Business Intelligence & Analytics: is it all about Prediction & Prescription? (Day 0)

Hi all,

Here I am in the USA, attending the event Gartner Business Intelligence and Analytics Summit, in Grapevine – Texas. I know it has been a long time since my last post, but inspired by this event, I decided to free up (again) the blogger inside me and write a short and (hopefully) not-boring summaries every day. Trying to get more audience, I’m using my far-from-perfect english to write this post… hope you don’t mind.

Today was day 0. Yes, that’s right. The event starts tomorrow, but we had a couple of presentations today for the brave ones. They said that those two presentations were basic ones, just to set a common vocabulary up.

Well, and here is it. They presented a “Business Analytics Framework” a little bit complex, but the main takeaway is that we should see BI&A in four different perspectives:

  • Descriptive: what is you bussines problem? What what is your strategic plan? What happened?
  • Diagnostic: what data do I have that is relevant? What data do I need to gather or buy? Why did it happen?
  • Predictive: based on what I know, what is likely to happen? What are the hypothesis behind my data?
  • Prescriptive: what should I do about it? How can I implement the hypotheses?

“Traditional BI” (and the first presenter – Jamie Popkin – started his presentation saying that traditional data warehouse and reporting analysis are dead) is the first two ones: Descriptive and Diagnostic. What they are seeing now and in the future is investments on the later ones: Predictive and Prescriptive.

One example Jamie mentioned about prediction and prescription. He said that during the last Vallentine’s day, he was shopping flowers on-line. He was putting some itens into his shop cart, but never completing the order. Suddenly, he received an email from the e-store offering him 15% off. So, after that, he came back to the store and finally put his order. Notice that the e-store predicted that he was likely to buy but was in doubt and than, as a prescription, offered him an extra discount. That’s we are talking about! On-line and real-time business intelligence.

That’s it! I’m expecting to hear a lot about prediction and prescription in the further sessions. Getting into details. I’ll share with you.

Let me get some sleep because tomorrow the event starts and 7am (that’s right!).

See you,
Daniel V.