connecting data and experience: how decision management works
DESCRIPTION
Hot Technologies with Rick Sherman, Wayne Eckerson and FICO Live Webcast April 30, 2014 Watch the archive: The need to adapt quickly only continues to increase. Decision cycles can no longer span weeks and months, but must occur in days or even hours. Traditional methods for managing data cannot fulfill this business requirement. Rather, organizations must embrace new technologies and practices for accessing, processing and delivering not just data, but also analytical models. In doing so, they will achieve a level of decision management that can fundamentally transform how their business works. Register for this episode of Hot Technologies to hear veteran Analysts Rick Sherman of Athena IT Solutions, and Wayne Eckerson of Eckerson Group, as they give their insights on how today's analytics leaders are solving serious challenges by connecting data and experience. They'll be briefed by David Ross of FICO, who will outline his firm's recent innovations in turning analytical insights into actionable strategies that deliver results faster. He'll outline how FICO is leveraging the spectrum of data available today, including business intelligence systems and a wide range of Big Data sources. Visit InsideAnlaysis.com for more information.TRANSCRIPT
Grab some coffee and enjoy the pre-show banter before the top of the hour!
H T Technologies of 2014
HOST: Eric Kavanagh
THIS YEAR is…
Decision Management
� Data is not enough & experience is not enough
� Understanding trends is nice – predicting them is better
� Business performance ultimately drives decisions
ANALYST:
Rick Sherman Founder, Athena IT Solutions
ANALYST:
Wayne Eckerson President, Eckerson Group
GUEST:
David Ross Senior Director of Product Management, FICO TH
E LINE UP
INTRODUCING
Rick Sherman
Rick Sherman Athena IT Solu4ons rsherman@athena-‐solu4ons.com
Copyright © 2014 Athena IT Solutions
Hot Technologies of 2014: Connec4ng Data & Experience:
How Decision Management Works
Slide 9 Copyright © 2014 Athena IT Solutions All rights reserved.
From Descriptive to Prescriptive Analytics Right Skills, Right Job
• Data Scientists ü Very skilled ü Misunderstood & isolated
• Business analysts ü Not stats, biz, eco or psych gurus ü Model consumers
• Predictive Modeling ü Too labor intensive ü Self-service is misguided goal
• Data Exploration & Preparation ü Big Data - Too Much Labor ü Data Integration - Silos
Slide 10 Copyright © 2014 Athena IT Solutions All rights reserved.
From Descriptive to Prescriptive Analytics Right Architecture, Right Tools
Analytical Hub & Predictive Analytics Platform
Data scientists “in charge”
Objectives: • Self-service BI • Improved time to market • Reusable & Embedded • Revisions
Functional layers: • BI Portfolio • (Self-Service) Data Integration
ü BI schema ü Ent Apps & External
• Predictive analytics ü Modeling & Statistical Tools ü Data Visualization ü Development Platform
Slide 11 Copyright © 2014 Athena IT Solutions All rights reserved.
From Descriptive to Prescriptive Analytics Right team, Right Approach
Project Life-Cycle & Project Team
Slide 12 Copyright © 2014 Athena IT Solutions All rights reserved.
From Descriptive to Prescriptive Analytics Next Steps
INTRODUCING
Wayne Eckerson
© Eckerson Group LLC
Bus
ines
s Va
lue
High
2010-20
Reporting
1980’s
Analysis
Prediction (Prescription)
Monitoring
Query, Excel, OLAP, Visual Discovery
Dashboards, scorecards
Statistics, data mining, optimization Static & interactive
reports
“What happened?”
“Why did it happen?”
“What’s happening?”
“What will happen?”
Low
= Reporting
= Analysis
1990’s 2000’s
All
user
s B
usin
ess
anal
ysts
Exe
cs, M
grs,
W
orke
rs
Sta
tistic
ians
/D
ata
Sci
entis
ts
Tools
Use
rs
Waves of BI
© Eckerson Group LLC 15
Two Strains of Analy4cs Exploration & Analysis Prediction & Optimization
Navigate historical data Model historical data
Deductive
Business analysts
Ad hoc and viz tools
Inductive
Data scientists
Data mining tools
© Eckerson Group LLC 16
Predic4ve Modeling Steps 13%
18%
25%
23%
12%
9%
8%
1. Project definition
2. Data exploration
3. Data preparation
4. Model creation
5. Scoring and deployment
6. Model management
Other
Based on 166 responses, Wayne Eckerson, “Predic6ve Analy6cs: Extending the Value of Your DW Investment,” TDWI Research, 2007.
© Eckerson Group LLC
Workflow 1. Select a func6on 2. Load data 3. Hit Run
Self-‐service predic4ve analy4cs?
