A recent report published by Gartner state that organizations that use predictive business performance metrics will increase their profitability by 20% by 2017. The report also shows that organizations should alert workers that a business moment is about to occur, and guide them on the next action to take in the context of a particular customer’s expectation.
“Using historical measures to gauge business and process performance is a thing of the past”, says Samantha Searle, analyst at Gartner. “To prevail in challenging market conditions, business need predictive metrics – also known as ‘leading indicators’ – rather than just historical metrics (aka ‘lagging indicators’).” The “Predictive risk metrics are particularly important for mitigating and even preventing the impact of disruptive events on profitability” added.
Samantha also stated that “business process directors who don’t apply predictive metrics to cross-boundary business processes will leave their organizations vulnerable to the risk of failing to execute their business strategies.”
To successfully implement a predictive analytics strategy that will help to achieve the business performance expected, Gartner recommend the following:
- Identify the business processes that are critical to driving strategic business outcomes and strategy execution.
- Determine how bet to measure business outcomes in a way that triggers human or automated actions before an undesired outcome occurs.
- Explore how they can leverage existing operational data, analytics and other sources of information in more predictive algorithms.
- Employ predictive risk metrics to avoid process failure or business disruption
Another Gartner survey showed that 71% of a universe of 498 business and IT leaders understood which KPI’s are critical to supporting the business strategy, but only 48% of them can access those metrics, and not more than 31% agreed to have a dashboard to provide visibility to those metrics. “Visible metrics won’t hep drive strategic business outcomes, such as increasing profitability, if business and IT leaders don’t have the right metrics in place”, said Ms. Searle.
Predikto is unique positioned to help organizations deliver significant operational process improvement value by leveraging the power of predictive analytics.
You can read the Gartner press release here http://www.gartner.com/newsroom/id/2650815