A recent survey conducted by research firm Gartner is alarming for businesses. According to Gartner, at present many organisations are infested with poor analytic efforts. Gartnerâ€™s Data-Driven Marketing Survey 2013 further states: â€œReports go unused or are misinterpreted, and the market for data-driven personalization tools is still small.â€ This suggests that very few organisations have beefed up efforts to integrate business analytics and its relevant tools to face the challenges in the industry. By deploying analytics tools, businesses can improve production, cut down labour costs and bring efficiency to the entire process. Today, organisations are in dire need of marketing leaders, who can bring analytics culture to the organisation and solve business problems effectively.
Traditional Analytics vs. Predictive Analytics
Let’s face it. We live in the age of information and technology, where data plays the most important role. Storing data helps an organisation raise its bar and implement effective strategies to its existing model. Comprehending the need of tools for analytical purposes, companies started using BI (Business Intelligence), applications that convert raw data into useful information, in order to beef up decision making, reduce production costs and grab new business opportunities.
Analytical tools are a great resource to find and analyse an organisation’s past and present data. But, today organisations need to know more about their future rather than dwelling in the past trends. Traditional analytical tools are only good for storing and analysing historical data. They are only capable of making an organisation understand what worked for them and what didn’t work in the past. But, what organisations basically need to do is analyse and predict the future of their business and its prospects. This is where developing predictive analysis for business helps.
Predictive analytics is a branch of data mining. We will come to this part later. But understand this – this particular analytics tool holds the future of businesses when it comes to preparing for the future. In fact, predictive analytics bind business knowledge and statistical analytical techniques. This in turn helps organisations to extract data-driven insights, which helps to determine consumer/seller behaviour.
There’s this variable called predicator that helps to determine future behaviour of an individual/group. Predicators are generally reliable and can be used effectively by businesses to forecast future behaviour. Predictive models can also help organisations to implement strategies, which market to explore, beef up security process and find business opportunities.
Data Mining and Predictive Analytics: Formulating the future of your business
Many people have the notion that data mining and data extraction are same. But, this is not true. Data mining is something more than data extraction. Also known as knowledge-discovery, data mining is a technology, which can be used to search, analyse data and convert them into useful information for the overall benefit of the company. The process is somewhat based on computational techniques used in statistics.
Predictive analytics is a part of data mining. To make it more clear, a predictive analytical model is developed by data mining tools. One can relate data mining with several domains including artificial intelligence, data visualisation, pattern recognition, etc. Both, predictive analytics and data mining are co-related and works in hand to determine the future of businesses.
In a nutshell, using analytics tools are essential to understand the performance of an organisation. But, business analysts should be well-versed with the new tools so that they can implement measures to tackle future challenges.
Is your organisation taking enough efforts to analyse where your business stands?Category : Business