Predictive Analytic Advantages Come to Light
As Big Data initiatives become the norm and companies collect increasingly large and complex amounts of information, decision-makers are realizing that real-time analytics may not be fast enough to provide the advantage they need to thrive in today's competitive landscape. This discovery has encouraged many executives to pursue forward-thinking strategies that deliver foresight, not mere insight, into how prospective customers may act in the future.
The benefits associated with leveraging predictive analytics are becoming clearer, and roughly 90 percent of organizations responding to a recent SAP survey said the use of these tools has given them a competitive advantage. Because 95 percent of companies said they have witnessed an increase in the volume of information they deal with on a regular basis within the past year, the majority of executives believe predictive analytics will play a critical role in the development of the business world during the next 5 years.
"If businesses can put the right investment into developing a data-driven workforce, alongside data-driven decisions, processes, and applications, they can accelerate their performance, reduce decision latency, unlock new global markets, and uncover new revenue opportunities," said James Fisher, vice president of marketing and analytics at SAP.
These benefits have driven more than 60 percent of decision-makers to agree that predictive analytics is currently a prioritized investment within their organizations. During the past several years, however, enterprises have taken new interest in advanced analytic strategies, especially tools that can help executives and employees create a blueprint for the directions they should travel in the future.
Far-sighted businesses are a different breed
Although the idea of predictive analytics isn't new, organizations are procuring and leveraging these tools in a different way than before. In the past, companies would assess the threat landscape in particular in an effort to improve risk management and avoid unnecessary security complications. Although these types of initiatives are still in practice today, enterprises are now using predictive analytics for something else: improving customer service.
SAP revealed that rather than minimizing risk, businesses are using advanced analytic strategies to capitalize on new opportunities, primarily those within the client management, marketing, and sales departments. Having the ability to anticipate customer actions is highly advantageous in today's fast-paced environments where individuals are just as likely to abandon a brand as they are to sign up with a new one.
A separate AgilOne survey found that companies using predictive analytics are able to provide customers with a better experience because decision-makers have a a clearer idea of what clients are seeking. This has been a constant problem for marketing teams, especially during the recent digital explosion. Now that executives can acquire more information about consumers, firms are in a position to build more creative and unique interactions.
"Finally, technology has caught up with the business issues. A new paradigm of using predictive analytics to increase customer intimacy is now possible," said Omer Artun, CEO of AgilOne.
In the coming years, Big Data and cloud computing technologies will continue to evolve and transform the way organizations approach the workday and carry out mission-critical tasks. Predictive analytics in particular will give companies of all sizes the unique opportunity to see into the future and assess the value of pursuing various processes. The ability to do so will be especially useful regarding customer service, which has become an increasingly difficult field to tackle as consumers become more tech-savvy and aware of how responsive firms are to dealing with client issues. By planning ahead and deploying comprehensive Big Data and analytic strategies, businesses may find themselves establishing new connections with customers and building a stronger bottom line.
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