Executive Briefings

Is Predictive Analytics the New Business Intelligence?

In the last couple of years, the popularity of predictive analytics offerings has increased significantly, as many companies looking to improve their existing business intelligence and analytics faculties are looking to the field of predictive analysis to enhance these capabilities, and in some cases even replace them. But, is predictive analysis really the new BI? Is it a replacement for the good old business intelligence offerings? Or is it really just the evolution of BI?

Predictive analysis is a branch of a broader discipline called data mining, which comprises important data analysis activities such as exploratory data analysis, descriptive modeling, pattern and rule discovery, data retrieval, and predictive modeling.

For our purposes, we will focus strictly on the predictive modeling scenario that the discipline of predictive analysis is based on. Predictive analytics consists of those tools that make it possible to perform the tasks of a predictive analysis process, which involves the use of various analytical and statistical techniques to build a mathematical model in an attempt to predict the future outcome of a certain scenario of study. From statistics to game theory, predictive analysis techniques make use of historical data to create predictions, usually by capturing relationships between explanatory (independent) variables and "predictors" (predicted variables) from past events. Two major modeling types can be applied: classification (for predicting categorical/discrete variables such as yes/no, likelihood of an event to occur or not occur, risk levels, etc.) and regression (for continuous variables, such as blood pressure, liquid levels, etc.).

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Keywords: supply chain management, supply chain management IT, supply chain solutions, data mining, data warehouses

Predictive analysis is a branch of a broader discipline called data mining, which comprises important data analysis activities such as exploratory data analysis, descriptive modeling, pattern and rule discovery, data retrieval, and predictive modeling.

For our purposes, we will focus strictly on the predictive modeling scenario that the discipline of predictive analysis is based on. Predictive analytics consists of those tools that make it possible to perform the tasks of a predictive analysis process, which involves the use of various analytical and statistical techniques to build a mathematical model in an attempt to predict the future outcome of a certain scenario of study. From statistics to game theory, predictive analysis techniques make use of historical data to create predictions, usually by capturing relationships between explanatory (independent) variables and "predictors" (predicted variables) from past events. Two major modeling types can be applied: classification (for predicting categorical/discrete variables such as yes/no, likelihood of an event to occur or not occur, risk levels, etc.) and regression (for continuous variables, such as blood pressure, liquid levels, etc.).

Read Full Article


Keywords: supply chain management, supply chain management IT, supply chain solutions, data mining, data warehouses