Predictive Analytics
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What is Predictive Analytics ?
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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.



4.Statistics:

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

5.Modeling:

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.

6.Deployment:

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.

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.

8.Underwriting

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

SAS Predictive Analytics, IBM Predictive Analytics, SAP Predictive Analytics, RapidMiner, Angoss Predictive Analytics, GraphLab Create,  SAP InfiniteInsight, FICO Predictive Analytics, Salford Analytics, Oracle Data Mining (ODM), TIMi Suite, TIBCO Analytics, Alteryx Analytics, Alpine Chorus, KNIME, Actian Analytics Platform, Portrait, Predixion, Data Science Studio, H2O, Analytics Solver, STATISTICA, Viscovery Data Mining Suite, Lavastorm Analytics Engine, Rapid Insight Analytics, Advanced Miner, CMSR Data Miner Suite, GMDH Shell, Mathematica, MATLAB, and Minitab are some of the vendors of proprietary predictive analytics solutions in no particular order.



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

Top Predictive Analytics proprietary Software

Predictive Analytics Software
 
 
 
 
RapidMiner
 
 
 
 
GraphLab
 
 
 
SAS Visual Analytics
 
 
 
 
 
 
 
 
 
 
CMSR Data Miner
 
 
 
 
 
 
 
 
 
TIMi Suite
 
Oracle Data Mining
 
 
Angoss Decision Trees
 
 
 
Alteryx Analytics
 
 
 
 
 
 
 
 
 
Alpine Chorus
 
Viscovery Software Suite
 
Lavastorm Analytics Engine
 

R, Orange, RapidMiner, Weka, GraphLab Create, Octave, Data Science Studio (DSS), H2O, Lavastorm Public Edition, Tanagra, PredictionIO, HP Distributed R, KNIME, scikit-learn, Actian Analytics Platform, Apache Spark MLlib, Apache Mahout, LIBLINEAR, Vowpal Wabbit, NumPy , and SciPy  are some of the key players in the freeware predictive analytics market in no particular order. Click on the button below for a review of the top predictive analytics freeware software solutions.

Predictive Analytics Freeware Software

Free Predictive Analytics Software
 
 
 
 
 
 
 
 
 
 
 
 
GraphLab
 
 
 
 
 
 
Weka Data Visualiser
 
Orange-Survey plot
 
 
 
 
R
 
Lavastorm Analytics Engine

2.Predictive Analytics Software API

Google Prediction API, BigML, Microsoft Azure Machine Learning, Blue Yonder, Swift API, Datagami, GraphLab, Data Science Studio, Apigee Insights, Openscoring.io, Intuitics, Anomaly Detective, Zementis, Predixion, Datumbox Machine Learning Framework, PredictionIO, Logical Glue, Ersatz, H2O, Yottamine, Lattice, InsideView, AgilOne, Futurelytics, Fliptop, RelateIQ, Lumiata, Versium LifeData, Indico, INRIX are some of the Tops Predictive Analytics API in no particular order. Click on the button below for a  review of the top predictive analytics software API solutions:

Predictive Analytics Software API

Predictive Analytics Software API
 
RapidMiner
 
 
 
GraphLab
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AgilOne Predictive Marketing Cloud
 
Versium Predictive Scores and Datafinder
 
 
 
 
 
 
 

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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Angoss Decision Trees
 
Versium Predictive Scores and Datafinder
 
 
 
 

5.Predictive Pricing Solutions

Blue Yonder Dynamic Pricing , PROS Pricing Analytics, Zilliant MarginMax, Model N, ECOPA Prezzu, Upstream Commerce Dynamic Pricer, Retalon Dynamic Price Management System are some of the Predictive Pricing Solutions in no particular order.

Predictive Pricing Solutions

Predictive Pricing Platforms
 
 
 
 
 
 
 
 
 
 

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
 
RapidMiner
 
 
 
 
GraphLab
 
 
 
 
 
 
Angoss Decision Trees
 
AgilOne Predictive Marketing Cloud
 
Alteryx Analytics
 
 
 
 
 
 
 
 
 
 
 
Alpine Chorus

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.

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

    ADDITIONAL INFORMATION
    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

    ADDITIONAL INFORMATION
    Excellent.Very informative for beginners.

  • Jshree
    November 14, 2014 at 5:25 am

    ADDITIONAL INFORMATION
    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

    ADDITIONAL INFORMATION
    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.

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