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.

1. Using Predictive
James Taylor, Analytics:
CEO
Secrets to Creating a
Successful Predictive
Enterprise

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. The world is changing
Changing Scale
Changing Expectations
Changing Interactions
©2011 Decision Management Solutions 3

4. Staying competitive requires analytics
#1 Data
#2 Know-how
#3 Intelligence
©2011 Decision Management Solutions 4

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. Decisions are critical
Manual Not Made
Before Managed
After Not Made
Manual
Managed
New
Larger boxes represent more decisions, by volume
©2011 Decision Management Solutions 6

7. Decisions are everywhere
© Decision Management Solutions, 2011 7

8. In a Predictive Enterprise, analytics are…
Used in every transaction
Pervasive
At the point of contact/delivery
In operational decision making
From reporting to prediction and forecasting
Predictive
Data mining
Predictive analytics and scoring
Actionable
Decisions being made, actions being taken
Decision Management Systems
Decision Support Systems
©2011 Decision Management Solutions 8

9. The three
legged stool
Going
Decisions,
beyond
not just
“Aha!”
predictions
moments
Predictive Predictive Industrialized
Analytics Enterprise analytics
©2011 Decision Management Solutions 9

10. Predictive Analytics

11. Predict Risk
How risky is this
customer’s
application for
service…
And how should
we price it?
© Decision Management Solutions, 2011 11

12. Predict Fraud
How likely is this claim to be fraudulent…
and what should we do about it?
© Decision Management Solutions, 2011 12

13. Predict Opportunity
What represents the
best opportunity to
maximize loyalty
and revenue?
And when should
we promote it?
© Decision Management Solutions, 2011 13

14. Decisions – not
just predictions

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. Embed Predictive Analytics
?
? Decision
© Decision Management Solutions, 2011 16

17. The three-legged stool

18. Bring three groups together
Business
Decision
© Decision Management Solutions, 2011 18

19. Going beyond “Aha!”
moments

20. Don’t just make decisions
©2011 Decision Management Solutions 20

21. Create continuous improvement
©2011 Decision Management Solutions 21

22. Experiment to learn and adapt
© Decision Management Solutions, 2011 22

23. Industrializing analytics

24. Industrial analytics
Cottage industries don’t scale
Factories do

25. Infrastructure for industrial analytics
Design
Tools
Data Data
Management visualization
and analysis
Decision
Deployment
Model Service Production
Repository Application
Executable
Model
Modeling
Algorithms
Operational
Database
©2011 Decision Management Solutions 25

26. Questions?

27. Wrap Up

28. 3 Steps to success
Discover
Build
Improve
© Decision Management Solutions, 2011 28

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. Create an Analytic Factory

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:
decisionmanagementsolutions.com/book
© Decision Management Solutions, 2011 31

32. Decision Management Solutions
Decision Management Solutions helps companies change
the way they think about decisions and realize the full
value of predictive analytics and business rules
technologies.
To help you see how Decision Management can make a
difference to your organization and help you meet your
business objectives, I would like to offer you a free one-
hour consultation. Wide-ranging or focused, you can ask
whatever you like without obligation.
To schedule your session, email me:
jtaylor@decisionmanagementsolutions.com
I look forward to hearing from you.
www.decisionmanagementsolutions.com

33. Thank You
Sign up for our newsletter, check out
recordings and more at
decisionmangementsolutions.com
Information on our Predictive Enterprise Success service at
decisionmanagementsolutions.com/predictive-enterprise-success
James Taylor, CEO
jtaylor@decisionmanagementsolutions.com
33

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Here a rich and varied group of participants, including corporate
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