Predictive and Prescriptive Analytics Impacting the Bottom Line

Yes, well done, it always has.   And further methods like AI, a kind of analytics, does the same.  Been doing it for a lifetime.  Interesting numbers below.

How predictive and prescriptive analytics impact the bottom line  by 7wData

In a digitally transformed world, the combination of data and analytics is critical to maintaining a competitive advantage and business relevance. To achieve this goal, enterprises collect vast volumes of data and derive valuable insights from them. This knowledge can be anything from ascertaining customer satisfaction to identifying operational discrepancies.

The capability of business intelligence and analytics is continually evolving. In a highly competitive business world, analytics plays a key role in identifying trends and patterns to make quick and informed business decisions. Predictive and prescriptive analytics are two important methods in business-analytics solutions. Mordor Intelligence research suggests that the predictive and prescriptive analytics market (valued at $8.14 billion in 2019) is expected to grow at a compound annual rate of 22.53% to reach $27.57 billion by 2025.

As artificial intelligence (AI) and machine learning evolve and play a more significant role in data and analytics, smart algorithms can now pull both prescriptive and predictive insights from the data. Both approaches give insight and foresight to enable smart decision-making; they incorporate data mining, machine learning and statistical modeling to deliver deep insight into customers and overall operations ...."

Predictive Analytics Today

Nothing new here, but nicely presented, with visuals.  We did predictive analytics many years before AI or Machine learning.  Many millions in value.  True we sometimes did not have the data required, especially outside the enterprise.  Or as it related to consumers.   Today that's much easier to get.  But the methods were often useful pointers to real predictive value.   Taking this beyond to prescriptive analytics should also be used as a method to both build and deliver such systems.  If can always be done with process models.  Start simply.

Use Machine-Assisted Predictive Analytics to Capture Your Customer’s Heart, Mind, and Pocketbook!     Bob Hayes, PhD in CustomerThink

As users/customers engage with a company (their products, services, surveys), they generate a lot of data about their behaviors and interactions with the brand. Predictive analytics and machine learning capabilities provide a way to extract insights from that data to help you improve the customer experience and optimize customer loyalty.

Machine Learning and Predictive Analytics

Today, businesses can collect hundreds of variables about their customers. Real-time delivery of insights necessitates the quick processing of these data. Toward that end, companies are employing the power of predictive analytics and machine learning (ML) to extract insights from data.

There are generally three types of analytics: descriptive, predictive and prescriptive. Descriptive tells you what happened. Predictive tells you what will happen. Finally, prescriptive analytics tells you what decisions/actions you need to make/take to maximize opportunities/mitigate risk. .... " 

Future of Analytics

In CIO Insight:

The future of analytics Is Streaming in the Cloud:

" ... Business analytics is becoming more prescriptive and making information available in real-time so it can be directly applied to a specific transaction or event.

Business analytics, as it is applied in most organizations, is about to be utterly transformed. Traditionally, analytics have been the realm of a few high priests in an organization looking to divine trends by discovering new patterns in historical data.

But as analytics continues to rapidly evolve, a fundamental shift is starting to occur. Rather than trying to intermittingly optimize a process based on historical data taken from a large number of applications, analytics is getting more prescriptive and making information available in real-time so that it can be directly applied to a specific transaction or event. .... " 

Essentials of Business Analytics Book

A number of my colleagues at the University of Cincinnati have just come out with a new book on the delivery of business analytics entitled:  Essentials of Business Analytics by 
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

As they describe it:   " ... This book provides coverage over the full range of analytics--descriptive, predictive, prescriptive--not covered by any other single book. It includes step-by-step instructions to help students learn how to use Excel and powerful but easy to use Excel add-ons such as XL Miner for data mining and Analytic Solver Platform for optimization and simulation.... " 

I have a review copy on its way and will provide a description and review of it here when I receive it. I hope to use some of the case studies included with clients.  Your comments are also welcome.

Types of Analytics

Yet another view of categories of analytics, here Descriptive, Diagnostic, Predictive and Prescriptive.  Adding diagnostic, which I have not typically added to the list. Reasonable, but I like to keep the list simpler and categorize diagnostic under predictive.