Paper Title
THE IMPACT OF PREDICTIVE ANALYTICS ON ASSET MANAGEMENT DECISION-MAKING
Abstract
Predictive analytics has impacted asset management by helping people to make better decisions and improve efficiency while aiming to achieve the best results. The use of predictive analytics in managing assets and the decisions that result from them will be examined in this paper as well as the aspects of how data models and machine learning algorithms are used to analyse assets in an improved manner and to better determine risks from investment potential. Using big data in an organisation, predictive analytics helps managers to plan for the future market conditions as well as failure of equipment and asset disposal among other factors, making the process more controllable. The use of models for risk evaluation, portfolio management, and maintenance plan is becoming substantial for achieving higher benefits and avoiding loses. These models provide better understanding of the past and real-time asset operation compared to the conventional statistical models, thus providing better decision making and at right time with higher accuracy. The use of predictive analytics for asset management makes the job easier while empowering the managerial teams to be more responsive to change in market conditions. As usage of digital technologies increases in various organizations there will be opportunities for improvement of the usage of predictive analytics in asset management and new competitive advantages. This paper seeks to review the existing literature on state of the art, issues and, opportunities in the area of predictive analytics for assets.
Keywords - Predictive Analytics, Asset Management, Decision-Making, Risk Assessment, Optimization.