Analytics in practiceDriving your business and saving you money                          Todd Nicholson                   ...
Three examples of analytics in            practiceDomestic Tourism Segmentation(Ministry of Tourism)Serious Injury Model(A...
Example 1: Domestic Tourism         SegmentationWant to understand targetable groups within the NZ tourism marketWant to p...
Key learning: Always keep your   target audience in mind
Key learning: Always keep your    target audience in mindEnsured all segments were marketable by segmenting on:  - interes...
Key learning: Prettiness matters
Key learning: Prettiness matters
Key learning: Prettiness matters
Example 2: ACC serious Injury             ModelACC has just over 5000 seriously injured clients. For these  clients ACC pr...
Analytical models can give you                                transparency and consistencyNumber of care hours per week   ...
Key Learning: Milk your results
Key Learning: Milk your results                                                  When dealing with people there willNumber...
National serious injury              service- Evidence based needs assessment- $820 million reduction in outstanding claim...
Example 3: Claim duration       analysis (ACC)• ACC has over 50,000 weekly compensation claims every  year• They cost almo...
International tools – Medical  Disability Advisor (MDA)
Risk Factor - Age
Key learning: Know the power of           your data!
Key learning: Know the power of           your data!• ACC’s data is not perfect. For example,  losing your job is a key ri...
Know the power of your data!There is nothing magic in our analysis. Its just• Survival analysis• Logistic regression• Gene...
Milk your results (again!)Two parts of the analysis have been  implemented for frontline day-to-day use• They allow branch...
Milk your results• Predict which claims are likely to last for a  long time and WHY• Draws case managers’ attention to  po...
Milk your results                                   1Proportion of claims still open                                  0.8 ...
So remember• Always keep your audience at the front of  your mind• Prettiness is important• Milk your results• Models can ...
Analytics in practice sunz 2012
Analytics in practice sunz 2012
Analytics in practice sunz 2012
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Analytics in practice sunz 2012

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Analytics in practice sunz 2012

  1. 1. Analytics in practiceDriving your business and saving you money Todd Nicholson February 2012
  2. 2. Three examples of analytics in practiceDomestic Tourism Segmentation(Ministry of Tourism)Serious Injury Model(ACC)Claim Duration Model(ACC)
  3. 3. Example 1: Domestic Tourism SegmentationWant to understand targetable groups within the NZ tourism marketWant to profile each segment so we know: - who they are - what they want - how to reach themWant to ensure each segment can be targeted
  4. 4. Key learning: Always keep your target audience in mind
  5. 5. Key learning: Always keep your target audience in mindEnsured all segments were marketable by segmenting on: - interests - age - ideal holiday type - inhibitors of travelThis gets us away from segmenting on holiday frequency and directs us towards holiday type.
  6. 6. Key learning: Prettiness matters
  7. 7. Key learning: Prettiness matters
  8. 8. Key learning: Prettiness matters
  9. 9. Example 2: ACC serious Injury ModelACC has just over 5000 seriously injured clients. For these clients ACC provides:- Carers to help with day-to-day living- Weekly compensation and medical expenses- Capital itemsThe outstanding claims liability is currently $9.3 billion.However, increasing consistency is one of the ways growth in expenses has been successfully dampened.
  10. 10. Analytical models can give you transparency and consistencyNumber of care hours per week Functional Independence Measure
  11. 11. Key Learning: Milk your results
  12. 12. Key Learning: Milk your results When dealing with people there willNumber of care hours per week always be variation. So lets measure it! Functional Independence Measure
  13. 13. National serious injury service- Evidence based needs assessment- $820 million reduction in outstanding claims liability (due to the hard work of the serious injury team – this is simply a tool they’ve commissioned to help them).- Minimal bad publicity or media comment involving clients with a disability- No change in the usual, small number of legal challenges to decisions- An increase in the number of clients achieving their self directed outcomes
  14. 14. Example 3: Claim duration analysis (ACC)• ACC has over 50,000 weekly compensation claims every year• They cost almost $1 billion a yearAim of the analysis: to accurately predict claims duration based on past experienceUltimate Goal: to make better decisions about services required and achieve shorter claim durations
  15. 15. International tools – Medical Disability Advisor (MDA)
  16. 16. Risk Factor - Age
  17. 17. Key learning: Know the power of your data!
  18. 18. Key learning: Know the power of your data!• ACC’s data is not perfect. For example, losing your job is a key risk factor but isn’t recorded in ACC data.• But it is still the best dataset available anywhere in the world for modelling injury recovery – Longevity – Universal coverage – No coming or going
  19. 19. Know the power of your data!There is nothing magic in our analysis. Its just• Survival analysis• Logistic regression• Generalized Linear Modelling (GLM)• Text mining (yes, even free text data can be a gold mine)The real difficulty is dealing with such a large amount of data
  20. 20. Milk your results (again!)Two parts of the analysis have been implemented for frontline day-to-day use• They allow branches to accurately identify which claims will require weekly compensation• Staff can take a more proactive approach• Staff can ensure high risk clients receive the correct services right from the start
  21. 21. Milk your results• Predict which claims are likely to last for a long time and WHY• Draws case managers’ attention to potential risks• Allows accurate allocation of resources – identifying clients who need no services is as important as those who need a lot.
  22. 22. Milk your results 1Proportion of claims still open 0.8 0.6 High Risk Claim 0.4 Low Risk Claim 0.2 0 -30 20 70 120 Weekly compensation days
  23. 23. So remember• Always keep your audience at the front of your mind• Prettiness is important• Milk your results• Models can give you consistency and transparency• Don’t underestimate the power of your data

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