Arpee C. Arruejo, DIT Illah Diva R.

Faypon, BSIT  

Shareen A. Navarro, DIT Eileen Rose 

C. Quilon, DIT 
DESCRIPTIVE VS PREDICTIVE VS PRESCRIPTIVE ANALYTICS
•
 •

DESCRIPTIVE ANALYTICS PREDICTIVE ANALYTICS

••​•

•​•

•​•
 Predictive   Prescriptive  
• ​An insightful forecast from predictive  • ​Prescriptive analytics require complex 
analysis can be analyzed using  algorithms in order to accomplish such 
specific models designed for  machine-based decision-making. 
prescriptive   
analysis in order to produce 
automated ​recommendations or 
solutions. 
• ​With predictive analytics, it is    • ​For prescriptive analytics, however, 
understood that predictions may  there is an element of risk when using 
or ​may not happen.  automated recommendations: 
human ​behavior can be 
unpredictable. 

HOW DOES PRESCRIPTIVE ANALYTICS WORK?

• ​P​RESCRIPTIVE ANALYTICS
 LIES IN
FINDING THE RIGHT WAY TO ARRIVE
AT THE SOLUTION​, G
​ IVEN THE DATA
YOU HAVE ON HAND​.

• ​PRESCRIPTIVE ANALYTICS BEGINS

WITH ACKNOWLEDGING THE FACT
THAT THERE IS A PROBLEM THAT
REQUIRES A SOLUTION​.
HOW DOES PRESCRIPTIVE ANALYTICS WORK?
Here’s an example: 
• ​TR​ AINING PERSONNEL CAN USE PREDICTIVE
ANALYTICS TO LEARN THAT A SIGNIFICANT
PROPORTION OF LEARNERS MIGHT NOT BE ABLE
TO COMPLETE A SPECIFIC COURSE WITHOUT
 ACQUIRING A PARTICULAR SKILL​. P​RESCRIPTIVE
ANALYTICS CAN HELP YOU DESIGN
AN ALGORITHM THAT CAN DETECT PEOPLE LACKING
SPECIFIC EXPERTISE IN QUESTION​. I​T CAN THEN
PROCEED TO SEND AN AUTOMATED MESSAGE OR
RECOMMENDATION TO SUCH PERSONS URGING
THEM TO ACQUIRE THE SKILLS BEFORE ENROLLING
FOR THE TRAINING COURSE​.
EXAMPLES OF PRESCRIPTIVE ANALYTICS IN
ONLINE LEARNING
1. T​HERE ARE SOME TOOLS THAT USE PRESCRIPTIVE ANALYTICS TO IDENTIFY WHAT CONTENT THE
LEARNER HAS ALREADY LEARNED SO THAT NEW CONTENT NOT YET MASTERED IS PRESENTED
INSTEAD​.T​HIS IS AN EXAMPLE OF HOW PRESCRIPTIVE ANALYTICS IS FINDING ITS WAY INTO
ADAPTIVE LEARNING​.

2. S​OME L​ MS’​S ENABLE ADMINISTRATORS TO DEFINE SPECIFIC RULES IN ORDER FOR AUTOMATED
FEEDBACK OR ACTIONS TO TAKE PLACE​; ​FOR EXAMPLE​, I​ F AN EMPLOYEE IS STRUGGLING TO
 COMPLETE A TRAINING COURSE​, T
​ HE SYSTEM MAY RECOMMEND THEY LOOK AT A DIFFERENT
RESOURCE TO OBTAIN SKILLS NEEDED FOR THE PREVIOUS COURSE​.

3. S​OME L​ MS’​S ARE PROMISING TO REDUCE TRAINING TIME FOR EMPLOYEES BY DETERMINING
PREVIOUS KNOWLEDGE AND PROFICIENCY BASELINES IN ORDER TO RECOMMEND WHICH TRAINING
COURSES OR RESOURCES ARE BEST SUITED FOR THE LEARNER​.

ADVANTAGES OF PRESCRIPTIVE ANALYTICS  

regular sales cycles at the same expenses
time.
2. Management of Gross When you apply
1. Generation of revenue Margins prescriptive ​analytics
techniques, it ​becomes easy
Prescriptive analytics applications Prescriptive analytics techniques to manage inventory levels.
can provide detailed as well as when employed along with You have a definite plan of
timely information about the predictive analytics can provide action to achieve a specific
customers’ preferences. It also gainful insights into the optimal objective. ​Therefore, there
allows business managers to product mix for the given and is no need ​to store
identify new opportunities for anticipated market conditions. inventory for long
cross-selling and accelerating the 3. Reduction of durations.
 PRESCRIPTIVE ANALYSIS APPLICATIONS IN 

BUSINESS ​• ​O​RGANIZATIONS USE PRESCRIPTIVE ANALYTICS

TECHNIQUES TO DECIDE OPTIMUM SOURCING

LOCATIONS​, ​LOGISTICS ROUTES​, ​AND OPTIMUM
QUANTITY TO REDUCE EXPENSES AND SAVE COSTS​. • ​O​NE OF THE BEST EXAMPLES IS THAT OF THE
• ​IT​ CONSIDERS VARIOUS FACTORS LIKE ​DEMAND G​OOGLE SELF​-D
​ RIVING CAR​. T​HE VEHICLE
AND SUPPLY POSITION IN THE ​MARKET​, HAS TO MAKE MILLIONS OF CALCULATIONS
THEREBY ENSURING TO HOLD THE ​RIGHT MUCH IN THE SAME WAY WE DO WHEN
LEVELS OF INVENTORY TO ENSURE ​PROPER DRIVING OUR CARS​.
CAPITAL UTILIZATION​.

