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.

1. How to Succeed
with Advanced
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 an Analytic
Operating Model
Decision Modeling
Solve The Right Problem
Decision Management
Architecture for Deployment
Questions
© Decision Management Solutions, 2015 3

4. Obstacles to an
Analytic Operating Model

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. © 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. © Decision Management Solutions, 2015 7
A Scalable Analytic Operating Model
Solve the right
problem
Architect and plan
for deployment
@jamet123 #decisionmgt

8. A Scalable Analytic Operating Model
Solve the
right problem
Architect and
plan for
deployment
© Decision Management Solutions, 2015 8@jamet123 #decisionmgt

9. Decision Modeling
Solve The Right Problem

10. © Decision Management Solutions, 2015 10
Focus on Business Understanding
CRISP-DM
@jamet123 #decisionmgt

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. 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. Framing With Decision Models
© Decision Management Solutions, 2015
Decision
Input Data
Knowledge
Sources
Sub-
decisions
Analytic
Source: DecisionsFirst Modeler
13@jamet123 #decisionmgt

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. © 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. 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. 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. © Decision Management Solutions, 2015 18
Business Case and Project Comparison
Analytic Decisions
KPIs
Processes
and Systems
Organizations
Monitoring
Deployment
@jamet123 #decisionmgt

19. © Decision Management Solutions, 2015 19
Impact Throughout The Lifecycle
CRISP-DM
@jamet123 #decisionmgt

20. Decision
Don’t Leave Decisions
In The Dark
Model Decisions
For Transparency
© Decision Management Solutions, 2015 20@jamet123 #decisionmgt

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. Decision Management
Architecture for Deployment

23. Seamless, Scalable Deployment
© Decision Management Solutions, 2015
Rapid
deployment
Scalable
deployment
Batch and
real-time
deployment
23@jamet123 #decisionmgt

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. Decisions Are Central To Deployment
© Decision Management Solutions, 2015
Operational
Systems
Analytic
Environment
Decision
25@jamet123 #decisionmgt

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. Business
Rules
Predictive
Analytics
External Data
Big Data
© Decision Management Solutions, 2015 27@jamet123 #decisionmgt

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. Strategic Decisions
Tactical
Decisions
Operational
Decisions
Different Kinds of Decisions
© Decision Management Solutions, 2015 29@jamet123 #decisionmgt

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. 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. © 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. Questions?

34. Takeaways

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. 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. Thank You
James Taylor, CEO
james@decisionmanagementsolutions.com