{"id":1360,"date":"2019-02-15T10:32:05","date_gmt":"2019-02-15T10:32:05","guid":{"rendered":"http:\/\/kusuaks7\/?p=965"},"modified":"2023-07-26T14:45:40","modified_gmt":"2023-07-26T14:45:40","slug":"what-is-prescriptive-analytics","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/bigdata-cloud\/what-is-prescriptive-analytics\/","title":{"rendered":"What is Prescriptive Analytics?"},"content":{"rendered":"<p><strong><em>Ready to learn Data Analyst Training and Certification? <a href=\"https:\/\/www.experfy.com\/training\/courses\">Browse courses<\/a>\u00a0like\u00a0<a href=\"https:\/\/www.experfy.com\/training\/courses\/machine-learning-for-predictive-analytics\">Machine Learning for Predictive Analytics<\/a> developed by industry thought leaders and Experfy in Harvard Innovation Lab.<\/em><\/strong><\/p>\n<h3>Prescriptive analytics goes beyond knowing.<\/h3>\n<header>\n<p style=\"text-align: center;\"><img decoding=\"async\" style=\"width: 650px; height: 400px;\" title=\"What is Prescriptive Analytics?\" src=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-696x428.jpg\" sizes=\"(max-width: 696px) 100vw, 696px\" srcset=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-696x428.jpg 696w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-300x184.jpg 300w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-768x472.jpg 768w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-1024x629.jpg 1024w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-600x369.jpg 600w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-200x123.jpg 200w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-356x220.jpg 356w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-1068x656.jpg 1068w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics-683x420.jpg 683w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2018\/01\/What-is-Prescriptive-Analytics.jpg 1074w\" alt=\"What-is-Prescriptive-Analytics\" \/><\/p>\n<\/header>\n<p>Did you say Predictive Analytics?<\/p>\n<p><em><strong>No prescriptive.<\/strong><\/em><\/p>\n<p>What is prescriptive analytics?<\/p>\n<blockquote><p><a href=\"http:\/\/searchcio.techtarget.com\/definition\/Prescriptive-analytics\" rel=\"noopener\">PRESCRIPTIVE ANALYTICS IS THE AREA OF BUSINESS ANALYTICS (BA) DEDICATED TO FINDING THE BEST COURSE OF ACTION FOR A GIVEN SITUATION.<\/a><\/p><\/blockquote>\n<p>Based on prior experiences, the goal of\u00a0<em><strong>prescriptive analytics<\/strong><\/em>\u00a0is to enable:<\/p>\n<ul>\n<li>\n<div>quality improvements;<\/div>\n<\/li>\n<li>\n<div>service enhancements;<\/div>\n<\/li>\n<li>\n<div>cost reductions; and<\/div>\n<\/li>\n<li>\n<div>productivity increases<\/div>\n<\/li>\n<\/ul>\n<p>Unfortunately, the\u00a0IIoT status quo seems to stop well short of this.<\/p>\n<p>Without a clear path to delivering valuable outcomes, current analytics deliver insufficient value.<\/p>\n<blockquote><p>\u201cThe bottomline: Enterprises\u00a0must\u00a0stop wasting time and money on unactionable analytics. These efforts don\u2019t matter if the resulting analytics don\u2019t lead to better insights and decisions that are specifically linked to measurable business outcomes.\u201d<br \/>\n<a href=\"https:\/\/go.forrester.com\/blogs\/17-02-20-what_exactly_the_heck_are_prescriptive_analytics\/\" rel=\"noopener\">What Exactly The Heck Are Prescriptive Analytics?<\/a>\u00a0by\u00a0<a href=\"https:\/\/go.forrester.com\/blogs\/author\/mike_gualtieri\" rel=\"noopener\">Mike Gualtieri<\/a>, Vice President, Principal Analyst,\u00a0<a href=\"https:\/\/go.forrester.com\/\" rel=\"noopener\">Forrester<\/a><\/p><\/blockquote>\n<h2>Don\u2019t Stop With Knowing<\/h2>\n<p>Predictive analytics is a popular approach for machine and equipment maintenance. It focuses on improving maintenance schedules based on operational and environmental attributes.<\/p>\n<blockquote>\n<blockquote><p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Predictive_maintenance\" rel=\"noopener\">Predictive maintenance\u00a0(PdM) techniques are designed to help determine the condition of in-service equipment in order to predict when\u00a0maintenance\u00a0should be performed. This approach promises cost savings over routine or time-based preventive maintenance, because tasks are performed only when warranted.<\/a><\/p><\/blockquote>\n<\/blockquote>\n<p>Predictive analytics provide important notifications. It can provide visibility to information that was not\u00a0previously\u00a0available.<\/p>\n<p>But, it provides limited value without a direct tie to a specific outcome.<\/p>\n<p>These notifications also create more work. They trigger a series of phone calls, emails, and other \u201cout-of-band\u201d activities. This contributes to increased downtime and costs.<\/p>\n<p>Knowing that something is about to break (or broken) does not ensure a time or cost effective outcome.<\/p>\n<h2>Don\u2019t Get Confused By Other Terms<\/h2>\n<p>Industry pundits, analyst groups, and others have their own lexicons. But all with similar definitions. This adds to the confusion.