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From Big Data to Big Decisions Dr. Lorien Pratt, Chief Scientist, Quantellia

From big data to big decisions. Copyright (c) 2014 Quantellia LLC

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From Big Data to Big DecisionsDr. Lorien Pratt, Chief Scientist, Quantellia

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Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

"Better use of our data and analytics could produce substantially more value (cost savings

and/or revenue growth) than it does today"

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

"I believe that we are sitting on a treasure trove of data, but we need to evolve our approach to

analytics in order to exploit it"

Churn

Fraud

Upsell

Cross-sell

Two ways we use data

Advertising

QoS

“What is critical in today’s complex world is the ability to see over the horizon and around corners to understand the impact of today’s decisions on all of the desired outcomes.”

“Poor decision making can cost–

and, in an industry that invests as

much as telecoms, the total cost can

be very large indeed.”

“Our research reveals that, in

the past decade, the average

long-term return on investment

(ROI) has been just 6%—three

percentage points less than the

cost of the capital itself.”

“Poor decision making can cost–

and, in an industry that invests as

much as telecoms, the total cost can

be very large indeed.”

“Our research reveals that, in

the past decade, the average

long-term return on investment

(ROI) has been just 6%—three

percentage points less than the

cost of the capital itself.”

TRADITIONAL VIEW

What will

be the

outcome?

What

decisions

can we

make?

Data, Analytics, Big

Data, Reports,

Predictive Analytics,

Spreadsheets

DECISION INTELLIGENCE VIEW

What data, analytics, reports, human

expertise, and other assets are relevant?

What outcomes

do we need or want to reach ?

What decisions will get us

there?

DataInstrumented

Code / Sensors

DataManagement

Analytics

Presentation

System Analysis

Decision

DataInstrumented

Code / Sensors

DataManagement

Analytics

Presentation Demarcation between automated (computer-centric) and manual (human-centric) information processing.

Gap between computer and humanbridged by Data Visualization.

Lack of consistent

service

Net Promoter

Score

Irrelevant proactive

notifications

Invest in consistent customer data

Pain of having to deal with the call

center

Invest in self service improvement via the

smartphoneHow many

people use the call center

Invest in improving the call center

Churn

Levers

Outcomes

Externals

Revenue

LoyaltyBetter proactive

resolution of issues

Customer calling behavior

Customer needsMy competitor’s

NPSCompetitor advertising

“If I make this decision today, how will it affect my outcomes in the future?”

Decision Lever

Outcome

Outcome

Outcome

External Factors

Decision Lever

Intermediates

External FactorsExternals

Intermediates

Intermediates

Goal

Each connector represents a dependency.

Goal

Goal

Cause Effect

Machine Learning

Forward modeling

Decision Lever

Outcome

Outcome

Outcome

External Factors

Decision Lever

Intermediates

External FactorsExternals

Intermediates

Intermediates

Goal

Goal

Goal

Optimization

Decision Lever

Outcome

Outcome

Outcome

External Factors

Decision Lever

Intermediates

External FactorsExternals

Intermediates

Intermediates

Goal

Goal

Goal

Typical – 72 homes per Node Optimal – 115 homes per Node

• How do I optimize order-to-cash? What’s the best pricing strategy for this

company? How can I use prediction of overall lifetime value to inform my

decisions?

• Which parts of my outside plant should I update first, to maximize customer

experience, and thus maximize revenues? Each time I update the plant, I have

several ways I could do that (segmentation, virtual split, and more). What’s best,

under what conditions?

• What steps can I take to maximize my customer promoter score? Under what

conditions should I take different steps?

• How does customer promoter score connect to overall margin? Given how it

connects, should I take different steps if that’s my real goal?

USE CASE EXAMPLES:

CONNECTING THE DOTS

“Under what conditions will a shift to

virtualization produce a business benefit?

What is the optimal schedule or process

for doing this transformation?”

“What if we focus on the consumer

market as a company? Can we stay

profitable if we address just the growing

enterprise market – which now incluees

the machine-to-machine (M2M) market,

entrprise use of mobility services in their

product and services, and the cloud

services market? Under what conditions

does it make sense to specialize?”

Thank YouDr. Lorien Pratt, Chief Scientist, @Quantellia, www.quantellia.com

[email protected]

+1 303 589 7476

#COMETSUMMIT

@PipelineWire

USE CASES

Huge uncharted territory

Room for Improvement

Great, but relatively small