Hot Technologies with Rick Sherman, Wayne Eckerson and FICO Live Webcast April 30, 2014 Watch the archive: The need to adapt quickly only continues to increase. Decision cycles can no longer span weeks and months, but must occur in days or even hours. Traditional methods for managing data cannot fulfill this business requirement. Rather, organizations must embrace new technologies and practices for accessing, processing and delivering not just data, but also analytical models. In doing so, they will achieve a level of decision management that can fundamentally transform how their business works. Register for this episode of Hot Technologies to hear veteran Analysts Rick Sherman of Athena IT Solutions, and Wayne Eckerson of Eckerson Group, as they give their insights on how today's analytics leaders are solving serious challenges by connecting data and experience. They'll be briefed by David Ross of FICO, who will outline his firm's recent innovations in turning analytical insights into actionable strategies that deliver results faster. He'll outline how FICO is leveraging the spectrum of data available today, including business intelligence systems and a wide range of Big Data sources. Visit InsideAnlaysis.com for more information.

1. Grab some coffee and enjoy
the pre-show banter before
the top of the hour!

2. H T
Technologies
of
2014

3. HOST:
Eric
Kavanagh

4. THIS
YEAR
is…

5. D
ecision
Management
ž Data
is
not
enough
&
experience
is
not
enough
ž Understanding
trends
is
nice
–
predicting
them
is
better
ž Business
performance
ultimately
drives
decisions

6. ANALYST:
Rick
Sherman
Founder,
Athena
IT
Solutions
ANALYST:
Wayne
Eckerson
President,
Eckerson
Group
GUEST:
David
Ross
Senior
Director
of
Product
Management,
FICO
THE
LINE
UP

7. INTRODUCING
Rick
Sherman

8. Hot
Technologies
of
2014:
Connec4ng
Data
&
Experience:
How
Decision
Management
Works
Rick
Sherman
Athena
IT
Solu4ons
rsherman@athena-­‐solu4ons.com
Copyright © 2014 Athena IT Solutions

9. From Descriptive to Prescriptive Analytics
Right Skills, Right Job
• Data Scientists
ü Very skilled
ü Misunderstood & isolated
• Business analysts
ü Not stats, biz, eco or psych gurus
ü Model consumers
• Predictive Modeling
ü Too labor intensive
ü Self-service is misguided goal
• Data Exploration & Preparation
ü Big Data - Too Much Labor
ü Data Integration - Silos
Slide 9 Copyright © 2014 Athena IT Solutions All rights reserved.

10. From Descriptive to Prescriptive Analytics
Right Architecture, Right Tools
Analytical Hub & Predictive Analytics Platform
Data scientists “in charge”
Objectives:
• Self-service BI
• Improved time to market
• Reusable & Embedded
• Revisions
Functional layers:
• BI Portfolio
• (Self-Service) Data Integration
ü BI schema
ü Ent Apps & External
• Predictive analytics
ü Modeling & Statistical Tools
ü Data Visualization
ü Development Platform
Slide 10 Copyright © 2014 Athena IT Solutions All rights reserved.

11. From Descriptive to Prescriptive Analytics
Right team, Right Approach
Project Life-Cycle & Project Team
Slide 11 Copyright © 2014 Athena IT Solutions All rights reserved.

12. From Descriptive to Prescriptive Analytics
Next Steps
Slide 12 Copyright © 2014 Athena IT Solutions All rights reserved.

13. INTRODUCING
Wayne
Eckerson

14. Waves
of
BI
High
Business Value
“What
Statisticians/
Data Scientists
Execs, Mgrs,
analysts Workers
happened?”
scorecards Statistics, data
mining, optimization Static & interactive
©
Eckerson
Group
LLC
2010-20
Reporting
1980’s
Analysis
Prediction
(Prescription)
Monitoring
Query, Excel, OLAP,
Visual Discovery Dashboards,
reports
“Why did it
happen?”
“What’s
happening?”
“What will
happen?”
Low
= Reporting
= Analysis
1990’s 2000’s
All users Business
Tools
Users

15. Two
Strains
of
Analy4cs
Exploration & Analysis Prediction & Optimization
Navigate historical data Model historical data
©
Eckerson
Group
LLC
15
Deductive
Business analysts
Ad hoc and viz tools
Inductive
Data scientists
Data mining tools

16. ©
Eckerson
Group
LLC
16
Predic4ve
Modeling
Steps
13%
18%
25%
23%
12%
9%
8%
1. Project definition
2. Data exploration
3. Data preparation
4. Model creation
5. Scoring and deployment
6. Model management
Other
Based
on
166
responses,
Wayne
Eckerson,
“Predic6ve
Analy6cs:
Extending
the
Value
of
Your
DW
Investment,”
TDWI
Research,
2007.

