7 projects primed for predictive analytics

The advanced techniques of predictive analytics are becoming widely available, bringing forecasting power within reach of almost any business. Here are key areas where predictive analytics can have an impact.

7 projects primed for predictive analytics
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Predictive analytics isn’t just for oil and gas exploration anymore. The power of predictive analytics is being injected into a wide range of revenue-focused initiatives across all industries.

In 2018, a third of businesses in the EIU’s Intelligent Economies study said predictive analytics was already the most frequently used AI technology in their organization. Almost two thirds of the CIOs in Capgemini’s most recent World Quality Report said they’d be focusing on predictive analytics in 2019, but what differentiates predictive analytics and where can you get value from it in your organization?

Predictive analytics differs from business intelligence primarily in perspective: whether you’re looking forward or backwards with data. With BI, the emphasis is on reporting and visualization — slicing historical data to understand what has happened. But with predictive analytics, “you’re no longer talking about descriptive analytics and you're mostly focused on building a model for predictions,” says Kjell Carlsson, a senior analyst at Forrester.

Many of those algorithms are also used for machine learning, and Carlsson views predictive analytics and machine learning technologies as complementary. But predictive analytics doesn’t have to be complex. Salesforce Einstein Discovery and the insights feature in Microsoft’s Power BI both use regression analysis, but because they can work on massive data sets, they can find insights that would be too tedious for business users to discover on their own.

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