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Expert: Predictive Analytics Can Improve Bottom Line

Businesses may be able to foster revenue growth by employing predictive analyt

Predictive analytics, perhaps more than traditional business intelligence practices, can provide companies with the insight they need to create new opportunities, one expert asserted at the recent Computerworld BI & Analytics Perspectives conference.

According to Computerworld, Decision Management Solutions CEO James Taylor stressed that predictive analytics enable companies to identify fraud, mitigate risk and explore new opportunities to grow.

By employing predictive analytics practices, the news provider noted, a company can anticipate a customer's purchasing habits and take initiative by offering deals and promotions. This differs from business intelligence, which requires the company to react to customer habits.

To make the most of predictive analytics, Taylor asserted, a business must have a strategy in mind and lay out clear objectives. Businesses should establish business rules for each variable and apply analytics to whatever decision the customer makes.

In an era of big data, businesses are trying to find a way to make better use of customer information. By employing business analytics, a company may be able to turn this wealth of data into profit, experts say.