In today’s hyper-competitive world, to remain a forerunner, staying a step ahead of your competition is a top priority. What if we told you that companies today are taking this extremely literally with the ability to predict the future! Sounds crazy, but you heard us correctly; companies are going back to the future to help drive business, make predictions, solve problems and unveil a world of new opportunities with “predictive analysis” tools. Predictive analysis consists of a complex combination of data, algorithms and machine learning techniques. Sounds like a lot, but we’re going to break down the basics and let you in on the diverse ways these analytics benefit industries of all types.
The main goal of predictive analysis is to generate future outcomes based on historical data that has been collected. The past data that has been gathered is then used to develop or “train” a model, giving users the most accurate insights into any and all business activities. Although the process of collecting old data to generate new data sounds simple, it’s much more complex and requires a specific process.
The first and most important part of getting started with predictive analysis is defining the problem your organization needs to solve. Without a distinct problem, you can’t provide an accurate solution. Decide what it is your organization wants to predict, and what will help decisions to become beneficial actions.
Next comes data, and lots of it! Many organizations today don’t have all their data in one central location. It’s coming in from third-party tools and different systems… it’s all over the place! This being said, you’re also going to need someone who is qualified and understands how to pull disparate data together to further sort and prepare it for complex analysis. Once your data is properly situated, it’s time to put those models to work and jump back to the future!
From finance to law enforcement, and even aerospace, companies everywhere are engaging with predictive analysis. At Vantage Agora, we use our own predictive analysis to best serve our clients, especially in the Insurance industry. Our predictive models find the accounts that Underwriters need to work on based on the effective data of the account. The technology is also very helpful when it comes to approximating the rate of future claims based on previous risk.
The advanced technology continuously improves pattern detection, reduces risk and increases revenue in all sectors. Let’s look at some other specific industry use cases to give you a clearer understanding of the impact this technology serves:
If we look at hospitality (hotels, restaurants, resorts) predictive analysis can be used to generate an estimate on the number of guests expected to arrive on any given night. If they’re prepared, chances are they can better serve their guests and give them a spectacular experience so that they’ll leave with rave reviews. Looking at manufacturing companies, the predictive models serve to identify pertinent factors that ensure proper optimization of parts, resources and distribution. The technology also serves to play a large role in detecting criminal behavior by identifying neighborhoods requiring additional protection during certain days and/or times.
As you can see, predictive analysis isn’t just for the tech industry. It is beneficial in any industry as it provides insights with precision, that are sure to inspire. If you can predict it, you can plan for it.