Essay on Predictive Analytics : Predictive Modeling

977 Words Oct 14th, 2015 4 Pages
Predictive analytics can be used which allows businesses to extract big data and analyze it to better understand customers. This analysis is a game changer for businesses because it allows them to make predictive models that will help them serve their customers better. This business strategy is important as it provides the data they need to make predictions for the future and it gives them the ability to modify when results are affected. In order to take this strategy into consideration, firms must provide their insights about customers, adapt to business practices and engage with customers. If firms don’t use predictive information to change the future, then they are just wasting their time (Gualtieri & Curran, 2015, p. 2). There are predictive analysis tools which are techniques that are used to help a firm make use of their data to make the best possible decisions. These tools also deploy their models into applications in software to distinguish the need for insights. Predictive modeling is the process of making a model that best predicts outcomes using software. However, firms need professional data scientists to manage and use predictive analytics. They do this by using tools to analyze data sets. The demand for these scientists is high and sometimes firms wont be able to hire them. Algorithms are used in predictive analysis to find the essential data to predict outcomes. An example of this can be telecommunication firms that want to know more of consumer’s actions on…

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