The document discusses implementing an agile approach to developing predictive models at Allstate Insurance. It outlines how agile allows for more incremental and iterative development, with the ability to test and improve models more quickly. An agile process was adopted with sprints, backlogs, and daily standup meetings. This resulted in 38 predictive models being developed over 12 research and development sprints within 10 months, with only 3 model failures, allowing for faster delivery of business value.

1. Allstate Marketing Agile Analytics

2. 2© Allstate Insurance Company Proprietary and Confidential
MARA Models Update
THIS IS NOT AGILE
• You have to go until phase 5 of the process to get
to places
• Its an incomplete product until stage 5
Picture source: https://pixabay.com/en/photos/einstein/

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THIS IS AGILE
vision of a
genius……..
Group
• Each and every product is a complete product
that can be used
• Speed to Market – business value earlier
• Market testing can be done
• Design improvement can take place
• Fail Fast approach
Picture source: https://pixabay.com/en/photos/einstein/

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SPEED TO MARKET
Potential Shippable Increments
$$
Value
Speed to market
Test
Feedback
Change
Include
or drop
variables
Develop
CI Feedback loop
Deliver Potential Shipment Increments – or deliver
models with data easily available
Use techniques that produce a model within weeks
rather than months
Deliver the highest value models first
Test the market with models, and bring them back to
the lab after feedback/test results

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HOW WE IMPLEMENTED AGILE AT ALLSTATE
1
2
3
Symbol Count Description
Order of models
Product Backlog
1 Task
1 1 Model 1
3 1 Model 3
2 1 Model 2
1 Idea
1 Time
1 Master.23
1 Master.26
1 Note
Business Idea 4 Master.40
Validation
Implementation
Business
Idea
Product
Backlog
Sprint
Backlog
Time Boxed
Sprints
Sprint
Review

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CHALLENGES OF AGILE – HANDLED WITH AGILITY
Management
Data Scientists
Non Agile Teams
Global Operations
• Research Mindset
• Fear of failure
• Business Results
• Fail fast approach
• Scope Creep
• Business idea loosely
defined
• Prioritized Stories
• Clearly defined
acceptance criteria
slides
• Random ETAs of key
dependencies
• Standardized
Delivery Dates
• No oversight on
process
• Daily meetings and
pictures of scrum boards

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RESULTS AND USE CASES
Use Cases
October 2016 until June 2017
• 38 predictive models ready to go
• 12 R&D Sprints
• 18 Training Sprints
• 3 model fails
Digial
Digital Marketing Direct Mail/Email
Marketing
R&D

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Appendix

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HOW TO RUN SPRINTS – SAMPLE BOARD
• Sprint Planning meeting (half
day)
• Daily Stand up meeting 15 mins
• Update Scrum boards at the daily
meetings.
• Sprint Review meeting to present
acceptance criteria
• Sprint Retrospective meeting at
the conclusion of every sprint to
improve process.
Sprints
Sample Scrum Board