Predictive analysis to the rescue

Businesses are always trying to see into the future and to do so they invest huge amounts in applications that connect databases and throw up information. Customer feedback initiatives are undertaken and consultancy firms are employed to predict market trends. The idea is to get the first-mover advantage and capture the consumer’s mind space and then move on to his wallet space.

Predictive analysis also helps businesses brace for a dip in market share and take into consideration any "what if" situations when planning for a product launch. Decisions taken with foresight usually buffer companies from shock as compared to those taken in hindsight that sometimes are good only for damage control.

Predictive analysis has enabled companies to operate more efficiently so that they can direct their energies towards activities that will yield maximum rewards. This can be with regards to targeting the correct demographic for an upcoming promotion, decision on a price rise, etc. If you can predict demand then the entire supply chain operations get streamlined, from procurement to sales. This can lead to impressive cost savings. So, whether it is a retailer planning to ship SKUs, a manufacturer planning to procure raw materials, or a bank planning to stock ATMs with currency, predictive analysis lets you answer serious business questions about logistics, inventory, customer support staff etc.