Predictive Analytics :Next Wave in Business Intelligence

Replay Available at Perficient.com/Webinars

About Perficient

Perficient is a leading information technology consulting firm serving

clients throughout North America.

We help clients implement business-driven technology solutions that

integrate business processes, improve worker productivity, increase

customer loyalty and create a more agile enterprise to better

respond to new business opportunities.

PRFT Profile

Founded in 1997

Public, NASDAQ: PRFT

2009 Revenue of $188 million

16 major market locations throughout North America— Chicago, Cincinnati, Cleveland, Columbus, Dallas, Denver,

Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Jose, St. Louis and Toronto

1,300+ colleagues

Dedicated solution practices

~450 enterprise clients (2009) and 85% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

Perficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutions

Our Solutions Expertise & Services

Business-Driven Solutions• Enterprise Portals• SOA and Business Process

Management• Business Intelligence• User-Centered Custom Applications• CRM Solutions• Enterprise Performance

Management• Customer Self-Service• eCommerce & Product Information

Management• Enterprise Content Management• Industry-Specific Solutions• Mobile Technology• Security Assessments

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Perficient Services End-to-End Solution Delivery IT Strategic Consulting IT Architecture Planning Business Process & Workflow

Consulting Usability and UI Consulting Custom Application Development Offshore Development Package Selection, Implementation

and Integration Architecture & Application Migrations Education

Our Speaker

Mohit Sauhta• Sr. Technical Architect, Information Management and

Business Analytics practice• More than 10 years of experience in delivering

Information management, Business Intelligence solutions.

• Proven enterprise architect in building Large Enterprise applications such as Investment Performance Reporting and Enterprise Performance Management.

• Exploring next generation technological solutions, such as Predictive Analytics.

• Pursuing MBA with emphasis in Analytical Finance at the Booth School of Business.

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Agenda

• Motivation• Demand for Predictive Analytics• Surveys and Findings

• Design• Overview of Predictive Analytics• Components of Predictive Analytics

• Implementation• Perficient Offerings• Footprint with existing BI Infrastructure• Success Stories

• Q&A

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An Information Explosion … and Faster Decisions Required

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Variety of Information 80% of new data growth is unstructured content Emails, images, audio, video..

Volume of Digital Data 57% CAGR for enterprise data through 2010 Machine generated data : Sensors, RFID, GPS..

Velocity of Decision Making Rapidly changing business climate Need to get ahead of the curve : predict issues

and fix them

Business Imperative:Accelerate innovation, business optimization, and sustained competitive differentiation

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Challenges facing Decision Makers Today

1 in 3business leaders frequently make critical decisions without the information they need

1 in 2don’t have access to the information across their organization needed to do their jobs

19+ hoursSpent by knowledge workers each week just searching for and understanding information

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What Keeps You Awake at Night?Life Before Predictive Analytics

• Its costs me a small fortune to get new customers; there must be a better way!

• We want to increase purchase size… but we don’t know which products to keep in stock!

• By the time customer complaints work through the system – it’s too late, they’re gone!

• We thought this campaign was a success… until the checks bounced!

• We want to reduce fraud, but we don’t want to burden our low risk customers!

Acquire

Grow

Retain

Fraud

RiskFocus

Focus

Focus

Focus

Focus

Where We Focus

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Sense and respond Predict and act

Back office Point of impact

Instinct and intuition Real-time, fact-driven

Foundational Breakaway

Skilled analytics experts Everyone

Automated Optimized

Next Generation Efficiencies come from Optimizing Every Decision, Transaction or Process at the Point of Impact…

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Analytics Critical for Driving Competitive Advantage

“At a time when companies in many industries offer similar products and use comparable technology, high-performance business processes are among the last remaining points of differentiation.”

Tom Davenport, “Competing on Analytics”

57%

55%

61%

62%

63%

64%

66%

70%

76%

80%

63%

68%

70%

67%

71%

73%

71%

73%

77%

86%

Unified Communication

SOA/Web Services

Business Process Management

Application Harmonization

Self-Service Portals

Customer and Partner Collaboration

Mobility Solutions

Risk Management and Compliance

Virtualization

Business Intelligence and Analytics

Ten Most Important Visionary Plan ElementsInterviewed CIOs could select as many as they wanted

Source: IBM Global CIO Study 2009; n = 2345

Highgrowth

Low growth

BI/Analytics #1investment to

improve competitiveness

IBM Global CIO Study 2009

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Imagine If Your Decision Makers Could…

Physician Telco Call Center RepLoan Officer Retail Sales

Associate

…predict and treat infection in

premature newborns 24 hours earlier?

…apply inferred social relationships of

customers to prevent churn?

…adjust credit lines as transactions are

occurring to account for risk fluctuations?

…determine who is most likely to buy if offered discounts at

time of sale?

