10 Ways Predictive Analytics Improves Innovation - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Data Management // Big Data Analytics
News
3/12/2016
12:06 PM
Lisa Morgan
Lisa Morgan
Slideshows
Connect Directly
Twitter
RSS
E-Mail
100%
0%

10 Ways Predictive Analytics Improves Innovation

From drug discovery to price optimization, across virtually every industry, more companies are using predictive analytics to increase revenue, reduce costs, and modernize the way they do business. Here are some examples.
Previous
1 of 11
Next

(Image: miradeshazer via Pixabay)

(Image: miradeshazer via Pixabay)

Predictive analytics is gaining momentum in virtually every industry. Using predictive analytics, businesses are able to approach opportunities, risks, business partners, and customers differently because they have foresight they lacked previously.

"Historical data can only show you so much," said Arvid Tchivzhel, director of revenue and pricing strategy at consulting firm Mather Economics. "If you're always looking at your historical revenue-to-date data, you're not really seeing where your future customers will be coming from and how much value they'll deliver to you in the long term."

Assuming there is a perfect storm of clean data, adequate data, and the expertise necessary to understand what the data is saying and apply that to a business problem, organizations are doing everything from increasing top-line revenue by a couple of percentage points to reimaging profitable customer relationships. Some are inventing entirely new business models.

Learn to integrate the cloud into legacy systems and new initiatives. Attend the Cloud Connect Track at Interop Las Vegas, May 2-6. Register now!

 

"When you're talking about corporate strategy, what types of new policies we're going to put in place, and what kinds of new projects we're going to pursue, predictive analytics can help you decide which ones will be impactful," said Ryan McClurkin, chief of business analytics and marketing at handcrafted photo product company PhotoBarn. "Predictive analytics gives you much more insight into what's driving the revenue engine of your business than just about any other tool."

For example, airlines are using predictive analytics to improve profitability and provide customers with better traveling experiences. Using their own data and third-party data, they are able to understand seat-assignment and legroom preferences, how often their customers fly, and how price sensitive they are, as well as what customers are doing at the airport.

Predictive analytics helps them understand "value" from the customer's point of view -- specifically, the mix of convenience and price that will most likely appeal to an individual, according to Lalit Dhingra, president, US, NIIT Technologies.

"The industry is moving from insight to foresight -- knowing what's happening to knowing what may happen or what will happen," said Dhingra. "Predictive analytics can make a good company great and a great company can excel even further."

Here are a few ways predictive analytics is transforming the way companies do business.

 

Lisa Morgan is a freelance writer who covers big data and BI for InformationWeek. She has contributed articles, reports, and other types of content to various publications and sites ranging from SD Times to the Economist Intelligent Unit. Frequent areas of coverage include ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Previous
1 of 11
Next
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll