Trends
7 reasons why predictive analytics is important
Predictive models use known results to develop or train a model that can be used to predict values for different or new data.
Headline
Predictive models use known results to develop or train a model that can be used to predict values for different or new data.
Context
Predictive analytics is the use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data. The goal is to go beyond knowing what has happened to providing a best assessment of what will happen in the future. Predictive analytics can help businesses make stronger, more informed decisions. It can help identify patterns and trends within data that enable different business functions to make a probabilistic determination about future events.
Evidence
Pending intelligence enrichment.
Analysis
Combining multiple analytics methods can improve pattern detection, identify criminal behavior and prevent fraud. As cybersecurity becomes a growing concern, high-performance behavioral analytics examines all actions on a network in real time to spot abnormalities that may indicate fraud, zero-day vulnerabilities and advanced persistent threats. Predictive analytics are used to determine customer responses or purchases, as well as promote cross-sell opportunities. Predictive models help businesses attract, retain and grow their most profitable customers. Also read: The crystal ball of the digital age: Predictive analytics Many companies use predictive models to forecast inventory and manage resources. Airlines use predictive analytics to set ticket prices. Hotels try to predict the number of guests for any given night to maximize occupancy and increase revenue. Predictive analytics enables organizations to function more efficiently.
Key Points
- As interactive and easy-to-use software becomes more common, more and more organizations are turning to predictive analytics to increase their bottom line and competitive advantage.
- Predictive models use known results to develop or train a model that can be used to predict values for different or new data.
Actions
Pending intelligence enrichment.
