Predictive Analytics for Small Businesses
4/9/10 at 4:24 PM by Frank Coker Your past performance can be an excellent predictor of your future. With the right analytical tools, you can get a pretty clear picture of a range of potential futures – some good, some bad. Once you understand the range of possibilities, it becomes much easier to choose the actions that lead to the most positive future.
Predictive analytics have been used for many years by big corporations. Companies such as IBM and Intel have built very sophisticated tools for this purpose and use them as part of their everyday planning and management processes.
CoreConnex has recently added predictive analytics to the Corelytics™ Financial Dashboard. You can now look at a high growth scenario and low growth scenario for revenues, COGS, gross margin, expenses, and profits. The scenarios are based on long-term (2 year) and short-term (6 month) financial patterns, and extrapolates growth lines for the coming 12 months.
Corelytics™ provides instructions on how to read the information and how to make decisions which will lead you to your high performance scenario. You will be surprised at how easy this is to understand.
This is just the beginning of new forms of analysis that will be added to Corelytics in the months ahead. Putting this predictive intelligence to work in your business can make a big difference in your financial performance and in future value of your company.