Más contenido relacionado La actualidad más candente (20) Similar a Models Collecting Dust? How to Transform Your Results from Interesting to Impactful (20) Más de Revolution Analytics (20) Models Collecting Dust? How to Transform Your Results from Interesting to Impactful 2. 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 championing
Decision Management and developing
Decision Management Systems
©2012 Decision Management Solutions 2
4. Knowing is not enough
Those who know first, win
Those who ACT first, win
Provided they act intelligently
©2012 Decision Management Solutions 4
5. It’s hard to communicate your value
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6. Time to deploy models matters
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8. Challenges with predictive analytics
Actions are needed not just predictions
Begin with the decision in mind
The business does not understand analytics
A business context for analytics
Analytic models age quickly
Cottage industries don’t scale
Industrialize your analytic processes
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10. Decision Management is the
proven approach used to
manage decisions and apply
predictive analytics effectively
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11. 3 Steps to Decision Management
Discover
Build
Improve
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12. What is a decision?
Data is gathered, considered
A choice or selection is made
That results in a commitment to action
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13. Different kinds of decisions
Strategic Decisions
• Few in number, large impact
• Should we acquire this company or exit this market?
Tactical Decisions
• Management and control, moderate impact
• Should we re-organize this supply chain, change risk management approach?
Operational Decisions
• Day-to-day decisions that affect one transaction or customer
• Best offer for this customer ?How risky is this loan? Is this claim fraudulent?
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14. Decisions are the focal point for risk
Risk is not acquired in
“big lumps” but one
transaction at a time
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16. Three kinds of analytic decisions
Risk Fraud Opportunity
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17. Analytics power operational decisions
How do I…
prevent this customer from churning?
convert this visitor?
acquire this prospect?
make this offer compelling to this person?
identify this claim as fraudulent?
correctly estimate the risk of this loan?
It’s not about “aha” moments
It’s about making better operational decisions
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18. Case: Retailer
Business challenges Solution Benefits
Grocery chains are Tailored promotions Increased revenue
battling for market integrated with Deep knowledge of
share loyalty program customers across
Customer loyalty is Integrated system formats
essential for growth from back office to More effective
Loyalty to the brand, point of sale promotional
not a single store Consistently campaigns
format compelling offers
across channels
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20. Candidate decisions
Determine if a customer is eligible for a loan
Calculate the discount for an order
Assess the risk of a transaction
Select the terms for a deal
Choose which claims to Fast Track
These are decision words
The system must answer a question each time
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21. Target decision-making on KPIs
Strategy defines KPIs
KPIs measure operations
Operational decisions affect KPIs
The link between decisions and
KPIs is critical
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22. Decision to KPI mapping
KPIs impacted by improvement in decision
Customer Customer Losses Retention KPI 5
Churn Service Budget
Calls
↑ ↑ ↓
What retention offer should
be made? ?
↑ ↑
What initial price should be
offered?
↓ ↓
Should an intervention call
be made?
Decision 3
?
…
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23. Decompose the decisioning
What is required to make decision?
Guidelines, policy documents
Human expertise
Regulations
Existing system logic
Data describing the case
External reference data
Predictive Analytic Models
Data Mining Results
The results of other decisions
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24. Decisions provide context
Processes Know which business
Activities require decisions processes will be improved
by your analytics
Events Know when your analytics
Trigger decisions might be calculated
Systems Know how you will have to
Implement decisions deploy your analytics
Organizational Units Know who cares about
Make decisions your analytics and who will
Own decisions have to believe them
Are impacted by decisions
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25. Case study: Insurer
Business challenges Solution Benefits
Use analytics to Model and Find the decisions
improve underwriting decompose decisions that could be
Map decisions to impacted and
Embed analytics in refocused analytic
claim processing systems and
organizations effort
application
Constrained analytic
effort to ensure
successful
implementation
28. Analytic Insight Management
Data Management
Data Preparation
Data Visualization & Analysis
Modeling In-database Modeling
Model Validation
Deployment and Scoring In-database Scoring
Model Monitoring
Model Tuning Model Tuning
Repository
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30. Case study: Cable TV
Business challenges Solution Benefits
1.2M households Predictive analytics to 13-18% cross-sell hit
Many single-product predict churn, cross- rate on average
households sell
Up to 40% cross-sell
Whole industry Business rules use
analytics and data to success rate for some
suffers from low
loyalty and 20%+ drive dynamic scripts Teams using the
customer churn Embedded in call scripts have more
Increasing center application to sales
competition and improve decision
making Reduced churn by 20-
changing regulations 30%
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35. Case: State dept of taxation
Business challenges Solution Benefits
Paper tax returns Single central Recovered millions
increased costs and taxpayer database of dollars from
slowed responses Integrated system dubious tax returns
Information system Sophisticated real- Increased collection
silos time predictive of unpaid taxes
Manual fraud analytics Decreased number
detection and return of questionable
review returns
Increased customer
satisfaction
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37. 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.
Discount Code: TAYLOR4389
For more information about this new release, visit
www.decisionmanagementsolutions.com/book
©2012 Decision Management Solutions 39
38. In a Predictive Enterprise, analytics are…
Used in every transaction
Pervasive
At the point of contact/delivery
In operational decision making
From reporting to prediction and forecasting
Predictive
Data mining
Predictive analytics and scoring
Actionable
Decisions being made, actions being taken
Decision Management Systems
Decision Support Systems
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39. Begin with the Decision in mind
Discover
Build
Improve
Find the decisions that
matter to your business and
model them
©2012 Decision Management Solutions 41
41. Thank You
James Taylor, CEO
james@decisionmanagementsolutions.com
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