Prescriptive analytics: Difference between revisions

Revision as of 10:54, 16 January 2023

Revision as of 22:27, 21 February 2023

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==Overview==

Prescriptive analytics is the third and final phase of business analytics, which also includes descriptive and predictive analytics.<ref>{{cite journal|author1=Evans, James R.|author2=Lindner, Carl H. |name-list-style=amp |title=Business Analytics: The Next Frontier for Decision Sciences|journal=Decision Line|date=March 2012|volume=43|issue=2}}</ref><ref name="LustigEtAl">http://www.analytics-magazine.org/november-december-2010/54-the-analytics-journey{{cite journal|last=Lustig, Irv, [[Brenda L. Dietrich|Dietrich, Brenda]], Johnson, Christer, and Dziekan, Christopher|title=The Analytics Journey|journal=Analytics|date=Nov–Dec 2010}}</ref> Referred to as the "final frontier of analytic capabilities",<ref>{{Cite web |url=https://www.globys.com/2013/06/gartner-terms-prescriptive-analytics-%E2%80%9Cfinal-frontier%E2%80%9D-analytic-capabilities |title=ArchivedGartner copyterms Prescriptive Analytics as the "Final Frontier" of Analytic Capabilities &#124; Globys.com |access-date=2014-10-29 |archive-url=https://web.archive.org/web/20160402140918/http://globys.com/2013/06/gartner-terms-prescriptive-analytics-%E2%80%9Cfinal-frontier%E2%80%9D-analytic-capabilities |archive-date=2016-04-02 |url-status=dead }}</ref> prescriptive analytics entails the application of [[mathematical sciences|mathematical]] and [[computational science]]s and suggests decision options for how to take advantage of the results of descriptive and predictive phases.

The first stage of business analytics is descriptive analytics, which still accounts for the majority of all business analytics today.<ref>{{cite journal|last=Davenport, Tom |title=The three '..tives' of business analytics; predictive, prescriptive and descriptive|journal=CIO Enterprise Forum|date=November 2012}}</ref> Descriptive analytics looks at past performance and understands that performance by mining historical data to look for the reasons behind past success or failure. Most management reporting – such as [[sales]], [[marketing]], [[Business operations|operations]], and [[finance]] – uses this type of post-mortem analysis.