Data analytics is a major function of any modern business. Regardless of industry, companies need data to evaluate their operations and plan future growth, making data analytics and advanced techniques, like predictive analytics, an essential business tool.
Canadian CEOs recognize the value that predictive analytics delivers to their decision-making process. In fact, almost every meeting we attend with Canadian CEOs inevitably turns to the subject of predictive analytics and new opportunities for it to deliver more.
There is a reason CEOs want to talk to us about predictive analytics; it's because they know it is the key to vastly improved decision-making.
However, what can Canadian CEOs do to enhance their data analytics capabilities and improve decision-making? Here are five ideas based on our experience working with leading organizations in the US and Canada:
As a continuously evolving field, data analytics enables companies to understand their clientele, operations, and market more deeply by spotting trends, understanding the performance of products / services, and their market position. Successful businesses are those that leverage and push the boundaries of analytics to attain reliable, predictive insights, unleashing opportunities for operational performance, risk management, and improved customer experience.
For example, energy businesses are using predictive analytics to launch maintenance requests using live data. In the retail sector, predictive analytics is being used to identify the best locations for future stores and reimagine in-store customer experience. Financial Services businesses take advantage of predictive analytics by helping compliance officers create new models for managing risk.
Companies that use predictive analytics win far more often. According to a report from the Society of Actuaries, healthcare businesses that use predictive analytics save around 15 percent on their annual budgets and can attain savings of over 25 percent over a 5 year period. For instance, healthcare organizations deploying predictive analytics in their operations have reduced hospital readmissions, forecasted usage, improved their supply chain, managed staff more efficiently, and offered better care at a lower price.
Over the past few years, many companies have adopted systems that utilize predictive analytics to save energy costs. By automatically adjusting lighting or temperature, businesses can save over 90 percent of their energy costs.
We have a prediction: within the next three years, all corporate decision-making will be influenced, in some way or another, by predictive analytics.
*All statistics result from the 2018 Canadian CEO Survey.
 Society of Actuaries February 2017 Report, "Predictive Analytics in Healthcare Trend Forecast."
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