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Running head: APPLIED PREDICTIVE ANALYTICS METHODS AND STRATEGIE1Applied Predictive Analytics Methods and StrategiesAnthony RaphaelEmbry-Riddle Aeronautical UniversityBusiness Analytics for ManagersMGMT 530Dr. Robert J. WietzelJanuary 31, 2020
APPLIED PREDICTIVE ANALYTICS METHODS AND STRATEGIE2Applied Predictive Analytics Methods and StrategiesToday's organizations are capitalizing on the opportunities presented by globalization to expand the business, grow a customer base, and diversify the product line. The opportunities that globalization allows also increased the competitive environment (Manyika & Lund, 2019). The new competitive environment is not increasing based solely on the other businesses but also on the increased intellect of the consumer. Today, consumers are responsible for driving more of the competition than a company's business rival (Michard & Teboul, 2019). For businesses to succeed, leaders must employ new and innovative ways to gain competitive advantages. Therefore, companies like Union Investment are looking at data analytics to predict customer behavior to increase investment opportunities.This case study will attempt to analyze the method employed by Union Investment to boost loyalty in its existing client base and acquire new customers through the use of predictive analytics ("Union Investment," 2014). Union Investments' first approach to addressing the problem was to define and understand the actual business problem. One of the main things the company realized is that no two customers are the same. An individual’s choice for the right investment varies from customer to customer. More consumers are choosing companies that cater to their individual needs rather than providing one-size-fits-all investment plans ("Union Investment," 2014). Therefore, it is the responsibility of the company to understand the needs of individual investors. Union Investment teamed up with IBM to review information from key stakeholders suchas their banking group Volksbanken Raiffeisenbanken, local agents, and its customers in helping define the business problem. IBM used its SPSS Lab Service to gather information and provide training to Union Investment’s business users ("Union Investment," 2014). The stakeholders
APPLIED PREDICTIVE ANALYTICS METHODS AND STRATEGIE3provided information such as customer demographics and regional profiles allowing the team to perform an in-depth analysis of customer behaviors.