Predictive analytics is a statistical and data mining solution that consists of numerous algorithms and methodologies that are used for both structured as well as unstructured data to extract business insights. It offers flexible, scalable, and advanced solutions to help users make better informed business decisions. Predictive analytics software helps industries in understanding the customer perception by providing a competitive market edge and the ability to orchestrate business decisions rapidly.

COMPETITIVE LEADERSHIP MAPPING TERMINOLOGY

The predictive analytics software vendors are placed into 4 categories based on their performance and reviews in each criterion: “visionary leaders,” “innovators,” “dynamic differentiators,” and “emerging companies". Among all the Predictive Analytics Software vendors, the top 25 have been evaluated, including IBM SPSS Modeler, SAS Advanced Analytics, SAP Business Objects, Information Builders WebFocus, Knime AG, Agileone Cortex, Oracle Advanced Analytics, Angoss Knowledge Studio and Good Data.

VISIONARY LEADERS

Vendors who fall into this category receive high scores for most of the evaluation criteria. They have strong and established product portfolios and a very strong market presence. They provide mature and reputable data integration tools and also have strong business strategies. The visionary leaders in the predictive analytics software space include IBM SPSS Modeler, SAS Advanced Analytics, SAP Business Objects, FICO Decision Management Suite, Tableau Software, RapidMiner Studio, Oracle Advanced Analytics, and Angoss Knowledge Studio

DYNAMIC DIFFERENTIATORS

Greenwave Axon Predict, Domino Data Lab, Teradata Analytics, Sisense, Microsoft Azure Machine Learning, and Good Data are recognized as dynamic differentiators in the predictive analytics software market. They are established vendors with very strong business strategies. However, they offer less products in the market. They focus on a specific type of technology related to the product.

INNOVATORS

Innovators in the MicroQuadrant are the vendors who have demonstrated substantial product innovations as compared to their competitors. They have very focused product portfolios. However, they do not have very strong growth strategies for their overall businesses. Information Builders WebFocus, Knime AG, Microstrategy, NTT Analytics Solution, Alteryx Predictive Analytics, Dataiku, and TIBCO Spotfire.

EMERGING COMPANIES

AgileOne Cortex, Kognito, Exago, and Qlik View are recognized as the emerging players in the predictive analytics software market. The emerging players specialize in offering highly niche solutions and services. They do not have strong business strategies as compared to the established vendors.

Predictive Analytics Software - Market Overview

The global predictive analytics software market is expected to grow from USD 4.57 billion in 2018 to reach USD 12.41 billion by 2022 at a CAGR of 22.1% during the forecast period. Major factors expected to drive the market include the data generated across various end-use industries, focus on competitive intelligence, and the use of analytics to determine future outcomes and customer requirements.

Most analytic platforms use data that is static or stored to analyze patterns that can affect business situations. Predictive analytics can, however, use current as well as historical data sets to extract meaningful information such as patterns in data, future outcomes and trends, anomalies, and changes in customer behavior. Predictive analytics software allows businesses to combine historical data with customer insights to predict future events. When combined with AI and ML, predictive analytics software can provide many competitive business advantages.

The predictive analytics software market has been segmented into solution and service; solutions include risk analytics, financial analytics, marketing analytics, sales analytics, customer analytics, web and social media analytics, supply chain analytics, network analytics, and others (HR analytics and legal analytics), while services include managed services and professional services. Professional services are further categorized into consulting and support & maintenance. The risk analytics solutions segment is estimated to have the largest market size in the predictive analytics solutions market. The Asia Pacific predictive analytics software market is expected to see the highest growth during the forecast period. Improvements in technology due to the increase in technology investments and the growing retail and manufacturing sector are some of the major factors driving the growth of the market in the region. The BFSI, manufacturing, and telecommunications and IT industries are some of the largest in the APAC region. Global competition has necessitated higher productivity at lower costs, which manufacturers need to address to stay competitive in the market. Companies in Asia Pacific are striving to improve customer service to drive competitive differentiation and revenue growth, resulting in companies exploring hosted and cloud alternatives for premises-based systems. China, India, Singapore, Malaysia, and Australia are some of the countries favoring cloud adoption.

