Jim Stone – Chain Store Advisors
Chain store companies are increasing their use of predictive
analytics in many areas including market optimization, sales
forecasting, direct marketing, and localization of product offerings.
The value of simulating decision outcomes before investing financial and human resources is compelling. Therefore,
much attention has been focused on algorithms and user interfaces that
make it possible for analysts and executives to compare alternatives
using what if scenarios.
So here’s a big fat “WHAT IF”: what if the data that are
used in the models are not accurate? What if the location of your
existing stores or competitors don’t reflect ground truth? The answer
is, you will get maps, reports, and sales forecasts that appear
REALISTIC but they are not REAL.