POWER OF PREDICTIVE ANALYTICS

BUSINESS INTELLIGENCE TECHNOLOGIES TOP 10 DRIVERS FOR

EACH DISCIPLINE BUILDS ON THE ONE BELOW IT THESE ARE ADDITIVE, NOT EXCLUSIVE, IN PRACTICE PREDICTIVE ANALYTICS
Technologies used SURVEY OF BUSINESS AND IT EXECUTIVES

PREDICTION 01 PREDICT TRENDS

WHAT MIGHT HAPPEN?

Predictive analytics 02 UNDERSTAND CUSTOMERS

03 IMPROVE BUSINESS
MONITORING
PERFORMANCE

H AT S H A PPE N I N G N O
W W?
Dashboards, scorecards 04 DRIVE STRATEGIC

H
H

DECISION-MAKING

IG
IG

H
H

ANALYSIS 05 PREDICT BEHAVIOUR

WHY DID IT HAPPEN?

AP and visualisatio
OL n to
ols 06 DRIVER OPERATIONAL
EFFICIENCY

E
CO

LU
07 PROVIDE TARGETED
M

EPORTING
VA
PRODUCTS/SERVICES
PL

R S
EX

ES
IT

T H A P PENE
N

H A
Y

D?
SI

W
BU

r y, reporti
Q u e
rc h
ng 08 IDENTIFY NEW BUSINESS
OPPORTUNITIES
& sea tools

09 IMPROVE PRODUCTIVITY

10 IDENTIFY RISKS

LOW

Source: SAS 2016 Source: TDWI Research 2014

TOP FACTORS ENABLING PREDICTIVE ANALYTICS CAPABILITIES SIX STEPS OF PREDICTIVE ANALYTICS
GLOBAL SURVEY OF C-SUITE EXECUTIVES

LEVEL OF IMPORTANCE
HIGH MEDIUM LOW

Data availability/quality/
8%
governance/privacy 79% 13%

10%
01 UNDERSTAND
Accuracy/fit of
predictive models 79% 11% 02 PREPARE DATA 03 MODEL
DATA Integrate and erich Run statistical and
Identify data the data into an machine-learning
8% that is relevant
Executive buy-in/
19% analytical data set algorithms to find
approval/acceptance 73% the model

Business case
9%
content/formulation 73% 18%

Internal peoples
9%
skills/expertise 71% 20%

9%
Budget availability/size 70% 21%
04 EVALUATE 05 DEPLOY 06 MONITOR
Test the model Use the model Measure the
Technologies/
8% to make sure it in applications effectiveness of the
tools/infrastructure 69% 23% will work model in the real
world

Source: TDWI Research 2014 Based on a graphic in the July 2016 Forrester report, Predictive Analytics Can Liberate I&O
Pros From The Tyranny Of Firefighting

SECTORS WHERE PREDICTIVE ANALYSIS IS USED

GLOBAL SURVEY OF C-SUITE EXECUTIVES

64%
54% 49% 46%
39% 37%
30%
29%
26%
25%
19%

Marketing/ Sales Executive Customer Finance Operations IT, network Engineering/ Online Product Engineering/
market analysis management service and management or computer scientific presence/ development/ scientific
support managememt research social media life-cycle research
management

Source: TDWI Research 2014

DATA USED FOR PREDICTIVE ANALYTICS (%) WHERE PREDICTIVE ANALYTICS ARE BEING USED (%)
GLOBAL SURVEY OF C-SUITE EXECUTIVES GLOBAL SURVEY OF C-SUITE EXECUTIVES

Using today and Will use within No plans Not applicable/ Using today and Will use within No plans Not applicable/
will keep using three years dont know will keep using three years dont know
2
Structured data Direct marketing 58 13 20 9
from tables/records 98
Cross-sell/up-sell/propensity to spend 55 21 16 8
Demographic data 77 11 6 6
Retention analysis 55 17 17 11
Time series data 65 14 11 10
Portfolio
analysis/prediction 47 23 18 12
Web log data 37 33 21 9
Optimisation 46 31 15 8
Geospatial data 35 37 16 12
Risk analysis 43 26 17 14
Clickstream data
from websites 32 29 25 14
Econometric forecasting 34 31 21 14
Real-time event data 31 31 20 9
Fraud detection 30 19 32 19
Internal text data
from e-mails/calls 31 45 18 6
Quality assurance 24 28 27 21
External social
media text data 21 44 25 10
Scientific investigation 20 16 35 29
Machine-generated data 19 22 38 21
Loan default 15 9 45 31

Source: TDWI Research 2014