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Predictive Analysis as the Next Tool for Business Success

October 12, 2017

Predictive Analysis as the Next Tool for Business Success

Synopsis
3 Minute Read

Richard Arthurs
Richard Arthurs, CPA, CMA, MBA, CFE, CIA, CRMA, QIAL
Partner, National Leader - Internal Audit

Predictive analysis is fast becoming a useful tool for companies to gain an edge over their competitors. By gaining an understanding of past events, businesses are able to get a view into the future needs of their customers and plan accordingly. With rapid advances in data analytics software, predictive analysis is no longer just a tool for large corporations.

With an unlimited capacity for data processing and analysis, today’s powerful data analysis software is able to compute permutations and combinations that humans simply don't have the time or ability to process. Businesses have access to a wealth of valuable information that can transform how they do business.

The Power of Predictive Analysis

Financial institutions are a prime example of an industry that has successfully used predictive analytics to improve service. They use information from past customer experience to determine sustainable debt levels of their clientele, calculate appropriate credit levels for credit cards, and generate fraud behaviour predictions. These calculations can be done in a fraction of the time it would take for employees to do the work. Instead, employees have more time to work with customers to find tailored solutions to their needs.

Large corporate institutions and giant multinational corporations aren’t the only businesses benefiting from the powerful value propositions offered by predictive analytics. Any small or mid-sized business that works with customers, manages inventory or is looking for ways to optimize risk management can benefit from using predictive data analysis. With this valuable information, companies will have the information they need to prepare for the next business cycle.

Waiting for the Next Storm

Small business can use predictive modeling to understand customer demand and be prepared with appropriate levels of stock and staffing. Consider a small grocery store in south Florida preparing to weather the next category 3 or 4 hurricane. With predictive analytic tools, a business could to respond to demands for supplies long before the storms reached their shores. By using data on purchases during earlier storms, they could calculate their stock needs days, if not weeks, earlier and have the inventory delivered and available when it’s needed.

Whether large or small, any business can benefit from predictive modelling analytical tools. These powerful tools can allow business to plan ahead rather than simply react to current conditions.

In a competitive marketplace, tomorrow’s technology is shaping business today, and your business can’t afford to be left behind. To learn more about how predictive analytical tools can help your business improve customer engagement, contact Richard Arthurs, National Leader – Data and Information Dynamics at 587.702.5978 or [email protected].

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