Predictive Analytics: © 2015 Software AG. All Rights Reserved
Predictive Analytics: © 2015 Software AG. All Rights Reserved
Predictive Analytics: © 2015 Software AG. All Rights Reserved
Value
Predictive
What will
Streaming happen?
What is
Diagnostic happening?
Why did it
Descriptive happen?
What
happened?
Difficulty
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STREAMING ANALYTICS AND PREDICTIVE ANALYTICS
BOTH TECHNIQUES COMPLEMENT THE OTHER
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PREDICTIVE ANALYTICS FOUNDATIONS
A FEW SIMPLE PRINCIPLES MAKE THIS POSSIBLE
All predictive analytic methods and models are based upon one common premise:
So once we learn from the past, we know what to look for in the future
The more data you have, the more you need Predictive Analytics
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BUILDING A PREDICTIVE MODEL
THE DATA DRIVES THE INSIGHTS
Primarily, we are looking for whether a relationship exists between two variables
EVEN UNEVEN
DISTRIBUTION DISTRIBUTION
% did it rain % did it rain
60 100
40 80
20 60
23 22 22 24 23 24 26
40 77
0
20
0
17
Dark Clouds Clear sky
No relationship between the day of the week and whether There is a likely relationship between dark clouds in the
it rained sky and whether it rained
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BUILDING A PREDICTIVE MODEL
THE LOGIC CAN BE SIMPLE OR COMPLEX
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TIME VALUE OF DATA
THE LONGER THE REACTION, THE LOWER THE VALUE
Business event
Business
Value
Time to act
Low value
response
8 |
Time
PREDICTIVE ANALYTICS IN USE TODAY
ALGORITHMS ARE ALL AROUND US
Entertainment: recommendations suggest new movies based upon your viewing
history
– Leverages your tastes and the tastes of others like you
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PREDICTIVE ANALYTICS IN USE TODAY
ALGORITHMS ARE ALL AROUND US
Finance: consumer credit scores model the likelihood of your paying the loan back
– Models your probable behavior based upon the defaults of many, many others
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PREDICTIVE ANALYTICS IN USE TODAY
ALGORITHMS ARE ALL AROUND US
Health: heart monitors warn of undiagnosed heart problems
– Watches for known pulse irregularity patterns
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THE BUSINESS VALUE OF
PREDICTIVE ANALYTICS
Fraud detection
Bank detects unusual spending
pattern on your card Retail
Making relevant offers at the right
time
Predictive Maintenance
Diagnosing a failing pump
12 |
SMART LOGISTICS
SUPPLY CHAINS CAN RUN MORE EFFICIENTLY
13 |
SMART STORE MONITORING
MERCHANTS CAN MAXIMIZE REVENUE
• Increased revenue • Traffic density • When offers adjusted • Proactive staff re-
deployment
• More effective • POS data • When queues appear
merchandising & • Offer updates
• Shelf sensors • When shelves need
service
replenishing
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PREDICTIVE MAINTENANCE
FIELD SERVICES CAN PREVENT OUTAGES
15 |
PREDICTIVE MAINTENANCE EXAMPLE
PREDICTIVE ALERTS ALLOW MORE TIME TO REACT
• Clear signal leading up to
failure…
– But reliant on human
intuition to interpret in real Predictive Condition Visual F
time? Alert Monitoring Alert Identification A
• Condition monitoring can alert I
on thresholds: L
– Tells you something might U
be wrong, but not what or R
how urgent E
– Ignores machine-specific
differences
TIME $
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OPERATIONALIZING PREDICTIVE ANALYTICS
REAL-TIME PREDICTIONS NEED TO BE EASY TO DEPLOY
Development
PMML
Predictive
Apama
Models
Applications
Data
Management Data-
Applications bases
17 |
USE CASES AND
CUSTOMER EXAMPLES
SOFTWARE AG USE CASES FOR PREDICTIVE ANALYTICS
Solution Industries Predictive Use Cases Enhancement Core
Enabler
Predictive • Failure Prediction
• Manufacturing x
Maintenance • Remaining Useful Life
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PARTNERING
THE SOFTWARE AG STRATEGY
• Open approach means we can work with the customer’s preferred modeling tools
21 | © 2015 Software AG. All rights reserved. For internal use only
GO-TO-MARKET OPTIONS BY CUSTOMER TYPE
Standardized on No preferred
SAS/SPSS/etc tools yet, R
Customer has Export models in Propose KNIME
in-house data science skills PMML and execute or Predixion as a
via Apama platform
Willing to build
DS skills Unwilling to
Customer does not have Offer KNIME’s or build DS skills
Predixion’s Introduce
in- house data science skills simple, graphical services partners
approach along like Mosaic
with trainings
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OPPORTUNITY BRAINSTORMING
MARKET OPPORTUNITY
PREDICTIVE ANALYTICS IS EVEN BIGGER THAN STREAMING
• Streaming Analytics worth $2 billion* by 2020 (Markets and Markets)
• Predictive Analytics worth $7 billion by 2019 (Transparency Market Research)
25 | © 2015 Software AG. All rights reserved. For internal use only
ACCOUNT DISCUSSION
26 | © 2015 Software AG. All rights reserved. For internal use only
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