Management Training:
Management Courses: Predictive Analytics and Why We Are So Afraid of It
The other day I got into a discussion with a panel of executives and
the topic of predictive analytics became a main area of discussion.
Most of the executives were aware of predictive analytics, and many
of them had implemented predictive analytics in some form or
another, whether it be through CRM, decision support systems,
marketing, etc. One thing they all had in common was they all were
interested in increasing the value of their data investment. But the
feeling that permeated from the group most was intimidation. Most
executives, while extremely interested in implementing predictive
analysis techniques and strategies, felt overwhelmed about the
perceived technical nuances that accompany them. So why are we so
afraid of entering the informative world of predictive analytics?
The truth is, predictive analytics can be very complex, combining
advanced data mining and data warehouse solutions to transform large
data volumes into meaningful decision making information. This
article will address some of the predictive analytics fears facing
executives today, and hopefully will ease some of those fears you
may have about implementing an predictive analytics solution.
The main reason most execs fear predictive analytics is because
it is driven mainly by statistical analysis. Predictive analytics
applies statistics, advanced mathematics, artificial intelligence
and data management that many business and IT professionals view as
extremely complex. What they probably don't realize is that there
are several tools that are out today that are dedicated to taking
out the complexities that drive people away from predictive
analytics. It used to be that you had to hold a PhD in statistics to
create and run analytical computations, which was extremely costly
to retain. When combined with the costs of specialized analytics
programs and hardware, it was very difficult to justify costs. Today
however, with a strong understanding of the business processes and
the data your business generates, combined with some SQL skills,
anybody can perform sophisticated analysis.
Another fear businesses have when it comes to implementing a
predictive analysis solution is the high costs that are associated
with it. They are skeptical about the numerous case studies and
success stories where predictive analysis yielded a substantial
return on investment, helped companies optimize existing processes,
provided a better understanding of customer behavior, identified
unexpected opportunities, and anticipated problems before they
occurred.
Some of the fears executives have when it comes to implementing a
predictive analytics solution simply come from the fact that most
only have a vague concept of the many areas that analytics can be
applied to deliver additional value throughout the entire
organization.
Lastly, most people fear stepping into the world of predictive
analytics because it requires a lot of skill and creativity. When
utilizing a platform that can manipulate such vast amounts of data,
the sky is the limit as to what kinds of insights your company can
gain when combined with creative professionals that truly understand
the data, the business, and the organizational goals. But until a
framework is created that walks these businesses through the stages
of planning, manipulating and evaluating data in order to make
predictions and drive decision making, there will be a large number
of executives that remain reluctant to enter predictive analytics.
Victor Holman:
http://ezinearticles.com/?expert=Victor_Holman
Subject:
Management Courses
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