What is it?
Predictive analytics is organizational intelligence technology that exploits patterns found in historical and transactional data to identify risks and opportunities. The aim is to make predictions about future, or otherwise unknown, events by capturing the relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision making for candidate transactions and interventions.
Who is it for?
Predictive analytics is for organizations that want a partner scientific team to objectively develop and implement predictive algorithms so they can be a proactive and predictive enterprise. Examples of what can be done within our predictive analytics development hub:
- Transforming data into predictive insights to guide front-line decisions and interactions
- Predicting what customers want and will do next thereby increasing profitability and retention
- Maximizing the productivity of people, processes and assets
- Detecting and preventing threats and fraud before they affect the organization
- Measuring social media impact of products, services and marketing campaigns. Optimize marketing campaigns and website behavior to increase customer response, conversions and clicks, and to decrease churn
- Optimizing asset management in a way that eliminates the uncertainty of how to get the right assets to the right locations at the right time. With the ability to anticipate optimal asset maintenance and inventory levels, our predictive analytics management solutions can help your organization mitigate the following asset management risks:
- Avoiding lost production and sales due to asset downtime or out of stock merchandise
- Reducing the expense resulting from over-ordering the wrong inventory
- Managing physical and virtual assets for peak profitability
- Reducing working capital requirements
- Identifying the right physical inventory for your supply chain
- Determining optimal purchase levels to support production facilities
- Predicting customer demand and aligning with inventory and production
How is it done?
Using statistics, modeling, machine learning, and data mining, a predictive algorithm is trained over data, learning from the experience of your organization and data sources of your environment. It then produces a predictive score for the elements that drive the value of your organization. In business, predictive analytics are combined with real-time data feeds and applied to your drivers of revenue, cost or future liabilities.
We develop predictive algorithms and generate predictive scores integrated with your management information system to support real-time value optimization and risk mitigation.
Analytical Techniques used are varied and dependent upon the nature of the question being asked. Examples of techniques included in our predictive analytics framework include:
- Linear and logistic regression
- Probit regression
- Cluster analysis
- Decision trees
- Time-series analysis
- Bayes Classifiers
- Nearest Neighbors (k-NN)
- Neural Networks
- Support Vector Machines
- Forecasting machine learning
What are the benefits?
Predictive analytics informs and directs decision making by applying a combination of advanced analytics and decision optimization to an organization’s enterprise data, with the objective of improving business processes to meet specific organization goals.
Predictive analytics offers numerous advantages for organizations that recognize the inherent value locked within their existing enterprise data. Strategically, predictive analytics provides a quantitative foundation for rapidly identifying, objectively evaluating, and confidently pursuing new market opportunities. Tactically, predictive analytics identifies precisely whom to target, how to reach them, when to make contact, and what messages should be communicated.
Organizations that incorporate predictive analytics into their daily operations in this way improve their organizational processes, enhancing decision making and gaining the ability to direct, optimize, and automate decisions, on demand, to meet defined organizational goals. Through predictive analytics, they not only better manage the present, but also increase the probability of future success.