Opportunities and Challenges of Implementing Predictive Analytics for Competitive Advantage

Predictive analytics has become an increasingly hot topic in analytics landscape. As a result, predictive analytics deployments are gaining momentum. Yet, the adoption rate is slow, and organizations are only beginning to scratch the surface in regard to the potential applications of this technology. Implemented properly, the business benefits can be substantial. However, there are strategic pitfalls to consider. The key objective of this chapter is to propose a conceptual model for successful implementation of analytics in organizations. This chapter highlights the importance of predictive analytics, identifies determinants of implementation success, and covers some of the potential benefits of this technology. Furthermore, this study reviews key attributes of a successful predictive analytics platform and illustrates how to overcome some of the strategic pitfalls of incorporating this technology in business. Finally, this study highlights successful implementation of analytics solutions in manufacturing and service industry.