Among the various types of business intelligence and analytics platforms available, software tools that provide predictive analytics capabilities are arguably some of the most prevalent. The ability to foresee – with a reasonable to high degree of accuracy – what factors will affect a business' market or what decisions customers will make can be an invaluable advantage for any company, helping to facilitate actions and initiatives that are ultimately beneficial to the bottom line.
The cloud, too, is continuing on the surge in popularity that it has been riding for the past few years. As such, predictive analytics solutions that are primarily or completely based in the cloud are being adopted by more and more companies. There is a notably wide variety of worthwhile purposes for these platforms, and companies that are still on the fence regarding cloud predictive analytics implementation would do well to look at the gains that can be had.
Following Netflix's lead
The movie rental and online streaming service Netflix relies a great deal on its ability to use algorithms that help determine recommendations of titles to rent or watch, based on customers' past preferences. As one might imagine, this requires compiling a massive volume of consumer data, and the company employs hundreds of data analysts to examine data points that number in the billions.
For this reason, Netflix chose to adopt a cloud-based predictive analytics platform, according to Data Center Knowledge. The processing speed that such a solution can offer is invaluable for a service that is contingent on operating quickly and efficiently for its customers while simultaneously juggling countless user queries.
Common applications of cloud-based analytics
Research firm Decision Management Solutions recently conducted a survey of 350 businesses, all of whom used cloud predictive analytics as part of their daily data-related operations. According to Forbes, a number of sectors and business functions were identified as benefiting greatly from such tools.
The news source reported that as far as different industries were concerned, retail saw the most impact from predictive analytics, with positive effects 13 percent higher than the overall average. Financial services also gleaned benefits 12 percent greater than other industries, while industries such as health care delivery seeing a decline – 9 percent below average.
Overwhelmingly, customer analytics were viewed as most important to these cloud platform users, with 72 percent of respondents claiming the most interest based on this purpose. Marketing came in second, as it was named as most important by 58 percent of those surveyed.