Using Predictive Analytics: Secrets to Creating a Successful Predictive Enterprise
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The document discusses the importance of predictive analytics in enhancing decision-making within enterprises, emphasizing the need for businesses to integrate analytics into all levels of decision processes. It outlines the categorization of decisions into strategic, tactical, and operational and highlights the role of decision management systems in automating these decisions. The author, James Taylor, offers insights on building a predictive enterprise and invites readers to explore consulting opportunities for optimizing their decision-making capabilities.
Using Predictive Analytics: Secrets to Creating a Successful Predictive Enterprise
- 1. Using Predictive James Taylor, Analytics: CEO Secrets to Creating a Successful Predictive Enterprise
- 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 © Decision Management Solutions, 2011 2
- 3. The world is changing Changing Scale Changing Expectations Changing Interactions ©2011 Decision Management Solutions 3
- 4. Staying competitive requires analytics #1 Data #2 Know-how #3 Intelligence ©2011 Decision Management Solutions 4
- 5. Beyond strategic to operational Strategic Decisions • Few in number, large impact • Should we acquire this company or exit this market? Tactical Decisions • Management and control, moderate impact • Should we reorganize this supply chain, change risk management approach? Operational Decisions • Day-to-day decisions that affect one transaction or customer • Best offer for this customer? How risky is this loan? Is this claim fraudulent? ©2011 Decision Management Solutions 5
- 6. Decisions are critical Manual Not Made Before Managed After Not Made Manual Managed New Larger boxes represent more decisions, by volume ©2011 Decision Management Solutions 6
- 7. Decisions are everywhere © Decision Management Solutions, 2011 7
- 8. In a Predictive Enterprise, analytics are… Used in every transaction Pervasive At the point of contact/delivery In operational decision making From reporting to prediction and forecasting Predictive Data mining Predictive analytics and scoring Actionable Decisions being made, actions being taken Decision Management Systems Decision Support Systems ©2011 Decision Management Solutions 8
- 9. The three legged stool Going Decisions, beyond not just “Aha!” predictions moments Predictive Predictive Industrialized Analytics Enterprise analytics ©2011 Decision Management Solutions 9
- 11. Predict Risk How risky is this customer’s application for service… And how should we price it? © Decision Management Solutions, 2011 11
- 12. Predict Fraud How likely is this claim to be fraudulent… and what should we do about it? © Decision Management Solutions, 2011 12
- 13. Predict Opportunity What represents the best opportunity to maximize loyalty and revenue? And when should we promote it? © Decision Management Solutions, 2011 13
- 14. Decisions – not just predictions
- 15. Knowing is not enough Those who know first, win Those who ACT first, win Provided they act intelligently ©2011 Decision Management Solutions 15
- 16. Embed Predictive Analytics ? ? Decision © Decision Management Solutions, 2011 16
- 18. Bring three groups together Business Decision © Decision Management Solutions, 2011 18
- 19. Going beyond “Aha!” moments
- 20. Don’t just make decisions ©2011 Decision Management Solutions 20
- 21. Create continuous improvement ©2011 Decision Management Solutions 21
- 22. Experiment to learn and adapt © Decision Management Solutions, 2011 22
- 24. Industrial analytics Cottage industries don’t scale Factories do
- 25. Infrastructure for industrial analytics Design Tools Data Data Management visualization and analysis Decision Deployment Model Service Production Repository Application Executable Model Modeling Algorithms Operational Database ©2011 Decision Management Solutions 25
- 26. Questions?
- 27. Wrap Up
- 28. 3 Steps to success Discover Build Improve © Decision Management Solutions, 2011 28
- 29. Begin with the Decision in mind Find the decisions that matter to your business and manage them to maximize analytics © Decision Management Solutions, 2011 29
- 30. Create an Analytic Factory
- 31. Decision Management Systems What if you could make your systems active participants in optimizing your business? What if your systems could act intelligently on their own? Decision Management Systems can do all that and more. This book shows how to integrate operational and analytic technologies to create more agile, analytic, and adaptive systems. For more information: decisionmanagementsolutions.com/book © Decision Management Solutions, 2011 31
- 32. Decision Management Solutions Decision Management Solutions helps companies change the way they think about decisions and realize the full value of predictive analytics and business rules technologies. To help you see how Decision Management can make a difference to your organization and help you meet your business objectives, I would like to offer you a free one- hour consultation. Wide-ranging or focused, you can ask whatever you like without obligation. To schedule your session, email me: jtaylor@decisionmanagementsolutions.com I look forward to hearing from you. www.decisionmanagementsolutions.com
- 33. Thank You Sign up for our newsletter, check out recordings and more at decisionmangementsolutions.com Information on our Predictive Enterprise Success service at decisionmanagementsolutions.com/predictive-enterprise-success James Taylor, CEO jtaylor@decisionmanagementsolutions.com 33
- 34. All Analytics is an interactive community created for the advancement of the analytics discipline. AllAnalytics.com is the place to turn for great technology insight, practical advice, and big- picture thought leadership on the business of data intelligence. Here a rich and varied group of participants, including corporate executives, IT professionals, and other line-of-business managers, share their experiences and know-how on business intelligence, advanced analytics, and data management. They provide guidance based on concrete experience and deep research through topical blogs as well as message boards, interactive chats, and, in a special series called Point/Counterpoint, text debates. You can conquer the challenges of big data. And All Analytics will give you the tools to do so. http://www.allanalytics.com