Business analysts
Value 1. Put power in more hands 2. Prototyping 3. Deliver “good enough” results
INTRODUCING
David Ross
© 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
From Descriptive to Prescriptive: Evolving Your BI Strategy
David Ross Senior Director, Product Management FICO
© 2014 Fair Isaac Corporation. Confidential. 20 © 2014 Fair Isaac Corporation. Confidential.
Moving from
Insights to
Tangible Solutions
© 2014 Fair Isaac Corporation. Confidential. 21
Maturing from Descriptive to Prescriptive Analytics
Business Intelligence
Descriptive Analytics
Predictive Analytics
Prescriptive Analytics
Summarize Past and Current Behavior
Automatically take the ideal action on each individual
Target each decision to a customer’s future behavior
Make different offers to groups
of customers
Understand the trends in the business
Predict Future Behavior and Adapt
Dec
isio
n Va
lue
Analytic Capability
© 2014 Fair Isaac Corporation. Confidential. 22
Decision Management Provides the Solution
Benefits of Decision Management
Make changes in a fraction of the time and cost
Deploy analytic models in hours not months
Develop and deploy solutions in a tenth of the time
Adapt and learn to continually act correctly
Optimize for the best outcome across actions
Increase decision accuracy by orders of magnitude
© 2014 Fair Isaac Corporation. Confidential. 23
Through innovative techniques… …drive more profitable decisions
Transforming 1:1 marketing • Delivers over 100MM highly targeted offers every week.
• Unprecedented scale in retail analytics. Individual recommendations selected from thousands of product categories each with their own ‘auto-generated propensity model’.
• Creates a marketplace for manufacturer investments in 1:1 marketing.
• New Innovations include: Time to Event Analytics and Up-lift Models
“Coupons normally had a response rate of 1 percent or 2 percent. With eValues, as many as 20 percent to 30 percent of eligible customers collect the discount they are offered.”
Linda Vytlacil, Vice President Member Insights and Innovation, Sam’s Club
24 © 2014 Fair Isaac Corporation. Confidential. 24 © 2014 Fair Isaac Corporation. Confidential.
The Strengths of Decision Management
Historical Data
Industry Data
Transactional Data
Policies and Guidelines
Analytics/Modeling
Business Rules
Optimization
Personalized Treatments
Predictive Offers
Optimal Pricing
Consistency
Accuracy
Auditability
Compliance
Continuous Improvement
Decision Management
25 © 2014 Fair Isaac Corporation. Confidential.
Your Challenge: Do More… Do It Faster… Do It for Less… Do It with Fewer People
Provide Single Customer View
Add New Services
Add New Products
Deliver Cross-Channel
Assure Compliance
Maintain and Update
Future-Proof Investment
© 2014 Fair Isaac Corporation. Confidential. 26
Insight Thrives on Data
► Access to any data, anytime ► Assess what data is valuable
► More reliable predictions ► Better decisions
► Understand the correlations from macro to micro data
► Advanced analytic techniques develop advanced predictions
► Mining consumers as a source of data
© 2014 Fair Isaac Corporation. Confidential. 27
Analytics Give Decisions Insight “There is nothing so terrible as activity without insight” - Goethe
► Connect data and experience ► Analytics can predict what will happen
and when ► Decisions can determine the right action
at the right time
► Optimization will derive the best outcome for the business
► Knowledge can be continually gained: Expertise → Insight → Optimal activity
© 2014 Fair Isaac Corporation. Confidential. 28
Monitor, Act and Learn
► Understand how your business is performing
► Connect decision performance to overall business performance
► Know when you and how you need to change
► Align business performance improvement to cost of change
© 2014 Fair Isaac Corporation. Confidential. 29
Shortening Time to Value Gains Earlier Returns
► Business users controlling which decisions to improve and when
► Simple and easy decision assessment, update and deployment
► Business process and business decisions closely coupled
► Faster integration, easier deployment and scalable infrastructure
► Cloud and on-premise implementation
© 2014 Fair Isaac Corporation. Confidential. 30
FICO® Decision Management Platform is at the heart of analytically driven applications
Big Data
IMPROVE
AUTHOR EXECUTE MANAGE
Analytics Optimization
Decisions
© 2014 Fair Isaac Corporation. Confidential. 31
Conclusions / Summary
► The need to adapt and change only continues to increase ► Decision management is central to improving business performance
► Availability and access to data is exploding ► The right data and insight ensure the best decisions are made
► Understanding performance ensures the improvements made
► Decisions can be made consistently across organizations ► Complicated methods do not require complicated tools
An effective and holistic decision management strategy creates a significant competitive advantage
© 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Thank You
Please contact FICO at: 1-888-342-6336 [email protected]
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THANK YOU!