5 Ways to Make Smarter Business with Analytics
Companies have never had so much information at their disposal. But how can you use them wisely? Depending on the desired result, different analysis techniques can be employed.
Should you use segmentation, decision tree, predictive model or other analysis methods? To address specific business needs based on the increasingly large data, organizations can operate 5 advanced analysis techniques.
1.Segmentation
Companies can design and implement targeted strategies especially by segmenting their data into categories (geographic, demographic, behavioral …). Marketing uses segmentation to understand who buys the products and find the best approach to reach different consumer groups. Segmentation is also widely used in the insurance industry to detect fraud or in finance to identify abnormalities and irregular transactions.
2.Decision tree
This analysis technique is very often used in the finance and banking sector to assess the risk level of a loan to an individual or a company. In the health sector, decision trees help determine what treatment will be most effective under specific conditions. Call centers and customer relationship services are also big users of the method to ensure that the customer receives the right information at the right time.
3.Predictive model
Acclaimed in many industries, predictive systems are to analyze a wide variety of data sources (sales figures, market research, customer feedback …) to develop a model to anticipate a turnover or any other outcomes to support business. Distributors use it to forecast demand and avoid both stock-outs and unsold. Insurers use it to calculate the risk associated with a subscriber and adjust the amount of the premium accordingly. Health facilities can also create models to predict the evolution of a disease outbreak.
4.Textual analysis
Text analysis technologies allow a company to take advantage of unstructured data, such as handwritten notes or web pages. It is for example possible to read the publications on social networks to assess the feelings of consumers about a new product. Textual analysis is also useful in the detection of fraud, e.g. to analyze all kinds of forms. Combined with structured data processing tool available in the databases, the analysis can give very accurate results.
5.Simulation and Optimization
The optimization and simulation tools are essential in the industry to refine the configuration of machines, improve production speed and ensure that products will be delivered in time. Simulations are also widespread among energy players to fully optimize the production systems of water, gas or electricity.
