Last month, I wrote about why simply making predictions isn’t enough to drive value with analytics. I made the case that behind stories of failed analytic initiatives, there is often a lack of action to take the predictions and turn them into something valuable. It ends up that identifying and then taking the right action often leads to additional requirements for even more complex analyses beyond the initial effort to get to the predictions! Let’s explore what that means.
Identifying The Action Is The Next Step
Once I have a prediction, simulation, or forecast, the next step is to identify what action is required to realize the potential value uncovered. Let’s consider the example of using sensor data for predictive or condition-based maintenance. In this type of analysis, sensor data is captured and analyzed to identify when a problem for a piece of equipment is likely. For example, an increase in friction and temperature within a gear might point to the need to replace certain components before the entire assembly fails.
Identifying the problem ahead of time sounds great. All we have to do is to identify when something is going to break and then fix it before it breaks. Doing so saves …