10 Reasons you really need predictive analytics

Uli Bethke analytic functions, Best Practice, Business Intelligence, data mining, Data Warehouse

SPSS have recently posted and article called "10 Reasons you really need predictive analytics". I thought it would be interesting to post the main points from this article to illustrate that not all predictive analytic projects involve Data Mining, but involve a number of different techniques and looking the the business data in a different way. Yes data mining can be a very important element in some of the following

1. Get a higher return on your data investment
Your organization has a significant investment in data – data that contains critical information about every aspect of your business. Today more than ever, you need to get the best return on the data you have collected–and predictive analytics is the most effective way to do this. Predictive analytics combines information on what has happened in the past, what is happening now, and what’s likely to happen in the future to give you a complete picture of your business.

2. Find hidden meaning in your data
Predictive analytics helps you maximize the understanding gained from your data. It enables you to uncover hidden patterns, trends, and relationships and transform this information into action.

3. Look forward, not backward
Unlike reporting and business intelligence solutions that are only valuable for understanding past and current conditions, predictive analytics helps organizations look forward. By leveraging sophisticated statistical and modeling techniques, you can use the data you already have to help you anticipate future events and be proactive, rather than reactive.

4. Deliver intelligence in real time
Your business is dynamic. With predictive analytics, you can automatically deploy analytical results to both individuals and operational systems as changes occur, helping to guide customer interactions and strategic nd tactical decision making.

5. See your assumptions in action
Advanced analytical methods give you the tools to develop hypotheses about your organization’s toughest challenges and test them by creating predictive models. You can then choose the scenario that is likely to result in the best outcome for your organization.

6. Empower data-driven decision making
Better processes help people throughout your organization make better decisions every day. Predictive analytics enables your organization to automate the flow of information to match your business practices and deliver the insights gained through this technology to people who can apply them in their daily work.

7. Build customer intimacy
When you know each of your customers or constituents intimately—including what they think, say, and do—you can build stronger relationships with them. Predictive analytics gives you a complete view of your customers, and enables you to capture and maximize the value of each and every interaction.

8. Mitigate risk and fraud
Predictive analytics helps you evaluate risk using a combination of business rules, predictive models, and information gathered from customer interactions. You can then take the appropriate actions to minimize your organization’s exposure to fraudulent activities or highrisk customers or transactions.

9. Discover unexpected opportunities
Your organization can use predictive analytics to respond with greater speed and certainty to emerging challenges and opportunities, helping you to keep pace in a constantly changing business environment.

10. Guarantee your organization’s competitive advantage
Predictive analytics can drive improved performance in every operational area, including customer relations, supply chain, financial performance and cost management, research and product development, and strategic planning. When your organization runs more efficiently and profitably, you have what it takes to out-think and out-perform your competitors

So what is Predictive Analytics. Check out the description on Wikipedia

Let me know you views and comments on the above.

Brendan Tierney