In the age of convergence, customer churn is a concern for service providers, challenging most retention techniques...
The concept of predictive analytics has two aspects attached to the word “predictive” in a business scenario. One is to give us the probability of an event occurring based on past data within the confines of situations that are current today or to some extent with changes in the situation based on the historical variations of the various parameters that define the situation to arrive at results. The second aspect is to provide business with an insight as to what can actually happen if the paradigm of business complete changed.
Data has been existent since time immemorial and human brains have been processing and analyzing data from cradle to grave in varied forms – on finger tips, abacus, tally, excel sheets, computational algorithms et al. I presume other living things around us do analyze data as well – a leopard hunting a gazelle at high speeds, formation flight of migratory birds, the precision swoop of an eagle to grab its prey etc. Does anyone out there know what technologies or algorithms they use?
“In God we trust; all others must bring data.” this famous quote by W. Edwards Deming changed the way corporations behaved with respect to process improvement and quality control. Over time organisations have evolved to be driven by numbers at different levels; most of these numbers that normally get debated and scrutinised are the financial one – the actual dollars.. Adoption of quality processes and global certifications have also contributed to number crunching at an operational level, however the seriousness of these is more of a function of organisation culture rather than statutory requirements associated with financial gains.
This will be my last discussion on data before I get on to something else, in fact I had promised myself this while writing my earlier blog on big data. I found it very hard to ignore this topic since it make immense sense for organisation to look beyond from a data point of view. As discussed earlier, organisation collect data for many reasons till they came to realise that they are collecting data across the entire spectrum of the enterprise through disparate applications that were either home grown or bought for some specific use. The real issue started when large mergers and acquisition become the order of the day for growth and sustainability.
There have been a lot of discussions doing the rounds globally about big data and its implications to the business world. Many companies are trying to build on this opportunity to enhance their revenues and increase shareholder value. Many surveys have been conducted in the recent past by many consulting companies and it is very clear that the marketing spends of many technology companies has made a dent with the spending population mainly the CIO’s. A good number of organisation have recognised the fact that they have a lot of data and that there is a need to put it to use to derive mind boggling insights that will alter the course of their business for the better.