Why Predictive Analytics Is Being Used by Managers
There is no doubt that in the past few years, buzz words like machine learning, predictive analytics, and artificial intelligence have spread all across the globe.
While many initially presumed it may have been just another hype cycle within the business space, as the months go by, it is gradually becoming more certain that these technologies are here to stay – from now to years on end.
The rising realization of the absolute importance of technology to help improve profits and decrease inefficiencies has steadily changed the landscape of every industry, blossoming a whole new era of integrated sectors; from fintech (finance), healthtech (health), martech (marketing), agrotech (agriculture), fashtech (fashion), and so on.
The Changing Landscape of Work
As more and more companies realize the importance of utilizing data to improve their business, the need for workers that have such skills in data analytics, machine learning, and the management of big data is growing. The graph below shows the trend of keywords such as data analytics, machine learning, and big data in the past five years.
Furthermore, with more dependence on these technologies to help support business, the landscape of how we work has been fundamentally changing. According to key findings in a report, The Future of Jobs 2018 by the World Economic Forum,
“in 2018, an average of 71% of total task hours across the 12 industries covered in the report are performed by humans, compared to 29% by machines. By 2022 this average is expected to have shifted to 58% task hours performed by humans and 42% by machines.”
This illustrates the impending reliance on technologies to not only shift the way we work but change the type of work that is in demand and necessary to grow a business.
From these findings, it is no wonder that the demand for technical specialists such as Data Analysts or Machine Learning Engineers has grown substantially over the past few years. However, with the big data boom continuing on without any plan to stop, it appears as if this demand will persist far until 2022, and perhaps beyond.
With that being the case, it was noted that jobs the top five jobs that would be required for the future are Data Analysts and Scientists, AI and Machine Learning Specialists, General and Operations Managers, Big Data Specialists, and Digital Transformation Specialists.
Why Management Need to Leverage Big Data & Predictive Analytics
Business is about change and adaptation.
This is even more so with companies in the retail industry, specifically fashion brands.
Thus, with so much evidence pointing to the fact that the workforce and the necessary skills to effect sustain one in the oncoming future revolves around technology, it’d be foolish for any manager or CEO to not look in this direction.
With the World Economic Forum predicting there to be a sizeable skill gap across all industries, with the average skill instability being 42%, one of the greater challenges that any level of management must face is how to deal with this.
Saadia Zahidi, the Head of the Centre for the New Economy and Society at the WEF had stated in a press release speaks on the importance for management to adapt accordingly,
“Companies need to complement their automation plans with comprehensive augmentation strategies. For businesses to remain dynamic, differentiated and competitive in an age of machines, they must, in fact, invest in their human capital. There is both a moral and economic imperative to do so. Without proactive approaches, businesses and workers may lose out on the economic potential of the Fourth Industrial Revolution.”
Technology waits for nobody.
This means that managers, more than ever before, need to think beyond what is currently going on in their organization and truly consider meeting the demanding challenge of reskilling and teaching the necessary skills to not only their team but themselves.
By staying alert and ahead, CEOs and Managers are able to make use of all that data that is being collected in their company. Relying on predictive analytic solutions such as Chain of Demand can greatly enhance your business in a plethora of ways.
Not only does it help to understand the clientele better, but it also helps to optimize operations, identify and predict demand/trends, and get a deeper insight into the performance of specific products.
Moreover, specific to the retail industry, CEOs and Managers can utilize predictive analytics to spot the best locations for future offline stores, prevent wasted inventory, optimize pricing strategies, cater more specifically to consumer’s tastes, and overall improve in-store customer experience.
We live in a time where those who act fast on the demand for change, reap the largest benefits. For businesses to survive long into the future, and grow into something sustainable, managers and CEOs need to think far ahead at what they can do to ensure their company is readily prepared.
Being aware of what predictive analytics solutions can do for you and how it can increase gross margins while decreasing inefficiencies can ensure you stay on top. Additionally, seeing the important points of the changing landscape of work mentioned above can help people in the management level to seize opportunities before it’s too late.
Managers and CEOs lead by example. Putting all responsibilities into the tech team is a thing of the past. To truly harness the power of predictive analytics and machine learning technologies, the leaders should make sure everybody – from marketers, designers, and planners – in their retail company are well-informed.
It is by doing all this, you can truly meet the changing demands – leveraging the past, to move the present, and succeed in the future.