In nearly all areas of life, we consider the facts and probabilities before making a decision. This is true whether you’re making important investment choices or simply wondering whether to park on-street in a metered space or inside a parking garage. So it seems rather illogical—and even downright reckless—to make critical business decisions without a probable and factual basis. Yet company leaders make such determinations every day, with some choices carrying a multi-million dollar impact.
Nearly everyone has lamented, “If only I could predict the future.” But now, it is possible to predict the future with astounding accuracy, thanks to cutting-edge predictive analytics and modeling technology. These applications are giving companies and government agencies the power to make decisions with far greater confidence. So, how do predictive analytics and modeling work? And how can you leverage this technology in your field?
Weathering the Storm With Predictive Analytics and Modeling
While many are unfamiliar with predictive analytics and modeling, this technology is actually already part of everyday life. These predictive models and algorithms have been transforming—and even saving—lives worldwide in the form of weather forecast modeling for a number of years.
With weather forecast models, the developers create an algorithm that reflects real-world scientific principles. Then, streams of historical and real-time data are fed into the algorithm, which generates a forecast model based on that data. Over time, these PA models become more and more accurate since more data enables the application to better account for real-world variables.
Weather models have transformed society in dramatic ways, such as by allowing citizens, relief organizations, government agencies and utility companies to prepare in a region that’s about to get hit by a major storm. Without an accurate forecast, pre-positioning resources and evacuating the public from danger zones would be impossible. So, this technology is quite literally saving lives.
How Can Your Company Benefit From a Predictive Analytics and Modeling Platform?
Predictive analytics and modeling aren’t just useful for meteorologists, governments and disaster response teams. There are lots of other industries that can stand to benefit from PA technology. In fact, virtually any company or organization that routinely uses data to make decisions or preparations can find predictive analytics and modeling advantageous.
Here’s a look at how some companies are using these innovative platforms:
- Airlines and bus companies can use predictive analytics and modeling to make scheduling changes in response to weather events, air traffic conditions and traveler demands.
- Retailers use PA technology to recommend products and services to shoppers based on their browsing or purchase history. Additionally, predictive models can identify trends that may prompt the retailer to acquire more stock or shift stock between warehouses to fulfill orders faster and more effectively. Retail companies could even use this technology to identify the best locations for a new brick and mortar store location.
- The medical and veterinary fields could potentially use predictive analytics and modeling to create customized medications or treatments. The patient’s lab work and other clinical data could be entered into the system and then, a technician could run different treatment scenarios through the PA/modeling engine to predict which therapeutic option would be most effective for that individual.
- Investors could stand to see tremendous gains from predictive analytics and modeling technology, as an algorithm could be developed to evaluate the risk level and likely profit margin for different investment decisions. Historical and current stock market and economic condition data could be inputted into the platform, which would then run simulations and calculations to identify the best course of action.
The potential uses for predictive analytics and modeling platforms are truly unlimited. If there’s a time when you think, “If only I could predict the future,” then there’s a good chance that PA technology could prove advantageous, both in a strategic sense and in a financial sense. What’s more, each predictive analytics engine and modeling algorithm is unique and built to suit the client’s precise unique needs. It’s possible to build a stand-alone platform or you may opt to integrate the predictive analytics engine with other high-tech systems. For instance, if your system predicts increased regional demand for a particular product, then it may be configured to automatically prompt the dispatch of additional stock to the warehouses in that region.
At SevenTablets, our developers specialize in cutting-edge technology, including (but not limited to) predictive analytics. Our talented tech team is well-equipped to accept projects involving everything from predictive analytics engines to augmented reality, virtual reality, artificial intelligence and natural language processing.
Based in Dallas, SevenTablets serves DFW, Austin and Houston. Our client base extends beyond Texas, though, spanning the entire United States. We invite you to contact our team today to discuss your predictive analytics project.
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Shane earned a B.S. at Texas A&M (whoop!) and studied mathematics as a graduate student at Southern Methodist University.