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Predictive analytics : A powerful tool helping companies in making better business decisions through digital transformation

WRITTEN BY : KATY ALLAN

n today ’ s business landscape , we are seeing a greater number of organisations investing time , effort , and money into digital transformation , with the ultimate goal of driving fundamental change .

When it comes to digital transformation , there is no one-size-fits-all approach . Each organisation ’ s journey will be unique , depending on its specific needs and objectives . For example , one company might use AI or cloud computing to improve its customer experience , whereas another might redesign its supply chain to leverage machine learning . Another company may even use predictive analytics ( PA ) to predict customer demand in advance and adjust its production accordingly .

According to a Gartner study , which was conducted from October 2022 through April 2023 among 200 global corporate strategy leaders , 79 % believe that AI and analytics will be critical to their success over the next two years . In the report , strategists have stated that on average , 50 % of strategic planning and execution activities could be partially or fully automated , however only 15 % currently are .

The benefits of predictive analytics in a business environment Although predictive analytics has been around for decades , it is only now that we truly recognise the major benefits that this technology can bring to businesses . By using algorithms and machine learning to analyse data and predict what is likely to happen , companies are provided with a more complete picture of a situation which in turn helps them to make better decisions .

Bret Tushaus , VP of Product Management at Deltek , says : “ By understanding likely outcomes , employees can be more empowered to make decisions and to focus more of their time and energy on the human element side of projects , such as value adds that make the business stand out from the competition .”

136 December 2023