Being a part of vast business analytics, only predictive analytics has the ability to provide you with the answers for any upcoming scenarios. Here historical data inclusive of specified rules, algorithms and external data feed concludes the possible future result of any event or state of affairs. Predictive Analytics Consulting is broadly utilized in manufacturing, commerce, healthcare, law enforcement and government projects.

Why is Predictive Analytics (PA) Important for Modern Businesses?

Data is growing drastically with an estimated speed of 2.5 quintillion bytes per day. This data can be in any form, images, text, audio, video and any other source. With this ton of data, this rich source of data makes it easy to predict customer behavior, any emergency, threats, fraud detections, etc. Although only 1% of the data is being utilized for analysis, in the upcoming years, the market of predictive analytics will reach up to 6.5 billion dollars. So, companies can strategically endow themselves and should take benefit of upcoming opportunities or diminish future risks by using Predictive Analytics as an operational tool.

Have you ever heard of these popular application areas of Predictive Analytics?

·         Predicting mouse clicks on a website (To find where or on which link on a website a customer is expected to click)

·         Hollywood studios utilize Predictive Analytics to forecast the success of a screenplay if released.

Understanding the Concept of in Predictive Analytics

Here, you will find a complete overview of Predictive Analytics, including the partial crawls, issues in training models, algorithms and crowdsourcing. 

Predictive Analytics makes use of artificial intelligence, machine learning, statistics and data mining to examine and process the historical data, find related patterns, collect details from it and then develop a model to predict future performance and results. The model is a mathematical representation of the actual live process in Predictive analytics. After training the model, the model get’s ready to make future predictions on unobserved data.

The Importance of Ethics in Predictive Analysis

For predictive analytics, with the power of forecasting, it also comes the responsibility to provide feasible results. Companies that use predictive analytics in their businesses have to collect very sensitive and private information of their customers to make future predictions and to understand the pattern of customer behavior. They track and capture the online actions of users and take benefit from that information. 

Some companies only work to collect and sell sensitive data of online users to third party people, which put the privacy of individuals at risk. To avoid a data breach, nowadays, most countries have imparted several rules and regulations about the how personal data can be used in Predictive Analytics.  These rules prevent predictions based on color, age, disability, society, family status, gender identity, military status, religion or belief, sex, national origin, sexual orientation, labor union membership, or any other unsuitable factor. Companies cannot discriminate according to these factors to forecast something. There are auditors and other legal personnel who are particularly appointed to make sure that data collected and used is as per moral standards.

Summing Up

Predictive Analytics is fundamentally the process of automating systematic sighting.It is typically used to resolve several real-time problems. Therefore, it becomes crucial that the Predictive Analytics teams are well aware of and can identify and understand the business problems that need a solution. Then the required business objective has to be converted into the model objective.

It is the responsibility of the Domain Expert to clarify and describe the business problems or objectives to the team to collectively work on converting the business objective into the model objective.

Predictive Analytics is a gem in the business industry if it is utilized correctly with real-time information under the projected rules and regulations. If you want to leverage this amazing feature in your business, you can discuss your project with ExistBI's Predictive Analytics Consulting team today. ExistBI has offices in the United States, United Kingdom and Europe.