Business View Magazine | Volume 9, Issue 3

14 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 3 GUEST SUBMI SS ION companies to create comprehensive solutions that will boost the bottom line. Currently there are developers of algorithms that don’t quite grasp exactly why the product they developed behaves the way it does. A new wave of explainability fills that gap, providing companies with practical data derived from a complex model. Artificial intelligence and predictive modelling have evolved over the last decade from a purely statistical framework to systems that drill down into every detail of product development and sales, to customer service that not only measure client satisfaction, but gauge holistic experiences as well. These calculations give companies the edge required to increase their sales base and improve the delivery of services. Is there a downside? Predicting the future in business will always be controversial. Privacy issues, manipulation of data, possible exploitation of people who do not know how they’re being manipulated may not be looked upon kindly in the social fabric of society. Explain- ability will be required to offset criticism. The future of business has taken on a surreal quality with such enormous access to mountains of data. Looking at data from the past to predict the future is thorny, but explain-ability softens those prickly barbs, allowing businesses to see the future more clearly. Understanding modeling facilitates the development of various scenarios that management can use to take appropriate courses of actions to gain an edge over the competition. Predicting business outcomes in customer retention or acquisition, reducing marketing costs and increasing customer loyalty are just some of the areas where data analytics and predictive modeling can drive business growth. Science fiction or new business reality? Does explainable, predictive modeling border on science fiction? Kind of. For instance, if a future has yet to happen and the future is influenced by a million factors, how can it be that modeling, data analytics and reliance on algorithms really predict what’s to come? Everything counts. If predictive modeling gives a little or a lot of insight into the future of a business, what business owner wouldn’t accept that gift? Businesses that don’t keep up with the changing technology are simply at a disadvantage. Every CEO in every company big or small must consider the advantages of predictive modeling, algorithms, and data analytics. The future is here, and it is a new business reality. About the Author: Srikanth Aravamuthan is one of the recognized consulting professionals who has a unique blend of management consulting and analytic advisory knowledge across varied domains. He helps business leaders in building a strategic vision, He also advises and assists the organizations to be more efficient, customer friendly, cost optimized, analytically driven and digital-enabled businesses. srikanth.aravamuthan@gmail.com. Srikanth Aravamuthan, Vice President, Exafluence, Inc.