History
Predictive analytics is often associated with using historical data to identify trends in customer behavior. Identifying these trends allows companies to pursue new market opportunities and develop strategies to better target, communicate, and reach potential new customers as well as expand upon and retain existing customers. Customers have always been the focal point since growth is often defined by a company’s ability to bring on new business.
New Uses
While predicting customer trends is extremely important and can give a company a great competitive advantage, predictive analysis can also be applied to many other internal operations and processes. Take, for example, a company that tracks the individual costs of the products or services they provide. They may even break these costs down by the resources or activities that are used to create these products or services.
Benefits
With predictive analytics this company can create accurate annual operations budgets by looking at historical sales growth and per unit costs of resources used for products or services. Now, assume this same company is expecting a 10% increase in sales growth for the upcoming year. What effect does this have on staffing since an increase in customers means an increase in required resources? How many additional employees, computers, office space, etc. are needed to accommodate growth within the company? Does this growth have a positive or potential negative impact on net income or cash flow? What happens if we ramp up operations to meet a shortfall in revenue?
Armada consulting leverages our consulting and technical experience to provide interactive reporting tools, allowing a company to not only see the current landscape but also develop scenarios for different types of growth outcomes. A company can now forecast best, worst and most likely case scenarios to improve their decision making if the landscape of their business changes.
Predictive analysis allows companies to prepare for the future by exploring trends of the past, so let the Armada Consulting Team help your company align your current actions with your future objectives to meet your business goals.
