What is Predictive Analytics?
Predictive Analytics is an analysis method. The term means “predictive analytics.” It uses historical data, statistical algorithms, and machine learning. The goal is to identify future events, demand behavior, and trends at an early stage. Based on this, various courses of action are presented. Predictive Analytics is used in logistics and mobility, as well as in Industry 4.0, marketing, finance, meteorology, and the insurance sector.
In logistics, the focus is mainly on forecasting supply chain disruptions or determining optimal inventory levels. Industry 4.0 uses Predictive Analytics for predictive maintenance (Predictive Maintenance) to minimize machine downtime. Predictive Analytics is also widely used in retail, where companies aim to forecast and influence customer purchasing behavior. Based on previous purchases and search behavior, individual product recommendations are generated.
Predictive Analytics works in the following 5 steps:
- Collecting data
- Cleaning data
- Creating models and algorithms for calculating predictions
- Analyzing and generating forecasts
- Optimizing the process and data basis
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