Originally published in TechRepublic, December 11, 2018
By 2022, research firm MarketsandMarkets projects that the predictive analytics market will be worth 12.41 Billion USD, which makes sense considering that companies from every industry sector drive this market. Accordingly, predictive analytics applications grew in 2018 and will continue to expand in 2019.
Below are five predictive analytics applications that established strong business cases in 2018 and are positioned for more growth in 2019.
1. Supply chain risk analysis
Supplier risk is one of the biggest challenges for companies with global supply chains. There are risks if a supplier goes out of business or gets acquired, and also unknown risks from your suppliers’ suppliers. You can also encounter risks from your most dependable suppliers if a natural disaster like an earthquake or a tsunami strikes. With global warming affecting more climatic conditions, the ability to predict weather along with earthquakes, political and economic unrest, and a myriad of other factors—drives the adoption of predictive analytics for the supply chain.
2. Customer health analytics
In 2019, more companies will use customer predictive analytics to keep their salesforce informed. For example, say you’re a salesperson, and you think your largest customer is “in the bag” for the deal you’re about to make. Not so fast! Someone in customer service recently interacted with your best customer. The customer was very unhappy with the quality of that last shipment of widgets it ordered from you. Since you’re in sales you didn’t know anything about this problem order—until now—because IT hooked up your sales system with your customer service system, and you can see the whole picture. Furthermore, you receive a predictive analytics report that suddenly flags your best customer as “at risk.” You can quickly call the customer, hoping to smooth things out so that you can pave the way for a new order.
About the Author
Mary E. Shacklett is president of Transworld Data, a technology research and market development firm. Prior to founding the company, Mary was Senior Vice President of Marketing and Technology at TCCU, Inc., a financial services firm; Vice President of Product Research and Software Development for Summit Information Systems, a computer software company; and Vice President of Strategic Planning and Technology at FSI International, a multinational manufacturing company in the semiconductor industry. Mary is a keynote speaker and has more than 1,000 articles, research studies, and technology publications in print.