“Predictive analytics”. If you’ve paid any attention to the business or tech world over the past several years, then you’ve heard the phrase. It’s a phrase that has likely been accompanied by other intimidating phrases like “big data” or “artificial intelligence” or “machine learning”. Over the past decade, these phrases have only become more popular and even more important for businesses to understand. Don’t believe us? Here’s what the Google Trends for both “big data” and “machine learning” look like over the past 13 years.
At its heart, predictive analytics is about making better choices. If your company has the opportunity to make an informed decision, then it is likely to be more successful in the long run. There are plenty of ways that predictive analytics does this – from artificial intelligence to clustering to regression. One particularly important tool for predictive analytics is time series analysis. We might refer to this as creating forecasts for the future. This is a phrase that we’ve all heard before. In fact, when you read the word forecast, you probably thought of a graph that looked suspiciously like this: