The Forrester Wave - Big Data predictive analytics solutions - Q2 2015
Predictive Analytics: The Next Wave in Business Intelligence
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Transcript of Predictive Analytics: The Next Wave in Business Intelligence
Predictive Analytics :Next Wave in Business Intelligence
Replay Available at Perficient.com/Webinars
About Perficient
Perficient is a leading information technology consulting firm serving
clients throughout North America.
We help clients implement business-driven technology solutions that
integrate business processes, improve worker productivity, increase
customer loyalty and create a more agile enterprise to better
respond to new business opportunities.
PRFT Profile
Founded in 1997
Public, NASDAQ: PRFT
2009 Revenue of $188 million
16 major market locations throughout North America— Chicago, Cincinnati, Cleveland, Columbus, Dallas, Denver,
Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Jose, St. Louis and Toronto
1,300+ colleagues
Dedicated solution practices
~450 enterprise clients (2009) and 85% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards
Perficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutions
Our Solutions Expertise & Services
Business-Driven Solutions• Enterprise Portals• SOA and Business Process
Management• Business Intelligence• User-Centered Custom Applications• CRM Solutions• Enterprise Performance
Management• Customer Self-Service• eCommerce & Product Information
Management• Enterprise Content Management• Industry-Specific Solutions• Mobile Technology• Security Assessments
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Perficient Services End-to-End Solution Delivery IT Strategic Consulting IT Architecture Planning Business Process & Workflow
Consulting Usability and UI Consulting Custom Application Development Offshore Development Package Selection, Implementation
and Integration Architecture & Application Migrations Education
Our Speaker
Mohit Sauhta• Sr. Technical Architect, Information Management and
Business Analytics practice• More than 10 years of experience in delivering
Information management, Business Intelligence solutions.
• Proven enterprise architect in building Large Enterprise applications such as Investment Performance Reporting and Enterprise Performance Management.
• Exploring next generation technological solutions, such as Predictive Analytics.
• Pursuing MBA with emphasis in Analytical Finance at the Booth School of Business.
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Agenda
• Motivation• Demand for Predictive Analytics• Surveys and Findings
• Design• Overview of Predictive Analytics• Components of Predictive Analytics
• Implementation• Perficient Offerings• Footprint with existing BI Infrastructure• Success Stories
• Q&A
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An Information Explosion … and Faster Decisions Required
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Variety of Information 80% of new data growth is unstructured content Emails, images, audio, video..
Volume of Digital Data 57% CAGR for enterprise data through 2010 Machine generated data : Sensors, RFID, GPS..
Velocity of Decision Making Rapidly changing business climate Need to get ahead of the curve : predict issues
and fix them
Business Imperative:Accelerate innovation, business optimization, and sustained competitive differentiation
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Challenges facing Decision Makers Today
1 in 3business leaders frequently make critical decisions without the information they need
1 in 2don’t have access to the information across their organization needed to do their jobs
19+ hoursSpent by knowledge workers each week just searching for and understanding information
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What Keeps You Awake at Night?Life Before Predictive Analytics
• Its costs me a small fortune to get new customers; there must be a better way!
• We want to increase purchase size… but we don’t know which products to keep in stock!
• By the time customer complaints work through the system – it’s too late, they’re gone!
• We thought this campaign was a success… until the checks bounced!
• We want to reduce fraud, but we don’t want to burden our low risk customers!
Acquire
Grow
Retain
Fraud
RiskFocus
Focus
Focus
Focus
Focus
Where We Focus
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Sense and respond Predict and act
Back office Point of impact
Instinct and intuition Real-time, fact-driven
Foundational Breakaway
Skilled analytics experts Everyone
Automated Optimized
Next Generation Efficiencies come from Optimizing Every Decision, Transaction or Process at the Point of Impact…
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Analytics Critical for Driving Competitive Advantage
“At a time when companies in many industries offer similar products and use comparable technology, high-performance business processes are among the last remaining points of differentiation.”
Tom Davenport, “Competing on Analytics”
57%
55%
61%
62%
63%
64%
66%
70%
76%
80%
63%
68%
70%
67%
71%
73%
71%
73%
77%
86%
Unified Communication
SOA/Web Services
Business Process Management
Application Harmonization
Self-Service Portals
Customer and Partner Collaboration
Mobility Solutions
Risk Management and Compliance
Virtualization
Business Intelligence and Analytics
Ten Most Important Visionary Plan ElementsInterviewed CIOs could select as many as they wanted
Source: IBM Global CIO Study 2009; n = 2345
Highgrowth
Low growth
BI/Analytics #1investment to
improve competitiveness
IBM Global CIO Study 2009
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Imagine If Your Decision Makers Could…
Physician Telco Call Center RepLoan Officer Retail Sales
Associate
…predict and treat infection in
premature newborns 24 hours earlier?
…apply inferred social relationships of
customers to prevent churn?
