Predictive Analytics
Short Definition
The use of statistical models and machine learning techniques to forecast future outcomes based on historical and real-time data.
Context
Extended Definition
Predictive Analytics refers to a set of methodologies that leverage data patterns to anticipate future behavior, risks, or opportunities. By analyzing historical datasets, algorithms build models that estimate probabilities or trends, enabling organizations to act proactively rather than reactively.
In marketing, predictive analytics identifies potential customers, estimates lifetime value, and optimizes campaign performance. In management, it enhances planning, supply chain operations, and human resource forecasting.
The discipline operates at the intersection of data science and strategic management, transforming data into actionable intelligence. Its effectiveness depends on data quality, model transparency, and ethical use, particularly when predictions influence human decisions or social outcomes.
Contemporary Example
See also
Part of chapter: Glossary