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?
• PRESCRIPTIVE 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. PRESCRIPTIVE
ANALYTICS CAN HELP YOU DESIGN
AN ALGORITHM THAT CAN DETECT PEOPLE LACKING
SPECIFIC EXPERTISE IN QUESTION. IT 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. THERE 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.THIS IS AN EXAMPLE OF HOW PRESCRIPTIVE ANALYTICS IS FINDING ITS WAY INTO
ADAPTIVE LEARNING.
2. SOME 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. SOME 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 • ORGANIZATIONS USE PRESCRIPTIVE ANALYTICS
TECHNIQUES TO DECIDE OPTIMUM SOURCING
LOCATIONS, LOGISTICS ROUTES, AND OPTIMUM
QUANTITY TO REDUCE EXPENSES AND SAVE COSTS. • ONE OF THE BEST EXAMPLES IS THAT OF THE
• IT CONSIDERS VARIOUS FACTORS LIKE DEMAND GOOGLE SELF-D
RIVING CAR. THE 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.
• PREDICT 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.
PRESCRIPTIVE ANALYSIS HAS BENEFITS SUCH AS:
• OP TIMIZATION OF PROCESSES, C AMPAIGNS, A ND STRATEGIES.
• MINIMIZES MAINTENANCE NEEDS AND INTERCONNECTS THEM FOR BETTER
CONDITIONS.
• REDUCE COSTS WITHOUT AFFECTING PERFORMANCE.
• IT INCREASES THE LIKELIHOOD THAT COMPANIES WILL APPROACH AND PLAN FOR
INTERNAL GROWTH PROPERLY.
• QU
ALITATIVE RESEARCH METHOD — K NOW THE CHARACTERISTICS THAT
DISTINGUISH IT.
• PRODUCTION OPTIMIZATION.
• EFFICIENT SUPPLY CHAIN MANAGEMENT.
• IM
PROVED CUSTOMER SERVICE AND EXPERIENCE.
IMPROVADO 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
PIDMI NER OFFERS ARTIFICIAL INTELLIGENCE AND
PRESCRIPTIVE ANALYTICS TO COMPANIES THROUGH AN OPEN
AND EXTENSIVE DATA ANALYTICS PLATFORM. THIS CENTRALIZED
PLATFORM FEATURES A POWERFUL AND ROBUST GRAPHICAL
INTERFACE THAT ENABLES USERS TO CREATE, M
AINTAIN, A ND
DELIVER PREDICTIVE ANALYTICS. THE 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
• SISENSE LETS USERS EASILY TRANSFORM THEIR DATA INTO
STUNNING INTERACTIVE REPORTS. THE 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.
