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April 2013 Newsletter
The Rise of Predictive Analytics
The following is a collection of articles and links covering Predictive Analytics. Service companies, Manufacturing companies, Healthcare providers, Insurance companies, Police departments, and Governments are all trying to figure out how to capitalize on Big data and Predictive Analytics.

1. "Every two days, we now generate the equivalent of all of the data that existed up to 2003. And thanks to           advanced computation and analytics, we have the tools to turn that data into insight, knowledge and better       decisions." - Ginni Rometty, IBM CEO
    Prepared remarks to the Council on Foreign Relations, New York, March 7, 2013

2. What is Predictive Analytics?
    Heather McIlvaine provides a good overview of what is Predictive Analytics and how some companies are           applying it to their business. Moving from Gut Feel to Fact Based Decisions.

    a. Uncover hidden patterns and associations
    b. Enhance Customer Retention
    c. Cross-Selling opportunities through personalized offers and experiences
    d. Maximize productivity and profitability by aligning people, processes and assets
    e. Reduce risk to minimize exposure and loss

4. Data & Analytics.
    Extract from MITSloan Management Review research titled:
    'From value to Vision: Reimagining the Possible  with Data Analytics' February 2013

How organizations capture, create and use data is changing the way we work and live. You don't have to lead the analytics revolution to create value from analytics.

The story of the Oakland Athletics offers a telling example. In 2002, despite being handicapped with the most significant salary constraint in Major League Baseball, Oakland A's general manager Billy Beane built a winning team through an innovative use of analytics. He bucked conventional wisdom and began looking at previously ignored player statistics. This story - popularized in Michael Lewis's book Moneyball: The Art of Winning an Unfair Game and the movie starring Brad Pitt - ends on a happy note, with the A's winning their division and going to the playoffs. But over time, other teams copied Beane's methods, and the A's lost the competitive edge they had initially gained with analytics. It was only after team management created new analytical metrics that the A's returned to the playoffs in 2012, after a five-year hiatus. The moral: Organizations need to find new ways to apply analytics to refashion the advantage they gain from data.

Analytics is not just about generating insights and getting those insights to the right people. To sustain the long-term success of data-driven innovation, it is necessary to continually revise one's analytical approach in order to generate insights that lead to new innovation and competitive advantage.


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