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Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
Putting Predictive Analytics To Work
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Putting Predictive Analytics To Work

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My session from Predictive Analytics World in DC 2009 on how Decision Management helps put predictive analytics to work in operational systems.

My session from Predictive Analytics World in DC 2009 on how Decision Management helps put predictive analytics to work in operational systems.

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  • 1. Putting predictive analytics to work<br />James Taylor,<br />CEO<br />
  • 2. The ROI of better operational decisions<br />Analytics and operational decisions<br />Challenges in putting predictive analytics to work<br />Decision Management<br />Next Steps<br />
  • 3. The One Slide You Need<br />Better operational decisions yield high ROI<br />Analytics can improve operational decisions<br />You need to<br />Focus on actions<br />Deploy rapidly<br />Engage business and IT<br />Decision Management <br />Focuses on decisions,<br />Combines business rules with analytics<br />Puts predictive analytics to work<br />
  • 4. Better operational decisions offer high ROI<br />
  • 5. ©2009 Decision Management Solutions<br />5<br />There are different types of decisions<br />High-value, low-volume decisions<br />Medium-value, medium-volume decisions<br />Low-value, high-volume decisions<br />High<br />ECONOMIC IMPACT<br />Low<br />Low High<br />DECISION VOLUME<br />After Smart (Enough) Systems, Prentice Hall 2007<br />
  • 6. ©2009 Decision Management Solutions<br />6<br />Small improvements add up<br />
  • 7. “The essence of strategy is choosing to perform activities differently than rivals do.”<br />Dr. Michael Porter, Harvard Business School<br />
  • 8. Better underwriting decisions<br />
  • 9. Analytics improve operational decisions<br />©2009 Decision Management Solutions<br />9<br />
  • 10. Analytics have power in decision making<br />CustomerRetention<br />CampaignResponse<br />AcquisitionRates<br />Online<br />Conversion<br />Fraud<br />Crime<br />WastedSpend<br />Risk<br />
  • 11. ©2009 Decision Management Solutions<br />11<br />See through uncertainty with analytics<br />%<br />%<br />%<br />Predictive analytics turn uncertainty into usable probability<br />
  • 12. Challenges in putting predictive analytics to work<br />
  • 13. Knowing is not enough<br />©2009 Decision Management Solutions<br />13<br />Those who know first, win<br />Those who ACT first, win<br />Provided they act intelligently<br />
  • 14. Time is accuracy, accuracy is money<br />
  • 15. Operational decisions at the center<br />
  • 16. Monitoring and compliance<br />
  • 17. Takeaways<br />Better decisions means actions not predictions<br />Time to business impact is critical<br />The only results are business results<br />Analytics requires IT and business engagement<br />Compliance needs concrete execution<br />
  • 18. Case: Premier Bankcard<br />©2009 Decision Management Solutions<br />18<br />Scores deployed<br />Fraud risk<br />Credit risk<br />Customer value<br />Critical Success Factors<br />Analytics must lead<br />Business must support <br />But deployment AND testing require IT engagement<br />Building IT respect takes time<br />
  • 19. Decision Management<br />
  • 20. ©2009 Decision Management Solutions<br />20<br />Decision Management is<br />A business discipline that builds on existing enterprise applications to<br />put data to work<br />manage uncertainty<br />increase transparency<br />give the business control<br />
  • 21. ©2009 Decision Management Solutions<br />21<br />5 core principles of decisioning<br />Identify, separate and manage decisions<br />Use business rules to define decisions<br />Analytics to make decisions smarter<br />No answer is static<br />Decision-making is a process<br />
  • 22. ©2009 Decision Management Solutions<br />22<br />Delivering Decision Management<br />3 stages to better operational decisions<br />Create a “closed loop” between operations and analytics to measure results and drive improvement<br />Design and build independent decision processes to replace decision points embedded in operational systems <br />Identify the decisions (usually about customers) that are most important to your operational success<br />
  • 23. Addressing our challenges<br />
  • 24. Case: Infinity Insurance<br />Claims Innovation<br />12,000-13,000 claims/month<br />Recession – lower expenses, 25% fewer staff<br />Claims adjudication with rules, analytics<br />Results<br />1100% increase in fast track rate<br />Loss adjustment expense from 14% to 11%<br />33% higher subrogation returns<br />Subrogation recovery up by $10m/year<br />
  • 25. Next Steps<br />
  • 26. Begin with the Decision in Mind<br />
  • 27. Action Plan<br />
  • 28. Blog: www.jtonedm.com<br />

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