PREDICTIVE ANALYTICS

How organizations making use of it.

SUBJECT : BUSINESS ANALYTICS

Submitted by:
PADMASHREE
LIKHITA H GOWDA
S MADHUMITA
Submitted To:
dr. juned
MEANING OF PREDICTIVE ANALYSIS

Predictive analysis is the process of using data, statistical algorithms, and

machine learning techniques to identify the likelihood of future events or
outcomes. It involves analyzing historical data to build models that can make
predictions about future trends, behaviors, or occurrences.

Organizations use predictive analysis to anticipate customer behavior, optimize

business processes, prevent equipment failures, detect fraud, and more. It's a
powerful tool for making informed decisions and gaining a competitive edge. If
you have a particular application or example in mind, feel free to ask.
How predictive analytics used in Organisation.

1. Customer Behavior Prediction: Organizations use predictive analytics to

understand and predict customer preferences, behaviors, and purchasing
patterns. This information helps in personalized marketing, product
recommendations, and improving customer retention.

2. Inventory Management: Predictive analytics can optimize inventory levels

by forecasting demand, reducing overstocking and stockouts, and ensuring
efficient supply chain management.

3. Employee Attrition and Recruitment: By analyzing historical data,

organizations can predict which employees are at a higher risk of leaving,
allowing them to take proactive measures to retain talent. It can also assist in
identifying suitable candidates during the recruitment process.
How predictive analytics used in Organisation.

4. Financial Forecasting: Predictive analytics aids in predicting financial trends, such as revenue,
expenses, and cash flow. It helps organizations plan budgets, investments, and financial strategies more
accurately.

5. Maintenance and Asset Management: Industries like manufacturing and transportation use predictive
analytics to predict when machinery or equipment is likely to fail, enabling proactive maintenance and
reducing downtime.
APPLICATION OF PREDICTIVE ANALYSIS IN VARIOUS INDUSTRIES

1.MARKETING:

Predictive analysis in marketing predicts customer behavior, segments audiences, scores

leads, prevents churn, personalizes content, gauges campaign success, optimizes
channels, and forecasts ROI. It boosts engagement, conversions, and profitability.

2.Retail:
Predictive analysis in retail optimizes demand forecasting, customer segmentation, pricing,
inventory, fraud detection, store location, marketing, and sales forecasting. It boosts sales, enhances
customer satisfaction, and streamlines operations.

3.Manufacturing:
Predictive analysis in manufacturing optimizes maintenance, quality control, supply chain, energy
usage, processes, equipment health, maintenance scheduling, and production yields. It enhances
efficiency, cuts costs, and improves product quality.
APPLICATION OF PREDICTIVE ANALYSIS IN VARIOUS INDUSTRIES

4.Finance:
Predictive analysis in finance predicts stock prices, assesses credit risk, detects fraud, manages
investment portfolios, forecasts market trends, automates trading, analyzes customer behavior, and
predicts foreign exchange rates. It aids decisions by foreseeing market movements and risks.

5.Healthcare Diagnostics:
In the medical field, predictive analytics can assist in early disease detection, patient risk
assessment, and personalized treatment plans based on patient history and genetics.
LIMITATIONS OF PREDICTIVE ANALYTICS:

1. Data Quality and Availability:

Accurate predictions rely on high-quality, relevant, and up-to-date data. Poor
data quality or insufficient data can lead to inaccurate predictions.

2. Data Privacy and Ethics:

Predictive analytics often involves analyzing sensitive personal or confidential data.
Ensuring data privacy and adhering to ethical considerations is crucial to avoid legal and ethical issues.

3. Changing Conditions:
Predictive models assume that future conditions will be similar to historical
conditions. If there are significant changes in the environment or underlying factors, the predictions may
become inaccurate.
LIMITATIONS OF PREDICTIVE ANALYTICS:

4. Complexity and Interpretability:

Highly complex predictive models, such as deep learning algorithms, can be difficult to
interpret and explain. This may hinder decision-makers from understanding the reasoning
behind predictions.

5. Maintenance and Adaptation:

Models need continuous monitoring and updating to remain accurate as new

data becomes available and conditions change.
THANK YOU..