…optimize every transaction, process and decision at the point of impact, based on the current situation, without

requiring that everyone be an analytical expert

How can I capture and analyze information about

how my customers, prospects or employees are

feeling?

How can I capture and analyze information about

how my customers, prospects or employees are

feeling?

How can I predict behaviors and preferences so I can reduce

churn, prevent fraud, maximize campaign results and more?

How can I predict behaviors and preferences so I can reduce

churn, prevent fraud, maximize campaign results and more?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?

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Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage

Analyzes patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes

Predictive Analytics offers Unique Insights to Answer those Tough Business Questions

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TDWI Predictive Analytics Findings

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The Predictive Analytics Process:Iteration for Success and Innovation

Decision Optimization

Recommend the mostappropriate actionto take

EnterpriseData Sources

Read new data on customers, events, etc. for continuous improvement

Predictive Analytics

Analyze data toprovide insight andpredict the future

Capture

Predict

Improve customer retention

Grow share of wallet

Minimize risk

Increase customer satisfaction

Enhance market share

Prospects

Customers Constituents

Employees

Students Patients

Act

DashboardsKiosks / MobileCRM / ERPSterling Apps

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Capture Predict Act

…

…

DataCollection

DeploymentTechnologiesPlatform

Pre-built Content

Statistics

Attract Up-sell Retain

TextMining

DataMining

Data Collection delivers an accurate view of customer

attitudes and opinions

Predictive capabilities bring repeatability to ongoing decision

making, and drive confidence in your results and decisions

Unique deployment technologies and methodologies maximize the

impact of analytics in your operation

Enabling the Predictive Analytics Process

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Predictive Analytics Software 4 Key Categories

Data CollectionDelivers accurate view of customer attitudes & opinions

StatisticsDrives confidence in your results & decisions

Modeling Brings repeatability to ongoing decision making

DeploymentMaximizes the impact of analytics in your operation

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Capture: Data Collection

• Data collection capabilities to capture attributes, interactions, behaviors, and attitudes for customers, employees or constituents

• Augments internally captured data with sentiment and opinion data and use this combination as part of the analytic process

Delivers an accurate view of customer attitudes and opinionsDelivers an accurate view of customer attitudes and opinions

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Predict: Statistics

• Advanced statistics and data management for analysts researching business problems

• Collection, preparation, analysis, interpretation, explanation and presentation of data

• Provides insight into a sample of data and tools for prediction and forecasting based on the data

Drives confidence in your results and decisionsDrives confidence in your results and decisions

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Predict: Modeler

• Workbench with data preparation functions to build analytic streams or jobs and a run time environment for job execution

• Set of mining algorithms that provide insight and prediction

• Enables the discovery of key insights, patterns and trends in data that can be used to optimize business decisions

Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making

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Predict: Text Analytics

• Uses natural language processing heuristic rules and statistical techniques to reveal conceptual meaning in text

• Extracts concepts from text and categorizes them

• Makes unstructured qualitative data more quantifiable, enabling the discovery of key insights from sources such as survey responses, documents, emails, call center notes, web pages, blogs, forums and more

Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making

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Act: Decision Management

• Set of tools to automate high-volume decision making enterprise-wide

• Injects powerful predictive analytics into core business processes

• Extends predictive insights to the business user at the point of decision

– E.g. Should a claim be ‘fast tracked’ or evaluated more closely based on a calculated risk score?

Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation

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Act: Collaboration and Deployment Services

• Flexible enterprise foundation for managing and deploying analytics throughout the organization

• Automates analytical processes

• Enables collaboration by securely sharing and reusing analytic assets

• Streamlines deployment of analytical information on a scheduled or real-time basis

Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation

Our Strategic Partnerships

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Introducing Perficient’s Business Intelligence Practice

• A leading provider of BI and Information Management Solutions, along with the predictive analytics services and solutions– Software – data collection, text and data mining, advanced statistical

analysis and deployment technologies– Services – implementation, training, consulting, and customization – Solutions – combine software and services to deliver high-value line-of-

business solutions; used for optimizing marketing campaigns, call center effectiveness, identification of fraudulent activity and more

• Perficient is world-class talent delivering world-class technology, on time and on budget to a broad customer base.

Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes

Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes

Offerings and Expertise

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Perficient’s Predictive Analytics Solutions Uniquely Offers You…

Value of analytics across your organization– Highly productive, business-friendly predictive modeling,

collaboration and deployment services– Based on the convergence of analytics, architecture and business

processes

Open Architecture that seamlessly fits your existing environment– Componentized, enabling it to easily fit within your existing

environment, immediately adding value without the need for a “rip and replace” of information infrastructure

– Natural part of a user’s normal activity versus a separate, disconnected application

Deep domain expertise in analyzing data– Ability to dynamically capture attitudes, attributes and behaviors and

improve people interactions

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BI and Performance Management Capabilities Help Decision Makers Find the Answers

Why are we on/off track?

