Insight into Predictive Analytics

via big data

Presented By :
Under the guidance of: Sumalatha Jali
Dr.H.Girisha MTech Ph.D MTech 2 Sem CSE
Professor
Big Data
 Exabyte ?
Amazon rain forest
• 4.1 billion acres of trees.
• Every acre has 500 trees.
• Around 700 billion trees.
• If (hope never), we cut them
down and make paper out
of it, and fill every single
paper will letters
• we get 1-2 peta bytes of
data
Green represents the potential of processing Big data
Types of Analytics
 What is Predictive Analytics ?

Predictive analytics deals with extracting information from data and using it to
predict trends and behaviour patterns. Often the unknown event of interest is
in the future, but predictive analytics can be applied to any type of unknown
whether it be in the past, present or future.
Predictive Analysis Process
 Business Objectives - Asking Right Questions!
It is very important to clearly define the goals based on business objective.

• Do you want to understand the characteristics of customers?

• Do you want to make unprofitable customers profitable?

• Do you want to understand what driving sales?

• Do you want to win-back lost customers?

• Do you want to increase sales?

• Do you want to reduce customer churn?

• Do you want to reduce cost of production or operation?

• Do you want to target new customers?

• Do you want to identify probable credit default customers?

• Do you want to know X-sell/Upsell opportunities?

Selecting Data
Data
Resources

Data Types
Customer Other
Predictive
Data, History
Data Type Power Stability Cost
Internal Transactio

Demographi Medium High Low Sources n Data

c
Survey Credit

Behavioural High Low High Data, Bureau

Research Data, Third

Psychograp Medium Medium High
Data, Party data,
hic
External Suppliers, Sellers,
 Understand Data

• Data often is messy and needs to be cleaned.

• Data may have undocumented features
• Cleanse the data
• Create fields
• Generate datasets to use for automated analysis.
Prepare Data
1. In this step we need prepare data into right format for analysis
and the tool you may want use.
2. Do initial cleaning up
3. Define Variables and Create Data Dictionary
4. Joining/Appending multiple datasets
5. Validate for correctness
6. Produce Basic Summary Reports
Model Selection
Validate/Test Models

• Score and Predict using Test Sample

• Check for the robustness and stability of the model

• Check Model Performance: Accuracy, ROC, AUC, KS, GINI etc.

Usage of Predictive Analysis
Uses
Predictive Analysis Tools in the Market
Market Presence of the Tools
Real life examples of Predictive
analysis
 References
1.Boyd, D., & Crawford, K., “Critical questions for big data: Provocations for a cultural, technological, and scholarly phenomenon”, Information, Communication &
Society, 15, 662–679. 2014.
2.Peglar, R., & Isilon, E. M.C., “Introduction to analytics and big dataHadoop”,.http://www.snia.org/sites/default/education/tutorials/2015/fall/b
ig_data/RobPeglar_Introduction_to_Analytics_Big_Data_Hadoop.pdf,2015.
3.King, I, Lyu, M. R., & Yang, H.”, Online learning for big data analytics”,http://cci.drexel.edu/bigdata/bigdata2013/ieee.bigdata.tutorial.1.slid es.pdf, 2015.
4.Barlow, M., “Real-time big data analytics: emerging architecture”, Sebastopol, USA: O’Reilly Media, ISBN: 978-1-449-36421-2, 2013.
5.Peglar, R., & Isilon, E. M.C., “Introduction to analytics and big dataHadoop”,.http://www.snia.org/sites/default/education/tutorials/2012/fall/b
ig_data/RobPeglar_Introduction_to_Analytics_Big_Data_Hadoop.pdf,2012. [16] SAS, “Big data meets big data analytics: Three key technologies for extracting real-
time business value from the big data that threatens to overwhelm traditional computing architectures”,
http://www.sas.com/content/dam/SAS/en_us/doc/whitepaper1/big-data- meetsbig-data-analytics-105777.pdf. , 2014.
6.Chen, H., Chiang, R. H., & Storey V. C., “Business Intelligence and analytics: From big data to big impact.”, MIS Quarterly, 36, 1165–1188,2012. [18] Manyika, J., Chui,
M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C., et al.,“ Big data: The next frontier for innovation, competition, and productivity”, Retrieved from http://www.
mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_i nnovation,2011.
7.Predictive Analytics White Paper by Charles Nyce, PhD, CPCU, API Senior Director of Knowledge Resources American Institute for CPCU/
Insurance Institute of America .
8.The Forrester WaveTM: Big Data Predictive Analytics Solutions, Q1 2013 Mike Gualtieri, January 3, 2013 | Updated: January 13, 2014.