What is Prescriptive Analytics and Why Should You Care

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There is more data than ever in the world and in the coming years, it will only increase exponentially. However, just collecting data is not enough if you wish to become a data-driven business. For that, you need to analyse the data to gain insights, and as you are probably aware, there are multiple ways to do so, each increasing in complexity and the value they create: descriptive analytics, diagnostic analytics, predictive analytics and prescriptive analytics.

Descriptive and diagnostic analytics is similar to business intelligence; it helps you understand what happened in the past, from one second ago to decades ago. Predictive analytics is all about the future and predicting what will happen. The final stage of understanding your business is prescriptive analytics, and slowly it is gaining more traction since the technology to do so becomes more available.

Prescriptive analytics is about what to do (now) and why to do it, given a complex set of requirements, objectives and constraints. It offers recommendations on how to act upon predictions to take advantage of those predictions and transform an organisation accordingly. It leverages predictive analytics and descriptive analytics to derive ideal outcomes or solutions from helping you solve business problems based on …

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