The Five Types Of Analytics

Michael Corcoran

Sr Vice President &CMO

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Session Agenda

� Why business analytics?

� Review the different types of analytics & common

misconceptions

� Review the delivery methods for the operational users

� Propose holistic approach to expand enterprise

analytics

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analytics

� Value of integration and data quality to analytics

� Discussion

Analytic QuizWhat do beer and business analytics have in common?

� In 1900 W.S. Gossett, an analyst at

Guinness invented a distribution to

analyze production processes and

employment problems.

� Guinness decided to keep it a trade

secret.

� He published it under the pseudonym

Student. Hence the name of this

popular analytic method became

Student’s t-test.

Analytic QuizWho made a killing by applying it on a massive scale?

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Four Types of Analytics

Information, Analysis And Decisions:

The Basics

Diagnostic

AnalyticsPredictive

AnalyticsAnalysis

What is Likely

To Happen?

Why Did it

Happen?

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Prescriptive

Analytics

Descriptive

Analytics

Analytic Excellence Leads to Better Decisions

Information

To Happen?

What Should I

Do About It?What is

Happening?

Happen?

Information Builders’ ViewThe Five Types of Analytics

PredictivePredictive

PrescriptivePrescriptive

DiscoveryDiscovery

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DescriptiveDescriptive

DiagnosticDiagnostic

ValueValue

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100%100% 13%13%

The Five Types of AnalyticsIt is not about more data! It is about deeper look!

Core AnalyticsCore Analytics Advanced AnalyticsAdvanced Analytics

The Five Types of AnalyticsDescriptive: What Happened?

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The Five Types of AnalyticsDescriptive: What Happened?

� Too many reports in the

enterprise

� Too many ad hoc requests

to analysts and IT

� Why?

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� Why?

� Once you see, you crave

understanding

� What? leads to Why?

� Static reports are the

primary cause for this.

Descriptive Needs To Merge With DiagnosticInformation on Demand with Greater Interacttivity

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The Five Types of AnalyticsDiagnostic: Why did it happen?

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The Five Types of AnalyticsDiagnostic: Why did it happen?

Getting to the root cause with OLAP

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The Five Types of AnalyticsDiagnostic: Why did it happen?

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Diagnostic AnalyticsNeeds To Be Extended To Operational Employees

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The Five Types of AnalyticsDiscovery: Learning from the data

Many business analysts feel this way when learning from the data!

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WHY?

The Five Types of AnalyticsDiscovery: Learning from the data

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Very often analysts have the wrong approach and tool!

Food Stamp Fraud Detection

State of Louisiana

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Insurance Claims AnalysisInteractive Data Visual Analysis

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The Five Types of AnalyticsPredictive: What is likely to happen?

“Lies, damned lies,

and statistics.”

Mark Twain

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Mark Twain

Organizations are skeptical and suspicious of the statistician!

The Five Types of AnalyticsPredictive: What is likely to happen?

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� Bad statistics can cause the data look good!

� 50% of scientific articles use wrong methods!

The Five Types of AnalyticsPredictive: What is likely to happen?

No gut feelings anymore Admirable accuracy Analyst hedging

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Researchers cannot often explain their the probability of

things happening and resort to explanations that do not

make sense.

Discovery & Predictive Analytics SimplifiedThey have different objectives, but the concepts are the same

� Detect trends

� Detect clusters

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� Detect clusters

� Detect exceptions

The Five Types of AnalyticsPrescriptive: What is the best course of action?

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With too many choices, which one is the best?

The Five Types of AnalyticsPrescriptive: What is the best course of action?

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Can we simulate various outcomes to choose the best?

The Five Types of AnalyticsDelivering Analytics to Operational Users

1. There are five discrete types of analytics

2. Each type has various analytic methods

3. Analysts buy tools

4. Advance analysts buy more specialized tools

5. Tools perform each types of analytics in a separate discrete step

6. But many decisions require a combination of different types and methods

7. Hence, the need of operational analytic applications

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This pricing app

includes:

� Descriptive

� Diagnostic

� Predictive

Building Enterprise Analytics StrategyHolistic Approach: Match Data Types, Tools, Skills, & Delivery

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Data DiscoveryCombining Machine Learning with Visualization

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Data DiscoveryCombining Machine Learning with Visualization

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Data DiscoveryCombining Machine Learning with Visualization

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Data DiscoveryCombining Machine Learning with Visualization

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The Role of Integration & Integrity in AnalyticsCost, Insights, Accuracy

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Data Source Integration and Quality Automation

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Thank you

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