11
  12. 12. Predict FraudHow likely is this claim to be fraudulent…and what should we do about it? © Decision Management Solutions, 2011 12
  13. 13. Predict OpportunityWhat represents thebest opportunity tomaximize loyaltyand revenue?And when shouldwe promote it? © Decision Management Solutions, 2011 13
  14. 14. Decisions – notjust predictions
  15. 15. Knowing is not enough Those who know first, win Those who ACT first, win Provided they act intelligently ©2011 Decision Management Solutions 15
  16. 16. Embed Predictive Analytics ? ? Decision © Decision Management Solutions, 2011 16
  17. 17. The three-legged stool
  18. 18. Bring three groups together Business Decision © Decision Management Solutions, 2011 18
  19. 19. Going beyond “Aha!” moments
  20. 20. Don’t just make decisions ©2011 Decision Management Solutions 20
  21. 21. Create continuous improvement ©2011 Decision Management Solutions 21
  22. 22. Experiment to learn and adapt © Decision Management Solutions, 2011 22
  23. 23. Industrializing analytics
  24. 24. Industrial analyticsCottage industries don’t scale Factories do
  25. 25. Infrastructure for industrial analytics Design Tools Data DataManagement visualization and analysis Decision Deployment Model Service Production Repository Application Executable Model Modeling Algorithms Operational Database ©2011 Decision Management Solutions 25
  26. 26. Questions?
  27. 27. Wrap Up
  28. 28. 3 Steps to success Discover Build Improve © Decision Management Solutions, 2011 28
  29. 29. Begin with the Decision in mind Find the decisions that matter to your business and manage them to maximize analytics © Decision Management Solutions, 2011 29
  30. 30. Create an Analytic Factory
  31. 31. Decision Management Systems What if you could make your systems active participants in optimizing your business? What if your systems could act intelligently on their own? Decision Management Systems can do all that and more. This book shows how to integrate operational and analytic technologies to create more agile, analytic, and adaptive systems. For more information: © Decision Management Solutions, 2011 31
  32. 32. Decision Management SolutionsDecision Management Solutions helps companies changethe way they think about decisions and realize the fullvalue of predictive analytics and business rulestechnologies.To help you see how Decision Management can make adifference to your organization and help you meet yourbusiness objectives, I would like to offer you a free one-hour consultation. Wide-ranging or focused, you can askwhatever you like without obligation.To schedule your session, email me:jtaylor@decisionmanagementsolutions.comI look forward to hearing from
  33. 33. Thank You Sign up for our newsletter, check out recordings and more at Information on our Predictive Enterprise Success service James Taylor, CEO 33
  34. 34. All Analytics is an interactive community created for the advancement of the analytics discipline. is theplace to turn for great technology insight, practical advice, and big- picture thought leadership on the business of data intelligence. Here a rich and varied group of participants, including corporateexecutives, IT professionals, and other line-of-business managers, share their experiences and know-how on business intelligence,advanced analytics, and data management. They provide guidance based on concrete experience and deep research through topical blogs as well as message boards, interactive chats, and, in a special series called Point/Counterpoint, text debates. You can conquer the challenges of big data. And All Analytics will give you the tools to do so.