Advanced analytics is a grouping of techniques used to predict future outcomes – based of course on data. The accuracy of these predictions will be determined by the volume and variety of the data used – the larger the volume and the wider the variety, the more accurate the outcomes will be.
Business intelligence delivers descriptive reporting and diagnostic dashboards. When advanced analytics are added to the landscape, predictions and prescriptions for future action are possible, and can even be automated.
Types of advanced analytics
Predictive analytics
Predictive analytics uses data mining, statistical modelling and machine learning models to predict behaviour and improve engagement.
- What will happen next if our customers continue to purchase as they have in the past?
- What is the likely impact of weather predictions on energy demand?
Six Degrees, Theta’s own enterprise financial planning software built on the MicroStrategy platform, uses predictive analytics for financial planning.
Simulation
- What if we introduce a new product into the market, how are our competitors likely to react?
- What if we change our pricing strategy, how will that impact our customer loyalty and market penetration?
Optimisation
- How can we achieve the best loading plan for a truck?
- What are the best research projects to invest in to maximise profits, minimise our cash outflow in the next 24 months and coincide with our expiring patents?
Anomaly detection
Anomaly detection helps find and deal with anomalies in data. For example:
- How can we use surveillance video to generate an alert when a person jumps on a train track?
- How can we use sensor data to maintain the humidity level in a greenhouse
Benefits of advanced analytics and examples of use
Advanced analytics can be used in a variety of different business contexts, for:
- An enhanced 360-degree view of your customers
- Churn prediction and customer acquisition
- Cross-sell and up-sell opportunities
- Fraud detection
- Footfall by geographic space
- Personalised retail experience
- Smart cities
- Real-time recommendations
- Predictive maintenance
