Tuesday, March 15, 2016

Predictive Analytics can Improve Business Decisions

Predictive Analytics is a means of studying large amounts of data and drawing from it inferences about future behaviour of customers, employees, stakeholders, and others. While other kinds of analysis can indicate problem areas in, say sales, and tell management what isn't working, predictive analytics can indicate what policies are likely to work before they are implemented.

The availability of big data is particularly useful for predictive analytics because of the sheer volume of data and the coverage of behaviour it encompasses.

Companies are therefore using predictive analytics with increasing success in a variety of circumstances, including analyzing individual customer traits to determine how best to serve them and to determine the most effective procurement strategies in advance. Specific information on the elasticity of demand can also be used to determine the best price/production strategies. There is a myriad of possible scenarios where predictive analytics can be used, which accounts for its popularity.

For some specific examples, check out this site.

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