“Other advantages offered by predictive analytics include reducing costs, enabling businesses to anticipate events, reductions in downtime, and of course, increased revenue. Moreover, depending on the type of business, it may also improve things like asset management and ultimately enable the company to make more intelligent decisions.”
Debarbieri adds that a wonderful real world example of predictive analytics in action are the modern map applications, that are able to predict the best route for a driver, and which constantly update in real-time. These updates, however, will only be helpful if the application has access to as much data about the area being travelled as possible – then they will be able to save the user fuel, time and ultimately boost their efficiency.
“A major impediment to successfully implementing predictive analytics,” he continues, “is simply gaining access to enough relevant data. Obviously, the more data you have that is accurate, the better your prediction model will be. And accuracy is critical, as if the data is inaccurate, the predictions will inevitably be wrong, since if you put garbage in, you will get garbage out.”
“It must be noted, however, that while there is a lot of useful data essentially in the public domain, when it comes to using customer information in this way, enterprises will simply have to have a much higher degree of integrity around the protection of this data. I would suggest that all customer information be treated as if it was the company’s own intellectual property. In fact, the way customer information is treated should be the same as if you were dealing with your client face-to-face.”
He indicates that businesses must also remember that they need to continually invest in the relationship themselves. This means utilising some of the money saved through the benefits of adopting such technology, to invest in more effectively securing the client data and making sure it is as accurate as possible.
“In the modern world, it is obvious that data is king, and it is aptly described as the ‘new oil’. This is, undoubtedly, due to the impact it can have on both businesses and their customers. Moreover, while data is the foundation on which predictive analytics is built, such analytics are, in turn, the foundation on which true artificial intelligence (AI) will be born.”