There are various types of predictive models . Below are the five most well-known and applied in the field of business management and administration. These are usually incorporated into training programs for executives, entrepreneurs and professionals who want to develop their careers in the world of finance, as is the case of the MBA Track in AI at EAE Barcelona.
Classification model
This is the simplest and is used to address relatively identifiable challenges or dilemmas. It is developed by answering 'yes' or 'no' to a series of questions that have been determined according to the objective to be achieved. It is one of the most widespread types of predictive models because it can be used for all kinds of basic questions that may concern business managers and even independent professionals.
Regression model
If the previous one was the easiest to develop, this one is considered the 'best seller', the one most frequently used in business and economic environments. It allows predictions to be made based on how turkey whatsapp data a series of variables established in the system design interact with each other. All of this can always be customized to the company itself and the objectives to be achieved.
Forecast model
Another type of predictive model that is being used is the forecasting model, which allows for analysis based on historical data. Based on what has been happening, how events have occurred and what data has been collected, forecasts are developed that help to make certain decisions at a corporate level.
Clustering model
A series of factors with similar attributes are taken into account to study. This allows group strategies to be implemented or a basis for making minimal changes, which optimizes the functioning of a specific department or of the whole as a whole.
Time series model
It makes it easier to see the performance of a company, or a particular department, over time. This could serve as a starting point for making decisions, either to move forward or even to rectify certain areas if necessary.
Examples of predictive models
How can this be put into practice? Predictive models are being implemented in different sectors and in various areas of activity. Below are some examples that will serve as ideas and inspiration for developing this methodology:
Forecasting sales of a product: assessing whether the item will interest the potential public, sales possibilities, helping to determine the price, etc.
Control in a supply chain: weak points of the chain, how to prevent stock shortages or oversupply, as the case may be, dealing with situations such as an increase in transport costs due to circumstances of the socioeconomic context, among others.
Addressing the internationalization of the company: knowing which markets may be interesting, taking into account the audience profile of the business's services-products in relation to the population where the operation is to be carried out , how having to manufacture externally or the costs of shipping to other countries will affect prices... Numerous factors that the predictive model can help with.
As you can see, this is a methodology with multiple applications. More and more management and administration departments in companies are using predictive models due to their ease of use and the multiple applications they offer.