From Business Intelligence to Predictive Analytics

jazzydoeSoftware and s/w Development

Oct 30, 2013 (3 years and 10 months ago)

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From Business Intelligence
to Predictive
Analytics

Contents


From Business Intelligence to Predictive
Analytics


What is “Predictive Analytics”?


Frequent applications
of Predictive Modeling and Data
Mining


I
ntegrating
Predictive Modeling in the organizational
decision
making


The integration between Cognos and IBM
SPSS products


2

From Business Intelligence to
Predictive Analytics




3

Better
Decision
Making

Business Intelligence

Descriptive Hindsight and Insight



Predictive Analytics

Proactive Foresight

From Business Intelligence to
Predictive
Analytics


The Process


4

Lower
ROI

Higher

Lower
COMPLEXITY

Higher

Reporting:

What happened?

Analytics:

Why it happened?

Tracking:

What is happening now?

Predicting:

What might happen
?

Predictive Analytics

Scorecards and
Dashboards

Visualization Tools

and OLAP Cubes

Reporting and

Query Tools

Analytical
Technologies

From Business Intelligence to
Predictive
Analytics


The ROI


5

What Is the Business Value of Predictive Analytics
to Your Organization
?

27%

39%

27%

3%

1%

3%

N=166 Organizations

Very High
High
Moderate
Low
Very Low
Don't Know
What is Predictive Modeling?

6

Predictive
Modeling

Predictive
Analytics

Data Mining

Defining the Problem

Data Discovery

Data Building

Creating the
Predictive Model

Model
Implementation

Model Performance
-

Tracking and
Maintenance

The Process of

Predictive Modeling


7

The Outputs of

Predictive Modeling
-

Forecasting


8

Forecasting Models

Real data Forecasting of Sales by Months:

Predicting 9 Months in the Future

The Outputs of

Predictive Modeling
-

Targeting


9

Lift Models

Overall Response: 8.1%

Top Dec. Resp.
= 39%

Top Dec. Lift
= 484% (39%/8.1%)

Top 3 Deciles

=



Cum. Lift:


293%


Pct. From Tot. Resp.: 88%

Frequent Applications of
Predictive
Analytics

Analytical Customer Relationship
Management (
CRM)
-

Relevance


11

CRM

Relevance

Businesses

Governmental

NGO’s

Philanthropic

Education

Defense

& Security

Research

And
Others

Analytical Customer Relationship
Management (CRM
)


Data Integration


12

Behavioral data

-

Orders

-

Transactions

-

Payment history

-

Usage history

Descriptive data

-

Attributes

-

Characteristics

-

Self
-
declared info

-

Socio
-
demographics

-

Lifestyle

-

Census…

Attitudinal data

-

Opinions

-

Preferences

-

Needs & Desires

-

Satisfaction

Interaction data

-

E
-
Mail / chat transcripts

-

Call center notes

-

Web Click
-
streams

-

Real
-
time interactions

Traditional Data

High
-
value, Dynamic Data
-

Source of Competitive Differentiation

1
2

Analytical Customer Relationship
Management (CRM
)


Predictive Models


13

Acquisition

Stimulation

Retention/Churn

Cross
-
Sell

Up
-
Sell

Uplift Model

Life Time Value

Next Best Offer

Coupon Targeting

Best Contact Channel

Basket Analysis

Segmentation

% from All Sales

% from Prospects

Risk, Fraud and Collections

Implemented for …


11

Risk and Fraud Models
reduce exposure

Collection Models save time
& costs for Debt Recovery

Insurance


Claim probability & Claim Amount

Loans and Credit Risk

Crime and National Security

QA Failures, Service Cost and Schedules

Health and Disease Risks

Audit and Investigation Targeting

and others…

Clinical Decisions Support Systems

Research of Secondary Effects in Drug Development to refine targeting

Prediction of Diseases by Genes, Lifestyle, Environment and History

Prediction of Disease Rates in Epidemics

Segmentation of populations by Health Profile

Data Mining and Text Analysis of the Human Genome

and others…

Pharmacological, Genetics and
Health Research

Some applications...



15

Sales

Prices

Revenue and Profit

Inventory levels

Capability demand

Natural and Weather phenomena

Employees attrition

Students dropout rates

Philanthropic giving

and others…

Forecasting

Forecasting Models
for…


16

Integrating Predictive
Analytics
in the
Organization

Integrated Solutions with IBM
Statistics and Modeler


18

High
-
performance data mining and text analytics

Utilizes structured and unstructured data

Supports data driven

decision making

Interactive interface,

no programming

Automated data

preparation and modeling

Integration with Cognos,

Netezza, InfoSphere and

System Z

IBM SPSS
Modeller


19


Integration
between
Cognos and IBM
SPSS

Access Cognos BI Data from inside SPSS Modeler.

Seamless Integration of Dashboards, Tables and
Predictive Analytics.

No manual extraction & import of data.

Create and use consistent enterprise data view for
reports and modeling.

Distribute predictive results by publishing into the
Cognos BI environment.


Source & Export


Read / Write Cognos 10 and 8 Packages

New IBM MODELER Cognos Nodes

Deliver the Power of Predictive
Analytics to the Organization


21

IBM Cognos BI

Common

Business Model



Access Cognos BI data


22

Users interact with familiar data view
and minimize need for IT involvement
for data access and preparation.

Integrated Architecture of SPSS
and Cognos


23

SPSS Modeler and Cognos BI


24

Data Preparation

SPSS Modeler

SPSS Modeler

Import Data

Cognos Package

Author Report

Create Report / Dashboard

Create Predictive Insight

Report / Dashboard

Consume Analytics

Export Data

Cognos Package

Dashboards & BI Meet
Predictive Analytics


25

SPSS
Predictive Analytics
integrated

into
a Cognos BI dashboard.

Questions..?


26


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