Predictive analytics is a phrase commonly used to describe software applications that allow business users to anticipate future events, behaviors, and conditions based on the information contained in enterprise systems. Unlike traditional business intelligence (BI) tools, which quantify and compare historical data to uncover was has happened in the past, predictive analytics software uses that same information to enable quick, accurate forecasting.
Predictive analytics solutions collect data from source systems, then analyze it to uncover the patterns and trends that will help to reliably assess the probably of a future outcome or occurrence. This, in turn, enables more effective forward-looking planning and decision-making, giving companies the insight they need to adjust strategies to ensure the best possible results from their efforts. Forecasting, statistical modeling, and data mining tools are all types of predictive analytics solutions.
Organizations of all sizes, across all industries are using predictive analytics to support a variety of core business functions, including marketing and merchandising, sales, and risk management. For example, banks can use predictive analytics to assess the likelihood of loan default, insurance companies can use it to determine risk and set premiums accordingly, local law enforcement agencies can use it to forecast when and where crimes are most likely to take place, and manufacturers can leverage it to anticipate warranty claims or defects.
Companies that incorporate predictive analytics into their business intelligence strategies can realize significant benefits. Increased competitive advantage, optimized productivity and cost-efficiency, higher levels of profitability, and greater customer loyalty and retention can all be achieved through more rapid identification of emerging opportunities and faster detection and correction of problems and issues.
WebFOCUS RStat from Information Builders provides a powerful, fully unified platform for business intelligence, data modeling, and scoring. Built on the robust and flexible open-source R engine, RStat enables the fast, economical design and deployment of reliable and accurate forecasting applications. In fact, RStat is so intuitive and user-friendly that even business analysts without advanced statistical training can quickly and easily build statistical models. So users at all levels are empowered to make effective decisions by leveraging accurate, validated forecasts of future events or conditions.
Information Builders also offers business analytics solutions to support marketing mix modeling, price optimization, and sales and operations planning. These innovative tools leverage a proven mathematical approach, seeking patterns and trends in historical data to provide greater insight into which factors have the most influence on outcomes, and what is likely to occur based on current and past information.