February 6, 2012

Predictive Analytics Defined

Definitions of Predictive Analytics by users and experts.

Harnessing the Power of Predictive Analytics
Predictive analytics is a process, based on statistical and data mining techniques, that models current and historical customer performance data and traits to make 'predictions' about future outcomes and customer behaviors. These predictions can be expressed as numerical values, or scores, that correspond to the likelihood of a particular occurrence or behavior taking place in the future. In corporate America, predictive scores are typically used to determine the risk or opportunity associated with a specific customer or transaction. These evaluations assess the relationships between many variables to estimate risk or response.
Jeff Liebl, Multichannel Merchant

QuickStudy: Predictive Analytics
Predictive analytics is a set of mathematical techniques applied to a data set for determining the probability that some scenario is likely to happen or be true. These techniques are applied to many research areas, including meteorology, genetics and marketing - areas in which there's an abundance of data and a need to forecast the future.
Jan Matlis, Computerworld

Predictive Analytics for Competitive Advantage
Unlike BI applications which merely present summaries of historical data, predictive analytics focus instead on the prediction of future outcomes of events not yet observed in data. These predictions are made by creating a model from the observed data using statistical techniques. These models can range in complexity from simple linear equations to powerful techniques such as neural networks.
Colin Magee, Insightful Corporation

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