A product made available this week by business process management vendor Pegasystems lets customers apply predictive models to business processes without requiring lots of coding work.
The product, Predictive Execution Optimizer (PXO), integrates predictive analytics such as those offered by IBM, Oracle, SAS and SPSS with the Pegasystems SmartBPM suite. Predictive analytics, a type of business intelligence, uses statistics and data mining to predict future events based on current and historical data.
Predictions from these tools get brought into the BPM environment, where they become an executable model, says Russell Keziere, Pegasystems' senior director of marketing. "You can guide call center operators, executive policies, tell people what to do and how to respond to information that's in the analytics model."
In a call center, for example, employees would be guided to deal with a customer in a certain way based on the predictive analytics, he says. Combining business intelligence with BPM isn't new, but bringing predictive analytics into a BPM product seems to be unique, says Colin Teubner, an analyst at Forrester Research.
"I would imagine it would be useful for things like fraud detection, any kind of high-volume business where you need a sense of what the volume is going to be like next week," he says.
The product is likely to appeal primarily to large enterprises, according to Teubner. "It's not going to be a commodity feature anytime soon," he says.
Pricing for the SmartBPM suite starts at US$100,000 to $150,000. Predictive Execution Optimizer is available as an add-on module starting at $50,000.
Pegasystems designed the module after a survey of customers identified the need for working with predictive models from outside vendors in a BPM system, Keziere says. Previously, customers had to manually write code to achieve that goal, he says.
"Organizations looking to optimize cross-sell and up-sell opportunities or identify high-value customers can use PXO to streamline and automate marketing campaigns," Pegasystems states in a press release. "Banking and capital markets companies can reduce risk, identify fraud patterns, and act on anti-money laundering. Insurance and healthcare payer companies can improve their underwriting and claims processes aided by PXO."
This story, "Simpler Business Automation Tool" was originally published by Network World.