Predictive Analytics primers

Here are a couple of youtube videos that will give you an overview of predictive analytics (as I understand them anyway).

IBM SPSS Predictive Analytics for ISVs

Business Intelligence and Business Analytics Defined

The take away is that we are reaching a new level of business intelligence in data use. From the lowest level to the highest level, we have:

• level 1: reporting
• level 2: analysis
• level 3: monitoring
• level 4: prediction

The interest of prediction is obviously that you can grab opportunities or mitigate risk before the events even occur. You can redirect your resources towards the most efficient course of action: you have a radar that shows you what is ahead, how you can avoid the obstacles and where the easiest path is.

Are predictive analytics just a buzz word and the new fad of the moment? Not really, it's a high performance way to manage your business activities. Among other things, it's one of the best kept secret of (a few) managers and some star marketers.

The main difficulties for a wider adoption are:

• confidence & ease with mathematics Vs gut feeling/"experience"
• confusion between regulatory constraints and business activities
• "safe&known" Vs predictive indicators
• managing business through risk and opportunity is not an easy concept to understand
• and eventually, it is a well known issue for business analysts: analytics are culturally threatening

One can monitor the present, gargle on the past and explain why there was success of failure, the competitor will be laughing out loud using predictive indicators to save time and commit his resources to the opportunities and risk coming next.

Once you get it, you'll feel like a gambler in Casino knowing with confidence when to put your chips on the table and when not to. How much better can it be?