Most executives, while extremely interested in implementing predictive analysis techniques and strategies, felt overwhelmed about the perceived technical nuances that accompany them. So why are we so afraid of entering the informative world of predictive analytics? The truth is, predictive analytics can be very complex, combining advanced data mining and data warehouse solutions to transform large data volumes into meaningful decision making information. This article will address some of the predictive analytics fears facing executives today, and hopefully will ease some of those fears you may have about implementing an predictive analysis solution.
The main reason most execs fear predictive analytics is because it is driven mainly by statistical analysis. Predictive analytics applies statistics, advanced mathematics, artificial intelligence and data management that many business and IT professionals view as extremely complex. What they probably don't realize is that there are several tools that are out today that are dedicated to taking out the complexities that drive people away from predictive analysis. It used to be that you had to hold a PhD in statistics to create and run analytical computations, which was extremely costly to retain. When combined with the costs of specialized analysis programs and hardware, it was very difficult to justify costs. Today however, with a strong understanding of the business processes and the data your business generates, combined with some SQL skills, anybody can perform sophisticated analysis.
Another fear businesses have when it comes to implementing a predictive analysis solution is the high costs that are associated with it. They are skeptical about the numerous case studies and success stories where predictive analysis yielded a substantial return on investment, helped companies optimize existing processes, provided a better understanding of customer behavior, identified unexpected opportunities, and anticipated problems before they occurred.
Some of the fears executives have when it comes to implementing a predictive analysis solution simply come from the fact that most only have a vague concept of the many areas that predictions can be applied to deliver additional value throughout the entire organization.
Lastly, most people fear stepping into the world of predictive analytics because it requires a lot of skill and creativity. When utilizing a platform that can manipulate such vast amounts of data, the sky is the limit as to what kinds of insights your company can gain when combined with creative professionals that truly understand the data, the business, and the organizational goals. But until a framework is created that walks these businesses through the stages of planning, manipulating and evaluating data in order to make predictions and drive decision making, there will be a large number of executives that remain reluctant to enter predictive analytics.
The other day I got into a discussion with a panel of executives and the topic of predictive analytics became a main area of discussion. Most of the executives were aware of predictive analytics, and many of them had implemented predictive analytics in some form or another, whether it be through CRM, decision support systems, marketing, etc. One thing they all had in common was they all were interested in increasing the value of their data investment. But the feeling that permeated from the group most was intimidation.
Most executives, while extremely interested in implementing predictive analysis techniques and strategies, felt overwhelmed about the perceived technical nuances that accompany them. So why are we so afraid of entering the informative world of predictive analytics? The truth is, predictive analytics can be very complex, combining advanced data mining and data warehouse solutions to transform large data volumes into meaningful decision making information. This article will address some of the predictive analytics fears facing executives today, and hopefully will ease some of those fears you may have about implementing an predictive analysis solution.
The main reason most execs fear predictive analytics is because it is driven mainly by statistical analysis. Predictive analytics applies statistics, advanced mathematics, artificial intelligence and data management that many business and IT professionals view as extremely complex. What they probably don't realize is that there are several tools that are out today that are dedicated to taking out the complexities that drive people away from predictive analysis. It used to be that you had to hold a PhD in statistics to create and run analytical computations, which was extremely costly to retain. When combined with the costs of specialized analysis programs and hardware, it was very difficult to justify costs. Today however, with a strong understanding of the business processes and the data your business generates, combined with some SQL skills, anybody can perform sophisticated analysis.
Another fear businesses have when it comes to implementing a predictive analysis solution is the high costs that are associated with it. They are skeptical about the numerous case studies and success stories where predictive analysis yielded a substantial return on investment, helped companies optimize existing processes, provided a better understanding of customer behavior, identified unexpected opportunities, and anticipated problems before they occurred.
Some of the fears executives have when it comes to implementing a predictive analysis solution simply come from the fact that most only have a vague concept of the many areas that predictions can be applied to deliver additional value throughout the entire organization.
Lastly, most people fear stepping into the world of predictive analytics because it requires a lot of skill and creativity. When utilizing a platform that can manipulate such vast amounts of data, the sky is the limit as to what kinds of insights your company can gain when combined with creative professionals that truly understand the data, the business, and the organizational goals. But until a framework is created that walks these businesses through the stages of planning, manipulating and evaluating data in order to make predictions and drive decision making, there will be a large number of executives that remain reluctant to enter predictive analytics.
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About Victor Holman
Victor Holman is a performance management expert who provides fast, simple and inexpensive ways to transform organizational performance.
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