Predictive Analytics in Business: A Literature Review

Running Head: Predictive Analytics
Data Analytics and Business
Intelligence
Literature Review
System04104
7/6/2019

Predictive Analytics
1
Introduction
Predictive analysis helps the organisation to collect and analyse huge amount of data
and information related to business and make predictions about the future. Predictive analysis
uses number of business models, data mining tools, predictive modelling techniques, and
other analytical techniques to provide assistance to management and information technology
to make predictions about the future (Larose, 2015). This literature review has been prepared
on the basis of six companies (Amazon, Wal-Mart, Google, McDonald, General Motors, and
Apple Inc.) and their approach on predictive analysis. This report also helps to understand
that which type of tools and techniques are used by these companies for the predictive
analysis.
Literature Review
In modern competitive era, large numbers of business organisation are relying on the
big data and data modelling techniques for the predictive analysis. Many companies are using
the historical and transactional data for predictive analytics.
Amazon, which is one of the largest retail companies use the data mining technique to
analyse its future demand of products. Bradlow, Gangwar, Kopalle, & Voleti (2017)
mentioned in their article that Amazon uses the database management system to develop a
huge database related to customer search and purchasing patterns. This helps the company to
predict the future demand of customers. It also enables the company to analyse the data and
solve the large-scale data analysis problems. According to Derrick Harris, Amazon gives
strong competition to Wal-Mart by its predictive analysis techniques. The Kosmix and cloud
computing start-up OneOps enables the Amazon to give strong competition to the world
retail giant Wal-Mart (Bradlow, Gangwar, Kopalle, & Voleti, 2017).
Wal-Mart, which is also one of the giant retail companies of the world, uses the
predictive analysis technique to produce valuable insights about the company. Paetzold &
Rholes (2017) includes in their article, for the predictive analysis the company uses the
advanced information technology, latest computers and easier to use software. This helps the
company to predict the future needs of customers and gain competitive advantages over other
players. Wal-Mart uses the technique of ‘Inkiru’ company for predictive analytics. The
predictive analytics platform ‘Inkiru’ helps the company to successfully analyse the large