Ever since businesses across the world have got exposed to more data than ever, the requirement for advanced data-driven technologies has surged significantly. As a result, dependency of the businesses on Business Intelligence tools has increased too.
Basic Understanding of Business Intelligence and Predictive Analytics
Business Intelligence is all about enabling organizations to organize, analyze, and conceptualize business data using several advanced tools. Such tools and techniques aim to develop relevant and meaningful insight from the raw data. As a result, creates a way for building a data-driven business culture and management. Using the BI tools businesses can take precise decisions about their every department – marketing, product strategies, sales, customer services, and certainly a lot more.
What becomes an added advantage is when predictive analytics which uses the powerful algorithms of machine learning and predicts the future trends in the business atmosphere combined with Business Intelligence. This powerfully blended combination of two data analysis and management techniques can be termed “Business Intelligence Predictive Analytics.”
Components of Business Intelligence Predictive Analytics
There are certain fundamentals Business Intelligence Predictive Analytics techniques that businesses use to make informed decisions in their day-to-day operations.
|Analytics||It is a business intelligence technique that involves a depth study of raw data and extracts meaningful insights from them using effective machine learning algorithms.|
|Predictive Modeling||This Business Intelligence technique uses statistical analysis to develop models and forecasts the probabilities of the events. In simpler terms, it is responsible for measuring the value of particular data and using the attributes of multiple statistical models.|
|OLAP||It stands for Online Analytical Processing which is a technique for identifying problems and developing multiple perspectives on them. The concept of OLAP is in the processes of budgeting, forecasting, and CRM data analysis.|
|Data Mining||Using this technique in Business Intelligence organizations discover various data set patterns. Based on these patterns an integral process of data mining is established which further facilitates pre-processing of data to create models.|
|Model Visualization||This technique helps to transform the facts into presentable data using histograms, charts, plots, and other visuals. As a result, helps to develop a precise and accurate interpretation.|
Role of Predictive Analytics in Business Intelligence
The use of predictive analytics in business intelligence is way more extended than its original concept itself. By using the combination of both these data-driven technologies the organizations can have the following applications.
|Improving service delivery||The primary application of predictive analytics in business intelligence creates a better customer experience by studying customer behavior and preferences. E-Commerce websites like Amazon, eBay, Netflix, etc use predictive analytics for business intelligence.|
|Helps police fraudulent activities||The dependency of the businesses on online mode has created a co-existing environment for frauds to prevail which is completely unavoidable. However, this can be reduced significantly with the early identification of frauds and deriving quick solutions.|
|Optimizes the Marketing Efforts||Businesses have wealth of information that needs technology to deduce the right insights. As a result, to attract customers predictive analytics and business intelligence are used and marketing efforts are optimized.|
Departments Using Business Intelligence Predictive Analytics
Almost every department in the business organization uses Business Intelligence Predictive Analytics to streamline the complete business processes by improving the efficiency of each department.
|Research Analyst||The analysts use BI Predictive Analytics to understand the opportunities in the organization and frame recommendations to boost the company leadership.|
|Finance||This department uses pull insights from data and understands all the relative factors that may impact the profitability and liquidity of the company.|
|Marketing and Sales||The marketing department uses campaign metrics to support the marketing strategies. It includes providing contextual visuals and sharing them with the company. While the sales department uses BI to monitor revenue targets in combination with the sales pipeline.|
|Operations||The basic objective of every organization is to increase cost efficiency and work effectiveness. As a result, the manager uses BI Predictive Analytics to optimize the processes and ensures that all service level agreements are duly met.|
Examples of Companies Using Business Intelligence Predictive Analytics
Today, all types of companies are using Business Intelligence in their ecosystem. Be it financial companies or social media giants everybody has something for them in Business Intelligence and Predictive Analytics space.
|American Express||The company has been using data analytics technology to develop new payment service products to detect fraud accurately and protect the interest of the customers. As a result, improve the retention rate of the company.|
|Coco-Cola||This known beverage brand uses AI-powered image recognition technology to track the customer base who prefer their drinks. As a result, this information helps them to create the targeted advertisement which is 4 times more likely to bring conversions.|
|Delta Airlines||Here, Big data and BI are used to facilitate customer service and differentiate their experience with Delta Airlines. Flight attendants use tools to personally greet the travelers and create a sense of personalization. This technology use helps the company create a loyal customer base.|
|Ellie Mae||This renowned company process almost 35% of the mortgage applications in the USA. The low-interest rates of the company created a high demand for loan processing. This becomes possible by easy navigation into the volatile market as a result of BI use.|
|Tesla||Tesla is an automotive company that is known for its innovation and connects cars wirelessly using BI to collect data for detailed analysis. As a result of this approach, the company is able to anticipate and calculate the intensity of the damage and alert customers.|
|REI||This platform uses BI to facilitate customer segmentation analysis and take informed decisions about shipping methods, product category, lifecycle management, etc. Such BI–based decisions provide help to determine how content on the website shall be displayed and email campaigns shall run.|
Software used for Business Intelligence Predictive Analytics
Business Intelligence tools are used to understand the trend and derive meaningful insights from them with the aim to make strategic business decisions. Few popular tools that are seen as a perfect blend of both Predictive Analytics and Business Intelligence are mentioned here.
|Sisense||It is a user–friendly tool that allows businesses to manage, analyze, and visualize the vast data sets which otherwise involve immense technical expertise. Alongside, the tool includes other data from other sources such as Adwords, Google Analytics, and a lot more and is based on the in-chip technology and makes the processing faster.|
|SAP Business Intelligence||By providing an array of advanced analytics the SAP BI tool supports enterprise-level applications and offers data visualization, analytical application, reporting, integration, etc. As a result, being a robust solution SAP offers a ton of functionalities in a single platform itself.|
|Dundas BI||It is a browser-based BI tool that connects multiple data sources and provides visualizations in the form of tables, charts, graphs, etc. All these data visualization help to build reports and extract the performance metrics for all company types.|
Business Intelligence Predictive Analytics focuses on all aspects of the business and provides a proper solution for all the departments, As a result, it is widely accepted by big industry giants to streamline their prime business objectives.