What's New in IBM SPSS Modeler 14

Marcus Hearne & Jane Hendricks April 2010

What’s New in IBM SPSS Modeler 14

Business Analytics

Why this is Important to Know… Speaking to you today…

Marcus Hearne Product Marketing Director The new features of IBM SPSS SPSS, an IBM Company Modeler 14 help commercial, government and academic organizations discover the Jane Hendricks predictive intelligence held in Product Marketing Manager their data. SPSS, an IBM Company WELCOME

Business Analytics

An Information Explosion … and Faster Decisions Required

Volume of Digital Data 57% CAGR for enterprise data through 2010 Machine generated data: Sensors, RFID, GPS.

Variety of Information 80% of new data growth is unstructured content Emails, images, audio, video.

Velocity of Decision Making Rapidly changing business climate Need to get ahead of the curve: predict issues and fix them.

Business Imperative: Accelerate innovation, business optimization, and sustained competitive differentiation

Business Analytics Challenges facing Decision Makers

1 in 3

business leaders frequently make critical decisions without the information they need

1 in 2

don’t have access to the information across their organization needed to do their jobs

19+ hours

Spent by knowledge workers each week just searching for and understanding information

Business Analytics Analytics Critical for Driving Competitive Advantage

“At a time when companies in many industries offer similar products and use comparable technology, high-performance business processes are among the last remaining points of differentiation.” Tom Davenport, “Competing on Analytics”

Ten Most Important Visionary Plan Elements Interviewed CIOs could select as many as they wanted

86% BI/Analytics #1 Business Intelligence and Analytics 80%

77% investment to Virtualization 76%

improve Risk Management and Compliance 73% 70% competitiveness 71% Mobility Solutions 66%

73% Customer and Partner Collaboration 64% Low IBM Global CIO Study 2009 71% Self-Service Portals growth 63%

Application Harmonization 67% High 62% growth 70% Business Process Management 61%

68% SOA/Web Services 55%

Unified Communication 63% 57%

Business Analytics

Imagine If Decision Makers Could…

…predict and treat …adjust credit lines …determine who is …apply inferred social infection in as transactions are most likely to buy if relationships of premature newborns occurring to account offered discounts at customers to prevent 24 hours earlier? for risk fluctuations? time of sale? churn?

Retail Sales Telco Call Physician Loan Officer Associate Center Rep

…optimize every transaction, process and decision at the point of impact, based on the current situation, without requiring that everyone be an analytical expert

Business Analytics Next Generation Efficiencies come from Optimizing Every Decision, Transaction or Process at the Point of Impact…

Foundational Breakaway

Sense and respond Predict and act

Back office Point of impact

Skilled analytics experts Everyone

Instinct and intuition Real-time, fact-driven

Automated Optimized

Business Analytics Predictive Analytics Helps Deliver on this Promise!

• Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage • Analyzes patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes • Unique insights that help answer key business questions: • How do I reduce churn and retain the most loyal customers to maximize profitability? • How can I detect and prevent fraudulent activity to reduce risk? • Which factors are most likely to drive customers to choose my product vs. the competitor’s?

Business Analytics Delivering ROI • 94% of customers achieved a positive ROI, average payback in 10.7 months • Over 90% of users attributed an increase in productivity to SPSS • 81% of projects were deployed on time, 75% on or under budget “This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports” Rebecca Wettemann, VP of Research, Nucleus Research

Two Editions IBM SPSS Modeler Professional –Data access and transformation –Automatic data preparation –Modeling algorithms –Automatic model generation –Output and visualization IBM SPSS Modeler Premium –All of the above PLUS –Interactive text mining workbench

Client (Desktop) – Access local files – Connect to operational databases – Processing performed on local installation Client/Server – Data operations/processing on server – In -database data mining – SQL pushback – Modeler Batch

Modeler brings repeatability to ongoing decision making with predictive modeling. IBM SPSS Modeler Professional –Modeler Professional is a data mining workbench for the analysis of structured numerical data to model outcomes and make predictions that inform business decisions with predictive intelligence . IBM SPSS Modeler Premium –Modeler Premium allows organizations to tap into the predictive intelligence held in all forms of data. Modeler Premium goes beyond the analysis of structured numerical data alone and includes information from unstructured data such as web activity, blog content, customer feedback, e-mails, articles, and more to create the most accurate predictive models possible .

© 2010 IBM Corporation Business Analytics Modeler’s Unique Capabilities Easy to Learn / Intuitive Visual Interface – Visual approach - no programming – Comprehensive range of data mining functions – Flexible deployment options Powerful Automated modeling – Automated data preparation – Multi model creation & evaluation – Integrated analysis of text, web, & survey data Open & Scaleable architecture – No need for specialized databases – Data mining within standard databases with SQL pushback – Maximized use of infrastructure with multithreading, clustering and use of embedded algorithms

© 2010 IBM Corporation Business Analytics Release Themes Create and interpret models more easily using cutting-edge predictive techniques, new sources of data and improved visualization Flexibility of use for business and professional analysts through better integration with Statistics and other technologies Embed predictive modeling into business processes more easily through more seamless, transparent enterprise integration

© 2010 IBM Corporation Business Analytics Release Themes Create and interpret models more easily using cutting-edge predictive techniques, new sources of data and improved visualization –Boosting, bagging and large database processing for key algorithms –Updated algorithms for Neural Networks and Linear Regression models –New industry-specific text analysis packages (TAPs) –Ability to build and re-use hierarchical category structures –User-friendly text-rule editor with simulation –(for English) New semantic network for better extraction results Usage flexibility for business and professional analysts through better integration with Statistics and other technologies Embed predictive modeling into business processes more easily through more seamless, transparent enterprise integration

