11/15/12 CBIG Event - Steve Peterson Presentation

© 2010 IBM Corporation

Business Analytics software

Advanced Analytics

Predictive Analysis

Steve Peterson, Advanced Analytics, IBM Software Group

November 15, 2012



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What is Predictive Analytics?

NOT SPSS

NOT R

Not SAS

NOT a TOOL

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What is Predictive Analytics?Predictive analytics helps your

organization anticipate change so that you can plan and carry out strategies that improve outcomes.

It gives the knowledge to predict…and the power to act.

Not a tool, but a process, enabled by technology.

Power of Predictive Analytics is ability to leverage data, gain insight and transform business process.



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There is a gap between Data and outcomes

InformationExplosion

Optimized Outcomes

How do I align information with the decisions I need to make?

How do I make the right information available when

and where it’s needed?

How do I support better decision making throughout

my organization?

Better Decision Making

Improving Marketing Campaigns

Early Warning Systems

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Fraud Detection



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What if you could predict illness and prescribe treatment earlier?

What if you could predict illness and prescribe treatment earlier?

What if you could detect crime before it happened?

What if you could detect crime before it happened?

What if you could Identify

which students

were at risk of dropping

out?

What if you could Identify

which students

were at risk of dropping

out?

What if you could detect

which tax returns were

likely fraudulent?

What if you could detect

which tax returns were

likely fraudulent?

What if you could predict where traffic congestion will occur?

What if you could predict where traffic congestion will occur?

What if you could predict

which customers would buy

your product?

What if you could predict

which customers would buy

your product?



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Moving from Reactions to Predictions

SMART ISDramatically lowering the cost of ClaimsVERTICAL: Insurance

Solution: Embedded Prediction to maximizeand accelerate claims payment

Results: ROI of 403% in 3 months



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Moving from Reactions to Predictions

SMART ISTurning Clients into Advocates

VERTICAL: Telecommunications

Solution: Client Retention based on “wisdom ofcrowds” principle in gathering feedback

Results: Reduced churn from 14% to 2% annually



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SMART ISPreventing crime before it happens.

VERTICAL: Police Force

Solution: Predictive Crime Analytics – predicting crime in a four blockradius over 4 hours

Results: 35% reduction in Homicides20% reduction in Robberies



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SMART ISTurning a Call Center in a Profit Center.

Vertical: Financial Services

Solution: Predictive cross selling in its call centers.

Timeframe: 2 month implementation

Results: $30 Million in new sales. 1M calls generated 180,000suggestions, resulting in 22,000 sales.



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SMART ISImproving Student Performance

Vertical: Education

Solution: Student Retention

Results: Reduced Annual Drop out rate by 25%, leveraging 60different data sources

Hamilton County Dept. of Education (Tennessee)

“Predictive Analytics has allowed our educators to put a face on every number … best NCLB results in our history!”

- Dr. Kirk Kelly, Director of Testing and Accountability



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11/15/12 CBIG Event - Steve Peterson Presentation

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Transcript of 11/15/12 CBIG Event - Steve Peterson Presentation