Ventana Research Analyst Perspectives

Operationalize Predictive Analytics for Significant Business Impact

Posted by Ventana Research on Oct 24, 2015 5:00:29 PM

One of the key findings in our latest benchmark research into predictive analytics is that companies are incorporating predictive analytics into their operational systems more often than was the case three years ago. The research found that companies are less inclined to purchase stand-alone predictive analytics tools (29% vs 44% three years ago) and more inclined to purchase predictive analytics built into business intelligence systems (23% vs 20%), applications (12% vs 8%), databases (9% vs 7%) and middleware (9% vs 2%). This trend is not surprising since operationalizing predictive analytics – that is, building predictive analytics directly into business process workflows – improves companies’ ability to gain competitive advantage: those that deploy predictive analytics within business processes are more likely to say they gain competitive advantage and improve revenue through predictive analytics than those that don’t.

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Topics: Big Data, Microsoft, Predictive Analytics, SAS, Social Media, alteryx, advanced analytics, Customer Performance, Operational Performance, organizational transformation, Analytics, Business Analytics, Business Intelligence, Business Performance, Operational Intelligence, Oracle, Information Optimization, SPSS, Rapidminer

Business Case for Predictive Analytics is Simpler Than You Think

Posted by Ventana Research on Oct 16, 2015 10:22:01 PM

Our benchmark research into predictive analytics shows that lack of resources, including budget and skills, is the number-one business barrier to the effective deployment and use of predictive analytics; awareness – that is, an understanding of how to apply predictive analytics to business problems – is second. In order to secure resources and address awareness problems a business case needs to be created and communicated clearly wherever appropriate across the organization. A business case presents the reasoning for initiating a project or task. A compelling business case communicates the nature of the proposed project and the arguments, both quantified and unquantifiable, for its deployment.

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Topics: Big Data, Microsoft, Predictive Analytics, SAS, Social Media, alteryx, advanced analytics, Customer Performance, Operational Performance, organizational transformation, Analytics, Business Analytics, Business Intelligence, Operational Intelligence, Oracle, Information Optimization, SPSS, Rapidminer

Data Preparation is Essential for Predictive Analytics

Posted by Ventana Research on Aug 6, 2015 9:13:56 AM

Our research into next-generation predictive analytics shows that along with not having enough skilled resources, which I discussed in my previous analysis, the inability to readily access and integrate data is a primary reason for dissatisfaction with predictive analytics (in 62% of participating organizations). Furthermore, this area consumes the most time in the predictive analytics process: The research finds that preparing data for analysis (40%) and accessing data (22%) are the parts of the predictive analysis process that create the most challenges for organizations. To allow more time for actual analysis, organizations must work to improve their data-related processes.

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Topics: Big Data, Microsoft, Predictive Analytics, alteryx, Customer Performance, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, Operational Intelligence, Oracle, Information Optimization

Skills Gap Challenges Potential of Predictive Analytics

Posted by Ventana Research on Jul 23, 2015 7:23:58 AM

The Performance Index analysis we performed as part of our next-generation predictive analytics benchmark research shows that only one in four organizations, those functioning at the highest Innovative level of performance, can use predictive analytics to compete effectively against others that use this technology less well. We analyze performance in detail in four dimensions (People, Process, Information and Technology), and for predictive analytics we find that organizations perform best in the Technology dimension, with 38 percent reaching the top Innovative level. This is often the case in our analyses, as organizations initially perform better in the details of selecting and managing new tools than in the other dimensions. Predictive analytics is not a new technology per se, but the difference is that it is becoming more common in business units, as I have written.

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Topics: Big Data, Microsoft, Predictive Analytics, alteryx, Operational Performance Management (OPM), Customer Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, Location Intelligence, Oracle, Information Optimization

Predictive Analytics: Investing and Selecting Software Properly

Posted by Ventana Research on Jul 22, 2015 9:46:57 AM

To impact business success, Ventana Research recommends viewing predictive analytics as a business investment rather than an IT investment.  Our recent benchmark research into next-generation predictive analytics  reveals that since our previous research on the topic in 2012, funding has shifted from general business budgets (previously 44%) to line of business IT budgets (previously 19%). Now more than   half of organizations fund such projects from business budgets: 29 percent from general business budgets and 27 percent from a line of business IT budget. This shift in buying reflects the mainstreaming of predictive analytics in organizations,  which I recently wrote about .

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Topics: Big Data, Microsoft, Predictive Analytics, alteryx, Customer Performance, Analytics, Business Analytics, Business Intelligence, Operational Intelligence, Oracle, Business Performance Management (BPM), Rapidminer