How are we doing?

What should we do next?

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New Value for Perficient BI Customers

Why are we on/off track?

How are we doing?

What should we do next?

New customer insight through Data Collection

New customer insight through Data Collection

Time series forecasting

Time series forecasting

Predictive analytics for deeper understanding of

the data

Predictive analytics for deeper understanding of

the data

Addition of KPPs (Key Performance

Predictors)

Addition of KPPs (Key Performance

Predictors)

Broad distribution of statistical results

Broad distribution of statistical results

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Predictive Analytics –Modeler

2) Use predictive analytics & feed results back into the BI layer

3) Results widely distributed via BI for consumption by Business Users

1) Leveraging BI, identify problem or situation needing attention

BI Application

Common Business Model

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Workflow Today

…

Business UsersConsumeAnalytics

Analyst createspredictive insight

Meta data modelercreates data model

Report Designerwith Mining skills creates & deploys reports

Requires: Data Mining skills Modeler skills

Requires: Data

Modeling skills

Knowledge about Mining Table layout

Requires: Report Development Skills Mining visualization skills Knowledge about Mining content

Analytical Modeler

Metadata Modeler

Report Designer

Final Report

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Business User Focused

How accurate is your budgeting and

forecast process? How well do your

analysts understand data correlation?

How does the credit terms, discounts,

etc. drive your margins, DSO, and

working capital ratios?

Is your organization using industry

benchmark data to determine product

profitability and market share?

Are you using Analytics to drive cross-

sell/up-sell opportunities?

What applications are you using to

prevent customer churn?

Are you using any tools to predict

customer behavior?

Are you using weather patterns to drive

your sales forecasts?

Are you using any applications to better

predict time and attendance for your

indirect labor costs?

How are you preventing employee theft

and fraud?

How are you monitoring employee

retention and satisfaction?

Finance Sales/Marketing Human Resources

We offer analytical solutions that drive revenue, improve profitability and predict behavior

Perficient helps you…….. Analyze the past, Monitor the present, Predict and Plan the future.

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Applying Analytics to Accelerate Your Success Example: Customer Intimacy

• Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the “right” customers, by enabling decision makers to:• Understand unstructured data that is found in everything from

e-mails, call center notes, blogs, and open ended survey questions• Identify drivers of customer behavior via survey analysis• Identify key performance predictors (KPPs) including customer

defection and outcome of particular customer interactions• Prioritize customer programs as part of real-time decision processes • View customer insights alongside key performance information

through standard IBM reports, analyses and dashboards

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Sample Case Studies: Customer Intimacy

Grow and Retain“The power and ease of use of Statistical

analysis enables the AMR Consumer Research department to perform more research than ever before and deliver timely reports while maintaining a small, dedicated staff.”

Grow

“With BI Analytics, HSBC Bank USA effectively mines an ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.”

Attract, Grow and Retain

“Predictive Analytics solutions add intelligence to our business ensuring efficiencies in pricing, marketing and reporting – something no company can afford to ignore in today’s business environment”R&D AnalystPremierline Direct

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“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports”

Rebecca Wettemann, VP of Research, Nucleus Research

Customers Experience a Measurable ROI

• 94% of customers achieved a positive ROI, average payback in 10.7 months

• Over 90% of users attributed an increase in productivity to Predictive Analytics.

• 81% of projects were deployed on time, 75% on or under budget

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Delivering Customer Value

• Quickly capture and filter in real-time vast amounts of data on critical public health issues found through interviews, email and the Internet

• Now able to better characterize diseases, identify risk factors and quickly assess medical needs of specific populations

• Plot the expected course of outbreaks and plan responses for improved public safety

Center for Disease Control

Improve Health Care and Patient Outcomes

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Delivering Customer Value

• Identify early indicators of customer churn using data collection surveys and data and text mining, tailoring direct marketing efforts as a result

• 100% improvement in churn detection and an initial reduction in actual churn from 19% to 2%

• 53% of its unsatisfied customers became company promoters

Cablecom GmbH

Reducing Customer Churn

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Delivering Customer Value

• Identify and predict crime patterns through timely analysis of incident reports, tips and service calls

• Can now pinpoint “hot spots” and place tactical units where they are needed most

• 20-30 % decrease in violent crime and homicides in a 12-month period

Richmond Police DepartmentPredict and Prevent Criminal Activity

Predictive Analytics Enables Next-Generation Decision Making

• A leading provider of predictive analytic services and solutions with a world-class talent and a broad customer base

• Enables decision makers across the organization to predict future events and proactively act upon that insight to drive better business outcomes

From sense and respond……to predict and act!

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Questions & Answers

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