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Stunned by the Senior Management's basic and fundamental question, I spent a lot of hard time thinking through it. Finally I get part of the ultimate answer: Predictive Analytics move faster and more frequent than human being. What I mean is:
Predictive model is run to react to every change of independent variables: Building a good model of relating consumer's purchase behavior is only part of the story. What is more important is the trigger of the model can be defined and run at a specific time, more often than human being able to recall and think of. For example, building a predictive model for chocolate is good, i.e. festivals or broadcasting time of certain popular TV shows. What is more important is to also to run the model in due course. In my works as the investment banking professional, we need to monitor the macro-data change to make sure that every change of the data will generate different results.
And additionally, it also enable management to view the macro-view of their business. While models can be built at the consumers/customers level, the same macro-variables, e.g. festivals or broadcasting time of popular tv shows, can also be used at a factors in the financial models, enabling management to react/counter-act to the portfolio performance. If those positive triggers can be predicted/ are known well-ahead, e.g. 5 shows and 10 festivals, each events lift the propensity to buy by 5 times, the management can calculate the yearly performance of the supermarket. With the data, managment can try to alter the prediction by improving their offer, thus boosting the performance further i.e. lift the 5 times rise of propensity to 6 times.
Guys, help me out in this, needa think really really hard to explain why a robot is better than high quality human being.