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An Overview of Predictive Analytics - MachinePulse

Predictive analytics is the practice of extracting insights from the existing data set with the help data mining, statistical modeling and machine learning techniques and using it to predict unobserved/unknown events. MachinePulse offers end to end IoT hardware and software solutions for any requirement. They deploy solutions which enable our customers to breeze through Big Data with ease, which can help you optimize your business. Visit here to know more: http://www.machinepulse.com/

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164 views20 pages

An Overview of Predictive Analytics - MachinePulse

Predictive analytics is the practice of extracting insights from the existing data set with the help data mining, statistical modeling and machine learning techniques and using it to predict unobserved/unknown events. MachinePulse offers end to end IoT hardware and software solutions for any requirement. They deploy solutions which enable our customers to breeze through Big Data with ease, which can help you optimize your business. Visit here to know more: http://www.machinepulse.com/

Uploaded by

MachinePulse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Predictive Analytics -

An overview
Vijaykumar Adamapure
MachinePulse.
Agenda

Introduction to Big Data.

What is Analytics?

Overview of Predictive Analytics Techniques.

Business Applications of Predictive Analytics.

Predictive Analytics Tools in Market.


Gartner Hype Cycle
Things That Happen On Internet Every Sixty
Seconds
Things That Happen Every Sixty Seconds
The 5 V's of Big Data
Big datais high-volume, high-velocity and high-variety
information assets that demand cost-effective, innovative
forms of information processing for enhanced insight and
decision making.
Survey on Big Data Adoption
Stages
What is Analytics?
Data Analysis: OSEMN Process
OSEMN is an acronym that rhymes with awesome

Obtain Data

Scrub Data

Explore Data

Model Data

iNterpret Results
What is Predictive Analytics?

Predictive analytics is the practice of extracting insights from


the existing data set with the help data mining, statistical
modeling and machine learning techniques and using it to
predict unobserved/unknown events.

Identifying cause-effect relationships across the variables


from the historical data.

Discovering hidden insights and patterns with the help of


data mining techniques.

Apply observed patterns to unknowns in the Past, Present


or Future.
Predictive Analytics Process Cycle
Common Predictive Analytics
Methods
Regression:
Predicting output variable using its cause-effect
relationship with input variables. OLS Regression, GLM,
Random forests, ANN etc.

Classification:
Predicting the item class. Decision Tree, Logistic
Regression, ANN, SVM, Nave Bayes classifier etc.

Time Series Forecasting:


Predicting future time events given past history. AR,
MA, ARIMA, Triple Exponential Smoothing, Holt-Winters etc.
Common Predictive Analytics Methods
(Contd.)
Association rule mining:
Mining items occurring together. Apriori Algorithm.

Clustering:
Finding natural groups or clusters in the data. K-means,
Hierarchical, Spectral, Density based EM algorithm Clustering
etc.

Text mining:
Model and structure the information content of textual
sources. Sentiment Analysis, NLP
Evaluating Predictive Models
Need to check predictive models out of sample
performance.
Model Assessment: Hit Rate, Gini Coefficient, K-S Chart,
Confusion Matrix, ROC Curve, Lift Chart, Gain Chart etc.
Business Applications of Predictive
Analytics
Multi-channel Renewable
Smarter Healthcare sales Finance Energy

Factory Failures Traffic Control Telecom Spam Filters

Manufacturing Trading Fraud and Risk Retail: Churn


Analytics
Business Applications (Contd.)
Supply Chain:
Simulate and optimize supply chain flows to reduce
inventory.

Customer Profiling:
Identify high valued customers and retain their loyalty.

Pricing:
Identify the optimal price which will increase net profit.

Human Resources:
Best Employees selection for particular tasks at optimal
compensation. Employee churn retention.
Business Applications (Contd.)
Renewable Energy:
Energy forecasting, electricity price forecasting,
Predictive Maintenance, Operational cost minimization.

Financial Services:
Approval of credit cards/ loan applications based on
credit scoring models, Options pricing, Risk analysis etc.

E-Commerce:
Identify cross-sell and upsell opportunities, increase
transactions size, maximize campaign's response based
CRM data.
Business Applications (Contd.)
Product Quality Control:
Detect product quality issues in advance and prevent
them.

Revenue Performance:
Identify key drivers of revenue generation and
optimization of revenue.

Fraud and Crime Detection:


Detect fraud , criminal activity, insurance claims, tax
evasion and credit card frauds.

HealthCare:
Identify prevalence of particular disease to a patient
based health conditions.
Predictive Analytics Tools in
Market
Thank you!

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