What are the types of Predictive Analytics Software?

Financial Analytics

Due to the intense competition in the market, accurate financial statements and reports obtained from financial analytics are not sufficient; companies need predictive insights to shape impactful business strategy and improve decision-making in real time. Financial analytics, when used in conjunction with predictive analytics, can help companies combine internal financial information and operational data with external information to address critical business questions quickly.

Risk Analytics

Risk analysis in an organization is mainly used to fight any risk exposure to the organization. Risk exposure can be either financial, operational, or a risk associated with the organization’s network efficiency. The use of advanced analytical frameworks helps organizations avoid, address, or recover from risk exposure quickly.

Marketing Analytics

Marketing analytics measures, manages, and analyzes marketing performance to optimize the return on investment by improving marketing campaigns. Marketing analytics consolidates data from all marketing channels into a common marketing view enabling insights into customer preferences and trends. This common view also helps companies extract results that can help improve the efficiency of marketing efforts.

Sales Analytics

Sales analytics helps build cross-selling and up-selling opportunities to existing clients along with analyzing pipeline opportunities, generating new business, analyzing customer spending trends, and maximizing value from CRM applications. When combined with predictive analytics, sales analytics can leverage insights from customer behavior to determine actionable targets. Sales analytics can also help identify, comprehend, model, track, and augment the sales performance of an organization with the help of predictive models. Sales analytics can also be used to track customer performance at every stage and assist in deal closures.

Customer Analytics

Customer analytics uses customer segmentation and predictive analytics to understand customer behavior and help in strategic decision-making. Customer analytics can help organizations identify customers for targeted marketing campaigns, helping them not only retain existing customers but also maximize customer lifecycle and improve customer loyalty.

Web and Social Media Analytics

Web and social media analytics is mainly used to analyze web and social media data to understand and optimize a customer’s web usage. Web and social media analytics can help in understanding the challenges and controversies resulting from marketing strategies. Digital marketers, advertisers, and publishers need to separate premium customers from regular customers, track & monitor website traffic, manage marketing & advertising campaigns, and improve the overall web and social media experience for all customers, which can be achieved through the insights provided by web and social media analysis.

Supply Chain Analytics

Supply chain analytics enables data-driven decisions at operational, strategic, and tactical levels, leading to higher operational efficiency and effectiveness. It helps build revenue growth, improve profit margins, and boost control points across the entire supply chain. Currently, an organization's supply chain generates petabytes of data, right from the procurement of raw materials to the distribution and logistics of refined goods. Supply chain analytics can extract meaningful insights from this data to help businesses improve efficiency and make strategic decisions.

Network Analytics

Network analytics helps analyze network data to identify IT issues before they impact the performance and efficiency of an organization. The increase in the adoption of IoT and the consequent increase in connected devices around the world are putting a strain on network infrastructure. Network analytics can monitor network data to preempt issues and thus optimize network performance. Thus, the adoption of network analytics is anticipated to rise in the near future.

What are the Steps Involved in the Predictive Analytics Software Process?

Predictive analytics software helps organizations by predicting the outcomes and behavior of data collected, making them more proactive. The process of analyzing this data includes the following steps.Problem Identification: The process begins with the definition of the scope and identification of data sets that need to be used.

  • Data Preparation: The next step is the preparation of data sets for data mining. This enables a holistic view of customer interactions.
  • Data Exploration: This step focuses on the inspection and sanitizing of the data that has been collected.
  • Transformation and Selection: In this step, the data that has been sorted is transformed; it is then selected and processed for further analysis.
  • Model Building: The data that is refined is collected and used to create data models that enable the discovery of useful information.
  • Model Validation: On the completion of model building, its validation is carried out, based on business rules.
  • Model Deployment: This is the final step in the process. The model is deployed to enable daily decision-making and obtain the required outcome.
  • Result Monitoring: The deployed data models are monitored to evaluate their performance and ensure delivery of the expected outcomes.

