5 ways predictive analytics leads to strategic decisions

When your business has a solid foundation of data governance and descriptive data analytics, you can make a move towards diagnostic and later on towards predictive analytics. All of these fit into the data analytics spectrum in different capacities and aid your decision making in one way or the other. Laying down a predictive business analytics model is a difficult and iterative process. You need to be sitting on a lot of clean and organized data to put this in motion. A lot of companies seek help from data analytics facilitators and it works more often than not. Nevertheless, if you can handle this yourself and find and retain the resources to drive the iterations and modifications, that would be fantastic. Now, let us focus on prediction driven decision making.

Demand analysis for better inventory management

You have thousands of rows of sales data, organized beautifully by region, time, store location, and whatnot. You have the number of increased sales after each marketing drive and each discount offered. All this data can be used to create a predictive model which recognizes patterns in historical data and puts out a near accurate blueprint of the future numbers.

This can be used to identify probable peaks in demand for a certain product well in the future. Businesses can make crucial decisions in terms of inventory management in light of the predictions.

Customer analytics for enhanced marketing decisions

Let us say you spend $50 on a social media ad campaign focusing on middle aged men from a certain region. You will get a detailed description of its performance. You will know what has worked and what has not. Now, if you have had many instances of similar procedures you are bound to have a ton of data. This data can be used to predict the performance of a certain ad campaign for a region and for a demographic segment.

In fact, with the help of predictive business analytics you can extract more value from your customer segmentation efforts.

This helps you channelize your efforts in the best manner and through the best channels and saves you a significant amount of resources.

Predictive maintenance

Through predictive maintenance you would be able to pre-schedule maintenance for machines that are the most likely to break down. You can delay maintenance for machines that are not showing any possibilities of malfunctioning in near future.

This again takes a lot of anxiety off your plate and helps you run your supply chain and logistics smoothly.

Fraud detection and default prevention

This is a matter of survival for banks. They have been the forerunners in terms of using advanced analytics.

Similar predictive models can be used to identify fraudulent transactions. In fact predictive analytics can be used to prevent fraudulent transactions too by identifying certain patterns.

Predictive analytics in healthcare

Be it an MNC or a hospital, predictive business analytics aids decision making and enhances the processes significantly.

At Algoscale, we are helping businesses translate their data into meaningful and actionable insights. We serve different industry verticals by creating highly customized solutions that meet our client’s needs precisely. At the heart of every solution we provide, lies our team’s utmost dedication to deliver the right solution to our clients.

Data Science | Big-Data | Product Engineering @ Algoscale