Opportunities and Challenges of Implementing Predictive Analytics for Competitive Advantage

Abstract

The past few years have seen an explosion in the business use of analytics. Corporations around the world are using analytical tools to gain a better understanding of their customer's needs and wants. Predictive analytics has become an increasingly hot topic in analytics landscape as more companies realize that predictive analytics enables them to reduce risks, make intelligent decisions, and create differentiated customer experiences. As a result, predictive analytics deployments are gaining momentum. Yet, the adoption rate is slow, and organizations are only beginning to scratch the surface in regards to the potential applications of this technology. Implemented properly, the business benefits can be substantial. However, there are strategic pitfalls to consider. The key objective of this article is to propose a conceptual model for successful implementation of predictive analytics in organizations. This article also explores the changing dimensions of analytics, highlights the importance of predictive analytics, identifies determinants of implementation success, and covers some of the potential benefits of this technology. Furthermore, this study reviews key attributes of a successful predictive analytics platform and illustrates how to overcome some of the strategic pitfalls of incorporating this technology in business. Finally, this study highlights successful implementation of analytics solutions in manufacturing and service industry.