In this paper, the importance of using predictive analytics in management would be discussed given its effectiveness in helping organizations to forecast trends in the market as well as to improve their operations. This paper discusses the use of machine learning, in particular, the utilization of XGBoost algorithm and time-series analysis for improvement of business forecasting. XGBoost, a combination of gradient boosting algorithm, is widely used due to its fast operation and high accuracy when it comes to big data and ability to model interactions. While on the other hand, time-series analysis is useful in providing a historical pattern on data with the view of helping organizations to forecast for the future. Both of these methods, when used together, make the business forecasting system more accurate and effective in resource provision, risks control, and planning. In this paper, it is explained how this particular AI strategy can be employed in different types of management contexts, including sales forecasts, demand estimates, and financial estimates. It also points out drawbacks of such technologies when applied in business, namely, data quality, interpreting the model, and the necessity to update it frequently. It is evident from here that organizations using these sophisticated predictive methods are better placed in terms of efficient decision-making, higher revenues, and competitive advantage in the market. It will be of great importance to managers and data scientists who would like to employ AI for predictions in their business organizations.

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Predictive Analytics in Management: Enhancing Business Forecasting Using AI with XGBoost and Time-Series Analysis

  • Samadhan Bundhe,
  • Madhuri Sanjay Tambe,
  • Shivalika Pravin Singh,
  • Mahendra Tayade

摘要

In this paper, the importance of using predictive analytics in management would be discussed given its effectiveness in helping organizations to forecast trends in the market as well as to improve their operations. This paper discusses the use of machine learning, in particular, the utilization of XGBoost algorithm and time-series analysis for improvement of business forecasting. XGBoost, a combination of gradient boosting algorithm, is widely used due to its fast operation and high accuracy when it comes to big data and ability to model interactions. While on the other hand, time-series analysis is useful in providing a historical pattern on data with the view of helping organizations to forecast for the future. Both of these methods, when used together, make the business forecasting system more accurate and effective in resource provision, risks control, and planning. In this paper, it is explained how this particular AI strategy can be employed in different types of management contexts, including sales forecasts, demand estimates, and financial estimates. It also points out drawbacks of such technologies when applied in business, namely, data quality, interpreting the model, and the necessity to update it frequently. It is evident from here that organizations using these sophisticated predictive methods are better placed in terms of efficient decision-making, higher revenues, and competitive advantage in the market. It will be of great importance to managers and data scientists who would like to employ AI for predictions in their business organizations.