http://jtonedm.com/2009/01/28/a-decision-is-a-prerequisite-for-success-with-predictive-analytics/ James Taylor on Everything Decision Management Thu, 09 Feb 2012 15:08:02 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://jtonedm.com/2009/01/28/a-decision-is-a-prerequisite-for-success-with-predictive-analytics/comment-page-1/#comment-13110 Mark Erickson Fri, 30 Jan 2009 19:57:43 +0000 http://www.b-eye-network.com/blogs/taylor/archives/2009/01/a_decision_is_a_prerequisites_for_success_with_pre.php#comment-13110 Great post, James.  There still seems to be a lot of confusion out there about how the most value can be created from predictive analytics and BI in general.  You have a talent for making the important issues clear.  To me, “how insight will make a difference” is equivalent to “how predictive analytics will increase shareholder value.”  The only way to find out is to begin with the decisions I have (whether current or contingent on the future) since the only way I can hope to positively affect shareholder value is through my decisions.  Once I’ve identified my decisions, I can prepare and gather all relevant information about the very uncertain future, whether that information originates from data, predictive analytics, or an employees’ knowledge.  Then, I’ll use that information to help me quantify the shareholder value of my decisions, so I can choose wisely.  Only by explicitly linking information to the shareholder value of decisions, can I discover the true value of my predictive analytics. Great post, James.  There still seems to be a lot of confusion out there about how the most value can be created from predictive analytics and BI in general.  You have a talent for making the important issues clear.  To me, “how insight will make a difference” is equivalent to “how predictive analytics will increase shareholder value.” 
The only way to find out is to begin with the decisions I have (whether current or contingent on the future) since the only way I can hope to positively affect shareholder value is through my decisions.  Once I’ve identified my decisions, I can prepare and gather all relevant information about the very uncertain future, whether that information originates from data, predictive analytics, or an employees’ knowledge.  Then, I’ll use that information to help me quantify the shareholder value of my decisions, so I can choose wisely.  Only by explicitly linking information to the shareholder value of decisions, can I discover the true value of my predictive analytics.

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