by Craig S. Mullins
A large wireless phone service provider was concerned with the number of customers it was losing. Every customer that is lost costs the company $53 in monthly revenue. Although that seems small on a customer-
That is the type of success story common among companies that have deployed advanced analytics to better understand their data. Advanced analytics is a business-
Driving a wide range of applications, from operational applications such as fraud detection to strategic analysis such as customer segmentation, advanced analytics goes deeper than traditional business intelligence activities into the “why” of the situation, and delivers likely outcomes. By allowing business managers to be aware of likely outcomes, advanced analytics can help to improve business decision making with an understanding of the effect those decisions may have in the near future.
CHALLENGES FOR ADVANCED ANALYTICS
However, it is not uncommon to encounter problems along the way as you implement advanced analytics projects. One of the potential difficulties involves managing and utilizing large volumes of data. Businesses today are gathering and storing more data than ever before. New data is created during customer transactions and to support product development, marketing, and inventory. Social media is being mined to uncover customer sentiment. And, many times, additional data is purchased to augment existing business data. This explosion in the amount and type of data is one of the driving forces behind analytics. The more data that can be processed and analyzed, the better the advanced analysis can be at finding useful patterns and predicting future behavior.
However, as data complexity and volumes grow, so does the cost of managing the data and building analytic models. Before real modeling can happen, organizations with large data volumes face the major challenge of getting their data into a form from which they can extract real business information. One of the most time-
CHALLENGES OF REAL-
As good as real-
ADVANCED ANALYTICS DEPLOYMENTS OFFER PRODUCTIVITY GAINS
The end result of deploying advanced analytics is increased productivity with the ability to gather and analyze large volumes of data to deliver faster, more-
Indeed, the whole big data phenomenon is largely focused on the analytical processing that is conducted on the data. But data need not be “big” in order to implement advanced analytics at your organization. And, ignoring the value that advanced analytics can provide your organization is not an option … because you can bet that your competition is not ignoring it!
From Database Trends and Applications, April 2014.
© 2014 Craig S. Mullins,