Predictive analytics is the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends. Predictive analytics does not tell you what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability, and includes what-if scenarios and risk assessment.
Predictive Models and Analysis Applied to Business
Predictive models and analysis are typically used to forecast future probabilities. Applied to business, predictive models are used to analyze current data and historical facts in order to better understand customers, products and partners and to identify potential risks and opportunities for a company. It uses a number of techniques, including data mining, statistical modeling and machine learning to help analysts make future business forecasts.
Webopedia Predictive Analytics Resources
Big Data Analytics Expert Predictions
What is Predictive Model Markup Language (PMML)
Predictive Analysis Defined
What is Big Data Analytics
Revolution Analytics - Big Data Analytics Software
Predictive Analytics and Big Data
Predictive analytics is an enabler of big data: Businesses collect vast amounts of real-time customer data and predictive analytics uses this historical data, combined with customer insight, to predict future events. Predictive analytics enable organizations to use big data (both stored and real-time) to move from a historical view to a forward-looking perspective of the customer.
For example, stores that use data from loyalty programs can analyze past buying behavior to predict the coupons or promotions a customer is most to participate in or buy in the future. Predictive analytics could also be applied to customer website browsing behaviors to deliver a personalized website experience for the customer.
Predictive Analytics Software Vendors for the Enterprise
Predictive analytics and data mining solutions for the enterprise are currently available from a number of companies, including SAS (Predictive Analytics Suite), IBM (IBM SPSS Statistics), and Microsoft (Microsoft Dynamics CRM Analytics Foundation).
Vendors may offer proprietary solutions or solutions based on open source technologies. Predictive analytics software can be deployed on-premises for enterprise users or in the cloud for small businesses or for project or team based initiatives.
Based in Nova Scotia, Canada, Vangie Beal has been covering small business, electronic commerce and Internet technology for more than a decade. You can tweet with her online @AuroraGG.
- Watch Datamation's editor James Maguire moderate roundtable discussions with tech experts from companies such as Accenture, Dell, Blue Jeans Network, Microsoft and more »
Tape clearly is on the decline. But remember, legacy systems can hang for a shockingly long time. Read More »Apple Pay Promises to Strengthen Payment Security
Experts believe that Apple Pay and other competitive payment systems will be far more secure than cards, even cards equipped with EMV chips. Read More »Internet of Things Shaping IT's Future
To make the IoT both work and pay off, IT is juggling upgrading and building app-centric networks, mapping out new data center architectures and... Read More »
This Webopedia study guide describes the different parts of a computer system and their relations. Read More »Webopedia Polls
The trend for the past two years has been for shoppers to spend more online during the holiday season. How do you typically shop for holiday... Read More »How to Create a Desktop Shortcut to a Website
This Webopedia guide will show you how to create a desktop shortcut to a website using Firefox, Chrome or Internet Explorer (IE). Read More »