We all
know that organizations or business persons are always worried about the future
of their business and the competition they are going to face in future. So to
make all this easy there is a solution called predictive analytics which will
not solve the problem but definitely it will help you to worry less or to see
the future of your business.
What is Predictive Analytics?
Predictive Analytics is used to
predict the future of business on the basis of past performance. Predictive
analytics is the practice of using existing data sets to extract information
from it so that the information can be used to determine the patterns and to
predict future. It does not tell you what will happen in the future but it
forecasts what might happen in the future. The prediction has acceptable level
of reliability and it also tells about scenarios, risk assessment and
opportunities.
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Predictive analytics contains a
variety of statistical techniques like machine learning, modeling and data
mining which are used to analyze current and historical facts to make
predictions about future.
Predictive analytics is used in
marketing, actuarial science, financial services, insurance, retail, telecommunications,
pharmaceuticals, travel, healthcare, and many other fields. In business,
predictive models utilize the patterns found in historical and transactional
data to recognize risks and opportunities.
Applications:
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· Cross Sell
· Direct Marketing
· Clinical decision support systems
· Risk Management
· Customer Retention
· Fraud Detection
· Product or Economy level prediction
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Predictive Models and Analysis:
There something more to say
about Predictive Analytics. Predictive Models and analysis are mostly used to
forecast future probabilities. Predictive models are used to analyze current
data and historical data in order to understand better about customers, partners
and products and to identify potential risks and opportunities for a company expected
to face in future. It uses some techniques such as including data mining, machine
learning and statistical modeling to help analysts to make future business
forecasts.
Predictive analytics is the new
approach towards business intelligence technology that is helpful to produce a
predictive score for each customer or other organizational element. Predictive
model is responsible for assigning these predictive scores. In turn, Predictive
models are trained over your data, learning from the past experience of your
organization.
Market report published by top
research firm MarketsandMarkets forecasts that the global Predictive Analytics Market
expected to grow from $1.70 billion in 2013 to $5.24 billion in 2018 at a
Compound Annual Growth Rate (CAGR) of 25.2% from 2013 to 2018.
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