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Business Friendly                    Data MiningJames Taylor       CEO
Your presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applyin...
Data Mining and Predictive     Analytics WORK                 ©2012 Decision Management Solutions   2
Success Requires A Clear Target                           ©2012 Decision Management Solutions   3
Success Requires Deployment                ?                ?      Decision                          ©2012 Decision Manage...
Success Requires Collaboration                 Business                  Decision                             ©2012 Decisi...
Business-Friendly     Data Mining
Decision Management is the proven approach used tomanage decisions, set goals   for predictive analytic efforts, apply and...
Step 1Be clear which decisions   you are improving                 ©2012 Decision Management Solutions   8
A Decision             A choice or selection             Based on facts             That ends             uncertainty     ...
Discover High ROI DecisionsRisk decisions           Customer decisions  How risky is this deal  How profitable might this ...
Use Questions to Define Decisions For each decision  Name  Description  Question and a defined set of allowable answers  A...
Step 2Understand how those decisions impact the       business                ©2012 Decision Management Solutions   12
Target Decision-making On KPIs                       Strategy defines KPIs                     KPIs measure operations    ...
Define The Business Context Key Performance               Business Processes Indicators                     What processes...
Put Analytics In Context Processes                       Know which business  Activities require decisions   processes wil...
Step 3Decompose decisions to   understand them                 ©2012 Decision Management Solutions   16
Decompose the decisioning What is required to make decision?  Guidelines, policy documents  Human expertise  Regulations  ...
Case study: InsurerBusiness challenges   Solution           BenefitsUse analytics to      Model and          Find the deci...
Decision Models Are Revealing                          ©2012 Decision Management Solutions   19
Decision Models Are Revealing 2                           ©2012 Decision Management Solutions   20
Step 4Deploy analytical decisions   to the systems andprocesses that need them                   ©2012 Decision Management...
Build decision-making components             Operational             Systems                                              ...
Create Decision Management Systems     Agil     e               Analyti               c                                  A...
Questions?
Takeaways
Decision Management Establishes a clear target Enables rapid deployment Creates a collaboration framework   Business      ...
Thank You             James Taylor, CEOjtaylor@decisionmanagementsolutions.c                                  om
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Business Friendly Data Mining

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Business Friendly Data Mining

  1. 1. Business Friendly Data MiningJames Taylor CEO
  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. Data Mining and Predictive Analytics WORK ©2012 Decision Management Solutions 2
  4. 4. Success Requires A Clear Target ©2012 Decision Management Solutions 3
  5. 5. Success Requires Deployment ? ? Decision ©2012 Decision Management Solutions 4
  6. 6. Success Requires Collaboration Business Decision ©2012 Decision Management Solutions 5
  7. 7. Business-Friendly Data Mining
  8. 8. Decision Management is the proven approach used tomanage decisions, set goals for predictive analytic efforts, apply and deploy predictive analytics effectively ©2012 Decision Management Solutions 7
  9. 9. Step 1Be clear which decisions you are improving ©2012 Decision Management Solutions 8
  10. 10. A Decision A choice or selection Based on facts That ends uncertainty And results in action ©2012 Decision Management Solutions 9
  11. 11. 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 10
  12. 12. Use Questions to Define Decisions For each decision Name Description Question and a defined set of allowable answers Any other results to be returned with the answer ©2012 Decision Management Solutions 11
  13. 13. Step 2Understand how those decisions impact the business ©2012 Decision Management Solutions 12
  14. 14. Target Decision-making On KPIs Strategy defines KPIs KPIs measure operations Operational decisions affect KPIs The link between decisions and KPIs is critical ©2012 Decision Management Solutions 13
  15. 15. Define The Business Context Key Performance Business Processes Indicators What processes does this How is success measured business execute? in this business area? Which business processes How to tell good decisions will need decisions made? from bad ones and the value of focusing on a Business Events decision What key business events trigger business behavior? Organizations When will decisions be What is the basic required and in what organization structure context Teams, departments, Existing Systems groups not individuals What are the core systems Who cares about the for this business area? decisions How will you have to deploy decision making? ©2012 Decision Management Solutions 14
  16. 16. Put Analytics In Context Processes Know which business Activities require decisions processes will be improved by your analytics Events Trigger decisions Know when your analytics might be Systems calculated Implement decisions Know how you will have Organizational Units to deploy your analytics Make decisions Own decisions Know who cares about Are impacted by decisions your analytics and who will have to believe them ©2012 Decision Management Solutions 15
  17. 17. Step 3Decompose decisions to understand them ©2012 Decision Management Solutions 16
  18. 18. Decompose the decisioning What is required to make decision? Guidelines, policy documents Human expertise Regulations Existing system logic Data describing the case External reference data Predictive Analytic Models Data Mining Results The results of other decisions ©2012 Decision Management Solutions 17
  19. 19. Case study: InsurerBusiness challenges Solution BenefitsUse analytics to Model and Find the decisionsimprove decompose that could beunderwriting decisions impacted and Map decisions to refocused analyticEmbed analytics in effortclaim processing systems andapplication organizations Constrained analytic effort to ensure successful implementation
  20. 20. Decision Models Are Revealing ©2012 Decision Management Solutions 19
  21. 21. Decision Models Are Revealing 2 ©2012 Decision Management Solutions 20
  22. 22. Step 4Deploy analytical decisions to the systems andprocesses that need them ©2012 Decision Management Solutions 21
  23. 23. Build decision-making components Operational Systems Decision Analytic Systems ©2012 Decision Management Solutions 22
  24. 24. Create Decision Management Systems Agil e Analyti c Adaptiv e ©2012 Decision Management Solutions 23
  25. 25. Questions?
  26. 26. Takeaways
  27. 27. Decision Management Establishes a clear target Enables rapid deployment Creates a collaboration framework Business Decision
  28. 28. Thank You James Taylor, CEOjtaylor@decisionmanagementsolutions.c om

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