Companies seeking to use analytics for predictive decision making commonly make these four errors.
Organizations often try to start using predictive analytics at the top of the organization to gain buy-in, Taylor said. But top executives make the kind of decisions that don’t lend themselves to analytics, he argues. Predictive analytics works best on decisions that get made repeatedly, but top executives most often make strategic decisions, which, Taylor said, tend to be one-time situations. Other top-level decisions are often tactical, which are also relatively complex and hard to formalize.