Manager of Advanced Analytics at NaranjaX

Introduction:

In the fascinating world of advanced analytics, an article from Gartner caught our attention by highlighting that, on average, 50% of analytical models do not reach the production stage. We could not agree more with that average, as at NaranjaX, we found ourselves in a similar scenario during their early stages. This statistic, far from discouraging us, spurred us to reflect on where there were opportunities for improvement. This article is a journey through the strategies and tools that have been implemented at NaranjaX to ensure that our analytical models not only reach the production stage, but also generate a significant and tangible impact in our organization.

Understanding the Impact of Use Cases:

In the dynamic realm of advanced analytics, speed and efficiency in implementing models can make a significant difference. However, at NaranjaX, we have learned that speed in development does not always equate to effective impact. A common trap many organizations fall into is the rushed request and development of analytical models without a clear understanding of the use case or the associated impact. This often happens when the technical team rapidly progresses with model development, only to find, at the end of the road, that there is a lack of clarity on how, where, and for what to use the developed model. Moreover, the real gain or added value of using these models remains in the fog. This situation is particularly prevalent in areas with less maturity in the use of analytical models. Conversely, areas with a longer track record, like credit risk management ,fraud and collection recovery teams, tend to have a better understanding of the potential impact of models from the outset.

To address this challenge, the advanced analytics team at NaranjaX took the initiative to develop a standard that allows understanding the use case and the expected impact from moment zero. This standard is structured according to:

● Model Type: Identification of the general purpose of the model, such as churn (dropout), activation, fraud, risk, delinquency, propensity, among others. ● Model Class: Technical differentiation between models, for example, whether it is a binary classification, regression, time series, etc.

● Impact According to Stage: Impact assessment at different stages, such as in the 'Discovery' stage and when the model is in use.

This three-dimensional approach acts as an essential filter, avoiding the development of models that will not find practical application and, therefore, will not generate real impact. The goal is to ensure that every developed model has a clear purpose, a defined use case, and measurable impact, thus avoiding futile efforts and maximizing team efficiency.

Framework and Technology:

Furthermore, the adoption of a robust Development Framework has been fundamental to ensure the success of our advanced analytics projects. This framework guides each project from the conception of the need, through exploratory analysis, model training, evaluation, to production. This methodological structure provides a clear and orderly path, ensuring that each development stage is well-defined and aligned with the project objectives.

Regarding technology, we use a suite of tools that facilitate and optimize our development and analysis process:

● Snowflake serves as our analytical database, providing a high-performance, scalable, and zero-management platform that empowers us to effortlessly handle and analyze vast volumes of data, driving data-driven insights for NaranjaX.

● AWS SageMaker, our chosen model development framework, streamlines the entire process of building, training, and deploying machine learning models, thus

significantly accelerating our project timelines while ensuring the robustness and accuracy of our analytical solutions.

● Airflow for jobs orchestration, we have streamlined the automation and monitoring of our complex workflows, ensuring timely execution and monitoring of tasks, which in turn enhances our operational efficiency and the reliability of data delivery within NaranjaX.

● Python stands as our programming language of choice, granting us flexibility and access to a vast array of libraries essential for data analysis and model development, thereby fostering innovation and efficiency in our analytical endeavors.

● PowerBI is our go-to tool for dashboard development, enabling us to create intuitive and visually appealing dashboards that facilitate effective visualization and sharing of insights, thus promoting data-driven decision-making across the organization.

● OvalEdge as our data catalog, we have significantly enhanced our data management practices, ensuring efficient organization and easy accessibility to necessary data, which is pivotal for maintaining data integrity and accelerating our analytical projects.

Following the implementation and consolidation of the deep understanding of the use cases and the establishment of a robust development framework-technology, we are carving a more certain path towards success at NaranjaX. These strategies have not only elevated the efficacy of our analytical models but also strengthened the collaboration between technical and business teams. We are closer to challenging the aforementioned average from Gartner and transforming advanced analytics into a true engine of value and impact for our organization. This holistic approach allows us to move forward with confidence, knowing that each developed model has a clear purpose and measurable impact, which ultimately translates into tangible value delivery and continuous improvement in our operations.

Conclusion: A Continuous Journey towards Optimization and Impact

NaranjaX's journey in the realm of advanced analytics reflects an unwavering commitment to excellence, innovation, and real impact. Although we have made significant strides, we recognize that the path towards optimization and deep understanding of the impact of developments in advanced analytics is a continuous journey. In a rapidly evolving technological environment, continuous improvement, innovation, and adaptability are more than virtues; they are pressing necessities.

At NaranjaX, we continue refining our standard and exploring new strategies with a clear goal: ensuring that every developed model not only reaches the productive environment but generates a positive and tangible impact, thus propelling our organization towards new horizons of success and operational effectiveness.