Saturday, March 28, 2015

Predictive Analytics

Experts define Predictive analytics as the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends.  Predictive analytics does not tell you what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability, and includes what-if scenarios and risk assessment.

This can be applied to the human capital management area to predict who might leave the company, who might have health problems in the near future, what kind of programs retain employees longer among other things. Having such an understanding, even if it it not very accurate, can save a significant amount of money for employers.

Since human capital management is moving to the cloud powered, in most cases, by in-memory technology that enables access to near real time data, predictive models can be used to analyze current data and historical facts in order to better understand employee behavior and to identify potential talent management related risks and opportunities for a company. It uses a number of techniques, including data mining, statistical modeling and machine learning to help analysts make future business forecasts.

A good book on this topic is "Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die". A good course on Machine Learning, one of the key topics in this area is available in Coursera.
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