Use Cases of Predictive Analytics Software

Presented below are case studies from some of best predictive analytics software and service offerings. These include scenarios where predictive analytics software and services (with their underlying benefits) were deployed to obtain comprehensive solutions.

USE CASE: Identify Suspicious Claim Cases

Project Objective: To help the company minimize losses caused by fraud

Description: Infinity Property & Casualty Corporation of Birmingham, Alabama, a national provider of car insurance, was witnessing revenue loss as a result of insurance fraud. This was causing it a loss of both, monetary value as well as reputation.

IBM Corporation’s Solution:   To tackle the instances of losses incurred by insurance fraud, the company opted for the IBM SPSS predictive analytics solution. This solution is capable of scrutinizing claim histories to identify and flag suspicious claims that can be investigated. It also helps fast-track legitimate claims. The use of this solution resulted in the company gaining a 400% ROI in 6 months. It also led to the addition of USD 1 million to its bottom line and reduced the time taken to refer a suspicious claim for further investigation by 95%.

Benefits Achieved:

  • 400% increase in ROI
  • Identification of suspicious claims for further investigation

USE CASE: Understand Buying Patterns

Project Objective: To observe the buying patterns of consumers to target promotions and increase salesDescription: Large retailers in India are investing in various methods to analyse the intent of customers, offer immediate responses to consumer expectations, predict future behavior, and enhance the shopping experience (both digital and physical). They are focusing on customer intelligence and predictive analytics, which are digital transformation tools that provide a personalized experience as well as meet in-store expectations of customers.

BRIDGEi2i Analytics’ Solution: The predictive analytics solutions of BRIDGEi2i’s assisted these retailers to obtain actionable insights on customer behavior and to devise approaches that are customer-centric in order to maximize retention. ExTrack, its proprietary platform was offered to track issues related to customer experience effectively. These were correlated to enhance business outcomes.

Benefits Achieved

  • Improved customer experience
  • 360° customer view
  • Identification of issues that require instant attention
  • Customer loyalty and personalized schemes

USE CASE: Increase Revenue and Decrease Business Inefficiencies

Project Objective: To enhance operational inefficiency, improve business processes, increase revenue, and reduce business inefficiencies

Description: FTI Consulting, Inc. required quick, easy-to-use, and actionable data analytics. The company needed operational improvements to eradicate inefficient processes.

TIBCO Software’s Solution: TIBCO Spotfire, its API library, and predictive modeling engine were used by FTI Consulting Health Solutions. The use of Spotfire resulted in an improvement in productivity for both, clients as well as consultants.Being easy-to-use for its service line experts, the time required for the operational improvements that were recommended was reduced. It also led to the company being able to accommodate more clients without increasing the number of consultants.

Benefits achieved:  

  • Increased productivity for clients and consultants
  • Improved and accelerated business operations
  • Increased efficiency 

USE CASE: Market Basket Analysis

Project Objective: To obtain insights into market baskets across products, categories, and stores

Description: Grupo Merza, which offers food & beverage distribution, transportation, and logistics services, in the retail as well as wholesale formats required augmentation of its analytical insights to enhance the efficiency of its inventory management, transportation, delivery, and crediting & invoicing functions.

SAP SE’s Solution: SAP HANA platform, SAP Lumira software, SAP Sales Insights for Retail analytics application,  and SAP Predictive Analysis software were used to understand customer needs, increase sales, and enhance customer engagement. The SAP Lumira software was installed within 4 weeks, without the involvement of a consulting service.Benefits achieved:      

  • Improved transactional data and reporting delivery
  • Quicker decisions with self-service data visualization
  • Insights into the contribution of product assortment and promotion to market baskets
  • Identification of defaulters on debts
  • Creation of scorecards to predict lender behavior

What do experts have to say about Predictive Analytics?

