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  #11  
Old 05-27-2018, 07:56 AM
nonlnear nonlnear is offline
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Originally Posted by whoanonstop View Post
Not a red flag. A red flag is a company that says they are competing in predictive analytics and nobody even knows what that entails.

Which is why there are half a billion data science platforms trying to sell to Banks and insurance companies.

-Riley
So much this.

It might be a red flag for you if your career plan is to go into analytics, but it is not a red flag for the company. What the OP was told is a sign that the company knows what it's strategy is, and it is communicated coherently down through the ranks.
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  #12  
Old 05-27-2018, 08:40 AM
nonlnear nonlnear is offline
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Originally Posted by Leopold Stotch View Post
fairly early. some reasons:

* the most successful companies seem to be embracing it everywhere they can (check out job postings from the largest health insurers in the country)
That's an observation you could make. Yes, analytics is seeping into lots of parts of lots of businesses, and a lot of leading companies are going heavy into analytics. But be careful when drawing a conclusion that is not supported by the observation you made. There are a lot of companies with deep pockets who are also throwing mountains of money at analytics and are not getting nearly as much benefit as those prominent winners you mentioned. Some of them are getting zero or negative benefit from it and don't know it yet, because senior management is getting beautiful decks from the analytics vendors showing amazing ROI.

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*It seems obvious that employing modelling well would give a competitive advantage in areas like marketing/member retention, risk stratification and member engagement for health management/quality, risk adjustment coding improvement, etc. and from what I heard this place doesn't do much of it in those spaces.
Seems obvious, yes. But how does senior management know the difference between doing modeling well and not doing modeling well? That is the eternal problem of management in a large organization.

Big Data is different from all the other business trends, but it's also exactly the same as all the other business trends.
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  #13  
Old 05-27-2018, 12:19 PM
clarinetist clarinetist is offline
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Some of them are getting zero or negative benefit from it and don't know it yet, because senior management is getting beautiful decks from the analytics vendors showing amazing ROI.
To elaborate on this point: think PowerBI, Tableau, and D3.js dashboards.
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  #14  
Old 05-27-2018, 04:28 PM
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Colonel Smoothie Colonel Smoothie is offline
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Originally Posted by nonlnear View Post
That's an observation you could make. Yes, analytics is seeping into lots of parts of lots of businesses, and a lot of leading companies are going heavy into analytics. But be careful when drawing a conclusion that is not supported by the observation you made. There are a lot of companies with deep pockets who are also throwing mountains of money at analytics and are not getting nearly as much benefit as those prominent winners you mentioned. Some of them are getting zero or negative benefit from it and don't know it yet, because senior management is getting beautiful decks from the analytics vendors showing amazing ROI.
It astonishes me that before certain projects are undertaken the ROI doesn't even seem to be estimated. Or, if it was then whoever decided to undertake them didn't tell me. How much does the modeling cost? How much would it cost to implement the model? What's the hurdle rate on this project and how much impact do we need to demonstrate to show value? No RAROC or anything.
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Don't you even think about sending me your resume. I'll turn it into an origami boulder and return it to you.
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  #15  
Old 05-27-2018, 05:35 PM
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Originally Posted by Colonel Smoothie View Post
It astonishes me that before certain projects are undertaken the ROI doesn't even seem to be estimated.
Honestly, I think the estimates are so poor (hence the ability for consultants to abuse the estimates to make stuff look like a good idea), that this isn't that astonishing.

How much does the modeling cost? Well, there's the outside consultant, who is going to have an estimate but probably not a very accurate one and then will be looking for a bunch of add-ons that the management didn't think would add to billing but of course the consultant did. And then the consultant will ask the people at the company to do tons of extra work to make sure the data matches the way they need it to be organized for modeling - does that take the employees off-task for a bunch of time? Can you calculate the value of that time? Does current work suffer to improve future processes? And then when it's time to implement, you have similar issues with IT people being taken off-line to implement. Do the changes confuse regulators who ask more questions and dig deeper on their analysis? Did you account for that cost? And time for the CFO to respond to the regulators? Etc etc etc.
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  #16  
Old 05-27-2018, 08:45 PM
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Originally Posted by whoanonstop View Post
Not a red flag. A red flag is a company that says they are competing in predictive analytics and nobody even knows what that entails.

Which is why there are half a billion data science platforms trying to sell to Banks and insurance companies.

-Riley
This reminds me of when my company wanted to 'innovate' but im pretty sure their strategy was just to see how many times they could say 'innovate'.
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  #17  
Old 05-27-2018, 11:09 PM
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Large, national firms like it a lot.... not much need for regional insurers to invest in predictive modeling if their market isn’t very competitive...
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Last edited by royevans; 05-28-2018 at 01:34 AM..
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  #18  
Old 05-27-2018, 11:17 PM
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Originally Posted by DataDan View Post
This reminds me of when my company wanted to 'innovate' but im pretty sure their strategy was just to see how many times they could say 'innovate'.
Every company seems to have a bit of Theranos in them

Seems to work on investors and prospective employees alike
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  #19  
Old 05-27-2018, 11:24 PM
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Originally Posted by Colonel Smoothie View Post
It astonishes me that before certain projects are undertaken the ROI doesn't even seem to be estimated. Or, if it was then whoever decided to undertake them didn't tell me. How much does the modeling cost? How much would it cost to implement the model? What's the hurdle rate on this project and how much impact do we need to demonstrate to show value? No RAROC or anything.
What's the ROI on a RAROC model?
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  #20  
Old 05-27-2018, 11:26 PM
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Originally Posted by Westley View Post
Honestly, I think the estimates are so poor (hence the ability for consultants to abuse the estimates to make stuff look like a good idea), that this isn't that astonishing.

How much does the modeling cost? Well, there's the outside consultant, who is going to have an estimate but probably not a very accurate one and then will be looking for a bunch of add-ons that the management didn't think would add to billing but of course the consultant did. And then the consultant will ask the people at the company to do tons of extra work to make sure the data matches the way they need it to be organized for modeling - does that take the employees off-task for a bunch of time? Can you calculate the value of that time? Does current work suffer to improve future processes? And then when it's time to implement, you have similar issues with IT people being taken off-line to implement. Do the changes confuse regulators who ask more questions and dig deeper on their analysis? Did you account for that cost? And time for the CFO to respond to the regulators? Etc etc etc.
What kind of company wastes the CFO's time responding to regulators, Farmboy?
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