Predictive Analytics for Strategic and Operational Decision-Making

Predictive analytics encompasses techniques and tools to analyze current and historical data, detect patterns, and model relationships for predicting future values and outcomes. In its various forms, it is used throughout organizations to understand customer preferences, forecast demand for products and services, anticipate equipment failure, schedule maintenance, allocate resources, and make investment and pricing decisions. Strategic decisions typically support the long-term direction of the organization, and usually require an assessment of the uncertainty associated with possible future states of the world. Predictive analytics acts as an integral part of this process by providing forecasts of uncertain events and anticipating the effect of strategic decisions on these uncertainties.