Decoding the Mysteries of Business Analytics: Top 5 Approaches to Transform Data into Success

Prescriptive Analytics: Writing the Prescription for Success

Prescriptive analytics is the next step after predictive analytics. While predictive analytics forecasts what might happen, prescriptive analytics determines the best course of action given the predictions.

For example, in supply chain management, prescriptive analytics can be used to create and optimize schedules for delivery routes. Given the expected demand (output of predictive analytics), prescriptive analytics optimizes the route to maximize efficiency and minimize costs.

Prescriptive analytics doesn't just suggest one possible action. Instead, it can offer multiple solutions based on various potential scenarios, enabling businesses to make strategic decisions.