Category: Prescriptive Analytics
Prescriptive analytics is the third category of data analytics that focuses on finding the best solution in a scenario given the available data. Prescriptive analytics is related to both descriptive and predictive analytics but it emphasizes greater details rather than data monitoring. Whereas, descriptive analytics focus on what has happened and predictive analytics on what might happen in the future, prescriptive analytics aims to find the best solution for a variety of choices.
Prescriptive analytics also empowers companies to make necessary decisions based on optimizing the results of future events and provide models and detail reports to study them. Prescriptive analytics collects data from both descriptive and predictive sources for its models and optimism them for the process of decision making. This way of applying modern computing and optimization helps an organization on how each condition will affect your organization. It also measures the impact of the decision based on possible future outcomes.
Prescriptive analytics uses mathematics and computer science, using a variety of statistical methods to predict and prescribe possible decision patterns that could affect the business organization in multiple ways. Prescriptive analytics suggests a hybrid model which is the combination of structured (numbers, categories) and unstructured (videos, audios, images, texts) and business rules to predict what lies ahead and how to take the advantage of this predicted future without causing any effect to present situation.