Is Finance the Next Big Industry to Adopt Predictive? All Signs Point to ‘Yes’
Earlier this week Pam Baker of FierceBigData discussed the slow shift to cross-industry adoption of predictive technologies in her article, “Business impact of predictive, predictive analytics on the finance function.” It’s a timely discussion; today, we are increasingly hearing about those early adopters of predictive, and those adopters seem to be overwhelmingly clustered in the technology/IT sectors.
Baker speaks to the benefits that four early adopter finance companies have realized from implementing predictive analytics, referencing research conducted by Grant Thorton (U.S. member firm of Grant Thornton International Ltd). Those findings outline how predictive analytics has helped institutions save millions by underscoring and predicting “tradeoffs” and optimizations that could be made to products lines.
Baker makes note of the differences between predictive and descriptive in the world of analytics, summing it up as: “Essentially it is the difference between looking backwards and looking forwards.”
This is the key. Looking for patterns in the right kind of historical data (for example, behaviors before a past purchase) can effectively be used to predict future occurrences For example, who will make a purchase next? Which product lines should be optimized or reduced?
It’s a testament to the growth of this space to see industries beyond IT making use of predictive technologies. Manufacturing, healthcare, and hospitality are some of the next industries getting into the game. Predictive Analytics World (PAW), one of the standout conferences in the industry, is increasingly catering to those sectors—now offering sister events including PAW-Manufacturing/Government/Workforce/Healthcare.
What do you think will be the next big industry to embrace predictive? Tweet us at: @6senseInc