“Retailers are some of the early adopters of analytics and are now embracing the AI wave to improve customer experience and journey. Omnichannel touchpoint integration and automation will be one of the key focus for retailers; AI, machine learning, deep learning, and IoT analytics will enable that and transform retailers’ business in a data-driven way.”- C level executive Leading Predictive Analytics Software Provider

“Predictive analytics solutions are gaining traction due to the advent of dynamic technologies, as it has increased the pressure on organizations to sustain in the competitive environment. - Analyst Relations Leading Predictive Analytics Software Provider

“In a dynamic business environment, the growth of on-demand analytics is expected to increase substantially.” -Analyst Relations Leading Predictive Analytics Software Provider

Best Predictive Analytics Software

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It democratize customer insights which enables companies to have the pulse of their customers and marketers run effective and profitable campaigns. It uses networks to analyse customers so that analysis can be used by management and marketing department and data scientists can generate more revenue.
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Figure Eight is a platform that uses both machine and human intelligence to transform data available in varied forms into a customized one for a number of use cases such as intelligent chatbots, autonomous vehicles, natural language processing, consumer product identification, and others.USP of this platform is Human-in-the-Loop Machine Learning stage changes unstructured content, picture, sound, and video information into customized high-quality data.
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Tapcart is a SaaS platform which helps online store owners to create customized mobile shopping apps. Tapcart customs with 7 technology products and services which includes Google Analytics, WordPress, and Amazon EC2. Tapcart is keenly using 52 technologies for its website that includes Viewport Meta, IPhone / Mobile Compatible, and SPF.
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720° is a cloud-based analytics solution for monitoring environmental indoor's. The company's solution automatically detects several issues such as low relative humidity, material emission, recurring odors, temperature fluctuations, high occupancy, and noise pollution among others
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Acuity3D uses an analytical and statistical modeling engine along with a smart network navigation system to set into action manager-defined tasks. These tasks are prioritized by AI conversion probability models.
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Adtype combines artificial intelligence and data mining to analyse the success rate of marketing effors on different customer types. Adtype is one of the best products for it is lightweight and has a multi-layered dashboard interface. It helps businesses grow at an unparalleled rate with the combination of technologies and methodologies used by the company.
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AdvancedMiner is a tool that allows advanced users to develop new scripts and node types in predictive models by breaking down complex processes into simple ones. Various functionalities can be introduced by integrating models with external applications.
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Aera delivers cognitive intelligence based on artificial intelligence, data & domain enterprise expertise, and natural language processing. It does this in real time and on the cloud, which means it is available 24/7.
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Aervio caters to travelling sector. It is an artificial intelligence enabled platform that provides all smart tools for travel management and connects all stages in travel. Aervio is a new platform for business travel. This platform involves integration of new generation services and artificial intelligence to provide spontaneous and structured travel management system. It provides customization enabling connectivity in all aspects of travel.
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This AI platform, through behavior patterns of humans, identifies the best possible match for individuals. These matches are made to enhance customer experience and increase profitability.
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Neustar, Inc. is one of the leading providers of real-time information and analysis to various sectors. It offers a service known as Aggregate Knowledge which combines customer’s data and media in a single platform, wherein the highest performing customers can be reached by advertisers and agencies. Aggregate Knowledge that provides businesses and marketers with insights on which platform to use for targeting the customers
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Ansaro leverages machine learning to find the best-fit employees for jobs. It aims to cut down the bias in recruitment and get the top performers in the organization. The platform involves predictive algorithms for decision auditing and record-keeping that support EEO and OFCCP compliance.
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Apama Streaming Analytics helps enterprises gain insights from large volumes of data by combining various processes. It can analyze streaming data and can gather information and detect patterns from multiple sources. It helps in enhancing critical processes with actions that are derived through automated statistics combining visual and streaming analytics and enhancing speed and also the quality of business decisions.
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Apigee Insights provides GRASP-powered big data predictive analytics that increases marketing effectiveness and customer satisfaction with API-driven adaptive apps that anticipate, learn, and adapt to deliver contextual, individualized interactions. This helps in enhancing marketing effectiveness and customer satisfaction through predictive analytics.

