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Data Comes in Many Forms
• Structured (relational databases,file systems)
• Semi structured (emails, forms, tweets, blogs)
• Unstructured (images, audio, video)
The Analytics Taxonomy
Category Purpose
Descriptive Analytics
Tell me what happened, and why.
Tell me what is happening right now, and
why.
Predictive Analytics
Tell me what is likely to happen, and
why.
Discovery Analytics
Tell me something important… even
without me asking questions!
Prescriptive Analytics
Tell me what my options are.
Tell me what I should do.
Prescriptive Analytics
• What to do
• What not to do
• When actions should be taken
• Who should take those actions
• Contingencies and variations
• “What - if “ analysis
Aquire and Process data
Form Hypothesis
Take Initial Actions
Prove/Disprove Hypothesis
Take Prescribed Action
Detect Events Take Initial Actions
Update & Correlate Data
Apply Analytics Models
Form Hypothesis
Categories & Process Events
Prove/Disprove Hypothesis
Take Prescribed Actions
Forming Hypothesis From Data
• All available data analyzed
• Trends detected
• Hypotheses formed
• Hypotheses tested agains future data
Action After Proving A Hypothesis
• Prevent a problem from occurring
• Prevent a problem from getting worse
• Take advantage of opportunity
Action After Disproving A Hypothesis
• Can not leave in limbo!
• Need to formally “stand down”
• Adjust analytical models and algorithms as necessary
• Continue to retest and analyze
What is an event?
• Earliest detection of “something of potential importance”
• Examined immediately
• May trigger immediate action even before hypothesis
• May be staged for subsequent or ongoing analysis
Examples of business events
• Suspicious purchase on a credit card
• An extra-large order from a high-priority
customer
• A machine on a production line fails
• The receipt of defective parts from supplier
• A shipment of parts not showing up on schedule
More complicated business events
• A competitor introducing a new product line
• A competitor announcing a major price
reduction
• A supplier raising prices on raw materials
• A new law passed by congress
• New regulations from food, health , Environment
administration
Events vary in (categorize):
• Importance
• Discrete or synthesized
• Data-driven or time-driven
• Immediate action or analytic routine
• Operational or strategic
Importance
• Driven by mission of organization
– “What events will result in disaster if we
– miss them”
• Need formal top-to-buttom categorization
• High, Medium-High , Medium , Low
• Model selected must be consistent across
• enterprise
Discrete or Synthesized
• Discrete
• This event itself triggers action
• Example: production-line machinery failure
• Synthesized
• This event in combination with other events
• triggers action
• Example: defect in supplier part along with
• previously detected defects
Data-Driven Events
• Data triggers event
• Could be specific value
• Could be above/below threshold
• Values may be boolean
•Example: Machine fail=True
Timer-Driven Events
• Typically expiration-driven
•Example: no new data in last five minutes
Immediate Action vs. Analytic Routing
• Immediate action
• High importance even that by itself demands
• action
• Bypass analytics for now;the events itself forms the
• hypothesis
• Analytic routing
• Immediate action not required
• Flows into analytics to then form hypothesis
Operational vs. Strategic
• Operational
• Near-term timeframe
• Typically tied to operational business process
• Strategic
• Longer-term timeframe
• Related to market planning, product lineup,
• or other strategic decisions
Managing the Master Events List
• Every known event evaluated on all five categorize
• Event list constantly updated and refined
• Designated workflow for each event constantly
updated and refined
•
Applying Analytical Models
• Predictive analytics
• What is likely to happen as a result of this event?
• An idea of the question,and want the answer
• Discovery analytics
• What might be important as a result of this event?
• Fuzzier,broader, and the answer might be “probably
• nothing”
MODELS FORM HYPOTHESIS
BASED ON EVENTS
Hypothesis vary in:
• Importance
• confidence level
• Actionability time frame
• Operational or strategic
• Scope of impact
Importance
• Driven by mission of organization
• “If this hypothesis is correct and we don't act what
• happens?”
