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How to succeed with advanced analytics at scale

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Leading organizations today are looking to scale their advanced analytics capabilities, especially data mining and predictive analytics, to improve business performance, reduce fraud and improve customer responsiveness. However traditional analytic project approaches are hard to scale and difficult to implement in the real-time environment required in modern enterprise architectures.

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How to succeed with advanced analytics at scale

  1. 1. How to Succeed with Advanced Analytics at ScaleJames Taylor CEO @jamet123 #decisionmgt
  2. 2. Your Presenter - James Taylor CEO of Decision Management Solutions We work with clients to improve their business by identifying and modeling decisions, and applying business rules and analytic technology to automate & improve these decisions. I have spent the last 13 years championing Decision Management. I am one of the submitters of the DMN standard © Decision Management Solutions, 2015 2@jamet123 #decisionmgt
  3. 3. Agenda Obstacles to an Analytic Operating Model Decision Modeling Solve The Right Problem Decision Management Architecture for Deployment Questions © Decision Management Solutions, 2015 3
  4. 4. Obstacles to an Analytic Operating Model
  5. 5. © Decision Management Solutions, 2015 5 Cottage Industries Don’t Scale Advanced Analytics can be a cottage industry focused on individual models But companies need lots of advanced analytic models, updated regularly. They need to scale @jamet123 #decisionmgt
  6. 6. © Decision Management Solutions, 2015 6 Cottage Industry Challenges No standard way to describe analytic problems Long winded, expensive and error-prone recoding delays deployment @jamet123 #decisionmgt
  7. 7. © Decision Management Solutions, 2015 7 A Scalable Analytic Operating Model Solve the right problem Architect and plan for deployment @jamet123 #decisionmgt
  8. 8. A Scalable Analytic Operating Model Solve the right problem Architect and plan for deployment © Decision Management Solutions, 2015 8@jamet123 #decisionmgt
  9. 9. Decision Modeling Solve The Right Problem
  10. 10. © Decision Management Solutions, 2015 10 Focus on Business Understanding CRISP-DM @jamet123 #decisionmgt
  11. 11. Start With Performance Measures Objectives of the sponsors Measures of success For instance Reduce claims in litigation Improve the loss ratio Objectives of the modelers Measures of accuracy For instance Error rate Lift © Decision Management Solutions, 2015 Business Measures Not Analytic Ones 11@jamet123 #decisionmgt
  12. 12. Performance Measures Are Not Enough A predictive analytic model cannot impact a measure… It can only improve a decision such that improved decision making will impact that measure. For instance An fraud analytic cannot improve a loss ratio It can improve the decision “Should this claim be approved for payment?” and that will improve the loss ratio Understand the decisions that have an impact © Decision Management Solutions, 2015 12@jamet123 #decisionmgt
  13. 13. Framing With Decision Models © Decision Management Solutions, 2015 Decision Input Data Knowledge Sources Sub- decisions Analytic Source: DecisionsFirst Modeler 13@jamet123 #decisionmgt
  14. 14. Why Frame Predictive Analytic Projects? Provides “structure” (who, what, how, when) Provides “transparency” of decision process Promotes “buy in” Fosters innovation Standardizes approach to decision making Provides an audit trail for decisions Improves/changes the business model Steve Knode, University of Maryland University College © Decision Management Solutions, 2015 14@jamet123 #decisionmgt
  15. 15. © Decision Management Solutions, 2015 Example: Hold or sell distressed mortgage Link to analytic Identify decision to be improved Uses a non-technical notation 15@jamet123 #decisionmgt
  16. 16. Find The Analytics That Work Ask If Only… If only we knew if this customer is unhappy If only we knew if this piece of equipment was going to fail soon If only we knew where we were most likely to get a delivery this afternoon If only we knew if this provider was ripping us off … © Decision Management Solutions, 2015 16@jamet123 #decisionmgt
  17. 17. Business Requirements for Analytics Focus on business needs first Avoid technology-led analytics © Decision Management Solutions, 2015 17 Decision Model Information Architecture User Interface Design Analytic Approach Implementation @jamet123 #decisionmgt
