‘Predictive Procurement’ - How Big Data will Change the Game

The act of collecting and analyzing data isn’t new for years, companies have been amassing large quantities of information - everything from structured data on production, marketing, sales, HR, finance, facilities and operations to transaction-level data on suppliers, customers and partners. But the concept of big data is revolutionary. And it promises to change the game for business, as it holds the key to unlock answers executives have been seeking for years.

Out with the old

When it comes to traditional data analysis,there is the data we have and the analytics we need to figure out what it means. And it is nearly impossible to find trends amongst the tens of thousands of lines of data that most companies have spread across various systems. This is where big data and predictive analytics come in.

In with the new

Predictive analytics makes it possible to analyze data and create assumptions as to what will happen-to not only predict the future, but influence it as well.

Sound like a pipe dream? It is already a reality that is impacting lives. In Kansas City, for instance, a local police department has begun using data to try and stop crime before it happens by identifying crime “hot spots” and patrolling them more aggressively and monitoring the activities of recent parolees. They are also monitoring social media to identify “hot people”, or those most likely to also commit violent crimes.

Predictive analytics is having a significant impact in the business world as well, as data allows to more clearly understand customer needs and adapt their business to accommodate them.

Take pricing. Few things are more critical to success when bringing a solution to market.  Using predictive analytics, companies can predict equilibrium before  releasing anything, maximizing the revenue of the solution out of the gate while also understanding future demand..

Data is the new currency. And predictive analytics is the key to collecting dividends. Don’t be caught  playing checkers while everyone else plays chess. Embrace the trend and reap the rewards.