Functioning of predictive analytics in business

Abstract

Purpose: The goal of the paper is to analyze the main features, benefits and problems with the 7 predictive analytics usage. 8 Design/methodology/approach: Critical literature analysis. Analysis of international literature 9 from main databases and polish literature and legal acts connecting with researched topic. 10 Findings: Predictive analytics is a powerful tool that leverages historical data and statistical 11 models to forecast future outcomes and behaviors. It enables organizations to gain valuable 12 insights, make informed decisions, and drive business growth. By analyzing patterns, 13 correlations, and trends in data, predictive analytics can uncover hidden relationships and 14 provide a deeper understanding of business processes, customer behavior, market trends, 15 and other important factors. The benefits of predictive analytics are numerous. It enables 16 organizations to forecast and predict future events, leading to proactive decision-making and 17 the ability to anticipate trends and outcomes. It enhances decision-making processes, improves 18 resource allocation, and provides enhanced customer insights. Predictive analytics also helps in 19 risk mitigation, fraud detection, optimization of operations and pricing, product development, 20 and marketing effectiveness. By leveraging these benefits, organizations can gain a competitive 21 advantage and achieve sustainable success. 22 Originality/value: Detailed analysis of all subjects related to the problems connected with the 23 predictive analytics. 24