Commercial Applications in Data Analytics:

Perspectives of a Non Actuary Alex Macoun

© Quantium

This presentation has been prepared for the 2016 Data Analytics Summit.

The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not responsible for those

opinions.

Case study: Media measurement

Case study: Link analysis

FOX8 total 50 people

A&E total 20 people

Foxtel population 100 people

Both 15 people

𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 =

𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑃𝑃 𝑃𝑃𝑈𝑈 𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣 𝐹𝐹𝐹𝐹𝐹𝐹8𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑣𝑣 𝑃𝑃𝑃𝑃𝑦𝑦 𝑣𝑣𝑃𝑃𝑈𝑈𝑤𝑤ℎ 𝐴𝐴&𝐸𝐸

𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑃𝑃 𝑃𝑃𝑈𝑈 𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣 𝐹𝐹𝐹𝐹𝐹𝐹8𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑣𝑣 𝑃𝑃𝑃𝑃𝑦𝑦 ℎ𝑃𝑃𝑣𝑣𝑣𝑣 𝐹𝐹𝑃𝑃𝐹𝐹𝑈𝑈𝑣𝑣𝑈𝑈

𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 = �1520�

� 50100�

𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 = 15 × 10050 × 20

= 𝐼𝐼𝑣𝑣𝑈𝑈𝑣𝑣𝑃𝑃𝐼𝐼𝑣𝑣𝑤𝑤𝑈𝑈𝑈𝑈𝑃𝑃𝑣𝑣 × 𝑈𝑈𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑃𝑃𝐼𝐼𝑣𝑣

𝐹𝐹𝐹𝐹𝐹𝐹8 𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑣𝑣𝑃𝑃𝐼𝐼 × 𝐴𝐴&𝐸𝐸 𝑣𝑣𝑈𝑈𝑣𝑣𝑣𝑣𝑣𝑣𝑃𝑃𝐼𝐼

𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 = 1.5 × i.e. A&E viewers are 1.5 times more likely to watch FOX8 than the average Foxtel

viewer

Link analysis in FMCG

Associated groups of products are represented as

‘clusters’

Some products are linking / entry products

between clusters

Building on the actuarial skillset • Business problem solving • Change management • Product and design thinking