Evaluating the Value of Predictive Insights Assessing the added value of predictive insights in the aerospace industry

Sammanfattning

To manage uncertainty, business analytics and predictive models are widely used tosupport decision-making in industrial contexts. While existing research focuses onthe development of predictive models and how such models are implemented in industrialcontexts, this study aims to explore how the value of predictive insights canbe evaluated and communicated within industrial organizations. The study adopts aqualitative research strategy, consisting of a literature review and an empirical casestudy at GKN Aerospace, based on semi-structured interviews and observations.The findings suggest that a standardized approach to quantify the value of predictiveinsights is not the most effective approach. Instead quantification must be donein a stakeholder-specific manner, since the value of predictive insights depends onhow they are interpreted and acted upon by stakeholders. More specifically, the findingssuggest that predictive insights are not valuable in isolation but through theirimpact on decisions and future outcomes. Additionally, the study concludes thatquantification of predictive insights may be challenging in some instances where thevalue is not visible directly but instead emerges over time. Therefore, organizationsmay benefit from communicating the value of predictive insights retrospectively, tobuild acceptance and facilitate future initiatives in predictive analytic implementations.