Risks

Risk to a company that does not explore predictive analytics include poor decisions that can result in:

• Lower operating efficiency.
• Higher costs.
• Higher risk exposure.
• Greater fraud.

The greatest risk to not using predictive analytics is that if you don't, your competitors will, and they will reap the benefits.

Opportunities

The opportunities made possible by predictive analytics include:

• Better business decisions.
• Better resource allocation to critical business functions.
• More effective product and service promotion.
• Improved customer service.
• Faster product development.

Predictive analytics can fundamentally transform a firm's approach to business decisions.