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'Predictive analytics can help organizations gain a competitive edge'
Jaskiran Bhatia, Country Manager- Information Management Software Group at IBM India/South Asia discusses in detail about the importance of Big Data and predictive analytics in improving an organization’s products, services and customer experience By Vinita Gupta, InformationWeek, November 07, 2011
How would you define Big Data?

Every day, organizations create huge amount of data -- both structured and unstructured.  On top of that, the organizations are not just struggling to keep up with the rate and pace of this huge data, but are also unable to use it in a meaningful way to improve products, services and customer experience. This huge data that we are talking about is Big Data.

Organizations have adopted technologies that can handle data such as data warehousing (DW). But the increase in the amount of data has resulted in complexities. This has led to a trend wherein the organizations are moving from basic reporting to analytics and now heading towards predictive analytics. And to enable predictive analysis, IT departments are integrating Big Data with already stored data.

Explain how predictive analysis can help organizations?

It is not only organizations; citizens like us too would like to predict the future. For instance, I love Mumbai city but quite often I get frustrated with the city’s unpredictable traffic. Imagine how convenient it would have been if we could predict the traffic well in advance and save our commuting time.

The organizations today need to be proactive and not reactive and should be aware of the future of their business. Earlier, the analytics were transaction based but in today’s competitive world, customer experience plays a very critical role. Hence, it’s extremely crucial for the organizations to provide more value to their customers and understand their views and opinion. And predictive analysis can help them in doing so.

In order to be in business, grow and have a competitive edge, organizations need predictive analytics. For example, if a company’s sales are down for a particular region, analytics will only help to find out the reasons for the same but predictive analytics will find out what is most likely to happen in the future.

According to you, which industry verticals will be more benefitted by predictive analytics?

Predictive analysis is beneficial to most of the industry verticals such as telecom, banking, retail, healthcare, government etc. For instance, IBM’s InfoSphere Streams solution at a neonatal ICU helps to detect the life threatening conditions of a child at least two hours before the child actually gets the disease. Similarly, to manage a city better, the government can use predictive analytics. For example, the city of Stockholm is using InfoSphere Streams that helps the residents of the city to get real-time information on traffic flow, travel times and the best commuting options. Even, predictive analytics can help telecommunications companies to identify the reasons for customer churn. The companies can then address the issues and increase subscriber base and revenues.

Thus, whether an organization is a law enforcement agency analyzing video images as they are streaming into their organization, a bank analyzing a decade of transactional data to identify patterns that indicate fraud or a retailer combining customer purchase information with social media sentiment analysis, Big Data can help organizations use their data as a strategic asset.

Discuss IBM’s strategies for Big Data?

IBM offers the broadest platform for Big Data, addressing all three dimensions of the Big Data challenge - variety, velocity and volume. InfoSphere BigInsights and InfoSphere Streams are the core technologies of IBM's platform for Big Data. IBM’s acquisition of Cognos, SPSS and OpenPages has further strengthened IBM’s business analytics portfolio.


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About Author
Vinita Gupta

Vinita Gupta is Principal Correspondent at InformationWeek India. Vinita has over six years experience in IT reporting and has interviewed more than 500 business executives. She has a PG Diploma in Business Management from NMIMS and Post Graduate Degree in Communication and Journalism from Mumbai University Add description here

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