  18. 18. © Decision Management Solutions, 2015 18 Business Case and Project Comparison Analytic Decisions KPIs Processes and Systems Organizations Monitoring Deployment @jamet123 #decisionmgt
  19. 19. © Decision Management Solutions, 2015 19 Impact Throughout The Lifecycle CRISP-DM @jamet123 #decisionmgt
  20. 20. Decision Don’t Leave Decisions In The Dark Model Decisions For Transparency © Decision Management Solutions, 2015 20@jamet123 #decisionmgt
  21. 21. © Decision Management Solutions, 2015 21 Lessons Learned: Decision Models… Frame and communicate analytic requirements accurately Accessible to all teams involved, building shared understanding Show how analytics will add value and deliver business impact Requirements for deployment and usage are clear @jamet123 #decisionmgt
  22. 22. Decision Management Architecture for Deployment
  23. 23. Seamless, Scalable Deployment © Decision Management Solutions, 2015 Rapid deployment Scalable deployment Batch and real-time deployment 23@jamet123 #decisionmgt
  24. 24. © Decision Management Solutions, 2015 Deploying Analytics is Problematic Operational System Analytic Environment 24 40%-60% of analytic models are not deployed and used @jamet123 #decisionmgt
  25. 25. Decisions Are Central To Deployment © Decision Management Solutions, 2015 Operational Systems Analytic Environment Decision 25@jamet123 #decisionmgt
  26. 26. Decision Management Allows an organization to control, manage, and automate the repeatable decisions at the heart of its business. Decision Management: Improves accuracy Delivers consistency Increases agility Reduces decision latency Reduces costs A proven framework for implementing Predictive Analytics © Decision Management Solutions, 2015 26@jamet123 #decisionmgt
  27. 27. Business Rules Predictive Analytics External Data Big Data © Decision Management Solutions, 2015 27@jamet123 #decisionmgt
  28. 28. © Decision Management Solutions, 2015 28 Delivering Decision Management 3 stages to better operational decisions Identify the decisions that are most important to your operational success Design and build independent decision services to automate these decisions Create a “closed loop” between operations and analytics to measure results and drive improvement @jamet123 #decisionmgt
  29. 29. Strategic Decisions Tactical Decisions Operational Decisions Different Kinds of Decisions © Decision Management Solutions, 2015 29@jamet123 #decisionmgt
  30. 30. The Power of Operational Decisions Enable Straight Through Processing Maximize Customer Value Effectively Manage Risk Break Business Ratios Implement Strategy Make Faster Decisions Scale for Large Impact © Decision Management Solutions, 2015 30@jamet123 #decisionmgt
  31. 31. Performance Management Enterprise Platform Business Intelligence Data Infrastructure Application Context Decision Service Decision AnalysisBusiness Rules Predictive Analytics Business Process Management Event Processing Enterprise Application Predictive Analytics © Decision Management Solutions, 2015 31 Decision Management Technology Decision Modeling @jamet123 #decisionmgt
  32. 32. © Decision Management Solutions, 2015 32 Lessons Learned: Decision Management… Focuses analytics on operational decisions where they work Automates decisions to apply analytics in real-time Integrates analytics with policies and regulations using business rules Leverages Decision Models to drive analytic scale @jamet123 #decisionmgt
  33. 33. Questions?
  34. 34. Takeaways
  35. 35. © Decision Management Solutions, 2015 A Scalable Analytic Operating Model Decision models specify the problem and role of analytics Decision Management to drive agile, analytic and adaptive systems No standard way to describe analytic problems Long winded, expensive and error-prone recoding delays deployment 35@jamet123 #decisionmgt
  36. 36. Decision Management Solutions Company Providing consulting and training since 2009 Recognized experts in decision management Services Predictive Analytics Framing Decision Modeling Capability Decision Modeling Services Training and Workshops DecisionsFirst Modeler Collaborative standards- based decision modeling software © Decision Management Solutions, 2015 36@jamet123 #decisionmgt decisionsfirst.com decisionmanagementsolutions.com info@decisionmanagementsolutions.com
  37. 37. Thank You James Taylor, CEO james@decisionmanagementsolutions.com

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