The Corona crisis is currently causing one of the biggest economic crises in history and is therefore deeply affecting many companies. Predictive analytics tools give managers the ability to predict events and reduce uncertainty. Find out what predictive analytics solutions can do in times of corona in the following article.
The current pandemic not only challenges business goals, but also threatens the very existence of many companies. Many companies are facing uncertain technological and operational challenges. By using Artificial Intelligence in conjunction with Predictive Analytics, well-founded forecasts for future market developments can be made to support decision-making. But what added value do the forecasts offer?
Technologies for Epidemiology
Based on data sets, correlations are investigated and patterns are recognized. As a result, future market developments can be predicted. Since the fields of application have expanded enormously due to the increased volume of data (Big Data), the technologies are also used by epidemiological modelers to forecast the expansion of the pandemic.
The data pool is crucial for success
However, as no predictive analytics tool could foresee the structural collapse of the corona crisis, new parameter estimates must be made to include the latest developments on the spread of the pandemic. The reason for this is that the forecasts are only meaningful if the future development of the data basis is given. However, if a structural collapse occurs, events and thus data characteristics occur that do not represent a further development of the previous data pattern. The data from the original data set is no longer correct. A new parameter estimate only helps if inconsistent and latest developments are included in the data set.
Core competence: Forecasting customer behaviour
In his current video (only available in german), our CEO Dr. Parsis Dastani describes key predictive analytics topics in the corona crisis. Among other things, he describes how the predictions can predict which B2B customer needs to be called, since sales cannot currently make field service visits. For this purpose, it can be predicted what turnover can be expected with this customer and which products should be placed. This means that the sales department receives so-called shopping lists, which it can process efficiently. In addition, the analyses can determine how sales will develop depending on the duration of the crisis and how this will be reflected in different segments and industries. In this way, they can determine which classic B2B customers are buying at all at the moment or even have an increased demand. For example, forklift trucks can currently be sold to customers from the paper and pulp industry. Despite the Corona crisis, there are some industries that are still functioning well. AI is able to identify these customers (with high demand) – they may have been inactive for several years and must be placed directly with the sales department.
A worthwhile investment
Predictive analytics tools enable companies to be increasingly proactive and future-oriented, which is vital in a volatile global economy. Companies are empowered to act flexibly and can adapt quickly to new situations.