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How to succeed with advanced analytics at scale
James Taylor, CEO of Decision Management Solutions, presents strategies for implementing advanced analytics at scale, emphasizing the need for scalable analytic operating models to overcome challenges in decision management. He discusses the importance of framing predictive analytic projects and modeling decisions for enhanced transparency and impact, advocating for a business-led approach rather than a technology-driven one. The document outlines decision management's role in optimizing business decisions through improved accuracy, consistency, and agility.
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How to succeed with advanced analytics at scale
- 1. How to Succeed withAdvanced Analytics at ScaleJames Taylor CEO @jamet123 #decisionmgt
- 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. Agenda Obstacles to anAnalytic Operating Model Decision Modeling Solve The Right Problem Decision Management Architecture for Deployment Questions © Decision Management Solutions, 2015 3
- 4. Obstacles to an AnalyticOperating Model
- 5. © Decision ManagementSolutions, 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. © Decision ManagementSolutions, 2015 6 Cottage Industry Challenges No standard way to describe analytic problems Long winded, expensive and error-prone recoding delays deployment @jamet123 #decisionmgt
- 7. © Decision ManagementSolutions, 2015 7 A Scalable Analytic Operating Model Solve the right problem Architect and plan for deployment @jamet123 #decisionmgt
- 8. A Scalable AnalyticOperating Model Solve the right problem Architect and plan for deployment © Decision Management Solutions, 2015 8@jamet123 #decisionmgt
- 9. Decision Modeling Solve TheRight Problem
- 10. © Decision ManagementSolutions, 2015 10 Focus on Business Understanding CRISP-DM @jamet123 #decisionmgt
- 11. Start With PerformanceMeasures 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. Performance Measures AreNot 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. Framing With DecisionModels © Decision Management Solutions, 2015 Decision Input Data Knowledge Sources Sub- decisions Analytic Source: DecisionsFirst Modeler 13@jamet123 #decisionmgt
- 14. Why Frame PredictiveAnalytic 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. © Decision ManagementSolutions, 2015 Example: Hold or sell distressed mortgage Link to analytic Identify decision to be improved Uses a non-technical notation 15@jamet123 #decisionmgt
- 16. Find The AnalyticsThat 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. Business Requirements forAnalytics 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. © Decision ManagementSolutions, 2015 18 Business Case and Project Comparison Analytic Decisions KPIs Processes and Systems Organizations Monitoring Deployment @jamet123 #decisionmgt
- 19. © Decision ManagementSolutions, 2015 19 Impact Throughout The Lifecycle CRISP-DM @jamet123 #decisionmgt
- 20. Decision Don’t Leave Decisions InThe Dark Model Decisions For Transparency © Decision Management Solutions, 2015 20@jamet123 #decisionmgt
- 21. © Decision ManagementSolutions, 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. Decision Management Architecture forDeployment
- 23. Seamless, Scalable Deployment ©Decision Management Solutions, 2015 Rapid deployment Scalable deployment Batch and real-time deployment 23@jamet123 #decisionmgt
- 24. © Decision ManagementSolutions, 2015 Deploying Analytics is Problematic Operational System Analytic Environment 24 40%-60% of analytic models are not deployed and used @jamet123 #decisionmgt
- 25. Decisions Are CentralTo Deployment © Decision Management Solutions, 2015 Operational Systems Analytic Environment Decision 25@jamet123 #decisionmgt
- 26. Decision Management Allows anorganization 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. Business Rules Predictive Analytics External Data Big Data ©Decision Management Solutions, 2015 27@jamet123 #decisionmgt
- 28. © Decision ManagementSolutions, 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. Strategic Decisions Tactical Decisions Operational Decisions Different Kindsof Decisions © Decision Management Solutions, 2015 29@jamet123 #decisionmgt
- 30. The Power ofOperational 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. Performance Management Enterprise Platform Business Intelligence Data Infrastructure Application Context DecisionService 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. © Decision ManagementSolutions, 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
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- 35. © Decision ManagementSolutions, 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. Decision Management Solutions Company Providingconsulting 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. Thank You James Taylor,CEO james@decisionmanagementsolutions.com