Predictive Analytics For Dummies, 2nd Edition

Chapter 18

Ten Reasons to Implement Predictive Analytics

IN THIS CHAPTER

Highlighting business goals

Forecasting business needs and managing inventory

Allocating company assets and resources effectively

Making better and informed decisions

Exploiting new opportunities

Navigating hidden risks

Increasing returns on investment

Business competition is fierce and global, which leads companies to employ everything in their power to survive and thrive. In such an environment, companies are seeking to increase their revenues while keeping the operating cost to a minimum.

Predictive analytics is a business enabler that helps accomplish the very essence of increasing companies' return on investments. If implemented successfully, it will drive your company's profits higher. It will help you turn your data into valuable information you can capitalize on, and it will give you the competitive edge you need to outperform your competition.

Predictive analytics enables companies to use the massive data they've accumulated from their operations as a refined resource to advance their businesses.

Identifying Business Goals

Predictive analytics can help you solve many business problems more effectively, but the crucial step toward that advantage is to identify specific business goals so you can choose the appropriate analytical tools to achieve them.

The process is twofold: The business goals you define help you build your predictive analytics project, and the completed model helps you measure ...