How the power of predictive analytics can transform your business

lost productivity

Did you know that predictive analytics can transform your business?  I mean, really transform it?

Digital transformation is commonplace, and many organisations have made the leap. But digital transformation means different things to different organisations. It’s not the kind of project or undertaking that can be done in one pass.

Trust me!

Did you know that a digital transformation project is more of an iterative process? It won’t create a static step change in the outcomes to the business. It will tend to follow an evolutionary path.

Organisations start off with an objective in mind and a clear goal to achieve. Yet the path taken to achieve the goal exposes the business to many new technologies and approaches. This elevates the thinking in their business beyond where they initially thought it was possible.

The reason being that digital transformation not only transforms the way the organisation works, it changes what it is capable of achieving and envisioning.

This allows organisations to create analytical frameworks that provide insights above and beyond what they believed was possible.

Data analytics is the beginning

Teams are able to make decisions faster and with more certainty once they start to see clearly how the business is operating through its data and its data platform.

And with that comes questions.

Questions about what’s possible with this visibility data or what other insights might be available in the data.

A data platform evolves

Over time the insights become more sophisticated. They tell the organisation what happened in the past, and also inform the business of what is happening right now. Real-time analytics have become commonplace.

There is an evolution with any digital transformation process that leads the organisation to demand data in real-time.

Real-time insights, of course, are a step up from the average data platform. Decision-makers have so much more clarity when they have access to real-time operational data, marketing data, or market data.

The competitive edge is almost unfair!

The transformed continue to transform

An unspoken benefit of any digital transformation project is that the organisation becomes fundamentally changed.

The transformation of platforms, systems and processes is the superficial component of the transformation. The real transformation occurs within the people, the culture and the thinking.

The transformation is how people perceive their organisation and what they expect from their data and their platforms. People become even more demanding of what insights they need to see from the data platforms.

It’s almost as though they be giving a sip from the cup.

They’ve tasted the forbidden fruit, and they demand more.

And that’s what drives the digital transformation process to be a continuous evolution.

Predictive analytics is an evolutionary step

If we look at a standard transformation process, we see organisations evolving from static PDF reports to digital dashboards that show them what’s happening in their business right now. These dashboards provide them with interactive insights to view the information in their business that they were not previously allowed or able to access.

They get to see what happened, but they also see what is happening right now.

And this is really important for organisations that have fast-moving and reliable data.

Think of fintech marketing e-commerce and any other high volume industry.

But it gets to a point where the business demands more than just seeing what’s happened and what is happening. There’s a thirst for being able to take this analytics platform to the next level.

There becomes a natural demand for a predictive analytics capacity to be included into the platform. One that extends the historical data that the business has generated and so frequently look at.

A transforming or transformed organisation demands that what happened and what is happening isn’t enough and that they know they need to know what is going to happen.

Seeing the future through data

As the name suggests, predictive analytics is about providing a prediction of future patterns based on historical patterns of data.

Spoiler alert: It’s not always 100% accurate

The value-added relies on the data available. It can mean analysing the patterns of consumer behaviour operations or staff behaviour. It could focus on marketing responses and creating a predictive model that more accurately demonstrates to the business where the market will head in the future.

Where it makes a difference is in the nitty-gritty. For example, most organisations suffer from seasonal fluctuation. A predictive analytics model can analyse years of data and spot the patterns that lead to seasonal fluctuations. I’m not talking about a simple on-season/off-season distinction, but a deep understanding of the ebbs and flows of customer behaviour throughout the yearly cycles. These are the patterns that are beyond the control of the organisation.

It is enormously valuable to have a predictive model that highlights when seasonal fluctuations are going to occur. One that also explains what causes those seasonal fluctuations is even more so.

Yeah, yeah, it’s possible the organisation already knew when these seasonal changes occurred. However, providing some certainty around these beliefs with physical proof and an analytical approach has benefits.

Predictive analytics can help organisations with what-if scenarios

A robust predictive framework can be used to model if certain expansions in different areas are worthwhile or not. It helps plan out potential changes to operational structures without having to commit resources before finding out if it would positively or negatively impact the future of business.

Now this kind of modelling can already be done by many organisations. These models can take a lot of time, and most of the modelling done is being done on data gathered specifically for the modelling purpose. Usually old, dusty data that’s not as relevant anymore.

An organisation with a data platform with reliable and trustworthy data can absolutely have a predictive analytical platform that is also reliable, transparent and fast.

Predictive analytics can transform your business

Digital transformation is commonplace. But it won’t come to you. A lot of organisations have made the leap.

Digital transformation means different things to different organisations. Define what you want to know from your data and take the leap.