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Predictive Analytics has been in use since years and day by day it is improving, improvement in the sense of better algorithms and also in terms of design of software. This technology is being used in companies and some government departments. The reasons for the growth of predictive analytics in business are as follows:
Data not only depicts records but also more important things. It can be taken as a very precious source of business intelligence. There is an increasing and wide range of both internal and external data sources. Business procedures can be enhanced with the help of all these factors and the analytical technology. Due to advances in technology a shift in intelligence has occurred, i.e. an improvement have taken place in technology, such advances was possible due to the use of predictive analytics in business. We define predictive analytics as a statistical tool and technology that take into account historic and current data for prediction of probable future behavior. In addition to that predictive analytics helps in business to make out business problems, and vital business value is generated by formulating strategy. This also assists in competition with other companies. Companies understanding the worth of data will think it as an asset which is need of protection ,and also approaches are developed to make the data secure. The basic questions like why will a company use predictive analytics and the ability of the company to be successful should be answered first before the applying predictive analytics. Predictive Analytics thus helps in making business benefits and also risks can be eliminated.
Established Business Value
Predictive Analytic's concept is amazing and at the same time overwhelming. To answer that how to predict that what will each customer do I the next month sounds troublesome . But is it really an impossible thing to answer. And if it is possible ,does it help in business matters. The explanation is as follows: For achieving great value of business predictions do not needs to be so accurate. Predictive analytics makes it way to discover the valuable segments. One may think that only computer can uncover the mysterious optimal segment. However core predictive analytics performs such task by taking into consideration historical data. Predictive analytics is being used in almost all companies where operational decisions are automated -online and offline in marketing ,etc. One needs to answer which business application of predictive analytics is the best , and this depends on the chosen decision for automation purpose.
Due to economic crisis the profit of the industries is not up to the mark. With the advent of new economy companies needs to be competitive and should perform well. To achieve all these predictive analytics should be employed and ,so the growth of predictive analytics. The vast data that are generated by the industries is understood ,managed ,navigated, gathered with the help of predictive analytics tools. Both business understand and analytical skills are considered in predictive analytics.
A unifying information strategy should be implemented by the company and analytical methods should be applied such that it fulfills both organizational and individual motivation. But if there occurs resistance at the stage of implementation this become impossible to achieve the goals.
Industry Investment and Acquisition
For the customers to become profitable SPSS helps a lot . SPSS focuses on programs relating to marketing. The acquisition costs can be minimized before investment by a company with the help of prediction of the highest response marketing program.
It is with the help of industry events that we can know whether a company is becoming more popular due to predictive analytics. We will find predictive analytics very useful if we look into increasing brand names of a company, success stories in the industry events.