Playing now

Playing now

What are Predictive Analytics?

Glossary definition

What are Predictive Analytics?

Predictive analytics

Predictive analytics is a way to predict future events by discovering patterns in historical data. This advanced form of analytics could involve data mining, algorithms, statistical modeling techniques and even machine learning. These can help CFOs identify trends for more accurate planning, forecasting and decision making.

How Predictive Analytics Benefits Businesses

Incorporating predictive analytics into quarterly or annual goal setting can benefit businesses in a variety of way. The biggest, overarching benefit is giving greater insights that lead to making faster, more informed decisions. Predictive analytics can also leverage data to determine outcomes before they happen. This is especially useful in installing safeguards against intentional fraud and suspicious activities or innocent errors.

Where to Apply Predictive Analytics

Predictive analytics can be used in a variety of ways. Here are just a few instances of where you can utilize predictive analytics to lead to better, more accurate outcomes:

  • Fiscal planning
  • Risk assessment
  • Forecasting sales
  • Market analysis / optimizing marketing campaigns
  • Resource management

CFO 3.0 – Digital transformation beyond financial management

CFOs are playing a key role in digital transformation. Learn how you can move from a 'historian' to a 'visionary' within your business.

Download your free guide
2,508 readers have downloaded this guide

Subscribe to our Sage Advice Newsletter

Get our latest business advice delivered directly to your inbox.

Working from home with tea in hand