Predictive Analytics and Long Term Business Strategy
2 September 2019
Predictive Analytics is the branch of analytics that uses statistical techniques, machine language, and artificial intelligence to predict the outcome of future events based on available data. Although Predictive Analytics is a relatively new discipline, there have been significant developments made over the past decade which have had huge benefits for a variety of industries.
What Predictive Analytics can do
The benefits of Predictive Analytics are diverse and far-reaching, positively impacting a wide range of professions and industries and helping efficiency in a variety of sectors.
For example, weather stations are now able to predict weather changes accurately for over a week, which allows meteorologists to predict hurricanes and other severe weather events days before contact with land. This means governments and other organisations receive warnings in advance to make necessary safety precautions.
Another more wide-ranging sector positively impacted by Predictive Analytics is retail. Large, global-scale retailers such as Amazon have incorporated Predictive Analytics into their everyday processes. In the retail sector, studying buying patterns and customer habits not only helps with merchandising and product development, but has allowed applications and web technology to use ‘recommendation’ features, which encourage customers to buy goods other similar customers may have purchased.
How Predictive Analytics can help
The myriad functions of Predictive Analytics mean it can help a huge range of industries benefit – the fields of medicine, banking and finance, retail, government, business and manufacturing sectors can significantly benefit.
Whether it’s assessing marketing campaigns to predict a product’s progress in the market to gauging customers’ reactions to products, businesses in the 21st century can use Predictive Analytics to increase earning potential, reach and development.
In the world of medicine, Predictive Analytics can have a huge, lifesaving impact. Using this technology, medical professionals can often predict a patient’s likelihood of contracting certain conditions and illnesses such as asthma, ulcers or diabetes. Analysis can also be used by doctors in decision making and diagnosing.
Within banking, finance and business, the technology can help institutions predict fraudulent activity through analysis of customer transactions, patterns and behaviours. Predictive Analytics can also be used to identify customers most likely to leave or change provider, thus saving potential financial loss and promoting a positive client experience.
Long term Strategy
The promise of predictive analytics is to bring the future closer. Business will be able to make decisions and informed predictions for a positive impact. This will allow professionals to make informed plans and future projections with strong data to back them up.
The benefits associated with Predictive Analytics are immeasurable. However, the cost of implementing the technology into different and existing systems can incur significant costs; it is therefore essential that business owners and decision makers consider all the benefits and long-term effects and weight these up versus short-term costs.
That said, with benefits including medical predictions, financial projections, better customer understanding, weather analysis and countless more, it’s difficult to disregard the huge benefits Predictive Analytics can bring to almost any imaginable industry.