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Applied Predictive Technologies

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Applied Predictive Technologies
Company typePrivate Ownership
IndustryComputer Software
Founded1999 [1]
Headquarters Arlington, VA[1]
Key people
Jim Manzi, Executive Chairman & Managing Director[2]
Anthony Bruce, CEO[2]

Scott Setrakian, Managing Director[2]

Patrick O'Reilly, President[2]
Websitewww.predictivetechnologies.com

Applied Predictive Technologies (APT) is a software company that provides business analytics software to other businesses, along with support, training, and consulting services for its software. APT's clients include Starbucks, Subway, Royal Bank of Canada, and more than 40 of the Fortune 500 across a number of industries[3][4]. APT was founded in 1999 by Jim Manzi, Anthony Bruce, and Scott Setrakian[5], who all came from a business consulting background[2], and was acquired in 2006 by Accel-KKR, a private equity firm[6].

Software

APT's software takes a statistically rigorous test and learn approach to business analytics, in which proposed changes are tried out on a small scale and then analyzed before being implemented everywhere. This is an aspect of the larger trend of evidence-based management, in which the scientific method is applied to business decision making. APT's software automates the cycle described by the Harvard Business Review[7]:

  • Create a hypothesis
  • Design a test to gather information about the hypothesis
  • Execute the test
  • Analyze the test to determine how successful it was and what factors explain performance differences
  • Plan the rollout based on the analysis of the test

Other companies such as SAS produce software that can be used for this type of analysis, but such packages are typically broader in scope[7], as they focus on general statistical analysis instead of on test and learn experimentation specifically. APT's analytical tools also compete with market research companies such as Nielsen and Information Resources, Inc., and with internal analysis tools such as the experiment management solutions that have been developed within companies such as eBay and CapitalOne[7]. APT differentiates itself from competitors by offering a unique approach, emphasizing conducting tests to gather data instead of simply simulating it. APT's software has been noted for its emphasis on ease of use in test design and analysis[7], and also for its ability to present both a high-level summary of a test and deep analysis of the specific attributes that affected performance in the test[4].

APT's Test and Learn for Sites software has been used for Wawa's tests on adding personnel[4], IHG's tests on capital upgrades and promotional offers[8], and Royal Bank of Canada's in-market tests on distribution operations strategies[9]. APT has also done work with Google in analyzing the impact of online advertising on bricks and mortar stores[10]. A variety of further case studies are available at APT's website[11].

Products

APT sells a number of products, each focused on a particular area of analysis. Test and Learn for Sites was APT's initial product and is still the company's primary product. APT provides its products as web applications using the software as a service model: companies connect to APT's web servers using login information provided by APT, the computations are run on the servers, and options and results are displayed in the user's web browser[5]. APT's current products include:

  • Test and Learn for Sites, focused on analyzing remodelings, sales promotions, pricing strategies, and other changes made at the store level
  • Test and Learn for Customers, focused on analyzing direct marketing and other customer offers
  • Network Planner, focused on analyzing construction and closure of stores
  • Market Basket Analyzer, focused on market basket analysis
  • Merchandise Optimization

See also

References

  1. ^ a b "Applied Predictive Technologies, Inc.: Private Company Information". BusinessWeek. Retrieved 18 September 2009.
  2. ^ a b c d e "APT Management". Retrieved 18 September 2009.
  3. ^ "APT Clients". Retrieved 18 September 2009.
  4. ^ a b c Fleenor, D. Gail (June 2009). "These Tests Are Positive". STORES Magazine. Retrieved 18 September 2009.
  5. ^ a b Hayes, Heather B. (May 2006). "2006 Fantastic 50: Applied Predictive Technologies". Archived from the original on 22 December 2009. Retrieved 18 September 2009. {{cite web}}: |archive-date= / |archive-url= timestamp mismatch; 27 June 2008 suggested (help)
  6. ^ "Accel-KKR Portfolio". Retrieved 18 September 2009.
  7. ^ a b c d Davenport, Thomas H. (February 2009), "How to Design Smart Business Experiments", Harvard Business Review
  8. ^ "IHG Selects APT's Test & Learn Management System". 17 September 2009. Retrieved 18 September 2009.
  9. ^ "APT's Test & Learn Management System Selected by RBC to Conduct In-Market Tests". 5 October 2009. Retrieved 12 October 2009.
  10. ^ "POS to O2S for ROI... The Evolution of Measurable Media Investments". Google Retail Advertising Blog. 24 August 2009. Retrieved 18 September 2009.
  11. ^ "APT Case Studies". Retrieved 20 September 2009.
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