Data Mining and Predictive Analytics{1}


by Hassib K
The article talked about data and how it is currently being used to provide real time answers.  Businesses are using their available data to make decisions every day.  One example includes how credit bearau’s use your credit history to assign you a current credit score.  This score is for today and depending on the circumstances of your credit history, it could change tomorrow, or next week.  Aside from business, it’s also used in healthcare, where they try to predict the length of hospital stay for people, which helps them better manage the facility and patient health.  It goes on to outline the process involved, such as acquiring data, organizing, and using for predictive analysis.  A business’s success in the present and future depends heavily on their ability to predict and forecast using the data they have available.

 

I completely agree with the author.  Having data available that can be used for predictive analysis is crucial to success.  In this day and age, if you don’t have all your customers information, someone else will and they will use it to their advantage.  Competition is fierce one way to stay afloat is to compete with better data.  Forecasting and predictive analysis is part of business every day.  Managers need to be able to ball park how much we’ll sell next quarter, so that we know how much to buy on credit now, and etc.  This type of activity requires the use of good data and intelligent analysis processes that generate useful information.  I would like to focus a good portion of my database study on predictive analysis.

Source:

Pant, P. (2012, January 24). [Web log message]. Retrieved from http://www.information-management.com/newsletters/analytics-data-mining-predictive-ROI-value-10021815-1.html?pg=1