Applied Predictive Technologies

Applied Predictive Technologies (APT) was a software company that provided business analytics software, designed to help large, consumer-facing businesses "reduce the risk of any new initiative by systematically testing the idea with a subset of stores, customers, or employees."[3] APT was acquired by Mastercard in 2015 [4] and no longer operates as a standalone business.

Applied Predictive Technologies
IndustrySoftware as a service
Founded1999[1]
FounderJim Manzi, Chairman[2]
Anthony Bruce, CEO[2]
Scott Setrakian, Managing Director[2]
HeadquartersArlington, Virginia, United States[1]
Number of employees
600
Websitehttps://www.mastercardservices.com/en/solutions/test-learn

APT argues that using systematic testing enables companies to measure the true incremental impact of any new initiative.[3]

Its "core value proposition is helping clients innovate more effectively through trial and error."[5]

History

APT was founded in 1999 by business consulting executives Jim Manzi (Oliver Wyman), Anthony Bruce (McKinsey & Company), and Scott Setrakian (Oliver Wyman).[6] Of founding APT, Manzi explained to The Washington Post that "a lot of the work I was doing as a consultant was very repetitive. I realized how much of it could be put into a software model.”[7] With venture capital from Devon Partners, it took Manzi and Bruce less than a year to develop and launch APT’s software tool. In 2006, the firm was backed by Accel-KKR, a private equity firm.[8] In 2013, Goldman Sachs invested $100 million in APT.[9]

APT was acquired by Mastercard in 2015.[4]

Software

APT's (now Mastercard'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. APT's approach follows a larger business trend, 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:[10]

  • 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

APT's software has been noted for its emphasis on ease of use in test design and analysis[10] and also for its ability to present both a high-level summary of a test and deep analysis of the specific attributes that affect performance in the test.[11] APT differentiates itself from competitors by offering a unique approach, emphasizing conducting tests to gather data instead of simply simulating it.

In February 2011, APT was awarded a patent that protects its core analytic technology for designing an in-market test and on matching test stores to control stores.[12]

Products

The firm provides its products as web applications Its current products include .[6]

  • Test and Learn for Sites (its flagship product, 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,
  • Market Basket Analyzer,
  • Merchandise Optimization,
  • Menu Optimization,
  • Category Management Insights,
  • Test and Learn for Ads.[13]

Competitors

MarketDial, a Utah-based company founded in 2016, is the only direct competitor in this space. MarketDial aims to differentiate itself from APT Mastercard by offering a platform that leverages machine learning and a more modern technology stack.

Clients

Named one of the top 10 tech companies to watch in 2012 by American Banker,[14] APT's clients span a wide range of industries and include Abercrombie & Fitch, Wendy's, Starbucks, Subway, Kraft Foods, Royal Bank of Canada, and more than 40 of the Fortune 500.[15] APT's Test and Learn for Sites software has been used for Wawa's tests on adding personnel,[11] IHG's tests on capital upgrades and promotional offers,[16] and Royal Bank of Canada's in-market tests on distribution operations strategies.[17] APT has also done work with Google in analyzing the impact of online advertising on brick and mortar stores.[18]

See also
  • Test and Learn

References
  1. "Applied Predictive Technologies, Inc.: Private Company Information". BusinessWeek. Retrieved 18 September 2009.
  2. "APT Management". Archived from the original on 16 October 2009. Retrieved 18 September 2009.
  3. "Financial Times". Retrieved 7 December 2011.
  4. https://newsroom.mastercard.com/press-releases/mastercard-announces-acquisition-of-applied-predictive-technologies/
  5. "The Washington Post: Helping Retailers See If Their Promotions Are Hits or Misses" (PDF). Archived from the original (PDF) on 26 April 2012. Retrieved 7 December 2011.
  6. Hayes, Heather B. (May 2006). "2006 Fantastic 50: Applied Predictive Technologies". Archived from the original on 27 June 2008. Retrieved 18 September 2009.
  7. McCarthy, Ellen. "Applied Predictive Technologies Makes Consulting Automatic." The Washington Post 20 August 2001. E5. Print.
  8. "Accel-KKR Portfolio". Archived from the original on 30 November 2009. Retrieved 18 September 2009.
  9. http://www.computing.co.uk/ctg/news/2277726/what-does-goldman-sachs-usd100m-investment-in-apt-mean-for-big-data-analytics
  10. Davenport, Thomas H. (February 2009). "How to Design Smart Business Experiments". Harvard Business Review.
  11. Fleenor, D. Gail (June 2009). "These Tests Are Positive". STORES Magazine. Archived from the original on 12 October 2009. Retrieved 18 September 2009.
  12. "United States Patent No. 7,895,072". 22 February 2011. Retrieved 9 February 2012.
  13. "APT Products". Archived from the original on 19 December 2011. Retrieved 7 December 2011.
  14. "Top 10 Tech Companies to Watch in 2012". Retrieved 7 December 2011.
  15. "APT Clients". Archived from the original on 25 September 2009. Retrieved 18 September 2009.
  16. "IHG Selects APT's Test & Learn Management System". 17 September 2009. Retrieved 18 September 2009.
  17. "APT's Test & Learn Management System Selected by RBC to Conduct In-Market Tests". 5 October 2009. Retrieved 12 October 2009.
  18. "POS to O2S for ROI... The Evolution of Measurable Media Investments". Google Retail Advertising Blog. 24 August 2009. Archived from the original on 25 September 2009. Retrieved 18 September 2009.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.