Role of Predictive Analytics for Enhanced Decision Making in Business Applications

Abstract

Predictive analytics, an integral facet of advanced analytics, employs statistical, machine learning, and artificial intelligence techniques to forecast future events. This chapter explores the diverse applications and implications of predictive analytics, with a focus on enhancing decision-making processes. Drawing examples from industries such as e-retailing, insurance, banking, and healthcare, predictive analytics emerges as a versatile tool for proactive decision-making, customer engagement, and operational efficiency. The evolution of data science and decision-making dynamics is discussed, highlighting the transformative role of predictive analytics in leveraging data for success. It also delves into proactive forecasting methods, stages of predictive analysis, and the advantages these methods offer. Looking toward the future, potential enhancements in the field are outlined, encompassing advanced technologies, real-time analytics, explainable AI, cross-domain models, privacy-preserving methods, and more.