Tuesday, January 24th, 2012 - 15:51
Tuesday, January 24, 2012 - 10:07
Today, we will wrap up our discussion on how to cut cost and save money using analytics.
In our last post, we focused some more of the presidential directives and how departments and agencies can save money through the use of analytics. We also introduced one of the two advanced analytics methods. Today we will wrap up discussion on the final two advanced analytics methods: continuous monitoring technology and predictive modeling
Continuous monitoring technology
Continuous monitoring technology can be deployed in a medical-billing context to help prevent payments for medically unnecessary services, for duplicate invoices, or to deceased individuals. This bypasses any need for a retrospective pay-and-chase approach. This technology can also be applied to nonfinancial data streams, such as social media or news feeds. Continuous-monitoring solutions search for emerging issues and provide mission- critical alerts based on real-time analysis.
Predictive modeling is among the most advanced analytics methods. It involves performing data analysis to identify patterns and outliers and to make predictions about potential future events. This form of analytics can provide insights into a variety of activities. Examples include forecasting the number of improper medical insurance claims that may be filed; recognizing financial institution transactions that are indicative of money laundering; and estimating the likelihood that a loan will default.
A hybrid technology platform
Agencies can also combine the best attributes of these three tool types into hybrid technology platforms. The resulting 360-degree view of operations can be an effective way for agencies to address waste and improve operations and performance.
Analytics can help agencies decide which programs to fund or the most effective approach to take for a particular program. Agency staff can use modeling, simulation, and other data-driven approaches to make decisions that both save the tax payers’ money and deliver the best results. The United States Postal Service (USPS) models and optimizes its transportation network to increase utilization of assets and save hundreds of millions of dollars.
Analytics can also help streamline and optimize programs, reducing the costs of implementation while improving service to citizens. The Social Security Administration (SSA) streamlined its processing of disability claims. The majority of claims can now be expedited with little risk of paying unacceptable claims
The cost savings and efficiencies gained from current technologies are limited only by the imagination and ingenuity of the tool wielder.
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Join us next time as we discuss enterprise architecture as an enabler of analytics.
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Mr. Treworgy has over 20 years of analytics and project management experience. In addition to his primary focus on United States departments and agencies, he also has carried out work for a number of government organizations in Europe and Africa. A thought leader in the area of strategy and information analytics, Mr. Treworgy publishes frequent articles, presents often at conferences, and has provided expert witness testimony on several occasions, including at a joint Senate / House of Representatives hearing. He graduated with a BA in Economics from Williams College and an MBA from Harvard University.
David Treworgy (email@example.com)
Greg Greben is Vice President and Market Leader for Business Analytics and Optimization (BAO), IBM Global Business Services, US Public Sector.