By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data-driven white label SEO
    Does Data Mining Really Help with White Label SEO?
    7 Min Read
    marketing analytics for hardware vendors
    IT Hardware Startups Turn to Data Analytics for Market Research
    9 Min Read
    big data and digital signage
    The Power of Big Data and Analytics in Digital Signage
    5 Min Read
    data analytics investing
    Data Analytics Boosts ROI of Investment Trusts
    9 Min Read
    football data collection and analytics
    Unleashing Victory: How Data Collection Is Revolutionizing Football Performance Analysis!
    4 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Can Predictive Analytics Methods Make Innovation More Successful?
Share
Notification Show More
Aa
SmartData CollectiveSmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Predictive Analytics > Can Predictive Analytics Methods Make Innovation More Successful?
AnalyticsExclusivePredictive Analytics

Can Predictive Analytics Methods Make Innovation More Successful?

Scott.Howser
Last updated: 2019/10/31 at 9:04 PM
Scott.Howser
6 Min Read
predictive analytics for emails
Shutterstock Licensed Photo - By hanss
SHARE

Innovation has been the backbone of economic progress since the dawn of civilization. A number of revolutionary technological achievements have improved our quality of life and driven economic growth for thousands of years. These days, predictive analytics methods are playing an important role in innovation. A lot of emphasis has been placed on the role of innovation in our lives. However, these discussions usually gloss over the vast majority of failed inventions. The increasingly robust field of predictive analytics is going to play an important role in vetting new product ideas to ensure greater economic stability and progress in the years to come.

Contents
The Need to Reframe the Focus of InnovationThe Vital Role of Predictive Analytics in the Field of InnovationMonitoring externalities that will influence demandPredicting demand based on changing customer demographicsEvaluating the success of previous products

The Need to Reframe the Focus of Innovation

Most pundits agree that the quality of innovation is strongly correlated with a number of ideas that reach the marketplace. This is a very salient point. However, the problem is that organizations can waste a tremendous amount of resources on poorly vetted ideas. This limits the ability of other ideas to thrive. The number of poorly conceptualized ideas is daunting. According to the United States Trade and Patent Office, 95% of patent applications are denied. Among the ideas that do receive patents, only 3% ever generate any revenue. Finding a better way to identify viable ideas is key.

The Vital Role of Predictive Analytics in the Field of Innovation

Predictive analytics has been used in a variety of fields to minimize waste, increase effective utilization of resources and help all stakeholders find better parity with organizational goals. It hasn’t been put to the test in the field of innovation to the same extent as fields of finance, public polling, law enforcement and a number of other fields. However, that is primarily because it takes time to develop predictive analytics models and the forecasts are often made years into the future. Nevertheless, it is clear that predictive analytics is going to be a vital component in meeting innovation targets in virtually every industry. Here are some of the key reasons.

Monitoring externalities that will influence demand

While studying the changes in your customer composition is important, it is even more important to identify market forces that will drive demand. There are loads of factors, such as:

More Read

big data and IP laws

Big Data & AI In Collision Course With IP Laws – A Complete Guide

Data Security Unveiled: Protecting Your Information in a Connected World
Empowering Parents With Big Data: Ensuring Child Safety And Development
Security In Automated Document Processing: Ensuring Data Integrity And Confidentiality
Unleashing Victory: How Data Collection Is Revolutionizing Football Performance Analysis!
  • Greater concern about climate change and other environmental risks.
  • Fears of scarcity due to a reduced number of resources available.
  • Growing concerns about data security.
  • A need for greater autonomy in their daily lives.
  • The growing focus on digitalization.

The last point in this list is a big reason that so digital development tools have dominated the landscape in recent years. You can now print on demand on Shopify with Printify and other tools, because companies understood the growing need to build applications around that service. There are thousands of factors that can affect demand for any given product or service. Predictive analytics models are being developed that can understand them to make better predictions.

Predicting demand based on changing customer demographics

Demographics are major predictors of demand for various products and services. One of the main reasons that companies have difficulty introducing successful products to the market is that they have a hard time forecasting changes in demographics. They often assume that the composition of income, ethnicities, gender, and other factors among the general population will remain static. They are often blindsided when the representation of some groups grows faster than expected, which changes the level of demand for their product. A number of new predictive analytics models are designed to forecast future demographic trends and use them to predict demand for various products and services. Many experts believe this is the key to identifying changes in demand in the future.

Evaluating the success of previous products

Studying other products can be a great way to determine the likelihood of success for a similar one. If a product developed around a particular market failed in the past, there is a good chance that it will fail again, unless there has been a major shift in the market. Predictive analytics models do not determine the viability of a new product solely based on the success or failure of a previous product. However, they certainly can use it as a variable in their algorithms. As predictive analytics methods and algorithms grow sharper and more sophisticated, companies can get even better at predicting which products will be successful. Each development in predictive analytics brings us closer to brighter and systems of innovation – and that’s something we can all benefit from.

TAGGED: big data, predictive analytics, predictive analytics methods, tech innovation
Scott.Howser June 14, 2018
Share This Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

big data and IP laws
Big Data & AI In Collision Course With IP Laws – A Complete Guide
Big Data
ai in marketing
4 Ways AI Can Enhance Your Marketing Strategies
Marketing
sobm for ai-driven cybersecurity
Software Bill of Materials is Crucial for AI-Driven Cybersecurity
Security
IT budgeting for data-driven companies
IT Budgeting Practices for Data-Driven Companies
IT

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

big data and IP laws
Big Data

Big Data & AI In Collision Course With IP Laws – A Complete Guide

5 Min Read
data security unveiled
Security

Data Security Unveiled: Protecting Your Information in a Connected World

8 Min Read
child online safety data
Big Data

Empowering Parents With Big Data: Ensuring Child Safety And Development

13 Min Read
data integrity
Data Management

Security In Automated Document Processing: Ensuring Data Integrity And Confidentiality

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?