Predictive analysis is an advanced analytical system which is used to make predictions for future events. A number of data analytical models are used to make such estimates. Techniques such as data mining, machine learning, statistics, data modeling etc. make use of current data to form predictions for future. It helps organizations better understand need of the hour and streamline their operations accordingly. Also, it helps them in improving their bottom line figures.
Predictive analysis is all about understanding the patterns found in historical as well as transactional data and then using it to identify opportunities and risks for future.
Why Is Predictive Analysis Important?
- Detecting Frauds – Cyber security is a growing concern these days. Techniques of predictive analysis can be used to detect any criminal behavior and fraud. Such an analysis assists in identifying any anomalies and taking an action, well in advance.
- Improving Operations – Predictive analysis can be used to optimize operations. It not only helps in forecasting inventory but also in managing other resources in a better way. This improves organizational functions and makes them more efficient. For e.g. Airlines can use predictive analytical techniques to set ticket prices.
- Boosting Marketing Campaigns – Techniques of predictive analysis can be used to determine needs and preferences of the potential customers. This helps in designing marketing strategies which help in attracting as well as retaining more people.
- Reducing Risks – It can be used by certain industries to appropriately depict and also form inferences from the data available to them. It helps them in forming an interpretation of a person, business entity or situation for effective decision making thus minimizing the risks.
Steps Followed For Conducting A Predictive Analysis
- Collect & understand the available data
- Prepare & organize data
- Choose an appropriate model
- Evaluate the model
- Deploy the model and use it in applications
- Monitor the effectiveness of the model in real time
How Does Predictive Analysis Work?
For carrying on predictive analysis successfully, three main things are required:
- Data – It is the basis of any analysis. There is no scope of making a prediction in the absence of reliable data from which inferences can be formed.
- Statistics – It is used to make mathematical calculations and also estimate relationship among different variables.
- Assumptions – Future is unpredictable, however certain assumptions are made to derive results. Predictive analysis rests on an assumption that future will continue to mimic the past.
Industries That Are Widely Using Predictive Analytical Tools
- Banking & Finance
- Hotels and travel agencies
Thus, businesses which are able to gather relevant data, use the right model and assumptions can more accurately predict the future trends and streamline their operations in the present accordingly which thus increases their success rate.
For more information, contact Centex Technologies at (972) 375 - 9654.
Nowadays, businesses are increasingly collecting a large amount of information from their customers to create a database, which is further being used to form valuable inferences. However, accumulation of data, also poses a risk of data loss.
No matter what the size of a company is, data loss can have a serious impact on their credibility. It can be caused due to many reasons but ultimately breaks the company’s coffers at the end as data loss can prove to be costly. So it is important to take a serious note over implementing prevention systems to minimize the risk of information loss.
However, to take steps in preventing the loss of information, it is important to understand the causes of data loss. Here we have listed some common ways in which businesses lose their valuable data:
- Changing Advanced Settings – Every computer has an “advanced settings” feature for some reason which employees from non-IT background might not know about completely. Sometimes they unknowingly change the advanced settings with an intention to modify & fix their laptop or computer. In an attempt to do so, they often end up booting the device leading to a data loss. So, it is best to consult the IT department in case a technical glitch arises rather than diving into something one doesn’t have knowledge about.
- Failing To Backup Data – Imagine your business being exposed to a cyber-attack, natural disaster or theft etc., apart from losing other physical resources, the greatest loss is that of the data you had collected over the past. Backing up data minimizes the risk of complete data loss. So it is important to store data at a location from where it can easily be recovered. Also keep a third backup, just in case your backup file becomes corrupted.
- Hardware Failures – Machines might face technical breakdown. However, in this process, business lose their valuable data, exposing the company to data loss threat. There can be any kind of technical glitch, from a mechanical error in the hard drive, failure of flash memory due to data writing error, power supply malfunction or something as simple as dropping down the device, there can be a myriad of things that can lead to the loss of company’s valuable data. Companies however, can opt for alternatives such as storing their data on cloud.
- Not Following Security Protocols – Even though employees are being cognized about security measures, they still have a lax attitude towards it. Despite repeated warnings, some employees might click on email attachments sent by unknown senders opening up the doors for cyber criminals. Also, use of easily guessable passwords is a problem. All this might result in a data loss.
- Ransomware – Ransomware is the most common way in which hackers steal your private and confidential information. They launch a ransomware attack and encrypt the data which businesses can retrieve only if the ransom is paid. In case it is not paid within the given time frame, then the company loses all its valuable data. Sometimes, businesses are not able to recover the data even after paying for the ransom amount.
You can design a preventive strategy to overcome these problems and lessen the risk of data loss. For more information, contact Centex Technologies at (972) 375 – 9654.