Enabling predictive strategies

Ensure that the actions you take today will directly achieve your organization’s goals tomorrow. Simply put, that’s the way a Predictive Enterprise operates—and that’s what gives it a competitive advantage in the marketplace.

 
Predictive analytics includes both advanced analytics and decision optimization

Meet your organization’s objectives by gaining consistent control over ad hoc decisions using predictive analytics

At any given moment within your organization, hundreds, perhaps even thousands of critical decisions are being made. Decisions that will affect your organization’s ability to generate revenue, control expenses, and manage risk. Decisions that will directly affect your bottom-line.

How does your organization make these decisions today?

Increase your likelihood of success—make more decisions data-driven

Increasingly, organizations in virtually every industry around the globe are realizing the benefits of using data to align their current actions with their future objectives. By incorporating predictive analytics into their daily operations, these organizations have gained control over the decisions they make every day, so that they can successfully meet their business goals.

How are they doing this? They’re using advanced analytics to analyze their data, combining information on past circumstances, present events, and projected future actions. They’re capitalizing on a combination of attitudinal and behavioral information, and on both structured and unstructured data, to ensure that they have a complete view of their customers, employees, patients, students, or citizens. Then they’re using the insight that they gain from this analysis to direct, optimize, and automate their decision making. Essentially, they’re becoming Predictive Enterprises.

The result is successful achievement of specific organizational goals, whether they are associated with an increase in cross-sell revenue generation, a decrease in marketing costs, a reduction in fraudulent behavior, or an increase in promotional campaign response rates.

Learn how other organizations are applying predictive analytics to meet specific business goals:

• A insurance company decreases direct mailing costs and increases conversion rates using APA technology
• One of Japan's top online computer retailers increased page saw profits rise, after installing a recommendation engine based on APA technology
• A law enforcement agency (police department) uses PA technology to fight crime and increase public safety
• A leading financial institution uses an PA solution to identify key behaviors of customers who are likely to leave the bank so that steps can be taken to retain them
• A major telecommunications services company uses APA technology as the foundation for its comprehensive fraud management solution for the telecommunications industry

Discover the bottom-line benefits of becoming a Predictive Enterprise through the use of predictive analytics.

What Does Predictive Analytics Do For My Organization?

Predictive analytics informs and directs decision making by applying a combination of advanced analytics and decision optimization to an organization’s enterprise data, with the objective of improving business processes to meet specific organization goals.

Predictive analytics offers numerous advantages for organizations that recognize the inherent value locked within their existing enterprise data. Strategically, predictive analytics provides a quantitative foundation for rapidly identifying, objectively evaluating, and confidently pursuing new market opportunities. Tactically, predictive analytics identifies precisely whom to target, how to reach them, when to make contact, and what messages should be communicated.

Organizations that incorporate predictive analytics into their daily operations in this way improve their business processes, enhancing decision making and gaining the ability to direct, optimize, and automate decisions, on demand, to meet defined business goals. Through predictive analytics, they not only better manage the present, but also increase the probability of future success. In doing so, they become Predictive Enterprises.

Predictive analytics connects data to effective action by drawing reliable conclusions about current conditions and future events.

How Does Predictive Analytics Work?

To direct, optimize, and automate decisions to improve business processes, the Predictive Enterprise employs predictive analytics. Predictive analytics includes both:

• Analysis of past, present, and projected future outcomes using advanced analytics
• Decision optimization for determining which actions will drive the optimal outcomes, and then delivering those recommended actions to the systems or people that can effectively implement them

 Advanced analytics are used to examine the way in which specific business issues relate to data on past, present, and projected future actions. Advanced analytics include statistical, mathematical, and other algorithmic techniques such as those in the diagram above, and are more complex than the basic analytics used to compute frequencies, cross-tabs, and query and reporting cubes.

From this advanced analysis results insight that is used to determine which actions will drive the optimal outcomes. Recommended actions, along with supporting information, are delivered to the systems or people that can effectively implement them. For a detailed view of predictive analytics at work, please see the diagram below.