• Need formal top-to-bottom categorization
• High, Medium-High , Medium , Low
• 5=Highest to 1=Lowest
• Model selected must be consistent across enterprise
Confidence Level
• Higher confidence
• The hypothesis has yet need to be
• proven,but has high probability of being correct
• Still treat as hypothesis, not fact
• Lower confidence
• For various reasons
Actionability Timeframe
• Immediate or near immediate
• Similar to immediate-action events
• Time is of the essence
• Longer-term
• “watch and wait” immediate action is unnecessary
•
Operational vs. Strategic
• Operational
• Related to operational business processes
• Often immediate or near-immediate timeframe
• Strategic
• Longer term, bigger picture
• Related to market planning,product lineup,or other
• strategic decisions
•
Scope of Impact
• Narrow
• Single business unit or business process
• Could be either operational or strategic
• Broad
• Multiple organizations or business processes, up to
• enterprise-wide impact
• Could be either operational or strategic
•
Ex. Remote Gas Well Maintenance
Event Hypothesis Prescriptive action Dont do yet
Pressure and
temperature
readings alternate
between normal
and abnormal
Impending
equipment failure
Send equipment
crew to remote well
even if maintenance
trip not scheduled
for another two
weeks
Send remote signal
to immediate
shutdown well
operation
New Product Release
Hypothesis
Initial Prescriptive
Action
Prove
Prescriptive Action
After Proving
Hypothesis
Sales & Market
share are likely to
be far more greater
than we could have
envisioned,
resulting in product
shortage
Begin to explore
additional suppliers,
transportation
companies &
external QA
companies
Pre-sales orders
from retailers
support
hypothesized high
demand
Sign contract with
suppliers,
transportation
companies, & QA
companies
• Specific objectives that can be addressed by analytics
• Improve clinical effectiveness & member/patient satisfaction
• • Improve clinical quality of care
• • Improve patient safety and reduce medical errors
• • Improve wellness, prevention and disease management
• • Understand physician profiles and clinical performance
• • Improve customer satisfaction, acquisition and retention
• Improve operational effectiveness
• • Reduce costs and increase efficiency
• • Optimize catchment area and network management
• • Improve pay for performance and accountability
• • Increase operating speed and adaptability
• Improve financial and administrative performance
• • Increase revenue and ROI
• • Improve utilization
• • Optimize supply chain and human capital management
• • Improve risk management and regulatory compliance
• • Reduce fraud and abuse
• Analytics can address specific objectives that support
organizational missions and priorities
• Prescriptive analytics technology recommends
actions based on desired outcomes, taking into
account specific scenarios, resources and
knowledge of past and current events. This
insight can help your organization make better
decisions and have greater control of business
outcomes.

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Altonix-Presentation Analytics-Powerpoint LinkeDin2

  • 1. Data Comes in Many Forms • Structured (relational databases,file systems) • Semi structured (emails, forms, tweets, blogs) • Unstructured (images, audio, video)
  • 2. The Analytics Taxonomy Category Purpose Descriptive Analytics Tell me what happened, and why. Tell me what is happening right now, and why. Predictive Analytics Tell me what is likely to happen, and why. Discovery Analytics Tell me something important… even without me asking questions! Prescriptive Analytics Tell me what my options are. Tell me what I should do.
  • 3. Prescriptive Analytics • What to do • What not to do • When actions should be taken • Who should take those actions • Contingencies and variations • “What - if “ analysis
  • 4. Aquire and Process data Form Hypothesis Take Initial Actions Prove/Disprove Hypothesis Take Prescribed Action
  • 5. Detect Events Take Initial Actions Update & Correlate Data Apply Analytics Models Form Hypothesis Categories & Process Events Prove/Disprove Hypothesis Take Prescribed Actions
  • 6. Forming Hypothesis From Data • All available data analyzed • Trends detected • Hypotheses formed • Hypotheses tested agains future data
  • 7. Action After Proving A Hypothesis • Prevent a problem from occurring • Prevent a problem from getting worse • Take advantage of opportunity
  • 8. Action After Disproving A Hypothesis • Can not leave in limbo! • Need to formally “stand down” • Adjust analytical models and algorithms as necessary • Continue to retest and analyze
  • 9. What is an event? • Earliest detection of “something of potential importance” • Examined immediately • May trigger immediate action even before hypothesis • May be staged for subsequent or ongoing analysis
  • 10. Examples of business events • Suspicious purchase on a credit card • An extra-large order from a high-priority customer • A machine on a production line fails • The receipt of defective parts from supplier • A shipment of parts not showing up on schedule
  • 11. More complicated business events • A competitor introducing a new product line • A competitor announcing a major price reduction • A supplier raising prices on raw materials • A new law passed by congress • New regulations from food, health , Environment administration
