Not many years ago, there was this thing called Big Data; a technology that just came in and started winning and was conversed for years. Fast forward to now, there is this thing called predictive analytics, which is new, unprocessed and gives insights which can be acted upon directly.
Now fast forward a little bit more and what you will see is that predictive analytics has broken out of its egg. It is in the real world now and people are using it. It is into the mainstream business and the only thing remains it from being ‘the thing’ in the market is the skill. Organizations are actually applying it to everyday processes and are kind of transforming business like they usually do.
Predictive Analytics can be used for multiple purposes. It is a technology which has many faces to it and can be used by many departments. Its predictive nature can find unusual patterns and either prevent cybercrimes from happening or find the real criminal. This is one of its use; detecting fraud. Optimizing marketing campaigns can be another. Predictive Analytics can be used to predict how the consumer goes by their business every time they decide on anything. Analytics in this field might help businesses attract, grow and have a profitable consumer base.
There are many other uses such as improving the operations or reducing risk for the company. When one says improving the operations it is about managing the resources. Like if a hotel can predict its guests for the night and increase their inventory and manage the man power accordingly. Airlines use it all the time to set their ticket prices. Reducing risks comes to when a seller assesses buyer’s credit score to predict its buying ways and this can help the seller to a great extent.
Those were the uses of the predictive analysis for analyzing the data on a digital front but imagine doing it on the human front. Yes, you read that right. Predictive Analysis is actually transforming a humongous field in the business. There are many businesses that have applied this same technology to the department of Human Resources. That is actually a genius. Predicting the outcomes of data and what not is actually great but given that HR actually works with humans and predicting the outcomes of human capabilities is magic.
Human Resources take care of talent acquisition, performance or productivity, upskilling, etc. Couple these tasks with predictive analytics and it is kind of a superpower as the technology can bring an immense step up at every step. As it will bring in the element of predictability to something as dynamic as human capabilities. This technology was first used in the HR in 2015 by only 24% of the employers. The number rose to a steady 32% in the next year and then jumping two years down the train, the predictive analytics based HR startups have won almost USD 43 million from not many but only one investor. If that isn’t convincing, I doubt anything else will be.
– Unmesh Phule