Predictive Analytics is a statistical technique that uses algorithms to perform predictive analysis and identify the likelihood of potential trends and outcomes based on historical data.
The term encompasses a series of statistical techniques such as predictive modeling, machine learning, and data mining to collect, organize, and analyze current and historical data to efficiently make predictions for the future.
Predictive Analytics is now more than ever transversally used in several fields: from business management to insurance, from policing to retail, from capacity planning to marketing.
Its defining functional effect is to provide predictive scores – as in probability – for each specific individual or apparatus to determine, unform and influence organizational processes and strategic business decisions.
The main benefits of Predictive Analytics
- Competitive advantage
- Optimized performances and products
- Reduction of risks and costs
- A deeper understanding of specific data and/or behavioral patterns
- Objective observation of potential new products/services opportunities
- Improved collaboration