“What will happen?” is the compelling question.
What if you could predict what products or services your customers wanted before they did? What if you knew how a marketing campaign would perform before you started it? What if you could predict a high performance sales person before you hired them? What if you could anticipate with accuracy your next game-changing business strategy?
In a previous post I talked about what VC’s Love More than Growth - predictability. What if you could answer the question “What will happen?”
The more accurate the analytics or business intelligence you have access to will drive your entire business forward. Becoming a “Predictive Enterprise” will be a sustainable competitive advantage. With improved prediction comes a better return on investment. An increase in the probability of additional sales, of more satisfied customers, of better fit employees.
Today's Predictive Challenges
Of course today I see across our customer base a much more tactical struggle. Customers are having great difficulty building a reliable, accessible, usable set of data for their teams to feed on. A quick survey across our customers tells a familiar story:
- 50%+ have more than 5 data sources to wrangle with
- Most expect up to a 50% increase in the data sources they need to master
- 70% feel information silos are the biggest challenge to achieving a single golden data source
- 50%+ continue to manually aggregate data with 1970’s spreadsheet tech
- 80% see data integration as the most time consuming and expensive task
Yes, a more successful enterprise will be based on more accurate prediction. In fact the sustainability of your business might even depend on how accurate your predictive capabilities become. How do leaders move from today’s tactical challenges towards the strategic advantages of becoming a Predictive Enterprise?
The Predictive Enterprise
I believe the Predictive Enterprise represents the most exciting evolution in business since the Internet. Instead of focusing on what “has” happened, successful businesses will create a core competency in knowing what “will” happen.
The secret sauce will be how data is captured, analysed, understood and monetized. Businesses will need to get control over all the different types of data signals such as streaming, structured, unstructured, mobile, Internet and all sorts of connected things. This is where to start the journey to becoming a Predictive Enterprise.
But it’s not just about capturing the data it’s about understanding the value of your data and how it relates to your customers, products, markets, competition, people, and performance. Probably the most important stream is to find a more effective way to listen to customers and sense how their decisions today are informing their future preferences and choices.
The Predictive Enterprise Framework
Better prediction is the strategic advantage that will redefine the business landscape across all market sectors. What do you need to do now to build your expertise and capabilities and put your business on the path to becoming a Predictive Enterprise?
These four pillars form the basic framework of a Predictive Enterprise:
- Big Data Analytics — the process of examining typically large varied volumes of data to uncover hidden patterns, unknown correlations and other useful information that can be used to make better decisions
- Cloud Computing — enables anywhere access to information, intelligence and resources from any device at lower cost and reduced complexity
- Applied Data Science — the process of creating a new understanding of business algorithms to improve insight and decision making from data
- Automated Deep Learning — often coined machine learning or neural networking, deep learning involves “training” a computational model so it can decipher natural language. Put simply, systems that can mimic and surpass human learning.
As these core areas converge we will start to see the emergence of Prediction-As-A-Service, with new ventures emerging to provide the predictions businesses will be hungry for. The implications are vast. Your business must evolve to sense and predict future outcomes better than your competitors today, and the ones that haven’t started yet!
Today most of our customers are hampered by often self inflicted complexity, stagnant thinking, lack of vision and leadership to drive a next generation version of their businesses. Is it time to change your business strategy to embrace and become a predictive enterprise before your competitors do? What will you do today?
The Predictive Enterprise Awakens.