Predictive Analytics

Predictive analytics is the use of past data and statistics to estimate what is likely to happen next, such as which customers may cancel, how much stock you will need or when a machine might fail. It does not tell the future for certain; it turns patterns in what already happened into an informed estimate with a probability attached.

It is like a weather forecast for your business: built from years of records, usually right, but always a likelihood rather than a promise. This matters because acting on a reliable early warning, like reordering before you run out, is almost always cheaper than reacting once the problem has already arrived.