  • 12. Events vary in (categorize): • Importance • Discrete or synthesized • Data-driven or time-driven • Immediate action or analytic routine • Operational or strategic
  • 13. Importance • Driven by mission of organization – “What events will result in disaster if we – miss them” • Need formal top-to-buttom categorization • High, Medium-High , Medium , Low • Model selected must be consistent across • enterprise
  • 14. Discrete or Synthesized • Discrete • This event itself triggers action • Example: production-line machinery failure • Synthesized • This event in combination with other events • triggers action • Example: defect in supplier part along with • previously detected defects
  • 15. Data-Driven Events • Data triggers event • Could be specific value • Could be above/below threshold • Values may be boolean •Example: Machine fail=True
  • 16. Timer-Driven Events • Typically expiration-driven •Example: no new data in last five minutes
  • 17. Immediate Action vs. Analytic Routing • Immediate action • High importance even that by itself demands • action • Bypass analytics for now;the events itself forms the • hypothesis • Analytic routing • Immediate action not required • Flows into analytics to then form hypothesis
  • 18. Operational vs. Strategic • Operational • Near-term timeframe • Typically tied to operational business process • Strategic • Longer-term timeframe • Related to market planning, product lineup, • or other strategic decisions
  • 19. Managing the Master Events List • Every known event evaluated on all five categorize • Event list constantly updated and refined • Designated workflow for each event constantly updated and refined •
  • 20. Applying Analytical Models • Predictive analytics • What is likely to happen as a result of this event? • An idea of the question,and want the answer • Discovery analytics • What might be important as a result of this event? • Fuzzier,broader, and the answer might be “probably • nothing”
  • 22. Hypothesis vary in: • Importance • confidence level • Actionability time frame • Operational or strategic • Scope of impact
  • 23. Importance • Driven by mission of organization • “If this hypothesis is correct and we don't act what • happens?” • Need formal top-to-bottom categorization • High, Medium-High , Medium , Low • 5=Highest to 1=Lowest • Model selected must be consistent across enterprise
  • 24. Confidence Level • Higher confidence • The hypothesis has yet need to be • proven,but has high probability of being correct • Still treat as hypothesis, not fact • Lower confidence • For various reasons
  • 25. Actionability Timeframe • Immediate or near immediate • Similar to immediate-action events • Time is of the essence • Longer-term • “watch and wait” immediate action is unnecessary •
  • 26. Operational vs. Strategic • Operational • Related to operational business processes • Often immediate or near-immediate timeframe • Strategic • Longer term, bigger picture • Related to market planning,product lineup,or other • strategic decisions •
  • 27. Scope of Impact • Narrow • Single business unit or business process • Could be either operational or strategic • Broad • Multiple organizations or business processes, up to • enterprise-wide impact • Could be either operational or strategic •
  • 28. Ex. Remote Gas Well Maintenance Event Hypothesis Prescriptive action Dont do yet Pressure and temperature readings alternate between normal and abnormal Impending equipment failure Send equipment crew to remote well even if maintenance trip not scheduled for another two weeks Send remote signal to immediate shutdown well operation
  • 29. New Product Release Hypothesis Initial Prescriptive Action Prove Prescriptive Action After Proving Hypothesis Sales & Market share are likely to be far more greater than we could have envisioned, resulting in product shortage Begin to explore additional suppliers, transportation companies & external QA companies Pre-sales orders from retailers support hypothesized high demand Sign contract with suppliers, transportation companies, & QA companies
  • 30. • Specific objectives that can be addressed by analytics • Improve clinical effectiveness & member/patient satisfaction • • Improve clinical quality of care • • Improve patient safety and reduce medical errors • • Improve wellness, prevention and disease management • • Understand physician profiles and clinical performance • • Improve customer satisfaction, acquisition and retention • Improve operational effectiveness • • Reduce costs and increase efficiency • • Optimize catchment area and network management • • Improve pay for performance and accountability • • Increase operating speed and adaptability • Improve financial and administrative performance • • Increase revenue and ROI • • Improve utilization • • Optimize supply chain and human capital management • • Improve risk management and regulatory compliance • • Reduce fraud and abuse
  • 31. • Analytics can address specific objectives that support organizational missions and priorities
  • 32. • Prescriptive analytics technology recommends actions based on desired outcomes, taking into account specific scenarios, resources and knowledge of past and current events. This insight can help your organization make better decisions and have greater control of business outcomes.
  翻译: