About Advanced Analytics

Advanced Analytics is a grouping of analytic techniques used to predict future outcomes. Advanced analytics can include:

Predictive analytics

  • What will happen next if our customers continue to purchase as they have in the past?
  • What is likely to happen to our sales if the current trends continue?

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?

Optimization

  • How can we achieve the best loading plan for a truck?
  • What are the best drug research projects to invest in to maximize our profits, minimize our cash outflow in the next 24 months and coincide with our expiring drug patents?

Advanced analytics are based on mathematical principals and started as descriptive statistics which are basically used to sum and count past occurrences for what has happened in the past which is useful in a reactive, course correction manner. Advanced analytics allows you to anticipate possible future outcomes and either capitalize on them or adjust now to impact the future.

The traditional technique for building a predictive model is based on hypothesis testing which more of a statistical approach. Data mining is a technique for building predictive models where the data is visually explored and used to determine which predictive model to use to “fit” the data. For example, if the data visually looks linear then a linear regression technique could be applied. However, if the data plots out logarithmically (fancy work for the hockey puck graph we’ve all seen) then a logistic regression technique could be applied.


So, why do we use advanced analytics?

Advanced analytic techniques allow us to create more precise models of the world around us. Models that can be applied throughout our business to help inform better decisions. Advanced analytics allows you to:

  • Predict competitive initiatives with accuracy
  • Identify latent market demand and innovate products to meet it.
  • Identify a person’s likelihood to develop heart conditions and suggest the right incentives to change contributing behavior?
  • Anticipate which parts on your customer’s cars are likely to fail in the next 30 days and allows you to proactively notify them, preventing warranty claims.

Every industry, every area in the business can use advanced analytics to help achieve cost effective, top line revenue growth that translates into real market value for the company.


Think advanced analytics is right for you?

Advanced analytic techniques allow us to create more precise models of the world around us. Models that can be applied throughout our business to help inform better decisions. Advanced analytics allows you to:

  • Predict competitive initiatives with accuracy
  • Identify latent market demand and innovate products to meet it.
  • Identify a person’s likelihood to develop heart conditions and suggest the right incentives to change contributing behavior?
  • Anticipate which parts on your customer’s cars are likely to fail in the next 30 days and allows you to proactively notify them, preventing warranty claims.

Every industry, every area in the business can use advanced analytics to help achieve cost effective, top line revenue growth that translates into real market value for the company.


Learn more