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Assignment - 2 ISHA JAIN

Prescriptive analytics uses techniques like AI, math, and simulations to advise users on the best course of action to take. It offers recommendations rather than just predictions. Gartner's analytics maturity model places prescriptive analytics at the highest level, as it helps users make optimized choices. However, only 3% of businesses currently use prescriptive analytics, while around 30% use predictive analytics. Prescriptive analytics can help businesses discover new value and optimize processes.

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Isha Jain
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68 views

Assignment - 2 ISHA JAIN

Prescriptive analytics uses techniques like AI, math, and simulations to advise users on the best course of action to take. It offers recommendations rather than just predictions. Gartner's analytics maturity model places prescriptive analytics at the highest level, as it helps users make optimized choices. However, only 3% of businesses currently use prescriptive analytics, while around 30% use predictive analytics. Prescriptive analytics can help businesses discover new value and optimize processes.

Uploaded by

Isha Jain
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment on Use of Various types of Analytics

in Organisations.
The term “prescriptive analytics” denotes the use of many different disciplines such
as AI, mathematics, analytics, or simulations to advise the user whether to act, and
what course of action to take. In that sense, prescriptive analytics offers an advisory
function regarding the future, rather than simply “predicting” what is about to happen.

Prescriptive: The Maturity Model of Business Analytics

In Gartner’s analytics maturity model, “prescriptive analytics” lies at the highest


level of human comprehension. Not only does this form of analytics offer
choices to the business decision-maker, but it also helps in making an optimized
choice.

According to Prescriptive Analytics Takes Analytics Maturity Model to a New


Level, a Gartner Report has indicated that only three percent of surveyed
businesses are utilizing prescriptive analytics, whereas about 30 percent are
actively using predictive analytics tools. The best part of this inclusive analytics
discipline is that it can begin with something as basic as Excel, and then
graduate with enterprise-grade, predictive-analytics software comprising
complex business rules, models, and ML algorithms. While Excel models may
succeed in demonstrating future outcomes of specific trends, more sophisticated
tools may be needed to advise (prescriptive) which option is most suitable
among a range of options.

As prescriptive analytics helps businesses discover unknown sources of value,


this type of analytics is intrinsically value-driven. A company called River
Logic, an SaaS solution provider, has built its reputation on prescriptive
analytics and offers optimizations of business value chains. The Surge of
Prescriptive Analytics traces the growth of prescriptive analytics through
vendors like River Logic.

Widespread Adoption of Prescriptive Analytics is Still Pending

Data-enabled decision-making has already helped businesses earn huge rewards


in the forms of optimized costs, higher profits, better supply chains, and
improved customer service.

The easy availability of huge volumes of data and relatively cheap storage
technologies have made it possible for businesses of all sizes to take advantage
of analytics platforms to operate their businesses on superior, technologically-
backed decisions.

A suitable technology was needed to harness the power of Big Data, and now
prescriptive analytics has removed that limitation. Prescriptive Analytics Use
Cases suggests that descriptive, predictive, and prescriptive analytics each have
distinct business goals to fulfil, and used together, they deliver the best solutions
to business problems.

While the strength of descriptive analytics is in analysing past events, that


of analytics is using the past trends and patterns to make future forecasts, and
finally, the strength of prescriptive analytics is the comparison of available
options and recommendation of the best option.

Doron Cohen, CEO of Powerlinx, and Chairman of Dun & Bradstreet Israel,
remarked: “Prescriptive analytics can take processes that were once expensive,
arduous, and difficult, and complete them in a cost-effective and effortless
manner.” Thus, businesses have to realize which processes may be streamlined
through the use of prescriptive analytics to hasten widespread adoption of this
technology. Although much of the supposed benefits of prescriptive analytics
are still locked in modelled “use cases,” these should soon result in widely
publicized case studies.

