Glossary What is Predictive Analytics?
By null / 1 Jan 2023 / Topics: Analytics Data and AI
Predictive analytics is the process of using data to make predictions about future outcomes. Using historical data trends and statistical algortithms, predictive analytics models identify patterns and determine relationships to extract insights that can be used to forecast the likelihood of identified outcomes. By leveraging sophisticated predictive analytics tools and models, organizations can draw conclusions to improve decision-making, enhance operational efficiency and reduce risk.
For example, predictive analytics is often used to detect fraud, optimize marketing campaigns, improve operations and identify risks. New business opportunities can be discovered, and organizations can become more responsive to business needs too when using predictive analytics.
Likewise, healthcare organizations can use predictive analytics to transform data from electronic health records, administrative paperwork and insurance claims into more effective clinical decisions. With highly accurate and accessible data at their fingertips, clinicians can personalize treatment, make quicker and more accurate diagnoses, and develop new treatments — enhancing the overall care experience for patients.
Retailers can employ predictive analytics solutions to optimize store and customer experiences. Using historical sales data, retailers can accurately predict inventory needs, map customer journeys and estimate future sales to evolve with the market and boost ROI.
The growth of machine learning, cloud-based technology and big data have been instrumental in supporting predictive analytics capabilities. Now, businesses can collect, store and assess information quickly and effectively when compared with legacy data processes and storage techniques.
