advanced predictive analytics

Advanced Predictive Analytics

Prof Sunil Wattal

Agenda

Introductions

Intro to Data Analytics

Course Logistics

Overview of Topics

Setting up SAS EM

Data Analytics

McKinsey Report◦shortage of 1.5 million analytics individuals in

US

Data Analytics

Big Data market size ~ $7billion in 2012◦40% growth rate

Big DataWhat is a quintillion?

90% of world’s data generated in last 2 years

Where does Big Data come from?

Data Analytics Examples

Google: Targeted AdvertisingBank: Default PreventionCall Centers: Speech recognitionPharma: Salesforce planningNetflix: Recommendations, Planning

ContentWalMart: Inventory Planning

Examples

Example : Twitter Analytics

Examples: Quantitative Insights : Klout

Regression

Most common statistical method

Impact of one or more variables (independent variable) on some outcome (dependent variable)

Applications: promotional response, price elasticity

Logistic Regression

Regression analysis with the outcome is a categorical variable

Can calculate the odds ratio / probability of an event happening

Examples: Likelihood of winning an election, likelihood of winning a game

Web Analytics

Is your website working hard enough?

What metrics can help you answer that?

Web Analytics Metrics

Neural Networks

Neural Networks are analytic techniques modeled after the (hypothesized) processes of learning in the cognitive system and the neurological functions of the brain

Advanced data mining tools used where other techniques do not product satisfactory results

Example: coors tested the relation between chemical composition of beer and its taste

Visualization

How can you represent hundreds of tweets

Dealing with Data

Variable selectionModel assessmentModel scoring

Twitter Analytics

Qualitative Analytics – Stream Graphs

Organizational Buy-In

Strategic Alignment

Technology and Infrastructure

Multi-channel analytics

Concerns about Big Data

Widespread trackingPrivacyFalse positives‘Bad’ customners

Questions