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Nowadays, big data has emerged as the go-to fortune teller for many enterprises as prediction becomes pivotal in defining business decisions and acting early on the possible anomalies that the prediction throws up. So much so, big names and small names alike have started investing in data analytics to ensure sustainable growth.
While this does mean different things to various enterprises, for SMEs, this surely is a unique scenario because much of their business depends on chalking out a foolproof plan. So, knowing what future holds for them can be a boon from the heaven for them as that helps them in making breakthrough decisions with little chances of failure. It is here analytics may play a truly revolutionary role as scientists predict.
What kind of analytics?
While terms like business intelligence, analytics etc. are used synonymous, there are considerable differences. However, beyond the usual jargons, the kind of analytics that requires attention is predictive analytics which has been the rage recently. Using machine learning, data mining, AI and statistical modelling in a hotchpotch of numbers, it tells you what can happen depending on the present data unearthed by descriptive analytics. However, there is another mode of analytics called prescriptive analytics. As the name suggests, it tell you what to do out of multiple options.
Why the intervention matters?
SMEs are currently finding it difficult to survive given the competition’s nature and the regulations imposed on markets. However, it is only when you can think ahead of time can you make sustainable difference. Business people may not understand the nitty-gritty of mathematical models, but they will soon learn what they do precisely because they are the best chance of these people’s survival.
Predictive analytics, as everyone predicts, is going to redefine business ideas in the future precisely because it can impact even small businesses. While you may think it is easy for small businesses to take effective business decisions, there is hardly any doubt about the fact that there are obvious human errors without analytical interventions. Hence, small businesses will also realize how a little analytics can help them propel towards a brighter future.
High performance is necessary
Making the most out of any resource is becoming fundamental to all business strategies. Predictive analytics makes sure you make the most out of the data and hence, you know what will surely be the best despite it being ‘predictive’. Prediction itself has a new meaning now. Various statistical models like time series, association, cluster, correlation and regression are arising which should be understood by business people to ensure their decisions have real impact. Excel is fast becoming an useful tool in this process as its basic features and plug-ins allow you to do basic statistical functions which helps immensely during predictive analytics.
While such analytics does give you a lot of insight and prescience, it is not enough since such insights should be transformed into actions and decisions immediately. Various marketing fields like sales forecasting, customer retention and business segmentation can surely undergo paradigm changes with predictive analytics at the helm of affa