WHY PRESCRIPTIVE ANALYSIS MATTERS

TO YOUR BUSINESS?
• ​CA​ LCULATE PAST SALES OF A PRODUCT TO DETERMINE THE NUMBER OF REPLACEMENTS​.
• ​KN
​ OW THE TENDENCY OF CUSTOMERS IN CERTAIN PRODUCTS TO LAUNCH MARKETING
CAMPAIGNS​, A
​ CCORDING TO USERS​’ N
​ EEDS​.
• ​P​REDICT EQUIPMENT FAILURES​, W
​ HICH PROVIDES FOR MAINTENANCE AT THE RIGHT
TIME​.

• ​KN​ OW CUSTOMERS​’ ​PURCHASING HABITS AND PUNCTUALITY OF PAYMENT TO

DETERMINE WHETHER IT IS APPROPRIATE TO GRANT CREDIT​.
P​RESCRIPTIVE ANALYSIS HAS BENEFITS SUCH AS​:
• ​OP​ TIMIZATION OF PROCESSES​, C​ AMPAIGNS​, A​ ND STRATEGIES​.
• ​M​INIMIZES MAINTENANCE NEEDS AND INTERCONNECTS THEM FOR BETTER
CONDITIONS​.

• ​R​EDUCE COSTS WITHOUT AFFECTING PERFORMANCE​.

• ​I​T INCREASES THE LIKELIHOOD THAT COMPANIES WILL APPROACH AND PLAN FOR
INTERNAL GROWTH PROPERLY​.

• ​QU
​ ALITATIVE RESEARCH METHOD ​— K​ NOW THE CHARACTERISTICS THAT
 DISTINGUISH IT​.

• ​P​RODUCTION OPTIMIZATION​.
• ​E​FFICIENT SUPPLY CHAIN MANAGEMENT​.
• ​IM
​ PROVED CUSTOMER SERVICE AND EXPERIENCE​.
I​MPROVADO ​IS A DATA ANALYTICS TOOL DESIGNED BY MARKETERS​, F​ OR MARKETERS​,
AND PROVIDES A WAY FOR THEM TO GET ALL OF THEIR DATA IN ONE PLACE​, I​ N REAL​-​TIME
THROUGH AUTOMATED DASHBOARDS AND REPORTS​.

Improvado i​ s customized for its users.

The best way to customize the
platform
to your specific needs and receive
pricing
details is to set up a call with
them.
Improvado has 150+ integrations.
They will build out custom
integrations for any data source
you request.
• ​RA
​ PID​MI​ NER ​OFFERS ARTIFICIAL INTELLIGENCE AND
PRESCRIPTIVE ANALYTICS TO COMPANIES THROUGH AN OPEN
AND EXTENSIVE DATA ANALYTICS PLATFORM​. T​HIS CENTRALIZED
PLATFORM FEATURES A POWERFUL AND ROBUST GRAPHICAL
INTERFACE THAT ENABLES USERS TO CREATE​, M
​ AINTAIN​, A​ ND
DELIVER PREDICTIVE ANALYTICS​. T​HE TOOL ALSO INCLUDES
SCRIPTING SUPPORT IN MULTIPLE PROGRAMMING LANGUAGES​.
Pros   Cons  
Can connect boxes on a canvas  Can be buggy at times 
to ​conduct data analysis 
 Plethora of data analytics  Limitations with some versions 
and ​visualization tools 
No coding skills required   
Free version available   

• ​S​ISENSE ​LETS USERS EASILY TRANSFORM THEIR DATA INTO

STUNNING INTERACTIVE REPORTS​. T​HE TOOL​’S​ VISUALIZATION
CAPABILITIES INCLUDE A DRAG​-​AND​-D
​ ROP​, ​SIMPLE USER INTERFACE​,
WHICH ALLOWS FOR CHARTS AND MORE COMPLEX GRAPHICS​, A ​ LONG
WITH INTERACTIVE VISUALIZATIONS​, T ​ O BE EASILY CREATED​.
• ​SI​ SENSE BOASTS OVER 1 ​ 00 ​DATA CONNECTORS​.
• ​Knime ​is an open source BI tool for data integration, reporting, and
analytics. It features a visual interface that includes nodes for a range of
activities, from extracting data to presenting it. The platform is primarily
focused on statistical models.
• ​Knime is an open source platform.
• ​Knime offers a variety of integrations for their platform.
Pros   Cons  
More than 100 modules   Nodes are not as customizable 
as ​Python/R libraries, though for 
that ​Python/R node can be 
used 
Visual user interface that  Can run rather slow, particularly 
doesn’t ​require programming  when ​more extensions and nodes 
knowledge  are ​installed 
 Connect nodes through a  There can be a steep learning curve 
drag-and ​drop interface  for ​users who haven’t used a similar 
tool 

• ​Tableau is a business intelligence tool that helps organizations turn their data into impactful,
actionable insights.

• ​Tableau’s drag-and-drop feature helps users create interactive dashboards with advanced visual
analytics.

• ​Tableau offers two different sets of prices for its software. One set of prices for installing the
software o ​ n-premise and another for the software hosted by Tableau.

• ​Tableau offers the ability to connect to an extensive ​list of data sources​.

 Key Takeaways of Prescriptive Analytics
•​Prescriptive analytics works in combination with predictive analytics to
find the right ways to achieve the objectives of the business. Thus, it
needs data to determine near-term outcomes.

•​The most significant benefit of prescriptive analytics is that it helps

organizations take well-informed steps based on facts and probability
weighted projections. When you have a prescriptive analytical solution at
work, you remove the concept of finding a solution based on instinct.

•​It helps make use of machine learning, thereby ensuring that the
business decides on the optimum course of action depending on
predictive analytics.