What is Predictive Analytics Software?
Predictive analytics software mines and analyzes historical data patterns to predict future outcomes by extracting information from data sets to determine patterns and trends. Using a range of statistical analysis and algorithms, analysts use predictive analytics tools to build decision models, which business managers can use to plan for the best possible outcome. Analysts, business users, data scientists, and developers all use predictive analytics solutions to better understand customers, products, and partners and to identify potential risks and opportunities for a company.
Predictive analytics platforms enable organizations to use big data (both stored and real-time) to move from a historical view to a forward-looking perspective of the customer. These tools and techniques can be deployed both on premise (usually for enterprise users) and in the cloud. While the majority of predictive analytics software is proprietary, versions that are based on open-source technology do exist. Recent trends in software for predictive analytics show its integration with business intelligence platforms, ERP systems, or other digital analytics software.
To qualify for inclusion in the Predictive Analytics category, a product must:
Mine and analyze structured and/or unstructured data
Create datasets and/or data visualizations from compiled data
Create predictive models to forecast future probabilities
Adapt to change and revisions
Allow import and export from office suites or other data-collecting channels