In the age of convergence, customer churn is a concern for service providers, challenging most retention techniques...
The recent news of Amazon hosting all the data related to the human genome project and making it available to researchers across the world is a very good example of collaborative research for the betterment of mankind. I am sure this step will help to speed up research and make information available to smaller organisations that otherwise would have to spend a lot of time and money to get hold of such valuable information. We need more of these kinds of collaborative efforts to help not only industry to prosper but to also make solutions more accessible, available and affordable.
In of the recent articles published on the internet the author was discussing the views of a senior executive of the US justice department about the risks of using advanced analytics or rather predictive analytics to assess the possibility of a convict repeating crime.
By definition Prediction refers to the possibility of an event happening. The possibility in most cases is measured in terms of percentage like the possibility of a customer churning is 80%. That means that there is a 20% chance that the customer might not churn.
There a slew of companies that are providing cloud based or SaaS based services in the areas of advanced analytics and more so as the most used jargon goes ‘predictive analytics’ (it sometimes amuses me how the concept of predictive analytics is abused by companies to get google’s attention but that is for another blog). It is interesting to read about so many companies providing cloud based predictive analytics solution in fields as diverse as insurance claim management to sales forecasting and customer churn.
The Department of Immigration and Border Protection at Australia has done some amazing work in reducing immigration fraud by using advanced analytics indifferent areas. They reduced fraud by building a risk score card that associated a risk based score to every visa applicant. The idea is to prevent fraud by denying a visa to the wrong person. As per what they state their initial pilot was so successful that they have now extend the system to all applications and with about 50 million people travelling to Australia every year that is definitely a big number.