5 Factors To Consider When Choosing Predictive Analytics Software

Predictive analytics software makes data analysis easier for anyone, regardless of skill or experience. They are an excellent tool for fraud detection, supply forecasting, predictive maintenance, and market research. Use cases vary depending on the industry, immediate need, and classification or regression models. Predictive analytics software platforms are customizable for your needs. Here are some of the most critical factors to consider. Considering these factors can help you find the right predictive analytics software for your needs.

Cloud-Based Solutions

Most companies offering predictive analytics software solutions are currently delivering it as an on-premises installation. This type of implementation has a large revenue share, primarily due to significant financial companies’ high-profile demand for such software. However, as more small and midsized companies are becoming aware of its benefits, the order for the software is set to increase. The factors driving the demand for cloud-hosted software solutions are low cost, ease of switching vendors, and upgrade scope.

The benefits of cloud-based analytics include regular backups of data on remote servers, easy access, and data security. These features eliminate the need for local hard drives and other insecure methods of sharing sensitive data. Data security is another benefit of cloud analytics, with all data password-protected. Users can only access the information they need, and audit logs provide visibility into who has accessed the data. In addition, cloud-based solutions can be linked to other data sources, resulting in the automatic refreshment of results.

Machine Learning Techniques

Machine learning is a powerful technique that can help you identify patterns in massive amounts of data. You can train predictive models to detect new designs and trends without human intervention by automating these tasks. This technique is beneficial in three situations. These are: identifying new products or services, tracking social media interactions, and predicting where to find renewable energy resources. In addition to its benefits, machine learning can help you save money on personnel costs.

Linear regression has been around for more than two centuries and is one of the most commonly used techniques for data classification. The goal of this algorithm is to detect patterns in data by removing similar variables, and it is also fast and straightforward. Semi-supervised learning uses classification models and regression techniques to classify input data. This approach is most effective when the data being analyzed changes over time. Finally, unsupervised learning is another method that can be effective when your information is not labeled.

Scalability

One of the essential factors in determining the scalability of predictive analytics software is the ability to handle a large volume of data. In other words, it must be flexible enough to accommodate a variety of problem types and different views of the data. For example, scalability should include the ability to create dashboards, reports, and other types of accounts to visualize relationships and patterns between data. Today, visual analytics is a crucial way to use data. By changing perspectives and leveraging data visualization, users can better understand the data.

Another vital factor in scalability is performance. Predictive analytics software should handle large volumes of data and predict events quickly. Of course, each business is unique, and a scalable tool should cater to these differences. But there are still some factors that need to be considered before choosing a software tool. Integration with existing tools

Choosing the right predictive analytics tool depends on several factors. First, the primary user base will determine how easy it is to use the software. Typically, business users need less technical methods to interact with analyses. Integration with existing predictive analytics tools will also be necessary. However, the benefits of using a dedicated predictive analytics tool may outweigh the disadvantages. The demand for predictive analytics is growing as businesses seek to achieve competitive advantage. Companies should integrate it into their everyday operations to fully take advantage of using this technology. By incorporating this technology into their processes, businesses will better understand what their customers want and when they’ll need it. But before integrating predictive analytics tools into their operations, they should first import relevant data. Some of this data may be difficult to obtain or low quality. At least 80% of the data should be clean as a rule of thumb.

Cost

There are many factors to consider when choosing predictive analytics software. While open-source products are usually free, enterprise-level platforms can run thousands of dollars per user. Ultimately, your choice should be based on the specific use case you have for the software. Like those from IBM, the more established predictive analytics tools tend to have higher prices than their more innovative competitors. Nonetheless, some of them are relatively inexpensive.

For example, SAP HANA’s software provides database and application services in the cloud. Users can access data from virtually any connected application and build predictive models based on it. With a variety of features, this software can even detect fraud. It supports SAS, CSV, and Excel and has a graphical user interface that allows you to customize the software to suit your specific needs. And with its customizable, intuitive workflows, predictive analytics software can be a significant investment.