Predictive Analytics concepts and applications
What is Predicitve Analytics?
Broadly speaking predictive analytics encompasses a variety of tools and techniques that examine historical and current data to identify patterns and help predict future events. It’s another way to derive business value from the information you store and manage. Predictive models are particularly useful in detecting risks or uncovering opportunities that may otherwise go unnoticed.
Where and How is it Used?
The benefits of predictive analytics are endless and apply across a variety of industries such as: financial services, insurance, retail, manufacturing and healthcare. Some areas it has been applied to include:
- Customer Acquisition and Retention
- Marketing and Sales Optimisation
- Fraud and Anomaly Detection
- Customer Segmentation and Cross-selling
- Demand Planning
- Social Media Sentiment Analysis
What are the Benefits?
Everyone is looking for a competitive advantage or a more efficient way to use resources – predictive analytics can help provide an edge. Where Business Intelligence is about telling you what happened in the past or what is currently happening, predictive analytics is a way of using your data assets to predict what may occur in the future and therefore more effectively utilise your resources.