Tired of age old ways of predicting

future??

Predictive Analytics is at your rescue!!

Predictive analytics helps to eliminate
guesswork and apply scientific techniques
that can easily mine across hundreds of
factors and quickly highlight those that are
most important or vital few to make
proactive decisions for future.

What is Predictive
Analytics

Practice of extracting information from existing

data sets in order to determine patterns and
predict future outcomes and trends.

Applications

Analytical
Customer
Relations
hip
Managem
ent CRM uses
predictive
analysis in
applications for
marketing
campaigns,
sales, and
customer
services

Clinical
Decision
support
systems
Experts use
predictive
analysis in
health care
primarily to
determine
which patients
are at risk of
developing
certain

Collection
Analysis
Many portfolios
have a set of
delinquent
customers who
do not make
their payments
on time. The
financial
institution has
to undertake
collection
activities on
these

Economy
level
predictio
ns Or the

Federal
Reserve
Board might
be
interested in
predicting
the
unemploym

Process flow

Collating Data
Data Mapping
Automation
Data Filtering
Missing Data
Treatment

Regression
Marketing Mix Model
Clustering

Running
Statistical
Models

Data
Preparation

Excel
Sql
Hadoop

R
SAS
SPSS
Tibco Spotfire

Interpretation of
output
Reporting

Decision
Making

Dashboards
Infographics
Microsoft Power Point

ERP and Predictive

Analytics

IT boom
Increase in automation
Increase in the data being generated on
enterprise servers.
Businesses now need systems that can use
this data to comprehensively analyse
Analytics is the solution that all businesses
aspire to gain competitive edge.
This can be gained by integrating analytics
solutions to ERP systems which are already
owned by these businesses.

Integrating Predictive Data

Analytics with ERP
ERP

Predictive Analytics

Real time Data

Data analysis

Historical Data

Forecasting

Aggregated Data

Risk Analysis

But lacks analysing

capabilities to make
data driven decisions.

All I need is
sophisticated data
systems to improve
decision making
process

ERP & Predictive

Analytics

Wal-Mart
The ERP system of such a business holds real-time data which is
then used to predict demand.
Wal-Marts supply chain team today analyses the sales pattern of
iPhone to predict the demand for a new iPhone across the various
Wal-Mart outlets across the country.
However whats missing here is a correlation between the iPhone
and an associated product like a phone case. It is quite trivial to
infer that an increase in the sale of iPhones will help in a
commensurate increase in sale of iPhone cases. But this inference
is not possible today using ERP systems alone since the iPhone
and the iPhone case are two independent products and it requires
a human to make the connection between the two.

Business Case
In one case they were able to predict a high school girl's
pregnancy before her father did.
a teenage girl in Minnesota, was pregnant, based on an
arcane formula involving elevated rates of buying unscented
lotion, mineral supplements, and cotton balls.
Assigning each customer with their own ID number or guest
code, the company, like many others, collects and stores
their data for these customized shopping suggestions.
Buying behaviour of each individual, shopping behaviour of
others etc.

http://it.toolbox.com/blogs/inside-erp/using-predictive-analytics-to-make-business-sense-of-erp-62061
http://ieeexplore.ieee.org/xpl/login.jsp?tp=&
arnumber=6933558&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3
D6933558
http://www.enterpriseappstoday.com/erp/analytics-playing-greater-role-in-erp.html
http://
www.sdcexec.com/article/10882090/deploy-business-specific-predictive-analytics-in-three-easy-steps
http://panorama-consulting.com/sap-named-a-leader-in-big-data-predictive-analytics-solutions-by-inde
pendent-research-firm
/
http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-be
fore-her-father-did
/
http://
smartdatacollective.com/anandsmartdata/174471/why-integrating-big-data-analytics-erp-future-retail
http://www.dailymail.co.uk/news/article-2102859/How-Target-knows-shoppers-pregnant--figured-teen-fa
ther-did.html#ixzz3UFjpK2Il

http://
www.slate.com/blogs/how_not_to_be_wrong/2014/06/09/big_data_what_s_even_creepier_than_target_g
uessing_that_you_re_pregnant.html

 Explain Predictive Analytics

Role of Predictive Analytics in ERP
One adoption case
One video and Article
Benefits/Challenges/Pitfalls