Legend: IBM SPSS Modeler Premium Only Features © 2010 IBM Corporation Business Analytics Release Themes Create and interpret models more easily using cutting-edge predictive techniques, new sources of data and improved visualization Flexibility of use for business and professional analysts through better integration with Statistics and other technologies –Consistent UI across Statistics and Modeler –Read from and write to XML –In-database mining updated and database support extended –Runtime parameter prompts –Greater control over Excel export –Easier ability to import and export pre-built categories for unstructured text Embed predictive modeling into business processes more easily through more seamless, transparent enterprise integration

Legend: IBM SPSS Modeler Premium Only Features © 2010 IBM Corporation Business Analytics Release Themes Create and interpret models easier using cutting-edge predictive techniques, new sources of data and improved visualization Flexibility of use for business and professional analysts through better integration with Statistics and other technologies Embed predictive modeling into business processes more easily through more seamless, transparent enterprise integration –Easier scenario creation –Single sign-on (SSO) support –Easier to use Modeler and Modeler Advantage together –Faster extraction built to handle large unstructured datasets

CREATE AND INTERPRET MODELS MORE EASILY USING CUTTING-EDGE TECHNIQUES, NEW SOURCES OF DATA AND IMPROVED VISUALIZATION

© 2010 IBM Corporation Business Analytics Boosting, Bagging and Large Database Optimization Relevant to Linear, Neural Networks and trees – C&RT, Chaid and Quest – Boosting optimizes for accuracy – Bagging optimizes for stability – Large database processing (requires server) optimizes for large databases Results displayed in interactive ensemble model viewer which makes it easy to understand and explain the modeling and the ensembles

Neural Networks is a technique used to derive meaning from very complicated or imprecise data that other techniques may miss Interactive model visualizations makes it easy to understand the model Includes multilayer perceptron and radial basis functions Leverage ensemble optimization methods Heritage Neural Net is removed from the palette and a message box cautions when an old one is present

Linear algorithms are used when customers want to model a linear relationship between an outcome and it’s predictors (i.e. forecasting) Heritage algorithm (Regression) remains in palette Algorithm support ensemble optimization as well as automatic data preparation – one step for data preparation and modeling Interactive model viewer that makes it easier to understand and communicate modeling results

More accurate and more detailed classification through hierarchical categories Hierarchical categories can be build as part of normal extraction and classification process Users can modify and refine the hierarchies to better suit the level of detail they want to capture Can use the top level or the detail or select detail in text models

Easier and more accurate text extraction and classification New semantic network replaces Wordnet English-only Supports hundreds of general themes and topics such as health, entertainment and politics Makes classification results more accurate

© 2010 IBM Corporation Business Analytics PREMIUM FEATURE: User-Friendly Text Link Rule Editor Create, modify and test text rules for better text link (sentiment) analysis Simulate rules on a sub-set of the text to make sure it is generating the right results New toolbar option makes it easier to find text strings in categories, extraction results or in the data itself

FLEXIBLE USE FOR BUSINESS AND PROFESSIONAL ANALYSTS THROUGH BETTER INTEGRATION WITH STATISTICS AND OTHER TECHNOLOGIES

Consistent terminology Ability to use customer dialogues developed in Statistics from Modeler interface Support for spv and spw output formats

Expanded ability to support enterprise data sources Reads from a single XML or from a set of XML files

Ability to update or add data to an existing operational table, rather than creating a new one Reduces need for DBA or system administrator involvement

Ensures that important parameters are always visible and properly set Easier re-use and better accuracy

Update existing Excel content with modeling results Specify worksheet and starting cell for output during export Easier to integrate results into existing reports

Wizard-based import for pre-existing category structures, including hierarchies Import annotations and keywords Export to Excel from interactive session, including hierarchies

EMBED PREDICTIVE MODELING INTO BUSINESS PROCESSES MORE EASILY THROUGH MORE SEAMLESS, TRANSPARENT ENTERPRISE INTEGRATION

Automatic integration and rebuilding of models Visual specification of scoring branch

Leverage full C&DS asset capabilities when storing and retrieving

© 2010 IBM Corporation Business Analytics Easier Deployment to Decision Management Through Modeler Advantage Open Modeler Advantage from Modeler interface A more visual deployment improves ease of use for the analyst

Extraction and grouping sub-processes take advantage of multi-core and multi-processor CPUs Enhancement process make it faster when working with large data sets. Improvement in performance in approx 30% when compared to previous version based on internal benchmarking

OTHER

Enable customers working with Japanese text to leverage full capabilities of Modeler Premium Japanese text templates and text analysis packages available Requires purchase of Japanese Language Extractor

© 2010 IBM Corporation Business Analytics Summary Modeler brings repeatability to ongoing decision making with predictive modeling. Ability to leverage structured and unstructured data provides the most accurate predictive insight IBM SPSS Modeler – Provides ability to use predictive intelligence in decisions across all levels of the organization – strategic, operational and tactical – Provides insight into the factors that drive outcomes and the relationships therein to better mitigate risk and drive improvements – Intuitive visual interface, automation and simplified graphical views – Offers high performance, rich feature/functionality and integration – An open, platform agnostic architecture that “snaps into” any existing IT environment

IBM SPSS Modeler on www.spss.com – http://www.spss.com/software/modeling/ NEW & Updated Collateral – IBM SPSS Modeler Brochure – IBM SPSS Modeler Professional Spec Sheet – IBM SPSS Modeler Premium Spec Sheet

Call or email an account representative at: • 800.543.2185 • salesbox@us.ibm.com Questions about this presentation: • Jane Hendricks, [email protected]