APPLICATIONS
Martin Butler , a Professor of Management Practice at Vlerick Business School , explains : “ Compliance is becoming more exhaustive as regulators expect businesses to comply with more complex requirements and provide proof of this compliance . With increased digitisation in internal processes and customer and business partner interaction , the surface area for compliance breaches has increased substantially .
“ Predictive analytic data models and algorithms enable quicker and more accurate identification and monitoring of the processes and data movements to quickly identify potential non-compliance and create immediate responses .”
Predictive analytics are not a crystal ball for market trends While predictive analytics tools can be extremely beneficial to a company , there are understandably a few drawbacks that business leaders need to be aware of . Although PA can accurately predict some human behaviour , not all can be foretold .
Wood explains : “ Predictive analytics is not a magic wand . One of the primary challenges is data quality and integrity . Bad data in equals bad insights out . Another issue is the ‘ black box ’ nature of some predictive models , which can make it difficult to ascertain why a particular prediction has been made .
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