Amplify Predictive Analyticswith Data VisualizationDr. Ingo MierswaFounder & CTO

The Story of Joe

This is Joe.Joe is a data Scientist.

I am Joe.I am a datascientist.

Data

Joe crunches through the bigpile of data he has every day.

6 Months later...

Pot ofGold

Joe finally found a Churn patternin the data. A pot of gold...

1st

Joe got lot of Congrats from his fellowdata scientists, Fred and Peter.

1st

FredPeter

Joe, Fred, and PeterCelebrated the whole night...

1st

But during the next week, Joe wasbecoming very sad. What happened?

Nobodyelse cares!

Basement

Joe’s models have not been used.Because predictive models

Are Hard to understand.

This is why Joe, Fred, andPeter Sit in the basement.

So Joe thought about how hecan amplify his voice...

To be continued...

©2016 RapidMiner, Inc. All rights reserved. - 13 -

Joe’s Idea:

Operationalizationof Models

It does not matter that youknow what’s going to happen.The only thing which matters isthat your organization can do the right thing today so that the best will happen tomorrow.

How can analytics help you to find the right business action?

If you know it is going to rain:

Should you bringyour umbrella?

BUSINESS INTELLIGENCE

It rained 231 days last year

We lost 5 million customers last

year (23%)

BI-STYLE PREDICTIONS

It will rain at least 200 days next year

We will lose at least 20% of our customers

next year

PREDICTIVE ANALYTICS

Probability for rain tomorrow is 95%

We will lose Jon Smith tomorrow (92%)

PRESCRIPTIVE ANALYTICS

Walking Bring umbrellaCar Plan for longer commute

Give Mr. Smith a call to offer 3% discount

on renewal

Insights

Action

VALUE

From BI to Prescriptive Analytics

Operationalization Spectrum

Manual

Algorithmic

Time-Intensive

ShortDuration

StrategicCreate a new product line

Acquire a company

TacticalDefine pricing policies

Define underwriting policies

1 Year 1 Month 1 Week 1 Day 1 Hour 1 Minute 1 Second

Single DecisionMake a specific hire

Define price for product

OperationalMake a cross-sell offer

Approve a credit

AutomatedStop fraudulent transactionAdjust production process

Achieved through operationalization of prescriptive models

Supported by insights from analytics

©2016 RapidMiner, Inc. All rights reserved. - 18 -

50 MillionTelco customers who might churn every day

Really loyal About to churn

©2016 RapidMiner, Inc. All rights reserved. - 19 -

50 Million Customers$50 Customer Acquisition Cost10% Churn Reduction

$250m Savings p.a.

18 Billion Decisions p.a.$0.01 per Decision

Looks good, Joe! Why wouldn’t you just automate it, then?

TrustPeople need tounderstandfirst.

FearHuman

decisionmaker

preferred.

RarityRare situations, e.g.acquisition of company.

FamiliarityData visualization is a known

channel for information sharing.

How cool would it be then to deliver predictions and action right in a known dashboard?

+

DEMO

Amplifying Predictive Analytics with Qlik

User changes parameters and RapidMiner reruns the

predictive process.

Bi-directional integration via Web Services

Design process. Save it in RapidMiner Server repository.1

RapidMiner Studio

RapidMiner ServerDeployment Tier

Add RapidMiner as data source. Design dashboard for interactive Predictive Analytics.

2 RapidMiner runs process and delivers results via a web service.

Qlik dashboard updates with results.4

3

PREP DATAQuickly connect, explore & transform ALL data for BI and Predictive Analytics

MODEL & VALIDATERapidly prototype and immediately validate

predictive models

OPERATIONALIZEEmbed models directly

within business processes and data visualization

applications

ANY DATA SOURCE, ANY FORMAT, AT ANY SCALE

ANY BUSINESS APPLICATION OR PROCESS

PREP DATAQuickly connect, explore & transform ALL data for BI and Predictive Analytics

MODEL & VALIDATERapidly prototype and immediately validate

predictive models

OPERATIONALIZEEmbed models directly

within business processes and data visualization

applications

ANY DATA SOURCE, ANY FORMAT, AT ANY SCALE

EMBED PREDICTIVE INSIGHTSAND PREDICTIVE ACTIONS

IN QLIK

Game-Changing Operationalization

Embedded insights close the loop between

insight & action

InnovativePlatform

Open source leadership pioneers and embraces

modern solutions

- 27 -

Self-Service Predictive Analytics

Effortless & guided design democratize data science

Lightning-FastData Science

Seamless lifecycle orchestration accelerates

predictive analytics

©2016 RapidMiner, Inc. All rights reserved. - 28 -

Gartner, Magic Quadrant for Advanced Analytics Platforms, 09 February 2Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.016

Positioned in the Leaders Quadrant in

the 2016 Gartner Magic Quadrant for Advanced Analytics Platforms for

three consecutive years

Rated a Strong Performer in the

2015 Forrester Wave on

Big Data Predictive Analytics. Praised as “a Rock-Solid Enterprise

Solution”

2015 Technology Innovation Award Winner,

Advanced & Predictive Analytics,

Big Data Analytics andEnd-User Data Preparation

RapidMiner takes 1st place for code-free

platforms in KDnuggets May 2015

Data Mining & Analytics Software Poll

Thanks formaking Joe happy!

Thanks!

Dr. Ingo Mierswaimierswa@rapidminer.com @ingomierswa@rapidminer