More HK firms moving to predictive analytics

More HK firms moving to predictive analyticsThe analytics market in Hong Kong is on an upward trend. Gartner forecasts the analytics and business intelligence software revenue will reach HK$815 million in 2019, up from HK$726 million in 2017.

Currently many companies in Hong Kong and other markets are still taking a descriptive analytics approach through analyzing historical data to understand what happened in the past such as finding out why one product sells better than another.

According to Gartner’s ITScore assessment for analytics in July, most companies are simply amassing more data rather than transforming data into actionable insights. A majority of companies (74%) agreed that they are able to undertake descriptive analytics. Only 11% can fully undertake predictive analytics. ITScore enables companies to assess their maturity. 

But with the influx of real time data and the pressing need to deliver better customer experience or optimize efficiency in the digital era, more companies are starting to use predictive analytics. They want to anticipate what will likely happen and act in real time with informed business decisions.

Evolving to predictive analytics

“Organizations in Hong Kong and other markets in Asia are moving to predictive analytics, looking for the patterns in data to see what sort of actions should be taken at the right time,” said Robert Merlicek (pictured, left), CTO of Asia Pacific & Japan at TIBCO Software.

Industries facing strong competitive pressure or the need for cost rationalization would adopt predictive analytics much sooner. Retail, financial and telecoms services are some examples.

“In Hong Kong, there is a lot of competitive pressure among organizations especially in the telecom and financial services industries,” he noted. “They are more inclined to utilize technologies to give them competitive commercial advantage.”

The manufacturing sector is also turning to predictive analytics with the advent of Industry 4.0. More manufacturers want to utilize data and new technologies to advance their business processes.

“In the Industry 4.0 era, many manufacturers in Greater China have already progressed fast in adopting predictive analytics,” said Hans Thalbauer, senior vice president of IoT and digital supply chain at SAP.

He noted manufacturers are using predictive analytics in their business processes like asset management to predict production faults or machine maintenance.

Predictive analytics use case

Hong Kong-based shipment management software provider CargoSmart has leveraged predictive analytics to help ocean carrier customers improve shipment planning.

According to Merlicek, CargoSmart uses a TIBCO platform to process and integrate data from different sources. Analytics tools are also used to help ocean carriers monitor vessels like predicting potential delays based on routes, weather or other unexpected factors. As such, ocean carrier customers can plan ahead in case of disruption and make faster decisions such as changing shipping schedules.