Predictive analytics is generally used by most of the business organizations in order to analyse the current and historical facts, making predictions about health care, financial collective activities, customer behaviour, and the last but not the least customer retention. Though predictive analytics is considered to be one of the most powerful tools it is often misunderstood and then misused. Given here are the five major myths about predictive analytics that you could not even afford to think of in the future.
Myth 1: Predictive Analytics is easy to use.
Sure like the new tools being listed to use do make it easy enough to analyse the big data and derive answers. Infact you could here throw in the data and basically allow the machine run before it splits into something. The problem here is the answers might not be worth the energy it generally took in order to make some calculations.
Running analytics program is easy but doing it in the right manner is generally very hard. And the only reason behind this is that you just don’t turn the computers loose a let them run. Predictive analytics would here require a serious training in the behaviour of your consumers within the marketing area, and aligning it with the goals of your organization.
Myth 2: It could be built and forgotten.
One common mistake that most of the business organizations do or make that once their entire model is built, they begin to feel that it does not have to be maintained or changed in order to keep up with the challenges and surroundings. Some of the major changes that would impact the models here would be the product pricing, policy changes, competitive landscape, innovative and the last but not the least economic condition changes.
Myth 3: Predictions are going to last forever.
Well this is not something that is true, generally for most of us one shot prediction is as useless as a plant, or project condition that brings in change constantly. This is why most of us or say all the business organizations are into real time algorithms which recalculate and make new predictions in a frequent manner.
Myth 4: Predictive analytics always deliver one of the best results.
There is a natural tendency among most of the business organizations to be in love with their models, and generally continue to believe that their models would be generating incremental for them and their business organization solving all their major problems. In reality the project that deliver measurable business results more than just good results.
To conclude although predictive analytics is one of the most powerful tool in the organization, this does not mean that it is the best one you have choosen. And even though when we know that nothing is life is 100% guaranteed we often look this to be a major fact of life in a way we have been using predictive analysis for our daily business use. So what other predictions would you like to add to the list above. Do leave your thoughts below.