Tags###What is Analytics?
Wikipedia
“… the application of computer technology, operations research and statistics to solve problems in business and industry. Analytics is carried out within an information system.”
Competing on Analytics(Tom Davenport)
“… the application of computer technology, operations research and statistics to solve problems in business and industry. Analytics is carried out within an information system.”
Using analytics is like driving your car but watching traffic through the rear-view mirror, not seeing what’s ahead and thereby in danger of crashing.
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Analytics is the understanding of existing (retrospective) data with the goal of understanding trends via comparison.
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Developing analytics is the first step towards deriving predictive analytics
###What is Preditive Analytics?
Wikipedia
“predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision making for candidate transactions”
Competing on Analytics(Tom Davenport)
“Any solution that supports the identification of meaningful patterns and correlations among variables in complex, structured and unstructured, historical, and potential future data sets for the purposes of predicting future events and assessing the attractiveness of various courses of action.”
Using predictive analytics is like driving your car and watching traffic through the front windshield, anticipating traffic, making course corrections to avoid traffic jams and getting there faster and safer.
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Predictive Analytics are more sophisticated analytics that “forward thinking” in nature.
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They used for gaining insights from mathematical and/or financial modeling by enhancing understanding, interpretation and judgment for the purpose of good decision making.
###References [1] Jay Roy, Introduction to Predictive Analytics - Part I, Predictive Dashboards, May 2011.