Learn how to power up with the Big Data insights you need to see your customers and business more clearly.
- 1. 2014 Fair Isaac Corporation. All rights reserved. 1 The Race Is On: Turn Big Data Insights into Smarter Decisions Win with BI, predictive analytics and decision management
2. 2014 Fair Isaac Corporation. All rights reserved. 2 Whether you realize it or not, youre in this race. And your competitors certainly are. So you need to ask these important questions: With so much data out there, and given the speed with which it accumulates and ages, how do you act on these insights before they get too old and opportunities pass? How do you identify what is important for your business and separate it from whats not worth paying attention to? Gear up to the full power of business intelligence (BI), predictive analytics and decision management. 3. 2014 Fair Isaac Corporation. All rights reserved. 3 BI has traditionally answered questions about past performance like: Which products performed best last quarter? Which promotions did best with this population segment? Whats the spending trend for customers in this region? This is often calleddescriptive analytics. The best BI suites also try to answer questions about the causes of results, such as: Why is this segment underperforming? This is often calleddiagnostic analytics. 4. 2014 Fair Isaac Corporation. All rights reserved. 4 Today, BI users also want help improving performance going forward.They want to know what is likely to happen and what to do about it. The focus of BI has traditionally been on what happened, with the best suites also trying to address whats currently happening and why. Of course BI isnt standing still PAST PRESENT FUTURE To meet user demands, many BI suites are folding in basic predictive analytics and starting to become more integrated into operational processes and events BI suites have relied on database snapshots in timedata warehousesfor analysis 5. 2014 Fair Isaac Corporation. All rights reserved. 5 And it takes you too long to turn these analytic insights into operational actions Even so, used by itself, the most advanced BI tells you too little about what is likely to happen in the future 6. 2014 Fair Isaac Corporation. All rights reserved. 6 Predictive analytics answer questions about future probabilities Ranging from (seemingly) simple How likely is this account to become seriously delinquent over the next six months? How likely is this debit card transaction to be fraudulent? to very complex How likely is this customer to make a purchase in this product category during the next two weeksand how much will a 10% discount increase that probability? 15%? 20%? And thats not all 7. 2014 Fair Isaac Corporation. All rights reserved. 7 Related analytic techniques (decision modeling and strategy optimization) also answer questions about what to do. Which are usually quite complex: In light of our goals for capital management and this customers current/future value, risk profile and expected reaction, what is the most profitable offer? What is the right overall risk exposure limit for this customer and how should we apportion it across all relevant products? This is often calledprescriptive analytics. View the chart comparing analytic types on the next page... 8. 2014 Fair Isaac Corporation. All rights reserved. 8 Business IntelligenceWithin a Decision Management Process 9. 2014 Fair Isaac Corporation. All rights reserved. 9 Predictive analytics have a wider time perspective than BI. They find predictive patterns in past data that tell you what is likely to happen in the future so you can take the right action now. PAST PRESENT FUTUREFUTURE PROBABILITIES HISTORICAL PATTERNS Predict probabilities of specific outcomes and impact on KPIs Models and other mathematical techniques find predictive patterns in historical data 10. 2014 Fair Isaac Corporation. All rights reserved. 10 As markets become more dynamic, predictive analytics examine a greater variety of data, including unstructured inputs. Models may also adapt to changing predictive patterns in current production data. PAST PRESENT FUTURE Incorporation of expanding range of future factors like: Uncertainty (impacts of macro-economic change on decision outcomes) Capital management goals (return on risk-weighted assets, etc.) Increasing use of event-driven and streaming analytics, self-calibrating and adaptive techniques FUTURE PROBABILITIES HISTORICAL PATTERNS 11. 2014 Fair Isaac Corporation. All rights reserved. 11 Decision management provides the infrastructure and traction to turn data-driven insights into operational decisions and actions. At the same time, it answers questions about operational results and how to accelerate improvements, like: Segment B is underperforming our simulated results for this particular KPIwhat can we learn from this gap? Can we design an experiment that will produce more learning faster while keeping the brakes on the risks and costs of testing? 12. 2014 Fair Isaac Corporation. All rights reserved. 12 FUTURE PROBABILITIES PAST PRESENT FUTURE HISTORICAL PATTERNS Operationalizing analytic insights through decision apps and intelligent automated customer communications Decision management encompasses the entire process of extracting predictive analytic insights and using them to drive operational decisions. Managing data, models, business rules and decision strategy optimizations 13. 2014 Fair Isaac Corporation. All rights reserved. 13 FUTURE PROBABILITIES PAST PRESENT FUTURE HISTORICAL PATTERNS Decision management is incorporating even more powerful ways to simplify and accelerate this process. Faster, cheaper development of apps with embedded analytics as well as on-demand decision services for existing operational systems Analytic learning loops that put test-and-learn cycles into hyperdrive More centralized, automated management of models and other analytic assets 14. 2014 Fair Isaac Corporation. All rights reserved. 14 FUTURE PROBABILITIES PAST PRESENT FUTURE HISTORICAL PATTERNS Cloud access to Big Data analytic and decision management infrastructure, services, apps, development tools and analytic expertise Everything works with your current BI suite, so you can build on the analytic insights you already have Heres the most important development of all: Predictive analytics and decision management are now available through cloud services. No deep-pocket investments or internal analytics expertise required. 15. 2014 Fair Isaac Corporation. All rights reserved. 15 Move ahead with data-driven actions that differentiate your company and propel you ahead of competitors. Its time to power up with the Big Data insights you need to see your customers and business more clearly 16. Youre in this race. And youre in it to win. Learn more: Download the white paper on this topic: Insights #74: Cloud Democratizes Access to Big Data Analytics Find out about the FICO Analytic Cloud: www.ficoanalyticcloud.com Check out our blogs: Banking Analytics Blog FICO Labs Blog For more information North America toll-free Latin America & Caribbean Europe, Middle East & Africa Asia Pacific www.fico.com +1 888 342 6336 +55 11 5189 8222 +44 (0) 207 940 8718 +65 6422 7700 firstname.lastname@example.org LAC_info@email@example.com firstname.lastname@example.org FICO is a trademark or registered trademark of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. 2014 Fair Isaac Corporation. All rights reserved. 3091BK 7/14 PDF