Success in business tends to require a good understanding of numbers and this has only become more important in the age of big data. New technologies have made it possible for us to collect vast amounts of information but the real benefit comes from what it’s used for. Predictive analytics is described as “the use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data” where the end goal is not only to understand what has happened but to provide a best assessment of what is going to happen in the future. This is done by leveraging science and analytical trends to create algorithms and formulas, which are fed market insights, economic data and other relevant data and trends to produce accurate predictions useful for decision making and planning.
Why the use of predictive analytics is growing
Organizations are using predictive analytics more and more to help overcome difficult challenges and make new opportunities possible. Common uses include detecting fraud, optimizing marketing campaigns, reducing risk and improving operations. By identifying patterns and preparing for the likelihood of events to come, companies can run their day-to-day operations much more smoothly. Predictive analytics are becoming more frequently used across all business functions, in different ways, to help anticipate events, avoid risks and create new solutions. Given each of these benefits can have significant impacts on bottom lines, it’s not surprising that the Global Predictive Analytics Market size was valued at 6 billion euros in 2019 and is projected to reach 29 billion euros by 2027.