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Making a Case for Subscription Based Predictive Analytics Solutions

Making a Case for Subscription Based Predictive Analytics Solutions


Predictive Analytics is slowly but steadily garnering attention from business stakeholders in India. As a means of adoption clients are experimenting with different approaches ranging from bring in consulting companies like Mckinsey, partnering with analytics software vendors like SAS or engaging with specialized Data Analytics players.

Let's assume that output of any such engagement would be a decision framework, a.k.a Predictive model in most cases. This framework will have to be incorporated in existing IT stack for regular usage by business teams of client which will require designing ETL framework for extracting fields required by the model and scoring or processing of records by the model hosted as a batch process before finally writing the scores back into the database systems.

Such customizations in IT stack are not always cost effective and may not happen in time bound manner. Additionally one needs to have a team in place that is responsible for regular performance monitoring of decisions system and tuning in case any adjustment is required. In nutshell you are looking at these steps before you could actually start using your model on regular basis

Changes in IT systems.
•Presence of Data science teams
•Collaboration between Datascience and IT teams for tuning and performance monitoring.

Keeping in mind above bareers lot many players put analytics at back burner. An alternative framework can be a solution to this problem. Clients can ask their vendor for cloud based offering with subscription based pricing model. This will in effect transfer responsiblity of monitoring,tuning and maintaining infrastructure for decision system back to the vendor. Such a delivery model would also bring down TCO by not requiring in house data science teams.

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Even clients having well established analytics competency centers can benefit from migrating standard analytics frameworks to such a model and have analytics team focus on newer work areas. Notwithstanding data security challenges such a framework makes a strong case.

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  • Dear Vikas,
    It was a nice read. However, am not sure how would organization provide access or share their sensitive performance data to vendor for getting analytics done. Data security/confidentiality? Do you think subscription based model would sustain at the enterprise level where there are thosands of information consumers to business analyts, leaders and top management. what would be trade off between subscription based and in-house analytics team. You would like to share the business case with me at

    • Hi Abhinav,

      There are tools and technologies available that allow secure transfer and access to data from client’s location to vendor location. We use secure FTP, remote access to client work stations over VPN, data masking as some mechanisms to ensure data security along with internal controls. Having said that one can approach any project on case by case basis. Projects involving very sensitive data can be done in house teams or with onsite deployment of vendor’s analytics team. In case data has to be given to a vendor, you need to make sure your vendor has necessary infrastructure, data security controls and authorization levels for protecting the data. Even for internal engagements more robust data governance mechanisms need to be adopted as data access becomes more democratized.

      Subscription models will certainly become more pervasive as we move towards automation of analytics frameworks. You will find lot of successful models already in place, namely, FICO and CIBIL where it makes sense for lending institution to use such score cards instead of reinvent the wheel altogether. BI tools like Tableau offer cloud version. Easy opt-in/opt-out, lower TCO. Your analytics team can co-exist with this shift and focus on more newer initiatives rather than revising, maintaining existing workflows.

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