3 Things To Consider Before You Buy Predictive Analytics

Lindsey Nelson

3 Things To Consider Before You Buy Predictive Analytics

As customers, we amass a large amount of data under our names. We may not realize it, but our store cards, credit cards, Google searches, create a picture of us. What we buy, what we like, what we’re interested in.

All of this information can be used by businesses to help decide how to target us more effectively so we buy their branded product.

How? Some decide by gut instinct but most do so by predictive analytics. So what is it anyway?

According to Webopedia, it is “the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends”. In business, it is used to take current data, paired with historical facts, to understand a specific audience or sector so you can detect risks before they happen or optimize for opportunities to come.

The technology isn’t brand new. In fact, it’s been helping credit card companies determine whether or not their card holders will pay on time. It’s also being by the US CDC to determine where the next flu outbreak will occur.

However, the predictive analytics has grown up and is now available in comprehensive software packages. So if you’re thinking about buying one, make sure to consider these things before doing so.

1. Get a demo

It may sound silly but some don’t try before they buy. Make sure to take note of how time consuming and complex it is. Will it take more time to learn it than to actually use it? If so, don’t waste your money.

2. Learn the power of the tool

Can it automatically detect and learn about operating systems, application frameworks, your organizations applications, database engines, and networking media? Is it compatible with the latest and greatest technology out there? Consumer product operating systems tend to be a bit more advanced than that of enterprises. Make sure you aren’t buying an outdated tool where your employees can’t use their new toys.

3. Consider the price tag

There are a lot of solutions out there, make sure it is cost effective to your environment after evaluating the aforementioned points. Require that your supplier prove their claims by sharing customer references.

If possible, ask to speak to a customer. Find out what the seller’s customer service is like. Without quality support, your implementation and issues that will come up may make the predictive analytics tool not worth your time.

There is no one solution fits all. Some aspects on the wish list will be missing, but don’t use that excuse as a reason against implementing predictive analytics. In fact, if you need a few reasons – here are 7. However, if it’s time efficient, powerful for what you need, and at the right price, then make the purchase. You won’t regret it!

Image from


About Lindsey Nelson

Lindsey is the Content Curator for the Business Innovation site as well as a regular contributor. Join her in conversation @LindseyNNelson Twitter on LinkedIn or Google+.

Recommended for you:

13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


Recommended for you:

Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


Recommended for you:

Data Analysts And Scientists More Important Than Ever For The Enterprise

Daniel Newman

The business world is now firmly in the age of data. Not that data wasn’t relevant before; it was just nowhere close to the speed and volume that’s available to us today. Businesses are buckling under the deluge of petabytes, exabytes, and zettabytes. Within these bytes lie valuable information on customer behavior, key business insights, and revenue generation. However, all that data is practically useless for businesses without the ability to identify the right data. Plus, if they don’t have the talent and resources to capture the right data, organize it, dissect it, draw actionable insights from it and, finally, deliver those insights in a meaningful way, their data initiatives will fail.

Rise of the CDO

Companies of all sizes can easily find themselves drowning in data generated from websites, landing pages, social streams, emails, text messages, and many other sources. Additionally, there is data in their own repositories. With so much data at their disposal, companies are under mounting pressure to utilize it to generate insights. These insights are critical because they can (and should) drive the overall business strategy and help companies make better business decisions. To leverage the power of data analytics, businesses need more “top-management muscle” specialized in the field of data science. This specialized field has lead to the creation of roles like Chief Data Officer (CDO).

In addition, with more companies undertaking digital transformations, there’s greater impetus for the C-suite to make data-driven decisions. The CDO helps make data-driven decisions and also develops a digital business strategy around those decisions. As data grows at an unstoppable rate, becoming an inseparable part of key business functions, we will see the CDO act as a bridge between other C-suite execs.

Data skills an emerging business necessity

So far, only large enterprises with bigger data mining and management needs maintain in-house solutions. These in-house teams and technologies handle the growing sets of diverse and dispersed data. Others work with third-party service providers to develop and execute their big data strategies.

As the amount of data grows, the need to mine it for insights becomes a key business requirement. For both large and small businesses, data-centric roles will experience endless upward mobility. These roles include data anlysts and scientists. There is going to be a huge opportunity for critical thinkers to turn their analytical skills into rapidly growing roles in the field of data science. In fact, data skills are now a prized qualification for titles like IT project managers and computer systems analysts.

Forbes cited the McKinsey Global Institute’s prediction that by 2018 there could be a massive shortage of data-skilled professionals. This indicates a disruption at the demand-supply level with the needs for data skills at an all-time high. With an increasing number of companies adopting big data strategies, salaries for data jobs are going through the roof. This is turning the position into a highly coveted one.

According to Harvard Professor Gary King, “There is a big data revolution. The big data revolution is that now we can do something with the data.” The big problem is that most enterprises don’t know what to do with data. Data professionals are helping businesses figure that out. So if you’re casting about for where to apply your skills and want to take advantage of one of the best career paths in the job market today, focus on data science.