…adjust credit lines as transactions are
occurring to account for risk fluctuations?
…determine who is most likely to buy if offered discounts at
time of sale?
…optimize every transaction, process and decision at the point of impact, based on the current situation, without
requiring that everyone be an analytical expert
How can I capture and analyze information about
how my customers, prospects or employees are
feeling?
How can I capture and analyze information about
how my customers, prospects or employees are
feeling?
How can I predict behaviors and preferences so I can reduce
churn, prevent fraud, maximize campaign results and more?
How can I predict behaviors and preferences so I can reduce
churn, prevent fraud, maximize campaign results and more?
How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?
How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?
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Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage
Analyzes patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes
Predictive Analytics offers Unique Insights to Answer those Tough Business Questions
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TDWI Predictive Analytics Findings
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The Predictive Analytics Process:Iteration for Success and Innovation
Decision Optimization
Recommend the mostappropriate actionto take
EnterpriseData Sources
Read new data on customers, events, etc. for continuous improvement
Predictive Analytics
Analyze data toprovide insight andpredict the future
Capture
Predict
Improve customer retention
Grow share of wallet
Minimize risk
Increase customer satisfaction
Enhance market share
Prospects
Customers Constituents
Employees
Students Patients
Act
DashboardsKiosks / MobileCRM / ERPSterling Apps
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Capture Predict Act
…
…
DataCollection
DeploymentTechnologiesPlatform
Pre-built Content
Statistics
Attract Up-sell Retain
TextMining
DataMining
Data Collection delivers an accurate view of customer
attitudes and opinions
Predictive capabilities bring repeatability to ongoing decision
making, and drive confidence in your results and decisions
Unique deployment technologies and methodologies maximize the
impact of analytics in your operation
Enabling the Predictive Analytics Process
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Predictive Analytics Software 4 Key Categories
Data CollectionDelivers accurate view of customer attitudes & opinions
StatisticsDrives confidence in your results & decisions
Modeling Brings repeatability to ongoing decision making
DeploymentMaximizes the impact of analytics in your operation
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Capture: Data Collection
• Data collection capabilities to capture attributes, interactions, behaviors, and attitudes for customers, employees or constituents
• Augments internally captured data with sentiment and opinion data and use this combination as part of the analytic process
Delivers an accurate view of customer attitudes and opinionsDelivers an accurate view of customer attitudes and opinions
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Predict: Statistics
• Advanced statistics and data management for analysts researching business problems
• Collection, preparation, analysis, interpretation, explanation and presentation of data
• Provides insight into a sample of data and tools for prediction and forecasting based on the data
Drives confidence in your results and decisionsDrives confidence in your results and decisions
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Predict: Modeler
• Workbench with data preparation functions to build analytic streams or jobs and a run time environment for job execution
• Set of mining algorithms that provide insight and prediction
• Enables the discovery of key insights, patterns and trends in data that can be used to optimize business decisions
Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making
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Predict: Text Analytics
• Uses natural language processing heuristic rules and statistical techniques to reveal conceptual meaning in text
• Extracts concepts from text and categorizes them
• Makes unstructured qualitative data more quantifiable, enabling the discovery of key insights from sources such as survey responses, documents, emails, call center notes, web pages, blogs, forums and more
Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making
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Act: Decision Management
• Set of tools to automate high-volume decision making enterprise-wide
• Injects powerful predictive analytics into core business processes
• Extends predictive insights to the business user at the point of decision
– E.g. Should a claim be ‘fast tracked’ or evaluated more closely based on a calculated risk score?
Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation
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Act: Collaboration and Deployment Services
• Flexible enterprise foundation for managing and deploying analytics throughout the organization
• Automates analytical processes
• Enables collaboration by securely sharing and reusing analytic assets
• Streamlines deployment of analytical information on a scheduled or real-time basis
Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation
Our Strategic Partnerships
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Introducing Perficient’s Business Intelligence Practice
• A leading provider of BI and Information Management Solutions, along with the predictive analytics services and solutions– Software – data collection, text and data mining, advanced statistical
analysis and deployment technologies– Services – implementation, training, consulting, and customization – Solutions – combine software and services to deliver high-value line-of-
business solutions; used for optimizing marketing campaigns, call center effectiveness, identification of fraudulent activity and more
• Perficient is world-class talent delivering world-class technology, on time and on budget to a broad customer base.
Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes
Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes
Offerings and Expertise
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Perficient’s Predictive Analytics Solutions Uniquely Offers You…
Value of analytics across your organization– Highly productive, business-friendly predictive modeling,
collaboration and deployment services– Based on the convergence of analytics, architecture and business
processes
Open Architecture that seamlessly fits your existing environment– Componentized, enabling it to easily fit within your existing
environment, immediately adding value without the need for a “rip and replace” of information infrastructure
– Natural part of a user’s normal activity versus a separate, disconnected application
Deep domain expertise in analyzing data– Ability to dynamically capture attitudes, attributes and behaviors and
improve people interactions
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BI and Performance Management Capabilities Help Decision Makers Find the Answers
Why are we on/off track?
