Predictive Analytics, which use statistical models and forecasting techniques to understand the future and answer: “What could happen?” Prescriptive Analytics, which use optimization and simulation algorithms to advise on possible outcomes and answer: “What should we do?” Ultimately this creates a better overall consumer experience. It suggests all favourable outcomes and, which courses of action needs to be taken to reach a particular outcome. More recently, we have been seeking new ways to advance our Enterprise Asset Intelligence vision – to have every asset and worker on the edge visible, connected and optimally utilized. Prescriptive analytics is primarily related to decision optimization problems. Descriptive statistics are useful to show things like total stock in inventory, average dollars spent per customer and year-over-year change in sales. At different stages of business analytics, a huge amount of data is processed and depending on the requirement of the type of analysis, there are 5 types of analytics – Descriptive, Diagnostic, Predictive, Prescriptive and cognitive analytics. Editor’s Note: Learn more about how Zebra’s combined Intelligent Edge Solutions, including the Zebra Savanna IoT platform and Profitect prescriptive analytics solutions, can benefit your business. Except, with prescriptive analytics, you’re in a position to take proactive measures to mitigate the risk or maximize the opportunity. Predictive analytics provides companies with actionable insights based on data. By continuing to use this site without changing your settings, you are agreeing to our use of cookies. It also provides easy-to-follow guidance on how to address the inconsistency, whether further investigation is needed or a clear-cut fix is defined. The most common definition for this difference is that predictive analytics describes what will happen while prescriptive analytics describes what should happen. This is precisely what Profitect does and why we continue to invest and build out our capabilities at Zebra that contribute to advancing prescriptive analytics. While this starts with accurate predictions of the future, without resultant actions steering the future toward company goals, knowing that future is academic. Want to learn more about descriptive, predictive and prescriptive analytics? Prescriptive analytics is an emerging area of analysis that leverages both existing data and action/feedback data to guide the decision maker towards a desired outcome. Prescriptive analytics attempts to quantify the effect of future decisions in order to advise on possible outcomes before the decisions are actually made. Predictive analytics sets the stage by producing the raw material for making more sound and informed decisions, while prescriptive analytics produce an array of decision options to weigh against each other and, ultimately, make the one that has the greatest impact on the business. These statistics try to take the data that you have, and fill in the missing data with best guesses. Tom: The best way to describe the differences between each analytical approach is to consider how and when the extracted business insights will be used to inform decisions or actions: For example, Profitect’s prescriptive analytics solution will mine a retailer’s data to find inconsistencies that could impact sales or margins and then automatically notify stakeholders of the potentially disruptive issue using a simple description. Using plain-text removes any biases, ambiguity, or interpretation, and coupled together with a prescriptive action, increases efficiency and effectiveness. With both forms of analysis, business executives and leaders gain both insight and foresight. These analytics are about understanding the future. The vast majority of the statistics we use fall into this category. You have read studies describing how analytics separates winners from average performers. The promise of doing it right and becoming a data-driven organization is great. They also help forecast demand for inputs from the supply chain, operations and inventory. Daniel brings more than 10 years of experience in sales, marketing, supply chain planning, and advanced analytics. With the flood of data available to businesses regarding their supply chain these days, companies are turning to analytics solutions to extract meaning from the huge volumes of data to help improve decision making. Are they the same thing? That is why Zebra Ventures first invested in Profitect in 2014. Looking at all the analytic options can be a daunting task. Of diagnostic, predictive, descriptive, and prescriptive analytics, the latter is the most recent addition to … Prescriptive analytics use a combination of techniques and tools such as business rules, algorithms, machine learning and computational modelling procedures. Descriptive Analytics tells you what happened in the past. Larger companies are successfully using prescriptive analytics to optimize production, scheduling and inventory in the supply chain to make sure they are delivering the right products at the right time and optimizing the customer experience. In order for a business to have a holistic view of the market and how a company competes efficiently within that market requires a robust analytic environment which includes: Descriptive Analytics: Insight into the past. Diagnostic analytics tells you why, but doesn’t provide any further actions. You can learn more about the cookies we use as well as how you can change your cookie settings by clicking here. 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