On Tuesday, January 26, the meeting “The systems of advanced & predictive analytics” was held, the second event of the webinar series dedicated to controlling strategies, born from a collaboration between Nicola Segnali of Regesta Lab and Pietro Chiarentin of DGM Consulting.

The main topic of the webinar was the analysis of the potential related to the use of advanced & predictive analytics within the activities that focus their attention more on the predictive moment: on the one hand, with budgeting and forecasting processes and, on the other hand, with operational planning.

Regarding the redefinition of business strategies, predictive analysis techniques make it possible to intervene in three aspects of the forecasting process:

  • the tools (introducing mathematical and statistical algorithms)
  • the elements (focusing on the determinants of outcome)
  • the objects of the forecast (applying the models on the most significant degree of detail)

New forms of competitive advantage can also be generated with respect to processes characterizing operations and, specifically, inventory optimization. Thanks to advanced analytics, it is possible to capture the heterogeneity of observations as a whole and develop different management logics that take this specificity into account.

Predictive analytics can also be used to redefine companies’ sales and marketing strategies by acting on two different key moments of the customer journey:

  • the Next Best Action, a predictive analytics model used to identify which offer to propose to each customer based on the information at hand
  • Churn Analysis, which is a predictive analysis model aimed at defining the churn rate (called churn rate) of customers for the purpose of preventing and decreasing the risk of defining them

In the former case, it will then be possible to design marketing campaigns by building clusters of customers with similar behaviors, offer products that are usually purchased together, and awaken customers who are potentially interested in our products but are dormant.

In terms of the benefits given by Churn Analysis, three main points can be identified: automated monitoring of customer behaviors, the avoidance of abandonment by identifying which of the customers are abandoning our business to go on to create consequent targeted marketing campaigns, and, finally, theincrease of business techniques of customer retention, thus trying to create lasting ties with already acquired customers.

By combining data obtained through the main predictive analytics techniques with real data, it is then possible to obtain new forms of competitive advantage in various operations areas:

  • Inventory Management, for inventory optimization
  • Reducing the risk of product obsolescence
  • Predictive maintenance

The renewal of decision-making processes must be understood from an integrated perspective, involving areas from strategic planning to operational planning. Doing so can equip the company with a more efficient supply chain.

SAVE THE DATE:

The next webinar is already on the calendar

Integrated reporting systems

March 2, 2021 | 12 noon – 1 p.m.