Predictive Analytics For Dummies

Chapter 8

Convincing Your Management to Adopt Predictive Analytics

In This Chapter

Measuring the benefits of adopting predictive analytics

Optimizing operational decisions

Developing unambiguous success metrics

Creating a proposal to management

Predictive analytics should be on every company’s radar. If it is not in your company’s toolkit, take a good look at the surrounding competitive landscape: Margins are thinner; customers are more demanding and selective; customers have more and more choices. Companies that thrive in this environment are those that adapt to these changes and innovate to get ahead of the competition. They’re lean; they’re agile; they have embraced predictive analytics.

For examples of the effective use of predictive analytics, consider the success of Amazon, Netflix, LinkedIn, and Facebook. Amazon and Netflix have been around for about two decades, publicly traded for roughly half that time; LinkedIn and Facebook have been around for about a decade, publicly traded for only a few years. Although these companies are relatively new in comparison to blue-chip ...