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So here we would explore about the trending topic of predictive analytics, many of you just stumble upon this word on the various technology magazine or tech blogs, however some of you are oblivious of this term and think that it might be another term. Thus we decided to provide you with complete insight on predictive analytics in this article, further we will also dwell on the uses of the same in wide industries and take you to the future.
Predictive analytics is statistical approach to predict the future outcomes through existing data using various statistical and mathematical tools including linear regressions and multivariable regressions. Predictive analytics comes as a union of mathematics, statistics and behavioral psychology. These days we are able to find this term on tech blogs because the growing data has contributed to use machine-learning algorithms to curate the data and provide predicative insights to the intuitions and companies.
The modern day algorithmic computation has resulted in paradig in shift the field of predictive science, earlier getting particular insights from data were not that precise and a tedious job, although the introduction of new computation techniques has resulted in more accurate predictive outcomes. The power of statistics with computation has revolutionized the meaning of data analytics.
As we have understood the fundamentals of predicative analytics now its time to get to know the real uses of predictive modeling and how the large institutions are amalgamating different approaches with predicative models, one of the quintessential industry to use predictive analytics is Retail and the other is logistics i.e. the supply chain management.
In retail industry the data sets are humongous and to get real time predictive insights is a critical job to be, therefore retail industry’s biggest player has integrated predictive analytics with its point sale system (POS) to track their customer behaviour and the results are impeccable as now Wal-Mart is able to launch new products and target right audience, not only Point of Sale (POS) but Wal-Mart has integrated social media to get insights from 2.5 petabyte data per hour and has acquired a small startup based in Silicon Valley working in the field of Big Data and predicative analytics for retail customers.
The next industry using predictive science widely is Supply chain management (logistics) where the predictive analytics helps the organisations to make better decisions and increases the profit margins.
The hard fact is that only handful of big organisations are using predictive techniques to expand their business and many of the Medium scale enterprises are not aware that the data collected by them is just garbage when there is no proper analytics. More than 40% of the business people are not aware of the power of predictive intelligence and its positive impacts especially in the country like India where we have more than 1.25 billion people.
Hence conclusion would like to state that “Predicative Analytics” and “Big Data” are the buzzwords of today’s tech industry, However more than typical faddish fuzz, big data and predictive analytics carry the opportunity to change the business model design and day to day decision making that accompany emerging data analysis. This growing combination has deep implication in industries like retail, manufacturing, Hospitality and banking.