With data becoming the backbone of business decisions, predictive analytics isn’t restricted to mathematicians and statisticians any longer. Business analysts in almost every large company is utilising predictive analytics to increase their competitive advantage.
Why is predictive analytics becoming popular now? Well, tougher market conditions and the need for competitive differentiation is prompting businesses to reach out for more sophisticated business tools. In addition, faster and cheaper computers and software make it easier to design predictive data analytical tools for a business.
There is an immense value of data analytics courses in understanding the modern outcomes of predictive data analytics in the business space. You can read ahead to get a taste of how data analytics is transforming the business industry.
- Fraud detection in the cybersecurity industry: As cybersecurity breaches become a growing concern in the business community, predictive analytics can be used to evaluate all online business transactions to spot abnormalities. Cybersecurity professionals also combine different data analytics methods to improve pattern detection and neutralise frauds and persistent threats.
- Optimization of marketing campaigns: Predictive analytics has proved to be a boon for marketing agencies across the world. The data analytics techniques are helping marketing teams attract, retain and grow a profitable customer base. The technology is used for predicting the customers’ reactions to new products, thereby improving branding techniques and cross-selling opportunities.
- Risk reduction and management in the banking industry: The credit score you receive when you take a loan or make credit card purchases, is an excellent real-life example of predictive analytics in the banking industry. Your credit score is generated through predictive modelling and determines your likelihood of defaulting on any credit. Other applications of predictive analytics in the banking industry include calculations of insurance claims and collections.
- Improvement of operational efficiency: Operations management is increasingly adopting predictive analytics to manage available resources and forecast inventory issues. Not just that, the data analytics techniques help businesses operate more efficiently. Airlines are using the technology to fix ticket process while hotels use it to predict the occupancy rate on any given night.
- Census planning by Governments: Governments across the world are key users of predictive analytics. They use predictive analytics to understand population trends and census data. Some governments also use the technology to understand the implication of new government policies.
- Insurance pricing in the healthcare industry: The health insurance industry is one of the biggest users of predictive analytics. They use it for identifying the most at-risk patients, detect claims frauds and set prices for insurance policies.
Apart from these applications, you can find the use of predictive analytics in retail manufacturing. Here, the technology is used to understand and predict the type and frequency of warranty claims.
Predictive analytics is likely to become the basis of all business decision-making processes in the future. Hence, you should have a comprehensive understanding of this technology as a business career aspirant. Invest in a suitable data analytics programme today to start your career as a business analyst.