There is simply no denying the immense reach of Big Data Analytics across multiple industry verticals. With the increase amount of information generated and analyzed, it is imperative to know how to best use this information to help ensure a more profitable future. This is where predictive analysis shows its true forte as the tool for ramping up your business minus the uncertainties of the future.
Predictive analytics, however, is a proven technology which mines data for repeatable patterns that can be used for predicting future events. Unlike traditional business intelligence practices, predictive analytics approaches are focused on helping companies collect actionable intelligence based on historical data.
If applied correctly, predictive analytics can become a crystal ball that can enable organizations to make better decisions.
How data looks like today?
In the older days, data was in limited form and its analysis needed “superior” software such as MS Excel. This was enough to sift through information such as leads, market information, competitive analysis and trendspotting.
However today the scenario is different, not just the volume but also the source of origin has expanded exponentially today. The cherry on the top is that no longer traditional databases or spreadsheets are sufficient to gather information and extract insights from these sources of data.
So, what other tool or specialization is available to us to ensure that data scientists and decision makers can get near real time and highly targeted information of mission critical parameters such as upcoming trends.
Well, how about predictive analysis?
Predictive Analysis is a big data analysis strategy that seeks to answer key queries
- Past – What happened and why it happened?
- Future – What will happen in the future?
Why is Predictive Analysis an appealing proposition?
Working in an environment of uncertainty is the biggest drawback of confidently marching ahead of competition. If there is no guideline support from tools such as predictive analysis it will be difficult to gauge market trends and customer perceptions in the near future.
And if you don’t know what sells, how will you produce it?
The good news is that the technology ecosystem as a whole, is moving in the right direction to make predictive analysis more powerful and more efficient than ever before. Right from data explosion, better computing power, to better buy-in from management, there is no better time than now to utilize predictive analysis to power up your business.
Along with these enablers, is the rise of big data technologies such as Hadoop, massively parallel processing databases, in-memory databases, MapReduce, and search based features. With these technologies data scientists and business analysts alike can get insights from structured and unstructured data, and present it to decision making leadership in form of interactive data visualization.
Predictive analytics practices can help companies in three key areas: minimizing risk, identifying fraud and pursuing new revenue opportunities. Many companies use the capability to increase customer lifetime value by making relevant recommendations that enable businesses to maintain and evolve their relationships with customers.
Why is Predictive Analysis needed in business?
Here are 3 key areas where your business can gain tremendous competitive edge with help of predictive analysis.
Tangible insights – This is the key USP of predictive analysis. With help of dashboards and helpful reports, provides accurate diagnostics for a particular action and assess the type of trigger needed to bring about improvement in chosen KPIs.
Predictive analysis’ power comes across from the fact that these cause-findings and patterns would have remained hidden if not for predictive analysis.
Inspire and innovate – Are you scratching your head to come up with better ways of interacting with customers and drive conversions? How about turning to the power of predictive analysis? For instance, mining social media data of your target market may reveal a yet unanswered need. This opens up a whole new avenue of opportunity to upsell, cross-sell, or add a totally new line of product offering to serve this unmet need.
Aid in decision making – Today’s CMO is expected to be no less than a magician in building customer engagement and enabling high value conversions. In such a challenging scenario, predictive analysis comes across as the magic wand to help the CMO see the future to a more accurate degree and tailor marketing campaigns that spell success.
Remember the famous Target experiment? The retail chain devised a pregnancy prediction algorithm that figured out which of their customers were newly pregnant. They then used this information to send out targeted discount coupons on pregnancy/baby merchandize.
Predictive analytics can only be actionable if incorporated into operational processes. Businesses do not just need the power to know, they need the power to act.
Interested to take your business to the next level with big data predictive analysis technologies? Then every dollar will be worth to connect with CIGNEX Datamatics
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Category: Open SourceCompany about: CIGNEX Datamatics, a subsidiary of Datamatics Global Services Ltd., is a Silicon Valley based, global, pure-play, Open Source consulting company offering enterprise-grade solutions, platforms, products and services for Systems of Engagement and Insight. Since 2000, CIGNEX Datamatics has been Making Open Source Work® using open standards platforms and tools that integrate with existing systems to achieve unparalleled results and leveraging its Adopt-Open-Elevate ™ execution framework to mitigate ...