For innovative businesses who are serious about taking their business intelligence and data and insights strategy to a new level, prescriptive analytics is a powerful tool.
Where descriptive analytics asked, "what has happened?" and predictive analytics asked, "what could happen? ", you're now striving to understand "what should you do?"
Predictive analytics signals future trends, prescriptive gives insight for how we can harness these trends and turn them into opportunity. Prescriptive analytics focuses on finding the best course of action for a given situation. This analytics branch is all about advice.
Let’s break down the impact of prescriptive analytics with an example case study. Let’s say you are a CEO of a train service and you are needing to sell tickets while developing the most efficient systems and processes to do so. Prescriptive analytics will allow you to automate ticket prices and promotions in real-time, based upon many variables. These could include volume available, time of the year, situational demand and time left to the ticket expires. The result is, an automated and efficient system for pricing, maximising value for the organisation.
In short, it gives organisations the ability to take relevant data and use it to anticipate and improve decisions to make your actions more effective and impactful. Although a newly emerging field in its application to business, the impact it is having is significant and constantly evolving. When looking to implement prescriptive analytics capabilities to your organisations wider big data strategy, the goal is to be able to be ready to address specific situations like reduced sales or a product launch that doesn't go as planned. This is done by factoring in available resources, knowledge of possible situations, what is currently happening with your business and past performance.
Some additional examples of relevant applications and real business impact prescriptive analytics can have include;
Prescriptive analytics is an exciting and emerging practice in the big data analytics space. While it sits at the advanced end of the data journey, having a line of sight for how this can impact your business is important.
SolveBI focuses on helping organisations build their data journey starting with data consulting and business intelligence, data visualisations, big data strategy and analytics. We help organisations big and small, at all levels of their data and business intelligence lifecycle and maturity.