Predictive Analytics holds a promise mankind and business have dreamed of for years. The ability to predict future outcomes and trends. At Silicon Valley Innovation Center’s recent Data Alchemy Conference, participants received insight on bringing this powerful competitive advantage to life. Here are excerpts from the conference, a business case template, and a link to the eguide to help you get started.
What is Predictive Analytics
Predictive Analytics (PA) combines data, relationships and trends within data, and predictive models to identify patterns and predict future risks, outcomes and trends. Predictive analytics is used in marketing and sales, financial services, manufacturing, telecommunications, retail, transportation, healthcare, government and a growing number of other fields and industries.
Why is Adoption Accelerating?
Predictive analytics growth is being driven by its proven ability to optimize business processes and the high rate of return it provides. Beyond that, better user interfaces, the inclusion of predictive analytics into business systems and tools, and the maturation of big data frameworks like Hadoop, cloud based analytics as well as the creation of more flexible models are all making it easier and less expensive to implement.
Why invest now? Enterprise Alchemy!
For years alchemists have looked for ways to turn lead into gold. Predictive Analytics is helping companies turn data into gold, It’s also giving those who invest now a big jump up the learning curve and the competitive ladder. In a market driven by continual innovation, business agility is critical. Predictive analytics provides insight into the opportunities and risks ahead. Additionally, intelligent product and services can improve customer outcomes by incorporating big data and predictive analytics into their design. According to Gartner, organizations using it will be 20% more profitable by 2017.
Why You Need to start Building a Predictive Analytic Team and a Data Driven Culture Now
The demand for people with the analytic backgrounds that can do this kind of work is growing, and as such, the pool of available talent is becoming increasingly scarce. That means the time to recruit and build a team is right now. Many organizations are use to making decisions based on their industry knowledge and gut. It takes time for them to adjust to and trust the guidance predictive analytics provide. That means there is a learning and adoption curve. This adoption curve is another reason why your company should start now.
Predictive analytics are being used across almost every dimension of business. In the Data Analytics eguide from the conference you will find use cases for marketing, HR, IT, Sales, and customer service and support
The Formula for Predictive Analytic Success
Success comes in a series of small steps. Focus on areas that will really benefit from predictive analytics. Taking on easy high value, high return projects is the best way to get started. Establishing a roadmap of projects that build off each other is great way to build operational confidence in this methodology and build momentum behind a series of wins.
Developing a Team
Building a predictive analytic project team typically requires: an executive sponsor, a project owner and or champion, a project or program manager based on the size of effort, and stakeholders from the organizations for which the project or model is being built. Additionally, you will also need data analysts, modelers and data scientists based on the size, scope, and complexity of the effort.
Developing a Compelling Business Case
One of the first steps will be identifying an area in which predictive analytics will provide a benefit to the business.Typically these will be areas in which you have a large amount of data, and in which you can express a clear business benefit from being able to predict what will cause negative or positive outcomes. The next step is define a business case. You can use this one page template as a starting point.
It’s Time to Get Started
Predictive Analytics is being used to improve performance and efficiency across the organization. Marketing, sales, product design and development, finance, operations, supply chain management, IT organizations are all discovering and benefiting from its use. Predictive Analytics is fast becoming a powerful competitive differentiator, and the time to get out in front of the competition is right now.
Insights from Leading Practitioners
The conference and eguide were made possible through the support of some of industry’s top thought leaders. You can find more about them and the contribution they are making to this field and their customers in the eguide. Those thought leaders include:
- Beyond the Arc — www.beyondthearc.com, helps companies build stronger more profitable customer relationships by leveraging data science, social media, and mobile tech.
- Cloud Technology Partners — www.cloudtp.com, helps mid-market and enterprise customers migrate applications and data, develop applications, and architect, build and manage leading edge cloud solutions.
- DataSkill, Inc — www.dataskill.com, helps enterprises and smaller firms transform their business by delivering game-changing solutions built on the new wave of cognitive intelligence
- Jack Strigberger Analytics — www.linkedin.com, provides consulting and training to marketing and sales on the use of advanced data analytics
- VMware Inc. — www.vmware.com, a leader in virtualization and cloud infrastructure solutions helping customers transform how they build, deliver and consume information technology in the cloud era
- VoloMetrix — www.volometrix.com, a people analytics company helping clients optimize performance by using big data to deliver insight into daily activities and relationships that propel business forward
- Saama Technologies – www.saama.com, is one of largest pure-play analytics solutions and services providers in the market helping clients optimize key business processes through use of advanced data analytics
- SmarterHQ — www.smarterhq.com, is a multi-channel behavioral marketing platform that helps marketers make sense of customer data helping clients create a personalized experience for each and every customer
- Silicon Valley Innovation Center – www.svicenter.com, helps clients accelerate innovation by connecting them with the ideas, people, companies, and technologies transforming our world.
Your turn. Create something Insanely Great.
Love to hear your thoughts