Being able to make decisions and plan based on future events, trends, and circumstances as yet unknown would quite recently have been strictly in the realms of science fiction, but thanks to the development of powerful predictive analysis techniques and tools this is no longer the case. It really is possible to model future trends and make accurate business decisions based on what is to come.
Predictive Analysis Explained
In a nutshell, predictive analytics is the way present and historical data is analysed to predict future outcomes. It can offer many benefits for business in terms of making more reliable forecasts and thus better decisions instead of relying on educated guesswork to plan.
For some, it could be described as a virtual crystal ball – but based on hard facts from real data.
For example:
- Customer trends – it’s easier to plan products or services based on how your customers will behave in the future in terms of buying habits, tastes, and requirements.
- Financial forecasting – past spending and predicted economic trends can help inform future profitability and influence where money is spent.
- Risk profiles – looking ahead to ascertain if a particular market is worth entering or whether certain customers continue to be ‘safe’ for credit based on past and present transactions and account management.
- Marketing – planning campaigns is made easier when it can be based on the success or otherwise of previous activities and the growth of new and developing channels such as social media platforms and changing habits – for example, more people using their mobiles to consume content than desktop PCs.
- Productivity – predicting where potential slowdowns and challenges may occur in the production process to allow you to formulate plans to combat these.
How Does Predictive Analytics ‘Happen?
It’s a highly specialised process involving heavy duty data analysis and using the latest in Machine Learning techniques. Many businesses work with a data analytics partner such as Objective to tap into the latest analytics tools and skilled data analysts.
Organising data – to make the most of predictive analytics, the right types of data must be gathered efficiently – meaningful predictive analysis can only be acquired through plenty of data.
Storing it in the right way is imperative, so expert help may be required to ensure your data is stored in the best way.
High tech – the latest in Machine Learning tech is deployed to turn the data into usable intelligence to create effective algorithms to help predict the future and identify trends.
Skilled personnel – experienced and highly trained analytics experts, including data scientists working with data to create effective predictive analytics.
Your requirements – what do you need to know and what are your aims and objectives? This information is used as the starting point by data professionals to ascertain what types of predictive analytics – and thus how your data should be used – is best for your circumstances.
Working with a Data Professional
Modern data analytics is a specialism, so you may consider working with a professional data analysis provider to put the advantages of predictive analytics at your disposal.
Your chosen expert would help provide you with a coherent data strategy, so the right data is being gathered, stored, and worked with to supply the levels of business intelligence you require.