Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: So What Is Prescriptive Analytics?
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Predictive Analytics > So What Is Prescriptive Analytics?
AnalyticsPredictive Analytics

So What Is Prescriptive Analytics?

Sandeep Raut
Sandeep Raut
4 Min Read
SHARE
Today every business is surfing in the ever expanding sea of data & using analytics for getting the edge over their competition.
With the explosion of unstructured data on social media, audio-video steams companies are rushing to use this for big insights.
There are mainly 3 types of analytics & it is based on the company’s maturity on analytics as to which one to adopt….Descriptive, Predictive & Prescriptive analytics.
Let me explain with examples.
 
Descriptive Analytics
Predictive Analytics
Prescriptive Analytics
What questions are answered?
What happened?
How many customers?
Where revenue is less?
Why it is so?
What will happen next?
What trends will continue?
What if we change pricing?
What is the best course of action for given situation?
What is the impact of seasonality?
How it is done?
Use of KPIs, dashboards, charts
Use of statistical methods to understand the relationships in input data & predict the outcomes.
Use of data mining, forecasting, predictive modeling.
Use of advanced statistical optimization & simulation techniques with inputs & constraints to recommend what actions to be taken.
General examples
How many customers have churned? Why did they churn?
 
How many customers will churn in next few months?
What actions to be taken to retain these predicted churners?
Some of the Industry examples
Netflix uses data mining to find out correlations between different movies that subscribers rent & then recommend the one which you are most likely to watch
ING using personalized campaign offers in real time by predicting who will respond, to increase 30-40% response rates & reduce direct marking costs by 35% per year.
Amazon.com using price optimization based on demand to increase the online shopping revenues.

  How various industries are using prescriptive analytics?
·         Consumer product companies are using it to maximize the marketing dollar spend
·         Transportation & Logistics companies are using it to find the best route for their deliveries & backhaul
·         Healthcare service providers are using it to decide how many beds they should increase the hospitals,
·         Manufacturing giants are using it for inventory optimization to decide how much safety stock they should keep of each item, where to stock it based on the demand
·         Telecom business is using it for providing on the spot offers to customers when they call the customer service centers
One daily life example – Imagine you are driving a car with a built in GPS, which analyses all the data it collects from the satellite about traffic, accidents, weather etc. It tells you which routes will have heavy traffic (prediction), but also recommends you the alternate routes (prescription) with less traffic.
So Prescriptive analytics is where you know what the future is, but also know what to do with it, with alternatives of best outcomes J

Share This Article
Facebook Pinterest LinkedIn
Share
BySandeep Raut
Follow:
Founder & CEO at Going Digital - Digital Transformation, Data Science, BigData Analytics, IoT Evangelist

Follow us on Facebook

Latest News

data analytics and truck accident claims
How Data Analytics Reduces Truck Accidents and Speeds Up Claims
Analytics Big Data Exclusive
predictive analytics for interior designers
Interior Designers Boost Profits with Predictive Analytics
Analytics Exclusive Predictive Analytics
big data and cybercrime
Stopping Lateral Movement in a Data-Heavy, Edge-First World
Big Data Exclusive
AI and data mining
What the Rise of AI Web Scrapers Means for Data Teams
Artificial Intelligence Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Death By a Thousand Analytics

7 Min Read

Information Theory Betting

6 Min Read
Image
AnalyticsData ManagementPolicy and Governance

Using Data to Build Energy Efficient Cities

4 Min Read
Image
Analytics

Business Analytics in 2014: Trends and Possibilities

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?