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Artudata promises to increase the revenue by targeting the most likely to convert customers. It empowers sales team to identify genuine realizable leads and uses analytics to increase the conversion rate
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Atrenta's SpyGlass Predictive Analyzer uses patented solutions to provide early design insight into the demanding performance, power and area requirements of the complex system on chips (SoCs) fueling today's consumer electronics revolution.
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Aviso is an artificial intelligence-based sales management tool that helps the sales team close the deal faster and improve pipeline management. Aviso is an AI-driven with results in better revenue outcomes than simply relying on human judgment alone or raw data scattered across CRM, customer success tools, data lakes, and other customer data repositories
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The AXON Platform offers OEMs and enterprises real-time visual analytics that allows them to obtain, analyze, and make decisions on real-condition performance data.OEMs and enterprises using the AXON Platform for Analytics can capture, monitor, and analyze data, empowering end-users and manufacturers with real-time insights.
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BetaZi provides a solution to the Oil and Gas industry. It utilizes analytics to make forecasts that help clients in making profitable decisions.BetaZi creates state-of-the-art production forecasting solutions for the oil and gas industry using physics-based predictive analytics. BetaZi has been vetting its new science and providing meaningful intelligence to producers and financiers.
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BigSquid offers a machine learning platform, Kraken. This platform helps users offer prescriptive and predictive analytics solutions along with the existing analytics infrastructure. It also helps remove hurdles between machine learning insights and multiple users.
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It specializes in video and audio media investments for high-profile disruptive businesses and provides real-time predictive modeling and media allocation modeling platforms. The media buying and planning solution uses AI and big data to predict, execute and evaluate the outcomes of media investments across all channels
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Blastrips provides analytics solution of supply chain and logistics, It helps the customer in reducing per-trip cost and helps them find the shortest routes for its delivery. The software helps in smooth communication from shippers to carriers in real-time.
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Blue Yonder is the leading provider of cloud-based predictive applications for retail. It deliver decisions to customers that boost revenues, increase margins and enable rapid responses to changing market dynamics.
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The company provides value for an organization by automation of its various operation and processes with the help of predictive analytics. It helps build analytics, connection, and workflows by providing various capabilities to customers. Workflow and automation processes become smooth with C2M.
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C3 Predictive Maintenance uses AI / machine learning to identify failures proactively. Its analysis most information including sensor data, SCADA data, asset management systems, structured and unstructured data and also external data sources such as weather.
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C3 Metrics provides fraud detection and cross-device impact for various devices, over online and digital media. Attribution Data Cloud unifies consumer journey across channels and platforms and unifies journey to varied infrastructures. Its updated machine learning helps distribute attribution credit. This platform provides offline customized reporting and 24/7 online dashboards. 
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C55 helps organizations predict their requirements and manage risks by providing them with appropriate decision analytics. The company identifies the optimal level of funding for asset populations, besides handling investments and risk management across various individual assets, C55 conducts analytics to compare their risks and benefits while also considering their cost trade-offs.
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Callstats.io is a tool which monitors the real-time data and always keeps analytics data set up to date.callstats.io SaaS helps tracking information in real-time to remain updated. The entire timeline of a conference can be tracked from the duration of an average conference and setup delay to the behavior of consumers. Automatic diagnosis remains one of the interesting and innovative features of callstats.io SaaS as it provides an overview of the significant interruptions or annoyances for users in a conference. Simple errors or issues can be tracked with a strong dashboard.
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Catalyte’s predictive analytics platform helps the firm in hiring upskilled and deploying high-performing teams. Catalyte uses artificial intelligence and predictive analytics to identify individuals, regardless of background, who have the innate potential and cognitive ability to deliver great software.
