Evaluating Big Data Predictive Analytics Solutions

Mike Gualtieri, Principal Analyst

December 12, 2013.

Twitter: @mgualtieri

New York, NY

Outlook

© 2012 Forrester Research, Inc. Reproduction Prohibited

The right data and right talent are the key to predictive analytics success

3

Source: August 8, 2012, “The State Of Customer Analytics 2012” Forrester report

© 2012 Forrester Research, Inc. Reproduction Prohibited

Business intelligence means customer intelligence

4

No. 5 priority for 2009

No. 1 priority for 2011

Source: May 27, 2011, “Forrsights: The Software Market In Transformation, 2011 And Beyond” Forrester report

Budget decision-makers plan to increase spending in 2012 on real-time analytics & Big Data solutions.

54%

Sources: iStockphoto (www.istockphoto.com), Forrsights Budgets And Priorities Tracker Survey, Q4 2012

7B

More people using more technology means more big data.

What exactly is Big Data?

It’s all relative.

9

#BigData

“Big Data is the frontier of a firm’s ability to store, process, and access

(SPA) all of the data it needs to operate, make decisions, reduce risks,

and serve customers.”

DEFINITION

Frontier

Big Data is about pushing limits. Exponential growth in data means the frontier is vast.

Can you store, process, and access (SPA) all of the data you need?

Think SPA

© 2012 Forrester Research, Inc. Reproduction Prohibited

Big Data management is about three key activities:

•Can you capture and store your data? Store

•Can you cleanse, enrich, and analyze your data? Process

•Can you retrieve, search, integrate, and visualize your data?

Access 14

Think SPA when you

think Big Data.

16

#Predictive

“Predictive analytics solutions allow firms to discover, evaluate, optimize,

and deploy predictive models by analyzing data sources to improve

business outcomes.”

DEFINITION

© 2012 Forrester Research, Inc. Reproduction Prohibited

What do great predictive analytics use cases have in common? Evidence-based methods don’t exist or are sub-optimal. Relevant data is available. The environment changes with moderate frequency. The business outcome is significant.

18

© 2012 Forrester Research, Inc. Reproduction Prohibited

Predictive analytics is a continuous process

• The right data to establish a cause and effect

• Enough data to be significant

Causative data

• Understand business outcome • Create hypothesis about data

mining algorithms that will create predictive rules

Data analysts

• Data preparation • Discovery (visualization, machine

learning algos) • Evaluation and optimization

Modeling tools

• Data to feed model • Model execution (embedded,

callable service)

Model deployment

19

© 2012 Forrester Research, Inc. Reproduction Prohibited

Big Data predictive analytics solutions must address the full lifecycle

Understand data

Prepare data

Model

Evaluate

Deploy

Monitor

Business goal

20

© 2012 Forrester Research, Inc. Reproduction Prohibited

Big Data comes in many forms

21

• Data described by a schema • Relational database, XML,

delimited flat file, system events

Structured text

• Free-form text • Email, documents, tweets, blog

comments, Facebook status, genome

Unstructured text

• Audio, images, video • Surveillance cameras, geological

survey maps, Siri voice Binary

Forrester Wave™: Business Rules Platforms, Broadest Feature Sets, Q1 ’08

The Forrester Wave evaluates current solution, strategy, and market presence.

Current offering (y axis)

Architecture Data Discovery Evaluation & Optimization Deployment Tools Standards, integration,

solutions, and extensibility

Strategy (x – axis)

Licensing & pricing Commitment Product roadmap

Market Presence (size of bubble)

Company financials Global presence and install

base Partnerships

Can you prevent Melissa from switching to a competitive mobile plan?

Churn

How can you provide Melissa with nearly perfect song recommendation?

Million Song

Dataset

Architecture criteria

Run-time platform options Analysis runtime platform options Analyst tools runtime options

Workload optimization Performance features Scalability features

Security Data security Model security User security

Performance reference Scalability reference

Data criteria

Data types Data sources Data set preparation tools

Discovery criteria

Algorithms supported Structured Unstructured Network Data discovery visualization tools Automated discovery Algorithm extensibility Life-cycle management tools

Evaluation & optimization criteria

Model evaluation Model optimization Override rules Continuous optimization

Deployment criteria

Execution Input data Output data

Tools criteria

Data scientists Business analysts Application developers

Standards, integration, solutions, and extensibility criteria PMML support Platform integrations Targeted solutions User interface extensibility

Strategy Licensing and pricing Licensing Pricing (average and entry) Maintenance fees Support options Transparency Commitment Employee headcount in market R&D spending Ability to execute Product roadmap

Market Presence Company financials Revenues Revenue growth Global presence and installed base Installed base (total and by geography) Momentum Partnerships Software vendors SaaS/hosting providers Professional services

Forrester’s Wave evaluation criteria for Big Data Predictive Analytics solutions

Current Offering Architecture Data Discovery Evaluation &

Optimization Deployment Tools Standards, integration,

solutions, and extensibility

Strategy Licensing & pricing Commitment Product roadmap

Market presence Company financials Global presence and install base Partnerships

Forrester weights the criteria, but clients can set custom weightings

Big data predictive analytics solutions

make it easier.

© 2012 Forrester Research, Inc. Reproduction Prohibited

Big data predictive analytics solutions range from coding tools to specific business solutions (list not ordered or grouped)

Alteryx Angoss EMC Teradata Teradata Aster FICO Pegasystems Oracle Microsoft Pitney Bowes FuzzyLogix Weka Mahout

Alpine Data Labs Google Prediction API R KNIME SAS IBM Cetus KXEN Salford Statsoft SAP TIBCO

Zementis Pentaho Matlab

Rapid – I Opera Solutions Revolution Analytics

40

© 2012 Forrester Research, Inc. Reproduction Prohibited

Forrester Wave™: Big Data Predictive Analytics Solutions planned publication Q1 2013 Forrester methodology limited this Forrester Wave to ten vendors. Many vendor solutions and combinations of solutions exist for a variety of use cases. Publication of the Forrester Wave is expected in Q1 2013. Schedule an inquiry to discuss your unique circumstances.

41

Thank you Mike Gualtieri mgualtieri@forrester.com Twitter: @mgualtieri