Basic Guide for understanding Predictive Analytics

By POOJA BISHT |Email | Mar 26, 2019 | 2907 Views

In this article, we will try to explore a type of analysis which is very important for any business to grow and reshape its future. Indeed it is reshaping the future by already predicting what could go wrong and what are those key decision needed to take to create a secure and profitable future. It is Predictive Analytics and we are going to dig a bit deeper into this analysis. 
The three main questions that the article will be revolving around are
  • What is Predictive Analytics?
  • What are the Benefits of Predictive Analytics?
  • Which are the sectors using Predictive Analytics?

  • What is Predictive Analytics?
The way of predicting the future event in businesses by analyzing the past and current data patterns is called Predictive Analytics. Predictive analysis is used by most of the businesses to predict future successes or future failures so that the organization could move accordingly. Like if by Predictive analysis the business is forecasted to see a major failure than accordingly the organization could avoid those steps that are actually leading to those failures or if the business is forecasted to rise to a tremendous success by Predictive analysis than the business could actually analyze those important steps that are behind those successes and try to implement them for the success of the business.

  • What are the Benefits of Predictive Analytics?

Increases Revenue for Businesses
Predictive Analytics finds its usage in the way that the future can be predicted with the best likely outcomes. Obviously, it is going to add revenue to the company by already predicting the necessary and fruitful steps required to be taken to achieve success for the company.

Detects Fraud and reduces Risks
Fraud detection, especially in the Financial sector, is the remarkable benefit of using Predictive analytics where it has become possible for the company to look at the past history of the potential customers to help them know of the risks involved while giving them a loan. This is mainly helpful in the Banking and Financial sector.

Improved Decision Making
Good and improved decisions which would prove successful and profitable to the business are taken by the key decision makers by analyzing the future predicted outcomes.

Predictive Analytics finds its wide use among various sectors. Let us have a look at some

  • Predictive Analytics is used in Banking and Financial Services in respect of the fraud detection for loan or credit. This helps the Bank and Financial sector to get rid of the major risks involved while giving loans or credit to fraud customer who does not repay back.
  • In Manufacturing Sector Quality is the main factor that is kept at the top priority list. With the help of Predictive Analytics, it has become possible to know the factors behind major quality issues that are hampering the growth of the company thereby providing company the clear list of the quality factors needed to keep attention on. 
  • Healthcare sector uses Predictive Analysis to predict and identify patients who are at high risks of any long term disease.  

Source: HOB