Use Case 1: Predictive Analytics in Healthcare

While the global healthcare industry is undergoing a value-assessed


transformation, what better time for this industry to embrace advanced data
analytics? In a value-based business model, the consumers are highly
demanding, and they are always searching for quality at the best price. In such a
climate, the healthcare industry has an obligation to deliver the best possible
outcomes for patients and customers.

Prescriptive Analytics: The Cure for a Transforming Healthcare


Industry explains how prescriptive analytics can play a big role in transforming
the global healthcare industry. The “real-time” and “evidence-driven” nature of
healthcare decisions has a lot to gain from this analytics science.

Healthcare is one field where physicians and other medical practitioners often
rely on their intuition and past experience while making decisions about patient
care. With the arrival of prescriptive analytics, will the experienced medical
practitioners be willing to set aside their intuitive insights when confronted with
solid, data-backed decisions or recommendations? Prescriptive Analytics Beats
Simple Prediction for Improving Healthcare describes the far-reaching impact
of prescriptive analytics on the healthcare business.

An info graphic from River Logic showcases useful prescriptive analytics use
cases in healthcare in 10 Use Cases for Prescriptive Analytics in Healthcare

Use Case 2: Predictive Analytics in Sales & Marketing

With the avalanche of customer data pouring in through diverse digital touch
points, it is important that sales and marketing departments, especially in retail,
take advantage of the intelligence hidden in those data. Predictive analytics and
Big Data helped these customer-focused functions to a point, but now
prescriptive analytics will take customer-centric, business activities a notch
higher.

Putting the Focus on Action in Prescriptive Analytics describes Prophetic, a


segmented prescriptive analytics solution for the retail industry. Based on
individual needs, its customers can make use of specific segments designed for
retail, planning, buying, or inventory activities.

Marketing includes a solution for retail planning. This platform offers a


modelling technique for designing marketing mixes. The platform has also been
used to optimize product mixes. The diverse applications used prescriptive
analytics to target and promote products, to forecast demands, and to optimize
trade campaigns. Additional marketing use cases for the retail industry are
outlined in 8 Smart Ways to Use Prescriptive Analytics.

Use Case 3: Predictive Analytics in Big Data Analytics

Prescriptive analytics has been defined as the future of Big Data, but what does
that really mean?

Big Data analytics, in most cases, begin with descriptive analysis of past data,
then moves toward predictions based on trends and patterns. Now business
analysis can optimize recommended outcomes and actions with the help of
prescriptive analytics. The sheer volume of Big Data makes it easy for data
scientists to rationalize recommended “actions” and their corresponding
“outcomes,” which was not possible in the pre-prescriptive analytics era. So,
now the business users are not only informed, but also guided and navigated
about their future course of action. The Future of Big Data? Three Use Cases of
Prescriptive Analytics offers examples.
The prescriptive analytics expert is like a surgeon offering a range of treatment
choices with possible outcomes, and then the business user, like the patient, is
free to make a wholly “informed and guided” decision. Although the ultimate
goals of prescriptive analytics are to mitigate future risks and capture
opportunities, few business owners currently have that amount of data to make
the best use of prescriptive analytics. The future of business analytics lies in
mass adoption of prescriptive analytics in all enterprise Big Data projects.

Use Case 4: Predictive Analytics in Risk Management

Use Prescriptive Analytics to Reduce the Risk of Decisions suggests the next


wave of business analytics will centre on guided decision-making, as business
leaders move away from the “law of averages” by using prescriptive analytics.
This type of advanced business analytics can reduce the risk of particular
decisions. This implies not only ground-breaking technologies and tools, but
also a change in the mind-sets of decision-makers.

Business operators and users will develop new skills and new approaches to
decision-making. The individuals who relied on speed and past experience will
learn to depend on analytics-guided decisions. The above article describes how
prescriptive analytics could have averted the flooding of Red River in North
Dakota and Minnesota. Prescriptive analytics refines the science of predictions
by lowering risks.

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