This report is designed to serve as a guide for organizations trying to forecast what’s ahead in their markets. It provides several specific ways that all companies can use predictive analytics to improve forecasting and be able to make course corrections more quickly. The report provides the basics for using predictive analytics and shows that it does not have to be super complex or require expensive software—at least at first. The key is using it to decrease uncertainty about the future without spending more than its expected value.
Key points in the report:
- Predictive analytics (PA) is the use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on any relevant data. The goal is to go beyond knowing what has happened to decrease uncertainty about the future and associated risk.
- Anything can be measured and modelled.
- There are quick and easy ways discussed to reduce initial uncertainty.
- The report provides and discusses nine ways to facilitate effective PA with many examples.
Other IMA resources on this topic include: