First came big data. Now comes Machine Learning, an evolution of data science and analytics that helps companies gain better insight into their organizations.
But, how does Machine Learning work, and how does it impact your bottom line?
Although it sounds mysterious, Machine Learning really is not. Nor is its application out of reach for most companies. The truth is that while many companies have shied away from Machine Learning, they should be embracing it.
The foundation of Machine Learning is statistics and data mining. It is based on algorithms that learn from the data without relying on rules-based programming. Big data actually reinvigorated interest in Machine Learning methods as a way to generate predictive analytics from massive volumes data – something humans couldn’t do alone, and to which traditional statistical methods were sometimes ill-suited.
What is the power of Machine Learning? Its ability to churn through massive amounts of data no matter how many variables or computations.
The outcomes from using Machine Learning are significant, including:
- Improved forecast accuracy, which has a direct impact to your bottom line and drives organic revenue growth;
- Increased flexibility, with a model able to adapt as business unit goals change; it also helps companies detect and adapt to changing business cycles;
- A competitive advantage that comes by embedding Machine Learning into your revenue management capabilities;
Some may think that once you embed Machine Learning algorithms into your strategic business objectives human analysis isn’t needed. The best outcomes result from a hybrid of man and machine – a term we refer to as Collaborative Analytics. Man and machine / algorithm work toward a common goal and drive outcomes. This powerful combination produces insights that human analysis cannot uncover on their own and generates predictions with ever-higher degrees of accuracy.
C-Suite level executives need to leverage Machine Learning as a solution to craft and implement their strategic vision. It is a way to improve their forecasts, recommendations, and competitive position.