The Power of Prediction
The word ‘prediction’ carries with it many connotations, fortunetellers, fate and future. Eric Siegel in chapter one of his book, ‘Introduction: The Prediction Effect’ talks about the power that prediction has in big business today. He talks about how computerized prediction has untold power as it analysis big, seemingly incomprehensible, data. “ The truth is that data embodies a priceless collection of experience from which to learn. Every medical procedure, credit application, Facebook post, movie recommendation, fraudulent act, spammy email, and purchase of any kind – each positive or negative outcome, each successful or failed sales call, each incident, event and transaction – is encoded as data and warehoused.” (Siegel, 2013) Through analysis of this immense data computers are able to learn “automatically developing new knowledge and capabilities by furiously feeding on modern society’s greatest and most potent unnatural resource, data”.(Siegel, 2013) I can’t help but think about the terminator movies and Skynet. The machines are learning!
The thought that everything I have ever done on the Internet has been recorded somewhere and that someone can access this is a scary one. Even more worrying is that the data I am creating when surfing the net is being used to market to me.
Siegel makes its clear that it isn’t as easy as it sounds to use data to make predictions. “as data piles up, we have ourselves a genuine gold rush. But data isn’t the gold. I repeat, data in its raw form is boring crud. The gold is what’s discovered therein. The process of machines learning from data unleashes the power of this exploding resource. It uncovers what drives people and the actions they take – what makes us tick and how the world works. With new knowledge gained, prediction is possible.” (Siegel, 2013) With this new ability to predict you might ask what exactly it is that the machines are trying to predict, “ Every important thing to a person is valuable to predict, namely: consume think, work, quit, vote, love, procreate, divorce, mess up, lie, cheat, steal, kill, and die”. (Siegel, 2013)
However Siegel does say that accurate prediction isn’t easy, in that the future can never be predicted with 100% accuracy. He states the Prediction Effect is valuable because “ predicting better than pure guesswork, even if not accurately, delivers real value”. (Siegel, 2013)
Predictions have untold power as predictions govern the way every organisation interacts with its consumers. There are five effect of prediction introduced in the this reading and initially it focuses on Predictive Analysis (PA) . “PA leads within the growing trend to make decisions more “data driven “, relying less on ones “gut” and more on hard, imperial evidence”, (PA) is “technology that learns for experience (data) to predict the future behavior of individuals in order to drive better decisions”. (Siegel, 2013)
This new ability for businesses to access, understand and utilise large amounts of data doesn’t sit well with me and if anything drives me to be unpredictable in my actions and spending’s. Overall this new ability will prove useful to businesses but could be dangerous to those who are easily influenced.
Bibliography
Siegel, E. ( 2013). Predictive analytics :the power to predict who will click, buy, lie, or die. Hoboken : Wiley .














