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 Decision Management Solutions, 2011 2
The value of BI Improving the quality of decisions Decision Management Solutions, 2011 3
Patterns inform decision-making 10 5 0 Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Decision Management Solutions, 2011 4
Time to look forward? Decision Management Solutions, 2011 5
From BI to Predictive Analytics? Decision Management Solutions, 2011 6
3 Steps to Predictive Analytics Discover Build Improve Decision Management Solutions, 2011 7
DISCOVER DECISIONS
Operational decisions everywhere Decision Management Solutions, 2011 9
Decisions implement strategy Decision Management Solutions, 2011 10
Decisions are the focal point for risk Risk is not acquired in big lumps but one transaction at a time Decision Management Solutions, 2011 11
Decisions maximize customer value Decision Management Solutions, 2011 12
Decisions scale for large impact Strategic Decision Tactical Decision Operational Decision Decision Management Solutions, 2011 13
BUILD IN PREDICTIVE ANALYTICS
Three kinds of Predictive Analytics Risk Fraud Opportunity Decision Management Solutions, 2011 15
Predict Risk How risky is this customer s application for service And how should we price it? Decision Management Solutions, 2011 16
Predict Fraud How likely is this claim to be fraudulent. and what should we do about it? Decision Management Solutions, 2011 17
Predict Opportunity What represents the best opportunity to maximize loyalty and revenue? And when should we promote it? Decision Management Solutions, 2011 18
Predictive Analytics turn uncertainty about the future into usable probabilities Decision Management Solutions, 2011 19
Build decision-making components Operational Systems Decision Analytic Systems Decision Management Solutions, 2011 20
Manage the rules of decisions Decision Decision Management Solutions, 2011 21
Embed Predictive Analytics?? Decision Decision Management Solutions, 2011 22
Bring three groups together Business Decision Decision Management Solutions, 2011 23
CONTINUOUSLY IMPROVE DECISIONS
Measure decision performance Decision Management Solutions, 2011 25
Experiment to learn and adapt Decision Management Solutions, 2011 26
TAKEAWAYS
From BI to Predictive Analytics Decision Management Solutions, 2011 28
Begin with the Decision in mind Discover Build Improve Find the decisions that matter to your business and model them Decision Management Solutions, 2011 29
Find the rules of decision-making Discover Build Improve Analyze and manage the business rules that underpin your operational decisions Decision Management Solutions, 2011 30
Embed Predictive Analytics Discover Build Improve Decision Build predictive analytic models and embed them in operational systems Decision Management Solutions, 2011 31
Learn to experiment Discover Build Improve Learn to experiment and use the data from experiments Decision Management Solutions, 2011 32
Decision Management Systems For more information about this new release, visit www.ibmpressbooks.com/title/9780132884389 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 Decision Management Solutions, 2011 33
james@decisionmanagementsolutions.com decisionmanagementsolutions.com THANK YOU