Sales forecasting is one of the biggest challenges every business leader has to deal with. Month after month, sales teams come up with revenue forecasts that management teams have to accept while knowing there is at the most a 46% accuracy of meeting targets. This is a forecast that is less accurate than flipping a coin. Optimism is great, but for CEOs trying to set up expenses that are dependent on revenue, this is always a cause for concern. More and more businesses are turning toward predictive modeling specifically for revenue forecasting.
Have you ever wondered why traffic signals are based on color rather than text? We see the green walk sign or the red stop light and they immediately get us to react. With vision being our dominant sense, humans are wired to consume and understand visual information.
According to a whitepaper published by IDC and IBM, the return on investment (ROI) of business analytics solutions that incorporate predictive analytics is about 250%. This statistic illustrates why more businesses are turning toward predictive analytics to stay ahead of their competitors. Technology adoption, after all, is everywhere and in every sphere of operation. More information has been generated in the last 10 years than ever before. Brands are in a race to adopt technologies that can retain customers and to find new business opportunities. This is why predictive analytics is now on the map for businesses of all sizes.
Amazon seems to read our minds, often predicting what we want even before we even know it. Predicting customers’ orders is vital to increasing sales while reducing inventory and supply chain costs. Simply put, that is what predictive analysis for e-commerce is all about. Can you risk being wrong-footed when others in the industry are getting it right?
In 2018, the national per capita healthcare expenditure in the U.S. is projected to be about $11,193. This number has been steadily growing over the years. What’s most alarming about this figure is that it’s double what other ‘rich’ countries are spending per person. Surprisingly, this high expenditure does not come with better health outcomes and hospital revenues have plateaued.
With supply chains becoming larger and more complex, it is becoming more difficult to improve service through a reduced order-cycle time while enhancing inventory availability and reducing operating costs at the same time. Big data is revolutionizing the optimization of supply chain and inventory management by improving visibility. It is telling a compelling story that is making leaders listen. Companies that have adopted predictive analysis see up to a 50% reduction in non-performing inventory and a 25% reduction in inventory holding costs, thus freeing up working capital.
Despite the introduction of more secure chip technology, credit card fraud is still one of the biggest concerns of banks and credit card companies. After all, fraudsters continually change their tactics to get around any security measures that are put in place. A recent Nilson report projects that global total loss due to credit card scams and fraud will be a whopping $32.96 billion by 2021. Many financial companies are now looking at predictive analysis to see if they can depress these numbers.
James and his friends at college love traveling. They travel at least once a year, and they love fast cars. Predictive analysis can tell us they would be interested in car insurance of about $700 a year and that they respond better to instant messaging. If you have never heard of James before, this process can seem like magic. However, predictive analysis is what is helping to make this magic happen and is providing a competitive edge to insurance companies. It is fast-tracking processes right through the value chain of marketing, underwriting, pricing, claims and everything else in between.
When you think about the travel and hospitality industry, what often comes to mind are personalized experiences and breathtaking locations. It takes a lot of planning and research to make these experiences happen. Wouldn’t it be easier to have intelligently interpreted data help? Because the hotel and hospitality industry interacts with millions of customers each day and keeps track of these transactions, this data is readily available. Using this information to meet guest expectations makes the difference between a returning customer and a lost opportunity. Read More
Often, the first alert a school gets that flu season has arrived is in the nurse’s office. A steady stream of students shows up with the common refrain “I feel ache-y” and out comes the thermometer. By this time, the virus has already had its chance to spread to every child-height surface in the classrooms, school buses and cafeteria. Wouldn’t it be more effective to stop the spread of the germs before they ever got to school? Read More