I’m compensated by University of Phoenix for this blog. As always, all thoughts and opinions are my own.

For more insight on our increasingly connected future, see The $19 Trillion Question: Are You Undervaluing The Internet Of Things?

The post Data Analysts and Scientists More Important Than Ever For the Enterprise appeared first on Millennial CEO.


About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

Recommended for you:

How To Prepare Your IT Landscape For The Digital Economy

Sei Drake

Remember Tom Cruise’s 2002 movie Minority Report? Set in the futuristic world of 2054, the film featured self-driving cars, autonomous manufacturing robots, and multimedia advertising billboards that broadcast personalized messages to individuals as they passed by. What seemed like science fiction in 2002 is now a reality, with personalized and targeted social media and marketing, smart technologies such as robotics, autonomous vehicles, and 3D printing – not to mention digital machine-to-machine hyperconnectivity of the Internet of Things (IoT). Digital transformation means that all of these things will become the norm in the next few years. The future of many enterprises will depend on their ability to embrace these technologies and innovations.

Over the last two decades, many companies have built large, complex IT landscapes to support traditional business processes. The legacy systems in these landscapes were not designed for the age of Internet hyperconnectivity and the resulting high data and transaction volumes. Extending these landscapes to support new, digitally connected processes and models will further complicate IT landscapes and inhibit business innovation and agility.

The architecture of the digital enterprise will not only need to support Big Data and analytics, but a host of other things. It must also use the datastream from evolving digital technologies to trigger actions and alerts in new and existing business processes, enabling increased revenue, improved customer experience, enhanced supply chain efficiencies, and innovative business models.

To keep pace with rapid change, businesses like yours need to do three things:

  1. Simplify your IT landscape.
  1. Transition to modern platforms such as cloud-based solutions and a “digital core.”
  1. Build innovative business solutions using the latest digital capabilities to  strategically differentiate from both current and future new competitors.

Yet most organizations lack the skills to tackle these tasks alone. So who can best help you navigate this shift? 

Support for a strong foundation 

Surprise! Your best choice may be the support organization of your enterprise software and solutions provider. Over the past 15 years, many enterprise support organizations have evolved beyond providing reactive break/fix support to acting as an architectural quality advisor that can oversee the complete software lifecycle. The support provider is a smart partner for both proactive landscape simplification and co-innovation initiatives.   That’s a fundamental shift driven by the market forces of this “new normal” of digital transformation.

Support providers tend to be close to their customers, understanding their existing technologies, business processes, and revenue models. And because software solution providers often lead in the introduction of new solutions based on the latest innovations and technologies – such as IoT, cloud, robotics, autonomous cars, and 3D printing – their experienced support teams can architect solutions that will give you a strategic and sustainable advantage over your competitors.

The proof is with customers. For example the Global Service & Support organization at SAP is working with a Fortune 100 chemical company on an IT simplification initiative. After numerous mergers and acquisitions over the years, this company needed help consolidating four unique IT landscapes into one. What is an overly complex, burdensome infrastructure will be a simplified, modern solution architecture.

SAP is also working with a large energy distribution company to co-engineer an innovative Big Data, IoT data management solution. The solution is structured to deliver fast, responsive analytics from a data store of 120 terabytes of smart meter data. The utility will use predictive analytics to anticipate demand, allowing buyers to make smarter wholesale energy purchases. In the future, this Big Data and analytics platform will be extended to support innovative solutions for the utility’s customers.

Minimize risk and maximize outcomes 

Working with support organizations to simplify and innovate offers clear benefits, too. These teams are naturally close to their development organizations. They understand cutting-edge technology and they have direct access to the best talent for building new solutions. Support organizations also have extensive experience working in high-volume, high-velocity transaction and data environments.

Because they already know your business and your technology infrastructure, partnering with your software and solutions support provider can reduce risk. Remember that support organizations are measured on their ability to help their customers succeed, not on maximizing billable hours. In a world of “outcomes-based” solutions, that’s a true win-win for all.

When building innovative solutions, support teams develop in short cycles, conduct proof-of-concept exercises, and take steps to minimize cost and risk. And they can do all of this while helping you continue supporting your traditional business operations, looking for opportunities to optimize processes, reduce costs, and increase efficiency.

We may not be able to predict what innovations and new technologies will exist in the year 2054, but we know that there are technology advancements available now that will have a significant impact on our world. Work with your enterprise software provider’s support organization and start planning your digital transformation.

Click here to learn more how Global Service & Support can provide support services to help you prepare for the digital economy and realize rich value.  Visit us at


About Sei Drake

Sei Drake has been helping SAP customers for over 18 years as a solutions expert and architecture advisor. In his current role as a Co-Engineering Architect in the Global Service and Support organization, he helps customers build innovative, industry leading capabilities with SAP technologies.

Recommended for you: