Want to make really smart decisions for your company? It's simple as looking into the future and assessing the data--a service that a few young companies dealing in "predictive analytics" are selling

Business swims in a sea of data. No matter what line of work you’re in--publishing, healthcare, retail, food service, drug-dealing--your business operates in a vast, swirling matrix of information. How many people are interested in your product? When do they show most interest? How much of your product should you produce? Where, when, and how should you sell it?

Data crunching giants like IBM and SAP have long mined and analyzed data for businesses, offering predictions about what actions will help their bottom line--“predictive analytics,” to use the industry buzzword. But the cost of such services has typically been so high--a price tag in the millions, if consulting services are added, is not altogether unheard of--as to limit their use to major corporations. Now, for the first time, a few smaller players are promising small and medium-sized businesses that they, too, can use predictive analytics to better forecast what actions will yield a greater profit.

Take, for instance, web publishing. Web publishers have traditionally been content with “real-time analytics”--that is, information about how readers are interacting with their sitenow. But as vast stores of this data accumulate, there’s no reason why publishers can’t demand to know more. They should be able not only to observe the present, but to make guesses about the future.

Example: an editor who thinks a story is strong, and showcases it prominently; the article subsequently gets higher traffic. “It looks like the decision you took was correct,” says Mortensen. “But that’s just a self-fulfilling prophecy," he says--of coursepromoted stories fare better. “What you don’t know is, was there another piece of content that could have done better?” Would a more substantial article have spurred deeper engagement with your site, prompting a reader to dig deeper into your archive? Visual Revenue makes predictions about how it thinks your content will fare and what sort of return on investment you’ll get out of it, down to the dollar and cent. VR’s own services start at about $1,000 per month, though price varies based on volume.

Web publishing is one thing, but isn’t the messy world outside the Internet too complex to forecast the future? No,  cross-industry, in finance, retail, manufacturing, a lot of web 2.0, healthcare, government...” In every sector, companies find that they have “tremendous amounts of data, tremendous value locked in the data, and are currently unable to get it out, either because of complexity or cost.” For years,  companies were mostly happy just to be accumulating data for reports, charts, and graphs, which were used to create accountability. But increasingly, companies want more out of their data.  But now that so much data is in hand, "people want to optimize for the future, to forecast more accurately.

Services aren’t exactly cheap, running some 40 grand a year. But competitors--folks like IBM, SAP, and Oracle--often charge up to five times as much. (Some companies offer a range of prices, depending on what services are contracted; while some clients might spend thousands of dollars per year, others could spend "millions.")

The cost-benefit equation certainly looks increasingly favorable. "With the affordability we bring to the table, it’s not just big financial institutions with 20 billion dollars in annual sales who are able to take advantage, the SMBs of the world are now able to have that same kind of competitive advantage that the big titans have."

By the same token, the big titans of predictive analytics itself--the IBMs and the SAPs of the world--may have to watch their back for the up-and-coming Pentahos and Visual Revenues. Were they able to predict that?

 That is why WayPoint, a leading provider of PredictiveIT, actually spells out its services in our 25 Point IT Services Checklist.  Yes, and that includes 24 x 7 x 365 Monitoring and Alerts:

 24 x 7 x 365 Monitoring and Alerts: Servers and Services, Operating Systems, Networks, Computer Room

Security & Managed Services:

Web Servers
Mail Servers
File Servers
Database Servers
Other Servers
Disk Usage
Memory Usage
CPU Usage
Customer Applications
Other
Local Network Equipment
Internet Access and Uptime
Interoffice/WAN Access and Uptime
Environment, including Temperature & Humidity
Power
Physical Security
Firewall Audit
Antivirus Software Current and Running
Intrusion Detection/Prevention Audit
Wireless/Access Point Audit
Verify Backup Process is Reporting Success
Servers Operating Systems Patched & Updated
Desktop/Laptop Operating System Patched & Updated
Network Equipment Patched & Updated
Backup Key Config Files, i.e. Firewall Config
 And all this is done for a monthly fee well below what you would pay for doing it in-house.

1)      Build the sense of “community” – connect the resources that make this area such a desirable place to live, work play       

2)      Attract investment from outside – Other states, other countries, there is a real opportunity here, let’s get the word out

3)      Develop public-private partnerships – that make sense and give us a competitive advantage (or at least equal footing)

These activities will be developed in the days and weeks to come.  Will you be part of this effort?  What do you think?

2)      Staying true to your word

3)      Offering assistance (unsolicited)

Think about those three things this holiday season and on into your 2011 business year.  What impression will you leave behind?

One key to success in developing and promoting the brand is the linkage to the community.  Successful communities with similar initiatives have three basic things:

• Clarity of Vision
• Leadership/Stewardship of key people in the community with a strong sense of community
• Integration among various members of community and commitment

The first point: “Clarity of Vision”, is a focal point.  Our vision must go beyond the obvious and direct resources into the areas that will fuel our success for many years to come.  Rather than hone shopping and tourism aspects (we do those well already), let’s develop our business might in industries that will bring high paying jobs, retain and attract talent, and be a magnet for investment.

Here is an example of what vision statement might look like for the Airpark:

The Scottsdale Airpark is where business in Arizona takes flight.  The vibrancy and amenities of our community provide for a live-work-play experience that is as rich as the surrounding beauty of the Sonoran desert.  The Airpark will attract no less than 5,000 new jobs in the next five years with an average salary of $65,000.  Based on centers of excellence currently under development in Airpark “Districts” growth will come from the following industries:

• Aerospace/defense
• High tech
• Health care and bio tech
• Light manufacturing
• Business services
• Retail
• Hospitality

The Airpark encourages private/public partnerships that make sense to foster this growth in a responsible manner, extend the reach of our economy, and attract the finest talent possible.

The final version of this statement may look different, but it should contain the elements that communicate what, when, and how, at an appropriate level of detail.

In my previous article “Airpark must Drive Innovation to Thrive” I wrote about the many assets, features and amenities available to companies in the Airpark.  Additionally, to take it to the next level, we need a specific vision for the future of the Airpark.  The time to develop and communicate that vision is at hand. 

Last month, city and business leaders joined together in an exercise to begin mapping out the direction of Scottsdale in an economic summit titled Next Steps Scottsdale.  The event was a huge success in bringing forth new ideas and the energetic people to carry them out.  In an effort to continue this dialogue in a more focused setting, the Chamber of Commerce will hold its “Airpark First Friday Breakfast” on November 5^th to discuss Airpark Vision and Branding.  I hope that you will all join me there for a spirited presentation and discussion.

It is common knowledge that the Scottsdale Airpark is the second largest economic engine in the state.  However, it lacks a definable brand and vision, largely due to the manner of development in this area. The Airpark brand should take is direction from a community approved Airpark vision.  This vision must contain elements that are more than conceptual, they must be measurable.  Those measurable elements provide direction to city and state leaders, as well as communicate a strong position to those outside of Scottsdale looking to make an investment in the Airpark.