Prospects – predicative business planning
It is out of the question that data is valuable. But how can companies best manage the treasure trove of data? Whether Business Intelligence (BI), Predictive Analytics, Business Analytics, Machine Learning (ML), or Data Mining: new technology with various labels is constantly being released in the market. Keeping an overview is not easy.
A machine is serviced before it runs the risk of failure; predictive models help win back customers who are willing to churn; and intelligent factories organize themselves mostly without human intervention – evaluating data opens up fascinating possibilities. Particularly popular are predictive technologies such as extrapolation, statistical models, and Machine-Learning processes (ML). They allow us to detect deviations between target and actual performance at an early stage and to take measures with a valid basis. This increases planning security and ultimately the company’s overall value.
Predictive solutions reference to following aspects:
- Procedures for pattern recognition to identify influencing factors, dependencies, and cause-and-effect relationships from past data.
- the enrichment of data sets with external factors to check the plausibility of findings from one’s point of view.
- Continuous simulations to optimize decisions in relation to known past patterns
“Predictive” as a supplement.
The actual planning process – planning, target-actual comparison, deviation analysis, countermeasures – remains untouched. It is not replaced by predictive planning methods, but rather supplemented. Because if you want to make statements about the future, you first need clear information about the past and present. Without descriptive and diagnostic BI there are no predictive processes.
Before companies implement a predictive solution, they should also do their homework on data management, data modeling, and data governance. To benefit from the new technologies, the consistency and quality of the data must be ensured across the entire process chain. Crucial when using predictive analytics is the solution’s architecture. A modular BI and performance management platform that covers all important information processes and is open to a best-of-breed approach has proven itself best in practice projects.
Source: it&t business: Das IT-Magazin für Österreichs Entscheider, Ausgabe 10/2019, S.13.