Demystifying predictive analytics

data and identifying data patterns and relationships, and as a result, have been able to forecast what will happen next.

This is according to Tracy Mckechnie, solution sales and special projects manager at analytical solutions provider and consulting services firm, Olrac SPS. She adds that predictive analytics uses a combination of statistical and mathematical techniques, as well as a variety of data, to profile customers at an individual level and then predict how they will behave.

Predictive analytics can be used to identify risk and curtail fraud, Mckechnie says. Using all the available data, such as feedback from call centres, transactions and even external data, unusual behaviour can be identified.

Mckechnie says there is no point in developing a great business model if the organisation is not going to use its results.

She further adds that organisations need to ask who is going to use the results of the analytics, and how frequently they will require results - the business challenge needs to be fully understood, available resources evaluated, and the most relevant analytical solution implemented to support the organisation's decision-making.

Mckechnie is a speaker at the ITWeb Business Intelligence (BI) Summit, which takes place on 28 and 29 February, with a post-event workshop on 1 March hosted by BI expert Rick van der Lans. There will also be an awards ceremony honouring the top BI practitioners and their projects.

At the summit, Mckechnie will unveil how using predictive analytics identifies risks and accelerates claims settlements, boosting customer service. For more information about the event, click here.