Predictive analytics must be done well to make an impact
Today, many businesses are using big data analytics to improve their bottom lines and better reach their customer bases. With the help of these tools, organizations can effectively mine the stores of information they already have from a variety of interactions, allowing them to use new insights about consumer behavior and other factors to improve their products and services. However, these solutions aren't the only ones companies should consider leveraging. Predictive analytics can also give enterprises an edge on competitors when used effectively with the help of database experts.
According to Joe DeCosmo, an analytics expert, there are three main requirements businesses must keep in mind when using predictive analytics to ensure that these solutions produce usable results. DeCosmo advised that first, it's critical that companies develop predictive models that are reliable: If analysts can't be sure that the accurate insights are being generated, they won't be able to make the truly educated decisions based on the analytics.
Additionally, the process and the results should be repeatable, DeCosmo said. He noted that poorly built models are often highly susceptible to being thrown off by small changes, meaning that future applications won't produce information that can be effectively used. And finally, predictive analytics must be relatable: DeCosmo explained that the insights gleaned must be explainable in business, and not just statistical, terms. This way, leaders actually create compelling cases for why the firm should incorporate their new knowledge into future efforts.
Computerworld noted that there are several primary benefits of using predictive analytics in addition to other big data solutions. The source reported that James Taylor, CEO of Decision Management Solutions, said in a keynote address at Computerworld's 2011 BI & Analytics Perspectives conference that predictive analytics can be leveraged to minimize risk, identity fraud, and discover and pursue new potential revenue opportunities. By not simply analyzing data to see what has been happening, but to estimate what could happen, companies may be able to boost security and bottom lines through smarter decision-making.
With the assistance of database experts, any organization and use predictive analytics to achieve stronger financial results, boost information and customer safety, and more.
RDX's business intelligence and big data experts assist customers in leveraging data contained in large data stores. For more information, please visit our Business Intelligence and Predictive Analytics pages or contact us.