Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Can Predictive Analytics Methods Make Innovation More Successful?
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
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
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

Image
How Big Data Will Change People Management Forever
How Can You Use Analytics to Measure Employee Engagement?
Top 5 Big Data Trends Influencing Education in 2021
List of Public Databases from the Washington Post
Interview KXEN Bruno Delahaye
  • 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 datapredictive analyticspredictive analytics methodstech innovation
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

sales and data analytics
How Data Analytics Improves Lead Management and Sales Results
Analytics Big Data Exclusive
ai in marketing
How AI and Smart Platforms Improve Email Marketing
Artificial Intelligence Exclusive Marketing
AI Document Verification for Legal Firms: Importance & Top Tools
AI Document Verification for Legal Firms: Importance & Top Tools
Artificial Intelligence Exclusive
AI supply chain
AI Tools Are Strengthening Global Supply Chains
Artificial Intelligence Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

advances in data lakes
Big DataExclusive

Data Lake Details: All About Cloudwick’s CDL

9 Min Read
ecommerce big data
Big DataInfographic

5 Big Data eCommerce Tricks To Maximize Your Sales

3 Min Read
big data and forex trading
Big DataExclusiveSocial Media Analytics

The Fascinating Intersection Of Social Media, Big Data And Forex Trading

7 Min Read
employees training and big data
Big Data

How Employee Training In Enterprises Can Benefit From Data

6 Min Read

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

AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots
ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?