The Predictive Enterprise: Chicago Executive Tells How to Elevate Organizations to a New Level

May 5, 2009

The Master of Science in Information Technology program augments its classroom experience by putting on lunchtime seminars and inviting high-profile IT professionals to speak. The following article was written by an alumnus in attendance at one such talk.

It starts with a conversation. Over time, you get to know each other's desires, values, priorities and expectations. You understand why they like the Cubs and not the White Sox, opera over hip-hop and how they just have to have their morning coffee.

As more information is shared, this conversation helps create a relationship that can be lasting and rewarding.

But what if you were to scale this conversation to millions of people?

That's exactly what the growing field of predictive analytics aims to achieve. Kris Hackney, vice president of strategic accounts and services at Chicago-based SPSS, Inc., explained to Master of Science in Information Technology (MSIT) students in a recent talk that by transforming the organization into a “predictive enterprise,” this type of intimate conversation with customers is possible.

"The idea is to form a picture as complete as possible of the individuals with whom the enterprise engages a dialogue," she told the 50 students attending the talk at the Allen Center in Evanston. But getting to this insight does not come naturally. It requires a holistic effort between analytics, architecture and business processes so the organization can apply intelligence to uncover hidden trends and complex behavior traits that are relevant to its business.

Getting to this point is a significant challenge for organizations that do not view predictive analytics as a natural part of doing business. "Having smart people write complex algorithms in a basement somewhere may be great, but you have to question what business value is achieved,” Hackney said.

She added that only through a cross-functional business perspective can the true value of predictive analytics be unleashed. "I was in a recent meeting with a major client and both the heads of marketing and risk management were present and ready to make decisions,” she said. "I knew right away that this client got it."

Hackney explained that a predictive enterprise is able to drive profitable revenue growth by embedding analytics into key business processes and help drive core business decisions based on actionable data.

So what are some things organizations need to do to move toward becoming a predictive enterprise? Hackney said it starts with people. Today's organizations need business leaders with a balanced skill set, she said — people that appreciate technical potential and who understand how business opportunities can be identified by applying predictive technology. "People — I suspect — much like you," Hackney said with a smile.

- Jorgen Hesselberg

For more information on the MSIT program, click here.