Predictive Analytics
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What is Predictive Analytics ?

What is Predictive Analytics ?

What is Predictive Analytics ?
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What is Predictive Analytics? Predictive analytics is the branch of the advanced analytics which is used to make predictions about unknown future events. Predictive analytics uses many techniques from data mining, statistics, modeling, machine learning, and artificial intelligence to analyze current data to make predictions about future.

It uses a number of data mining, predictive modeling and analytical techniques to bring together the management, information technology, and modeling business process to make predictions about future. The patterns found in historical and transactional data can be used to identify risks and opportunities for future.

Predictive analytics models capture relationships among many factors to assess risk with a particular set of conditions to assign a score, or weightage. By successfully applying predictive analytics the businesses can effectively interpret big data for their benefit.

The data mining and text analytics along with statistics, allows the business users to create predictive intelligence by uncovering patterns and relationships in both the structured and unstructured data. The data which can be used readily for analysis are structured data, examples like age, gender, marital status, income, sales. Unstructured data are textual data in call center notes, social media content, or other type of open text which need to be extracted from the text, along with the sentiment, and then used in the model building process.

Predictive analytics allows organizations to become proactive, forward looking, anticipating outcomes and behaviors based upon the data and not on a hunch or assumptions. Prescriptive analytics, goes further and suggest actions to benefit from the prediction and also provide decision options to benefit from the predictions and its implications.

Predictive Analytics Value Chain

Predictive Analytics Value Chain

Predictive Analytics Process

1.Define Project:

Define the project outcomes, deliverables, scoping of the effort, business objectives, identify the data sets which are going to be used.

2.Data Collection:

Data Mining for predictive analytics prepares data from multiple sources for analysis. This provides a complete view of the customer interactions.

3. Data Analysis:

Data Analysis is the process of inspecting, cleaning, transforming, and modeling data with the objective of discovering useful information, arriving at conclusions.


Statistical Analysis enables to validate the assumptions, hypotheses and test them with using standard statistical models.


Predictive Modeling provides the ability to automatically create accurate predictive models about future. There are also options to choose the best solution with multi model evaluation.


Predictive Model Deployment provides the option to deploy the analytical results in to the every day decision making process to get results, reports and output by automating the decisions based on the modeling.

7.Model Monitoring:

Models are managed and monitored to review the model performance to ensure that it is providing the results expected.

Predictive Analytics Process

Predictive Analytics Process

Prescriptive Analytics

Prescriptive Analytics automatically automate complex decisions and trade offs to make predictions and then proactively update recommendations based on changing events to take advantage of the prediction.

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Applications of Predictive Analytics

1. Customer relationship management (CRM)

Predictive analysis applications are used to achieve CRM objectives such as marketing campaigns, sales, and customer services. Analytical customer relationship management can be applied throughout the customers life cycle, right from acquisition, relationship growth, retention, and win back.

2. Health Care

Predictive analysis applications in health care can determine the patients who are at the risk of developing certain conditions such as diabetes, asthma and other lifetime illnesses. The clinical decision support systems incorporate predictive analytics to support medical decision making at the point of care.

3. Collection Analytics

Predictive analytics applications optimize the allocation of collection resources by identifying the effective collection agencies, contact strategies, legal actions to increase the recovery and also reducing the collection costs.

4. Cross Sell

Predictive analytics applications analyze customers spending, usage and other behavior, leading to efficient cross sales, or selling additional products to current customers for an organization that offers multiple products

5. Fraud detection

Predictive analytics applications can find inaccurate credit applications, fraudulent transactions both done offline and online, identity thefts and false insurance claims.

6. Risk management

Predictive analytics applications predicts the best portfolio to maximize return in capital asset pricing model and probabilistic risk assessment to yield accurate forecasts.

7.Direct Marketing

Predictive analytics can also help to identify the most effective combination of product versions, marketing material, communication channels and timing that should be used to target a given consumer.


Predictive analytics can help underwrite the quantities by predicting the chances of illness, default, bankruptcy. Predictive analytics can streamline the process of customer acquisition by predicting the future risk behavior of a customer using application level data.

Predicitve Analytics

Predicitve Analytics

Industry Applications

Predictive analytics is used in insurance, banking, marketing, financial services, telecommunications, retail, travel, healthcare, pharmaceuticals, oil and gas and other industries.

1.Predictive Analytics Software

RapidMiner Studio, KNIME Analytics Platform, SAP Predictive Analytics, IBM Predictive Analytics, Dataiku DSS, SAS Predictive Analytics, Microsoft R, Microsoft Azure Machine Learning, Oracle Data Mining ODM, Google Cloud Prediction API, Angoss Predictive Analytics, Anaconda, DataRobot, Minitab, STATISTICA, TIBCO Spotfire,, AdvancedMiner, GMDH Shell, Alteryx Analytics, HP Haven Predictive Analytics, GoodData, ABM, Analytic Solver, Actian Analytics Platform, Information Builders WebFOCUS Platform, GraphLab Create, Lavastorm Analytics Engine, Portrait Predictive Analytics, Alpine Chorus, Predixion Insight, Grapheur, FICO Model Central, MATLAB, Viscovery Software Suite, DMWay, Mathematica, TIMi Suite, Rapid Insight Veera, CMSR Data Miner Suite, Emcien, Feature Labs, Salford Systems SPM, DataRPM, RapidMiner Server, Vanguard Business Analytics Suite, Skytree, QIWare are the top predictive analytics software .

