Predictive Analytics : Predictive Analysis

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I. Intro: There has been a lot of hype recently around big data and its potential. When leveraged correctly big data can provide many great benefits for organizations in almost any industry. Some organizations currently have a lot of big data they have gathered throughout their life but have no current way of leveraging this data. Predictive analytics give these organizations the ability to leverage all of their big data. II. Predictive Analytics Capability: Predictive Analytics are able to help companies make sense of their historical data creating many potential advantages. Many organizations in the past have based decisions on what they believe to be true. They have had very little means to actually be able to know if they were making…show more content…
A predictive accuracy benchmark can then be utilized to evaluate the difference in predictive power of existing explanatory models. This will give the user an idea of exactly how accurate the analysis truly is. III. SAP capabilities There are many ways that organizations are able to leverage the power of predictive analytics. One of the more popular ways is through their current SAP software. SAP has been one of the premier enterprise software tools and now has made its way into the predictive analytics side. The ability of the software to work with the current data environment is able to save both time and money. The current software has the capability to perform five forms of analysis including: Time series analysis, classification analysis, cluster analysis, association analysis, and outlier analysis. In the time series, analysis of historical patterns are used in the known data to make predictions about future values (MacGregor). Classification analysis tries to predict a variable using the data of other variables that you believe affect the values of the variable that we are trying to predict. Cluster Analysis groups the data into clusters or segments that have similar attributes which is often useful when trying to understand subsets of larger data. Association analysis looks at the association of different things, with an example being if a customer purchases this product what other product are they likely to buy. Finally an
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