One of the valuable services we provide is predictive analytics, which is the use of data, statistics, algorithms, and machine learning techniques to determine the likelihood of future events. Data analytics has many important benefits for companies of all types and sizes, and as technologies have advanced, more and more companies have had access to the benefits it provides. At Align BI, we make the process simple, effective, and user-friendly, so it has never been easier to access the benefits that data analytics can bring.
What Is Predictive Analytics & How Does It Work?
Predictive analytics is the process of using past data to predict what may happen in the future. Software that performs predictive analytics follow a process similar to this one to make predictions:
Step 1: Define the desired purpose.
Data analytics can be used for a variety of purposes, so the first step is to determine what it will be used for. A few of the difficult problems that data analytics can solve include:
- Detecting fraud and improving cybersecurity.
- Optimizing marketing campaigns.
- Improving operations by forecasting inventory and managing resources.
- Reducing risks by providing an accurate guess of the effects different choices will have in the future.
Step 2: Collecting and Prepping the Data.
Typically the most time consuming part, our data engineers are experts are pulling the data from various systems and preparing it for use by the machine learning algorithms. In addition, we’ve also been involved in several projects to add machine learning tables into an architected data warehouse.
Step 3: Using machine learning algorithms to predict future events.
After the data has been collected and prepped, various machine learning models are tested and the most accurate one is selected.
Step 4: Deploying and Improving the Model.
After the software has made its predictions, it then tracks what actually happens and compares those results with its predictions. During this process, machine learning is used to make more accurate predictions in the future, streamlining the process and improving its performance.
Why Is Predictive Analytics Important?
Predictive analytics allows organizations to make more informed decisions about the future. This allows them to minimize risk, avoid potential loss, and be more efficient. It also allows them to simplify otherwise tricky and complicated tasks, such as measuring credit risk, determining how much of an item to stock, and mitigating safety and reliability risks, among other things.
The Diverse Applications of Predictive Analytics
Predictive analytics has been shown to help companies in a wide range of industries. Every company can benefit from making more informed decisions, which is why more and more companies are using predictive analytics software. Data analytics has been shown to be helpful in the following industries:
- Banking and other financial services
- Retail and restaurant chains
- Oil, gas, and other utilities
- Government operations
- Insurance and healthcare
- And more
LEARN MORE BY CALLING (801) 900-4698 TODAY!
If you would like to learn more about the data analytics process and how it can benefit your company, contact us today. One of our experienced professionals will be happy to walk you through the process of how data analytics works and the benefits it can bring to you.