17. Self-­‐service
predic4ve
analy4cs?
©
Eckerson
Group
LLC
Workflow
1. Select
a
func6on
2. Load
data
3. Hit
Run
Business
analysts
Value
1. Put
power
in
more
hands
2. Prototyping
3. Deliver
“good
enough”
results

18. INTRODUCING
David
Ross

19. From Descriptive to Prescriptive:
Evolving Your BI Strategy
David Ross
Senior Director, Product Management
FICO
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

20. Moving
from
Insights
to
Tangible
Solutions
© 2014 Fair Isaac Corporation. 20 Confidential.

21. Maturing from Descriptive to Prescriptive Analytics
Business
Intelligence
© 2014 Fair Isaac Corporation. 21 Confidential.
Descriptive
Analytics
Predictive
Analytics
Prescriptive
Analytics
Summarize Past and Current Behavior
Automatically
take the ideal action
on each individual
Target each decision
to a customer’s
future behavior
Make different offers
to groups
of customers
Understand
the trends in
the business
Predict Future Behavior and Adapt
Decision Value
Analytic Capability

22. Decision Management Provides the Solution
Increase decision accuracy by orders of magnitude
Optimize for the best outcome across actions
Adapt and learn to continually act correctly
Develop and deploy solutions in a tenth of the time
Deploy analytic models in hours not months
Make changes in a fraction of the time and cost
© 2014 Fair Isaac Corporation. 22 Confidential.
Benefits of Decision Management

23. Through innovative techniques…
…drive more profitable decisions
Transforming 1:1 marketing
• Delivers over 100MM highly targeted offers every week.
• Unprecedented scale in retail analytics. Individual recommendations selected
from thousands of product categories each with their own ‘auto-generated
propensity model’.
• Creates a marketplace for manufacturer investments in 1:1 marketing.
• New Innovations include: Time to Event Analytics and Up-lift Models
“Coupons normally had a response rate of 1 percent or 2 percent. With eValues, as many
as 20 percent to 30 percent of eligible customers collect the discount they are offered.”
© 2014 Fair Isaac Corporation. 23 Confidential.
Linda Vytlacil, Vice President
Member Insights and Innovation, Sam’s Club

24. The Strengths of Decision Management
Historical Data
Industry Data
Transactional Data
Policies and Guidelines
24 © 2014 Fair Isaac Corporation. Confidential.
Analytics/Modeling
Business Rules
Optimization
Personalized Treatments
Predictive Offers
Optimal Pricing
Consistency
Accuracy
Auditability
Compliance
Continuous Improvement
Decision
Management

25. Your Challenge: Do More… Do It Faster… Do It for Less…
Deliver Cross-Channel
Maintain and Update
25 © 2014 Fair Isaac Corporation. Confidential.
Do It with Fewer People
Provide Single Customer View
Add New Services
Add New Products
Assure Compliance
Future-Proof Investment

26. Insight Thrives on Data
► Access to any data, anytime
► Assess what data is valuable
► More reliable predictions
► Better decisions
► Understand the correlations from macro to
micro data
► Advanced analytic techniques develop
advanced predictions
► Mining consumers as a source of data
© 2014 Fair Isaac Corporation. 26 Confidential.

27. Analytics Give Decisions Insight
“There is nothing so terrible as activity without insight” - Goethe
► Connect data and experience
► Analytics can predict what will happen
and when
► Decisions can determine the right action
at the right time
► Optimization will derive the best
outcome for the business
► Knowledge can be continually gained:
Expertise → Insight → Optimal activity
© 2014 Fair Isaac Corporation. 27 Confidential.

28. Monitor, Act and Learn
► Understand how your business is
performing
► Connect decision performance to
overall business performance
► Know when you and how you need
to change
► Align business performance
improvement to cost of change
© 2014 Fair Isaac Corporation. 28 Confidential.

29. Shortening Time to Value Gains Earlier Returns
► Business users controlling which
decisions to improve and when
► Simple and easy decision assessment,
update and deployment
► Business process and business
decisions closely coupled
► Faster integration, easier deployment
and scalable infrastructure
► Cloud and on-premise implementation
© 2014 Fair Isaac Corporation. 29 Confidential.

30. FICO® Decision Management Platform is at the heart of
analytically driven applications
AUTHOR EXECUTE MANAGE
Big Data
© 2014 Fair Isaac Corporation. 30 Confidential.
IMPROVE
Analytics Optimization
Decisions

31. Conclusions / Summary
An effective and holistic decision management strategy
creates a significant competitive advantage
► The need to adapt and change only continues to increase
► Decision management is central to improving business performance
► Availability and access to data is exploding
► The right data and insight ensure the best decisions are made
► Understanding performance ensures the improvements made
► Decisions can be made consistently across organizations
► Complicated methods do not require complicated tools
© 2014 Fair Isaac Corporation. 31 Confidential.

32. Thank You
Please contact FICO at:
1-888-342-6336
inside@fico.com
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.

34. THANK
YOU!
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