Predictive Analytics Predictive analytics is the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends. It is the application of statistical analysis to business issues to improve operations and effectiveness. Predictive analytics does not tell what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability, and includes what-if scenarios and risk assessment. Predictive models and analysis are typically used to forecast future probabilities.
Applied to business, predictive models are used to analyze current data and historical facts in order to better understand customers, products and partners and to identify potential risks and opportunities for a company. It uses a number of techniques, including data mining, statistical modeling and machine learning to help analysts make future business forecasts. As technology has advanced, it has become expected that systems will provide actual intelligent data that can be used to drive business decisions and strategy, not Just numbers.
This has shifted the expectation away from only viewing your finances within an ERP system to being able to dive deep into your customer characteristics, their satisfaction levels, your product data, production data and more. The evolution of predictive analytics has given a new way for exploring new frontiers In analytics- driven automation and decision management In a high volume of data, front-line operational decisions. Thanks to enterprise resource planning (ERP) systems moving to the cloud; data is now far more accessible.
By overcoming the obstacles of silos and uncommunicative applications, the cloud Is helping organizations to reach a heightened level of collaboration. This trend toward collaboration Is extremely prevalent in business planning for companies that have an eye on the future. As ERP Is moving to the cloud along with predictive business planning, distributors that implement cloud ERP are going to find that predictive analytics Is the logical next step In Improving the performance and efficiency of their operations.
The article, “Analytics Playing Greater Role In ERR’, talks about how more ERP vendors are including analytics as a standard feature so that companies are less Inclined to use third-party business Intelligence tools. CGI helps governments and commercial organizations better manage their data and achieve more predictable outcomes using data analytics. In this video, CGI experts discuss the power of predictive analytics, and how they have Improved outcomes for our clients In the health, government and transportation sectors.