Click on the button below for a review of the top predictive analytics proprietary software solutions.

Top Predictive Analytics proprietary Software

Predictive Analytics Software
PAT Index™
Alteryx Analytics
SAS Visual Analytics
Oracle Data Mining
Angoss Decision Trees
Viscovery Software Suite
TIMi Suite
CMSR Data Miner

Orange Data mining, R Software Environment, Weka Data Mining, Microsoft R, Anaconda,, HP Haven Predictive Analytics, Apache Mahout, Apache Spark, GNU Octave, RapidMiner Starter Edition, GraphLab Create, Lavastorm Analytics Engine, Scikit-learn, SciPy, KNIME Analytics Platform Community, LIBLINEAR, Actian Vector Express, DMWay, TANAGRA, NumPy, Dataiku DSS Community, PredictionIO, and Vowpal Wabbit are the Top Free Predictive Analytics Software. 

Predictive Analytics Freeware Software

Free Predictive Analytics Software
PAT Index™
Orange-Survey plot
Weka Data Visualiser

2.Predictive Analytics Software API

Google Cloud Prediction API, Microsoft Azure Machine Learning, BigML, Dataiku, RapidMiner, Anaconda, KNIME, Lattice Engines, GraphLab Create, Blue Yonder Platform, AgilOne Predictive Marketing Cloud, indico, LinkedIn Sales Navigator, Versium Predictive Scores, Swift, Apigee, Intuitics, Zementis, Predixion Insight, Datumbox,, Logical Glue, Ersatz, Yottamine, InsideView, SalesForceIQ, Lumiata, PredicSis, Zilliant, Prelert are some of the top Predictive Analytics Software API.

Predictive Analytics Software API

Predictive Analytics Software API
PAT Index™

3.Predictive Analytics Programs

DePaul University, Northwestern University, Lally School of Management, University of Cincinnati, Louisiana State University, North Carolina State University, Catholic University of America, Central Connecticut State University, Columbia University, George Washington University, Michigan State University, New York University, Bentley University, Carnegie Mellon University, Dublin City University, Drexel University, University of Maryland, University of Tennessee, University of Connecticut, Fordham University, University of San Francisco, University of Texas, Cornell University, Georgia Institute of Technology, Harrisburg University of Science and Technology, Brandeis University, Oklahoma State University and University of Miami are some of the top data science and predictive analytics programs.

Top Predictive Analytics Programs

You may also like to review the online business analytics programs list:
Online Business Analytics Programs

4.Predictive Lead Scoring Platforms

Lattice Engines, Fliptop, 6sense, Infer, Leadspace, Mintigo, Salesfusion, Versium, Wise, InsideSales, Lead Liaison, SalesPredict, Custora , Televerde, Futurelytics, Fiserv, Angoss KnowledgeSCORE, KXEN, Predixion, EverString are some of the companies who offer predictive lead scoring platforms in no particular order.

Predictive Lead Scoring Platforms

Predictive Lead Scoring Software
PAT Index™

5.Predictive Pricing Solutions

Blue Yonder Platform, PROS, Model N, Zilliant, PriceGrid, Upstream Commerce, Prisync, ECOPA Prezzu, Pricefy are some of the Top Predictive Pricing Platforms.

Predictive Pricing Solutions

Predictive Pricing Platforms
PAT Index™

6.Customer Churn, Renew, Upsell, Cross Sell Software Tools

RapidMiner, Marketo, Preact, Google Prediction API, Lattice Engines, Angoss, PROS Sales Optimizer, Fliptop , Alteryx Analytics, Alpine Chorus, 6sense, Gainsight, GraphLab Create, Predixion Insight, KNIME, Bluenose, Actian, RelateIQ, Zilliant, SalesPredict, Infer, AgilOne, Adobe Recommendations are some of the top customer churn, renew, upsell, cross sell software tools.

Customer Churn, Renew, Upsell, Cross Sell Software Tools

Customer Churn, Renew, Upsell, Cross Sell Software Tools
PAT Index™
Alteryx Analytics

More Information on Predictive Analysis Process

Predictive Analytics Process Flow

Predictive Analytics Process Flow

For more information of predictive analytics process, please review the overview of  each components in the predictive analytics process: data collection (data mining), data analysis, statistical analysis, predictive modeling and predictive model deployment.

5 Reviews
  • viraj
    September 29, 2014 at 8:07 pm

    hi, article gives great details about predictive analytics. It would be great if it also includes how predictive analysis can be used in military decision making by military leaders with varying personalities.

  • kumar
    November 1, 2014 at 1:22 am

    Excellent.Very informative for beginners.

  • Jshree
    November 14, 2014 at 5:25 am

    Predictive analytics give your decision makers the insight they need to predict new developments, capitalize on future trends, and respond to challenges before they happen. WFT’s market-leading combination of SAP’s real-time business intelligence (BI) and predictive analytics make it easy for you to extract forward-looking insights from Big Data.

  • Siddu
    June 12, 2016 at 4:57 am

    Very nice information given in this article, but it would be great if you can also provide the information on how to start the career in predictive analytics/modelling and what is the minimum knowledge required (like: Probablity..etc) before starting this as carreer or (for any certification) and some other details for who want take this as future career.

  • April 22, 2019 at 12:22 am

    what about predictive analytics for asset performance management

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