Advanced analytics software can be used to increase business intelligence, leverage investments and identify strategies for profitability. The use of advanced analytics software can be especially valuable in these times of economic downturn when advanced analytics' predictive capabilities can help businesses to foresee risks and determine best products, customers and cross-marketing opportunities, or avoid missing opportunities. Knowledge Center contributor Steve Palmer explains how you can build on your company's business intelligence by using advanced analytics software.
Advanced analytics software provides insights to business intelligence, the
"Wow, I did not see that before" factor. It identifies that
"something more" and shows you how to capitalize on it. But what is
Advanced analytics includes data mining and statistical software. It uses
technologies such as neural networks, rule induction and clustering, among
others, to discover relationships in data and to make predictions that are
hidden, not apparent or too complex to be extracted using query, reporting and
multidimensional analysis software.
In other words, advanced analytics is about applying techniques for
analyzing data to identify an opportunity, solve a problem or "predict"
a future outcome. These high-end analytical techniques let you tap into rich
data sources to spot trends about customers, products, markets or suppliers,
and to manage risk or formulate strategic initiatives in order to forecast and
model outcomes. These predictive insights can, in turn, mean tangible
profit-maximizing and cost-saving decisions.
Identify strategies for profitability
What this means for businesses is that advanced analytics lets you leverage
your investment in people, contracts, equipment and facilities, and identify
strategies that ensure profitability by looking for intelligence, not just
knowledge. It means exploring the how
just the what
of collected data. It means committing to intelligent
modeling that generates new insights rather than using data to justify an
Advanced analytics can be used to address complex planning problems and
solve difficult business challenges-many of which would otherwise be considered
impossible using spreadsheets and similar solutions. Advanced analytics does
this thanks to linear programming and other sophisticated heuristics, which
bring true intelligence
into the equation.