How are we doing?
What should we do next?
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New Value for Perficient BI Customers
Why are we on/off track?
How are we doing?
What should we do next?
New customer insight through Data Collection
New customer insight through Data Collection
Time series forecasting
Time series forecasting
Predictive analytics for deeper understanding of
the data
Predictive analytics for deeper understanding of
the data
Addition of KPPs (Key Performance
Predictors)
Addition of KPPs (Key Performance
Predictors)
Broad distribution of statistical results
Broad distribution of statistical results
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Predictive Analytics –Modeler
2) Use predictive analytics & feed results back into the BI layer
3) Results widely distributed via BI for consumption by Business Users
1) Leveraging BI, identify problem or situation needing attention
BI Application
Common Business Model
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Workflow Today
…
Business UsersConsumeAnalytics
Analyst createspredictive insight
Meta data modelercreates data model
Report Designerwith Mining skills creates & deploys reports
Requires: Data Mining skills Modeler skills
Requires: Data
Modeling skills
Knowledge about Mining Table layout
Requires: Report Development Skills Mining visualization skills Knowledge about Mining content
Analytical Modeler
Metadata Modeler
Report Designer
Final Report
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Business User Focused
How accurate is your budgeting and
forecast process? How well do your
analysts understand data correlation?
How does the credit terms, discounts,
etc. drive your margins, DSO, and
working capital ratios?
Is your organization using industry
benchmark data to determine product
profitability and market share?
Are you using Analytics to drive cross-
sell/up-sell opportunities?
What applications are you using to
prevent customer churn?
Are you using any tools to predict
customer behavior?
Are you using weather patterns to drive
your sales forecasts?
Are you using any applications to better
predict time and attendance for your
indirect labor costs?
How are you preventing employee theft
and fraud?
How are you monitoring employee
retention and satisfaction?
Finance Sales/Marketing Human Resources
We offer analytical solutions that drive revenue, improve profitability and predict behavior
Perficient helps you…….. Analyze the past, Monitor the present, Predict and Plan the future.
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Applying Analytics to Accelerate Your Success Example: Customer Intimacy
• Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the “right” customers, by enabling decision makers to:• Understand unstructured data that is found in everything from
e-mails, call center notes, blogs, and open ended survey questions• Identify drivers of customer behavior via survey analysis• Identify key performance predictors (KPPs) including customer
defection and outcome of particular customer interactions• Prioritize customer programs as part of real-time decision processes • View customer insights alongside key performance information
through standard IBM reports, analyses and dashboards
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Sample Case Studies: Customer Intimacy
Grow and Retain“The power and ease of use of Statistical
analysis enables the AMR Consumer Research department to perform more research than ever before and deliver timely reports while maintaining a small, dedicated staff.”
Grow
“With BI Analytics, HSBC Bank USA effectively mines an ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.”
Attract, Grow and Retain
“Predictive Analytics solutions add intelligence to our business ensuring efficiencies in pricing, marketing and reporting – something no company can afford to ignore in today’s business environment”R&D AnalystPremierline Direct
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“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports”
Rebecca Wettemann, VP of Research, Nucleus Research
Customers Experience a Measurable ROI
• 94% of customers achieved a positive ROI, average payback in 10.7 months
• Over 90% of users attributed an increase in productivity to Predictive Analytics.
• 81% of projects were deployed on time, 75% on or under budget
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Delivering Customer Value
• Quickly capture and filter in real-time vast amounts of data on critical public health issues found through interviews, email and the Internet
• Now able to better characterize diseases, identify risk factors and quickly assess medical needs of specific populations
• Plot the expected course of outbreaks and plan responses for improved public safety
Center for Disease Control
Improve Health Care and Patient Outcomes
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Delivering Customer Value
• Identify early indicators of customer churn using data collection surveys and data and text mining, tailoring direct marketing efforts as a result
• 100% improvement in churn detection and an initial reduction in actual churn from 19% to 2%
• 53% of its unsatisfied customers became company promoters
Cablecom GmbH
Reducing Customer Churn
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Delivering Customer Value
• Identify and predict crime patterns through timely analysis of incident reports, tips and service calls
• Can now pinpoint “hot spots” and place tactical units where they are needed most
• 20-30 % decrease in violent crime and homicides in a 12-month period
Richmond Police DepartmentPredict and Prevent Criminal Activity
Predictive Analytics Enables Next-Generation Decision Making
• A leading provider of predictive analytic services and solutions with a world-class talent and a broad customer base
• Enables decision makers across the organization to predict future events and proactively act upon that insight to drive better business outcomes
From sense and respond……to predict and act!
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Questions & Answers
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