Member Article

Predicting the future of your business

There’s no such thing as a crystal ball but when it comes to business, predictive analytics is the next best thing, says Andy Smith, sales director at Perfect Image. Here he discusses how this model of data analysis can help you to anticipate the future and make better business decisions.

Fancy a flutter? Perhaps you placed a bet on the horses at Royal Ascot recently or maybe even on the tennis. Ever wondered how the bookies come up with their odds and wished you had a crystal ball to let you know which ones were likely to pay out? Well actually, through the use of clever data analytics, bookies are using the next-best-thing to a crystal ball to help keep their tills ringing, rather than paying out big bucks.

Predictive analytics is a type of data analysis that extracts information from existing data sets to determine patterns of behaviour and then predict future outcomes and trends. Of course, predictive analytics can’t tell a business what will happen in the future. Rather, it reliably forecasts what might happen in the future and considers what-if scenarios as well as risk assessments.

So taking the betting shop and Royal Ascot scenario as an example, using predictive analytics, the bookies would examine variables such as the rider’s past performance, the horse’s physical condition and previous betting trends. Combining all of this data together gives what is known as predictive insights. Then, applying a number of different questions to the data, the bookies are able to set the odds for different scenarios - if X and Y happen, then we’re expecting to see Z, therefore the odds on this event happening is 10/1. This is predictive analytics.

Of course, it’s not just a betting situation where predictive analytics can offer valuable insight; this type of data analysis is pertinent to almost any business and can serve key decision makers with serious insight to help them plan and implement strategies for the future in anticipation of market behaviour. After all, they say knowledge is power and armed with the information predictive analytics affords, it’s no wonder that this form of data analysis is truly the buzz word of the moment.

So while bookies maybe looking at past sporting performance, other businesses regardless of shape, size or sector can harness the power of predicative analytics; applied to businesses, current data, trends and historical facts are analysed to better understand customers, products and other key stakeholders, as well identifying potential risks and opportunities for the business. There may be no such things as a crystal ball for a flutter on the horses, but predictive analytics is the next best thing when it comes to business.

At Perfect Image, we’re pleased to be able to help our clients uncover real business benefits through the intelligent use of IT and the field of data analytics is just a part of this offering. One of the data analytics platforms we offer our clients is Alteryx – the leader in data blending and advanced analytics software. Not only does the platform deliver deeper insights by seamlessly blending internal, third-party and cloud data, Alteryx allows user to then analyse the data using predictive analytics quickly and easily, within workflows that need no programming.

For more information about the benefits of Alteryx and how Perfect Image can help implement the analytics software in your business, visit: http://www.perfect-image.co.uk/software/business-intelligence/alteryx.aspx

This was posted in Bdaily's Members' News section by Perfect Image .