Cloud-Based Predictive Analytics Solutions Poised for Rapid Growth

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Over 2/3 of survey respondents see real potential in cloud-based predictive analytics. Key drivers are customer acquisition, management and retention.

Early adopters are positioning themselves to take increasing advantage of this exciting class of solutions, potentially widening the competitive gap between them and slower adopters.

Decision Management Solutions, a leading provider of decision management, predictive analytics and business rules services, today announced the results of a survey of over 200 business and technical professions on the opportunities and challenges for organizations in adopting cloud-based predictive analytics. The survey is part of a multi-stage study on cloud-based predictive analytic solutions hosted on Smart Data Collective, a leading online community for data professionals moderated by Social Media Today LLC. Study findings and survey results will be presented in a webinar on Thursday, November 10, 2011 at 10:00 a.m. PT, 1:00 p.m. ET, hosted by James Taylor, CEO of Decision Management Solutions, and will include short presentations from each of the research sponsors. Registration for the webinar and the study whitepaper, survey results, webcasts and podcasts is free at http://smartdatacollective.com/predictive-analytics-cloud-registration

The survey asked respondents to rate the importance of five areas of opportunity for cloud-based predictive analytics:

  •     Using the cloud to deliver predictive analytics-enabled “Decisions as a Service” solutions
  •     Embedding Predictive Analytics in SaaS and cloud-deployed applications
  •     Using the cloud to deliver predictive analytics to non-cloud applications across the enterprise
  •     Building predictive analytics against data in the cloud
  •     Using cloud to deliver elastic compute power for building predictive analytic models

80% of companies have specific plans to adopt or are already using Predictive Analytics. More than 2/3 of respondents see all five cloud-based predictive analytic scenarios as being potentially important to their organizations, but none of the five scenarios is as yet widely adopted. Companies plan to use these solutions primarily to acquire, target, develop and retain customers.

“Predictive Analytics has not hit the mainstream yet because most businesses see at as a fairground voodoo magic trick to be marveled at, and then go back home to regular business. For those that see potential the entry barrier can seem too high so that only the largest and the bravest businesses venture forth. Using a cloud-based model to address Predictive Analytics may be the solution to this vicious cycle,” commented Gagan Saxena, CIO Apple Vacations, a survey participant.

Companies with the most experience with predictive analytics were more likely to have plans to adopt more cloud-based predictive analytic solutions and much less likely to have performance or privacy concerns about the solutions. The gap between these early adopters and their competitors is likely to widen as these early adopters were also much more likely to effectively embed predictive analytics in operational systems, recognize and value the deployment agility and cost reduction inherent in cloud-based predictive analytics solutions and take advantage of “big data” from the cloud.

“The more companies use cloud-based predictive analytic solutions the more they like them and the less they worry about it,” reported Mr. Taylor. “These early adopters are positioning themselves to take increasing advantage of this exciting class of solutions, potentially widening the competitive gap between them and slower adopters.”

Other survey results included:

  • Customers were the clear focus of companies’ plans in predictive analytics, cloud and for the two technologies in combination.
  • Financial Services and Retail Banking were the industries reporting the most impact to date from predictive analytics.
  • Telcos showed the most aggressive plans with more than 2/3 having specific plans to adopt predictive analytics.
  • Healthcare delivery organizations were clear laggards with over 40% having no plans at all for predictive analytics.
  • Executive management participation in the survey was strong, as were senior management across business, IT and analytics. IT management, however, had a low participation level.
  • Structured data and data pooled from multiple companies were the most widely valued for predictive modeling – much more so than unstructured data such as text or social media data.

Study findings and survey results will be presented in a webinar on Thursday, November 10, 2011 at 10:00 a.m. PT, 1:00 p.m. ET and will include short presentations from each of the research sponsors. Registration for the webinar and the study whitepaper, survey results, webcasts and podcasts is free at http://smartdatacollective.com/predictive-analytics-cloud-registration

Research sponsors are Clario Analytics, FICO, Predixion Software, Opera Solutions, SAS, Teradata and Toovio. For more information please contact Meri Gruber, VP Business Development at info@decisionmanagementsolutions.com.

About Decision Management Solutions
Decision Management Solutions is the leading professional services firm specializing in Decision Management, a proven approach for rapid and cost effective deployment of predictive analytics and business rules technology in operations. http://www.decisionmanagementsolutions.com

About SmartData Collective
SmartData Collective is a blogger-based, peer-to-peer community for leading enterprise executives and business intelligence professionals to share their collective industry knowledge. http://www.smartdatacollective.com

About Clario Analytics
Clario Analytics develops and markets analytic marketing solutions via a cloud-powered, Software-as-a-Service deployment model. http://www.clarioanalytics.com

About FICO
FICO delivers superior business rules management, predictive analytics, and optimization solutions that drive smarter decisions. Our innovative products include the FICO® Score, along with industry-leading decision management software that our clients use to power billions of decisions each day. http://www.fico.com

About Opera Solutions
Opera Solutions creates and provides ongoing delivery of a suite of advanced Big Data analytics solutions that grow profits and create strategic advantage for top tier public and private sector customers globally. http://www.operasolutions.com

About Predixion Software
Predixion Software develops collaborative predictive analytics solutions that are fully integrated with Microsoft Corp.'s BI platform delivering easy-to-use, enterprise class predictive analytics in the common interfaces of Excel® 2010, SharePoint® and other portals. http://www.predixionsoftware.com

About SAS
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. SAS provides a complete portfolio of business analytics capabilities in the cloud–data management, reporting, analytics and pre-built industry solutions. http://www.sas.com/solutions/ondemand

About Teradata
Teradata is the world's leader in data warehousing and integrated marketing management through its database software, enterprise data warehousing, data warehouse appliances, and enterprise analytics. http://www.teradata.com

About Toovio
Toovio is a real-time marketing solution provider that drives sales, increases retention, and enhances customer interactions by empowering marketers with "decisions as a service." Toovio's prescribed approach enables organizations of all sizes to create personalized, consistent, and contextual marketing interactions across every channel. http://www.toovio.com

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