Predictive analytics uses past data and statistical algorithms to predict future outcomes and trends. It allows organizations to be more proactive by predicting events before they occur to improve revenue, reduce costs, and increase competitiveness. Studies show companies using predictive analytics are 36% more likely to experience above average revenue growth and twice as likely to outperform peers. For example, predictive analytics helped the Memphis Police Department reduce serious and violent crimes by positioning resources before crimes were committed. It also helped First Tennessee Bank increase its marketing response rate by 3.1% and return over 600% on its marketing investment.

1. Matous Havlena
matous@havlena.net
Maricela Gomez Herrera
yjl858@mocs.utc.edu
Maria Isabel Hernandez Eguibar
cyt536@mocs.utc.edu
Predictive Analytics
UTC University
Production and Operations Management

2. Why does it
What is it? Case Studies
matter?

3. What is Predictive Analytics?
Data Information Decision

4. Intelligence vs. Analytics
What happened? Why did it happen?
Who?
When? Will it happen again?
How many? What will happen if
we change x?
...historical predictive...

5. Why does it matter?
Revenue Costs Competitiveness
IBM's CFO study
36% growth in revenue or more
2X more likely to outperform peers
IBM/MIT study

6. Crime Prediction
Memphis Police Department
positions resources more likely to encounter problems
before crimes are committed
reduction in
27% serious crimes
drop in
15% violent crimes

7. Predictive Customer Analytics
First Tennessee Bank
optimizes its marketing resources
increase in
3.1% marketing response
overall return
600% on investment

8. Matous Havlena
matous@havlena.net
Maricela Gomez Herrera
yjl858@mocs.utc.edu
Maria Isabel Hernandez Eguibar
cyt536@mocs.utc.edu
Thank you!