How Predictive Analytics Increases Business Confidence - dummies

How Predictive Analytics Increases Business Confidence

By Anasse Bari, Mohamed Chaouchi, Tommy Jung

Predictive analytics enables business to make smarter decisions, some of which take place in real time. It allows businesses to improve all aspects of decision-making — including confidence in decisions based on insights derived from the in-depth analysis of trusted information.

Predictive analytics helps your organization predict future events with confidence and make optimal decisions to improve business outcomes. It automatically gives your organization an edge over competitors who are still using guesswork to manage their operations.

Predictive analytics models can evaluate complex scenarios and make real-time decisions quickly — and more accurately — in anticipating your business needs. The more such results accumulate, the more you boost confidence in the model and its predictive capability.

Real-time systems that employ predictive models can now make trades on your behalf, offer or deny credits, detect intrusions and threats, flag fraudulent transactions, identify adverse events, and recommend the products most relevant to specific groups of consumers. Any and all such operations can become not only more accurate, but automatic.

The automation of this decision-making, backed by thorough testing and refined by feedback from operational deployment, allows for greater consistency of those decisions that require precision. The effect is to avoid the subjective analysis or emotional attachment that can often lead to biased decisions.

Deriving actionable information from the use of analytics promotes faster response to rapidly changing business environments and external conditions. This process empowers your business with the agility to better position itself, taking advantage of emergent business opportunities while managing risks and reducing costs.

Companies that adopt predictive analytics undergo a cultural change that affects every area of the business. Making more informed decisions provides them with the confidence necessary to adopt those decisions and develop better strategic plans. The larger result is that they become more efficient, increase their profitability, and position themselves to play a more competitive role in the marketplace.