From Business Intelligence to Predictive Analytics · From Business Intelligence to Predictive...

From Business Intelligence to Predictive Analytics

James Taylor

CEO, Decision Management Solutions

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 developing the concept of Decision Management

2 © Decision Management Solutions, 2011

The value of BI

Improving the quality of decisions


Patterns inform decision-making

0

5

10

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day10


Time to look forward?


From BI to Predictive Analytics

?


3 Steps to Predictive Analytics

Discover Build Improve


DISCOVER DECISIONS

Operational decisions everywhere

© Decision Management Solutions, 2011 9

Decisions implement strategy


Decisions are the focal point for risk


Risk is not acquired in “big lumps” but one transaction at a time

Decisions maximize customer value


Decisions scale for large impact


Strategic Decision

Tactical Decision

Operational Decision

BUILD IN PREDICTIVE ANALYTICS

Risk Opportunity

Three kinds of Predictive Analytics


Fraud

Predict Risk


How risky is this customer’s application for service… And how should we price it?

Predict Fraud


How likely is this claim to be fraudulent…. and what should we do about it?

Predict Opportunity


What represents the best opportunity to maximize loyalty and revenue? And when should we promote it?

Predictive Analytics turn uncertainty about the future

into usable probabilities


Build decision-making components


Operational Systems

Analytic Systems

Decision

Manage the rules of decisions


Decision

Embed Predictive Analytics


Decision

?

?

Bring three groups together


Business

Decision

CONTINUOUSLY IMPROVE DECISIONS

Measure decision performance


Experiment to learn and adapt


TAKEAWAYS

From BI to Predictive Analytics


Begin with the Decision in mind

Find the decisions that matter to your business and model them



Find the rules of decision-making



Analyze and manage the business rules that underpin your operational decisions

Embed Predictive Analytics



Decision Build predictive analytic models and embed them in operational systems

Learn to experiment



Learn to experiment and use the data from experiments

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.

Available October 20, 2011

Discount Code: TAYLOR4389


For more information about this new release, visit www.ibmpressbooks.com/title/9780132884389

THANK YOU

[email protected]

decisionmanagementsolutions.com

From Business Intelligence to Predictive Analytics · From Business Intelligence to Predictive...

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