Predictive Analytics: Changing the Business.

“The Future belongs to those who see possibilities before they become obvious”- John Scully.

 

For businesses, it has become essential to improve the understanding of the customer and categorize the changes in market before they occur. Companies are using the power of Big Data and analytics to predict for better decisions and to determine what’s next for your business. Professionals are using Predictive Analytics to examine the data for prediction of future ventures. Predictive Analytics has become more relevant now by helping businesses stay relevant in this changing digital world by impacting on operations and growth. Let us discuss, what is Predictive Analytic and how it is changing the scenario.

 

What is Predictive Analytics?

“Predictive analytics help you know what might happen, prepare a response ahead of time, get ahead of the risks, and influence the outcomes,”- Gaynor

 

Predictive Analytics is the unit of advanced analytic techniques which of today by giving a competitive edge and competency. Industries uses historical data and various statistical techniques such as AI, machine learning, predictive modelling, and data mining to estimate or predict the future event or behavior. The objective is to understand possible future occurrences by analyzing the past. Improved efficiency, decision making, reducing risk, and detecting fraud are the visible benefits of Predictive Analytics. Many Industries are adopting Predictive Analytics to increase the efficiency and robust the company’s growth. There is no doubt that Predictive Analytics is transforming the business as a key to digital transformation initiatives. Marketing, Banking, Insurance Companies are notable adopter of the Predictive Analytics.

 

Is Forecasting Predictive analytics?

Forecasting is a sub-set of Prediction that estimate Future based on past Data and the results are in numbers whereas Predictive Analysis does the prediction of Future at more core level and output can be other than number format as well.  Moreover, Prediction is based on experience and knowledge. So, it is clearly proven that Forecasting and Predictive Analytics are not the same term.

 

Why is Predictive Analytics Important?

-For examine the suspicious activities or behavior to detect fraud, vulnerabilities, and threats.

-To attract, retain and increase customers through optimizing marketing campaign and promotions.

-To Reduce risks by recognizing the likelihood of defaulters.

-To enable the organizations to make smarter decisions by making operation and functions more efficient.

Where can Predictive Analytics be used?

Human Resources:

Can use to identify the future turnover rate based on historical patterns in the presence of current data. Using these insights HR can retain employees and reduce turnover. It can help to gather real time insights into efficiency of HR processes and policies.

Healthcare:

Can be used for better measure, best decisions, diagnosis, and treatment too. Predictive Analytics can improve care while reducing the cost by allowing improvement to patient care and more personalized treatment.

Retail and Marketing:

Can be included in back -office and front-line workflows with better decision-making strategies to change sales goals and optimizing inventory.

Manufacturing:  

Can help manufacturers to decide with what to produce and what would be most appropriate for them to improve design and planning.

 

 

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