Predictive Analytics- A Common Practice in Companies
In simple terms predictive analytics is gathering the historical and current data and then using it for the future. Predictive analytics is helping organizations to increase efficiency, save costs and to reduce uncertainty.
One such example is that of General Electric. Recently GE Aviation developed a new technology which can predict maintenance issues. This technology predicts an incipient failure before it actually manifests. For instance it was able to show 16 days earlier that an aircraft system was moving away from the normal, and pinpointed it to a faulty valve.
Another company TiVo is using predictive analytics to investigate the impact of social TV on increase in sales. They are analysing sales response within 24 hours, volume, sentiment analysis and long term effect on sales. Their model identifies the patterns and places a value on social TV on sales.
Analysis of the data gives both a snapshot of the present and forecasts for the future. Sometimes these forecasts include new questions and accompanying methodologies. The resulting snapshots and forecasts are not only more accurate than standard methods, but also increase efficiency and are more cost effective.
Another example is McDonald’s. They are applying predictive analytics to increase collaboration and enhance customer experience. For instance in the past they have applied analytics to pin point where the error is occurring in the drive through orders and then they employed new order-taking procedures and upgraded audio equipment. Now they are working on an another project, where, by using the store’s external cameras they are analysing car traffic patterns, which can later be used to optimize the design of drive-through lanes and windows.
ConAgra Food is using predictive analytics in human resources to improve their hire rate on successful candidates, identify high performing leaders, or predict and respond to potential employee resignations.
The big data and its analytics is also used in modern agriculture. One example is the company Monsanto. They are using predictive analytics to help farmers improve productivity, reduce the costs of farming, and grow better foods for consumers and better feed for animals. Their newest product platform, Integrated Farming Systems, uses predictive analytics: it’s designed to provide farmers with a valuable new approach to boost on-farm productivity while also supporting more sustainable agricultural systems for increasing world population.
In recent years, all major consumer Web companies like Amazon, EBay, Facebook, Google, and LinkedIn use predictive analytics to gain insights about everything from customer reactions to features and products.
Indeed Predictive analytics does have a broad application across varied business functions and issues. We can only look forward to more and more companies across a broad spectrum of industries enhancing their use of such analytics in the future.