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Cirba is easy to use and fast service and provides the potential for savings. It links real-time predictive optimization analytics with a Densification Advisor. It helps in reducing cloud costs through the use of public cloud and billing data and also helps in Reduction in infrastructure requirements in bare metal clouds and on-premise infrastructure
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Frequently Asked Questions (FAQs)
The predictive analytics market size is expected to grow from USD 4.6 billion in 2017 to USD 12.4 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 22.17% during the forecast period. Proliferation of internet and the availability of various means for accessing the internet have led to a massive increase in the data volumes being generated. This will help in the advancement and expansion of high-speed internet services.
With the rise in touchpoint and the need for collecting data to understand consumer behavior, every touch by a consumer has become an important data point that can be processed to reveal user behavior. With the exponential rise in individual and organizational data, businesses are now deploying teams of data scientists and analysts to process the collected data. Another factor accelerating adoption is the revenue generating potential of predictive analytics. This is compelling firms to invest in predictive analytics.
The predictive analytics ecosystem comprises vendors, such as Alteryx, Inc. (US), AgilOne (US), Angoss Software Corporation (Canada), Domino Data Lab (US), Dataiku (US), Exago, Inc. (US), Fair Isaac Corporation (FICO) (US), GoodData Corporation (US), International Business Machines (IBM) Corporation (US), Information Builders (US), Kognitio Ltd. (UK), KNIME.com AG (Switzerland), MicroStrategy, Inc. (US), Microsoft Corporation (US), NTT DATA Corporation (Japan), Oracle Corporation (US), Predixion Software (US), RapidMiner (US), QlikTech International (US), Sisense, Inc. (US), SAP SE (Germany), SAS Institute, Inc. (US), Tableau Software, Inc. (US), TIBCO Software, Inc. (US), and Teradata Corporation (US). The exponential growth in data volume is due to the expansion of businesses worldwide, which is driving the rise in data volumes and sources. The accumulation of big data in a single location has rapidly developed the evaluation capabilities of data science experts in every organization. Additionally, companies prefer to provide stand-alone solutions rather than combined solutions. This is eventually resulting in a rise in the number of big data analytics startups, which are driving noteworthy innovations.
Predictive analytics leads to ad hoc analysis, which assists companies to have all workable solutions for their business specific questions and forecast past, present, and possible future predictive scenarios. In the current competitive business scenarios, companies need more than accurate predictive statements and reports from its predictive analytics. Companies now need more forward-looking, predictive insights that can help them shape impactful business strategy and improve the day-to-day decision-making in real time.
July 2017, SAP collaborated with energy and services company Centrica to help their customers in managing assets and energy consumption on insights available through the IoT. February 2017, Oracle announced the expansion of its IoT portfolio with the introduction of 4 new cloud solutions to assist businesses to fully utilize the advantages of the digital supply chain. By applying advanced predictive analytics to devise signals, IoT applications can help in automating business processes and operations across the supply chain to enhance customer experience. March 2016, the company has extended their strategic partnership to offer combined capabilities of cloud analytics and big data to their users. This will help users to automate and simplify the decisions while attaining greater business insights for smarter business decisions.
Proliferation of internet and the availability of various means for accessing the internet have led to a massive increase in the data volumes being generated. This will help in the advancement and expansion of high-speed internet services. Globalization and economic growth are also playing major roles in driving greater data generation worldwide. Also, the rise in connected and integrated technologies has provided a platform to predictive analytics software vendors for leveraging this development and the unprecedented growth of the internet. Additionally, the eCommerce sector has modified the traditional shopping behavior of customers. Dedicated email campaigns, online/social media advertising, and cognitive analyzing of customers are the key enablers driving sales and increasing customers’ loyalty. With connected devices coming to the forefront, retailers are focusing on real-time analysis of customers’ shopping behavior and market basket analysis for analyzing consumers’ perception, which can be used for building tailor-made offers to increase customer retention. Similarly, with the rise in the global IoT analytics demand in the retail sector, the market is expected to have unprecedented growth opportunities for predictive analytics.