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Predictive Analytics
Predictive analytics uses data, statistics, algorithms, and machine learning to predict future outcomes based on historical data. Predictive analytics is defined by four factors: a focus on prediction, a quick analysis measured in hours or days, a focus on the accuracy of the predictions, and a focus on how easy the analysis is to understand. In other words, predictive analytics has to quickly and easily predict realistic future outcomes based only on past data.
What Small and Midsize Businesses Need to Know About Predictive Analytics
For a small to midsize business (SMB), predictive analytics is key to reducing risk by understanding the past so action can be applied in the future. Through data analysis, studying, and forecasting, predictive analytics can help SMBs understand trends in sales, for example. Analysis will reveal what markets were successful and will help predict what future areas to focus on or expand to. Predictive analytics can also help optimize operations by analyzing turnover and increasing annual revenue through expense analysis.
Related terms
- Business Intelligence (BI) Services
- Metadata
- Autonomous Vehicles
- Advanced Technology
- Big Data
- Business Analytics
- Digital Disruption
- Enterprise Application Software
- Clickstream Analysis
- Artificial Intelligence (AI)
- Computer-brain Interface
- Data Mining
- Master Data Management (MDM)
- Analytics and Business Intelligence (ABI)
- Real-time Analytics
- Predictive Analytics
- Data And Analytics
- Business Intelligence (BI) Platforms
- Data Broker
- Information Delivery
