Report: Predictive Analytic Projects Embracing Cloud Infrastructure
During the past several years, the idea of leveraging predictive analytics has been gaining ground in the business world, largely because companies have quickly realized that generating large volumes of information does not necessarily yield any advantages unless something is done to those resources. Still, many Big Data concepts have accelerated the momentum behind predictive analytics, encouraging decision-makers around the world to consider implementing the technologies within cloud-based environments.
The various volumes, varieties, and velocities of information have brought about new management challenges -- many of which can be solved when a highly scalable cloud architecture is built and used. A new report by Decision Management Solutions highlighted the growing use of cloud-based predictive analytics, noting that more than 60 percent of companies said they currently host at least one type of predictive analytics in the cloud. Meanwhile, half of respondents said they believe they will leverage at least one form of the technology -- pre-packaged cloud-based analytics, using the cloud to deploy predictive analytics or building the solutions in a cloud infrastructure -- within the next few years.
"The current and planned adoption of cloud-based apps and services suggest we're at a watershed for widespread predictive analytic adoption, investment, and deployment," said Jim Ericson, editorial director for Information Management Magazine.
The time for the cloud is now
Decision Management Solutions reported that deployment rates for all three use cases for predictive analytics in the cloud increased by at least 50 percent since 2011. In many cases, this acceleration has picked up even more recently because 60 percent of planned projects are expected to be completed within the next 2 years and focus primarily on internal cloud computing solutions.
Despite the popularity of cloud-based predictive analytic strategies, many initiatives are being driven by different reasons. Although reducing costs is often noted as the primary cause for launching predictive analytics in the cloud, companies are also realizing the solutions can improve customer relationships. Such endeavors allow organizations to identify what prospective and existing clients want before those desires are demanded. This foresight enables decision-makers to plan ahead and develop more personalized programs that make customers feel appreciated, resulting in long-term customer loyalty.
Decision Management Solutions found that companies are experiencing numerous benefits when adopting cloud-enabled predictive analytics. In fact, roughly two-thirds of survey respondents said they have witnessed a positive outcome from the strategies, with more than 40 percent stating they have seen a "significant" or "transformative" impact.
A separate Business 2 Community report echoed the benefits of properly converting Big Data into realistic opportunities, noting that effective endeavors can sustain engagement both internally and externally. Within the workplace, analyzing employee habits and activities will allow decision-makers to launch new applications or implement more efficient processes to augment collaboration, productivity, and satisfaction. Looking outside the organization, executives can assess massive volumes of information on customers and create better ways of communication and marketing initiatives that are personalized to meet the needs of clients.
Although the Big Data movement in general is picking up speed and will continue to do so in the coming years, the rapid adoption of cloud computing technologies can improve otherwise bland Big Data and predictive analytics projects, allowing companies of all sizes to embrace critical initiatives without worrying about encountering performance problems due to scalability issues. Forward-thinking executives need to consider their current capabilities and long-term objectives and align Big Data and cloud projects to provide their organizations with the most room for growth and opportunity because doing so may give them an advantage in today's increasingly competitive business world.
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