Posts Tagged analytic models

I have been building analytic models for over 20 years. The names have changed a lot over the years: 20 years ago we built statistical models, 10 years ago we built data mining models, and today we build analytic models. The algorithms have changed some: classification and regression trees became common 20 years ago, support vector machines about 10 years ago, and today graph-based algorithms are popular.

Perhaps what has changed the most is my perspective.

Analytic algorithms and models. Twenty years ago, I was focused on algorithms and was concerned with the different types of models that you could build using different types of algorithms on different types of data. This worked fine as long as the data fit into the memory of the computer.

Analytic infrastructure. For better or worse I ran into problems that had so much data that the data was too big to fit into memory. Some projects required a disk, some required many disks, and a few required tertiary storage. I spent over two decades working on what you might call analytic infrastructure. I first worked on teams that developed for the high energy physics community specialized data management infrastructures that were optimized for efficient reads (instead of safe writes) and accessed the data by columns (instead of rows) in order to speed up numerical computations. These turned out to be some of the first examples of data warehouses (the name was not used at that time), increased by 1 to 3 orders of magnitude the size of data that we could model, and were heavily criticized by the database community. Of course, several years later the database community embraced data warehouses at least for reports, if not for data intensive computing and modeling.

Beginning about five years ago, I began working on what are today called cloud computing platforms. Again, this increases by 1 to 3 orders of magnitude the size of data that we can model, and again these have been heavily criticized by some in the database community as being a big step backwards.

I recently edited a special issue of the ACM SIGKDD Explorations about analytic infrastructure. In an article there, I define analytic infrastructure as the applications, services, utilities and systems that are used for either preparing data for modeling, estimating models, validating models, scoring, or related analytic activities. For example, analytic infrastructure includes databases and data warehouses, statistical and data mining systems, scoring engines, grids and clouds. Note that with this definition analytic infrastructure does not need to be used exclusively for modeling but simply useful as part of the modeling process. The article is available as a pdf from the SIGKDD Explorations web site (it’s Issue 1 in Volume 11).

I don’t really like this definition and encourage you to provide a better one. What is important though is that using the appropriate analytic infrastructure is critical to building models for problems with so much data that simply putting it into memory and forgetting about it is not a viable solution.

Analytic Strategy. Returning to how my perspective has evolved, for the past several years, I have become increasingly concerned with what is usually called analytic strategy. Analytic strategy is concerned with making sure you are asking the right analytic question, that you are building a model that can be deployed efficiently, that the output of the model is actionable, that the actions have a business impact, the business impact is aligned with corporate strategy, that there is an appropriate governance process in place, and related questions.

My perspective these days is that analytics requires a firm foundation and that the foundation has three columns: 1) analytic strategy; 2) analytic infrastructure; and 3) analytic algorithms and models.

The picture is by Alyson Hurt.