Are You Using Your Data to it’s Fullest Advantage? – Predictive Analytics
We live in an age of data. Our economy is or has moved from a manufacturing economy to an information or knowledge economy. Big data is the name of the game, and whoever uses the data at their disposal most effectively will win.
Every day, your enterprise produces and gathers tens of thousands of data points. Each data point, taken alone, doesn’t mean much, but when those individual numbers are combined into data sets and analyzed by professionals, they paint a picture of your company’s health and potential.
What is Predictive Analytics?
Predictive Analytics is a broad term that takes in a realm of strategies for managing and interpreting data. Some of the more common techniques are machine learning, predictive modeling, and data mining.
Simply put, CIO Advise takes the data that your organization gathers/produces and sets it up so that it paints a picture as to where your company has been and where you are today in order to give an accurate prediction about what you can expect in the near to mid-term future.
Does Predictive Analytics Tell the Future?
No. Although Predictive Analytics has been proven to be highly accurate, it cannot forecast unforeseeable business and global events. However, Predictive Analytics can be utilized to make highly accurate models for better-informed decision making.
What Are the Advantages of Predictive Analytics?
- Understand Consumer Expectations
- Conceptualize Marketing Efforts
- Identify Fraud
- Lower Risk
- Meet Competition Head-On
- Increase Productivity
- Have Greater Confidence in Choices
- Overcome Decision Making Uncertainty
- Improve Collaboration Across the Organization
- Predictive maintenance on equipment
How Does Predictive Analytics Work?
Although Predictive Analytics is a science onto itself with many subtle differences depending on the particular application, here is a basic Predictive Analytics process.
- Access Data
- Explore Data
- Pre-Process Data
- Use Data to Create Models
- Integrate Analytical Models into Organization