<\/p>\n<ul>\n<li>\n<div>Prognostics<\/div>\n<\/li>\n<li>\n<div>Condition-Based Maintenance (Usage-Based Maintenance)<\/div>\n<\/li>\n<li>\n<div>Asset Performance Maintenance (APM)<\/div>\n<\/li>\n<li>\n<div>Reliability Centered Maintenance (RCM)<\/div>\n<\/li>\n<\/ul>\n<p>Whatever you call it. Predictive analytics leaves a huge gap between \u201cknowing\u201d and \u201cdoing\u201d.<\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" style=\"width: 631px; height: 200px;\" src=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/Kiss-and-make-up1.jpg\" sizes=\"(max-width: 631px) 100vw, 631px\" srcset=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/Kiss-and-make-up1.jpg 631w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/Kiss-and-make-up1-300x95.jpg 300w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/Kiss-and-make-up1-600x190.jpg 600w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/Kiss-and-make-up1-200x63.jpg 200w\" alt=\"experfy-blog\" \/><\/p>\n<h2>Enter Prescriptive Analytics<\/h2>\n<p>Prescriptive analytics goes beyond knowing.<\/p>\n<p>Prescriptive analytics provides recommended actions based on prior outcomes. A recommended course of action to achieve a specific outcome.<\/p>\n<p>The hierarchy of business analytics looks something like this:<\/p>\n<ol>\n<li><strong>Descriptive Analytics<\/strong>\u00a0= asset, operation, environmental and diagnostic information<\/li>\n<li><strong>Diagnostic Analytics<\/strong>\u00a0= identifies patterns of behavior (importance and urgency)<\/li>\n<li><strong>Predictive Analytics<\/strong>\u00a0= suggests a timeframe for an action<\/li>\n<li><strong>Prescriptive Analytics<\/strong>\u00a0= recommends specific actions<\/li>\n<\/ol>\n<p>Below is a simple graphic of analytic type\u2019s relative value:<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.riverlogic.com\/technology\/prescriptive-analytics\/\" rel=\"noopener\"><img decoding=\"async\" style=\"width: 650px; height: 334px;\" src=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value.png\" sizes=\"(max-width: 2403px) 100vw, 2403px\" srcset=\"https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value.png 2403w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-300x154.png 300w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-768x395.png 768w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-1024x526.png 1024w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-600x308.png 600w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-200x103.png 200w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-696x358.png 696w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-1068x549.png 1068w, https:\/\/www.iotforall.com\/wp-content\/uploads\/2017\/12\/presciptive-value-817x420.png 817w\" alt=\"experfy-blog\" \/><\/a><\/p>\n<p>Others have called this prescriptive approach\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Case-based_reasoning\" rel=\"noopener\">Cased-Based Reasoning<\/a>.<\/p>\n<blockquote><p><b>Case-based reasoning<\/b>\u00a0(<b>CBR<\/b>), broadly construed, is the process of solving new problems based on the solutions of similar past problems. An auto\u00a0<a title=\"Mechanic\" href=\"https:\/\/en.wikipedia.org\/wiki\/Mechanic\" rel=\"noopener\">mechanic<\/a>\u00a0who fixes an\u00a0<a title=\"Engine\" href=\"https:\/\/en.wikipedia.org\/wiki\/Engine\" rel=\"noopener\">engine<\/a>\u00a0by recalling another\u00a0<a title=\"Automobile\" href=\"https:\/\/en.wikipedia.org\/wiki\/Automobile\" rel=\"noopener\">car<\/a>\u00a0that exhibited similar symptoms is using case-based reasoning.<\/p><\/blockquote>\n<p>Both prescriptive analytics and CBR have the same goal. They provide specific recommendations based on prior experiences and outcomes.<\/p>\n<h2>A Great Step Forward<\/h2>\n<p>Prescriptive analytics is a critical advancement in analytics.\u00a0 It can improve decision making and processes effectiveness.\u00a0 It helps us get closer to tying outcomes to specific situations.<\/p>\n<p>While it\u2019s not Nirvana for IIoT, it is clearly a step in the right direction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is prescriptive analytics? Prescriptive analytics is the area of business analytics dedicated to finding the best course of action for a given situation. Based on prior experiences, prescriptive analytics&nbsp;enables quality improvement, service enhancements, cost reduction, and productivity increase. &nbsp;Whatever you call it. Predictive analytics leaves a huge gap between &ldquo;knowing&rdquo; and &ldquo;doing&rdquo;. Prescriptive analytics goes beyond knowing. Prescriptive analytics provides recommended actions based on prior outcomes. A recommended course of action to achieve a specific outcome. Prescriptive analytics provide specific recommendations based on prior experiences and outcomes.<\/p>\n","protected":false},"author":175,"featured_media":3100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[187],"tags":[95],"ppma_author":[1706],"class_list":["post-1360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bigdata-cloud","tag-big-data-amp-technology"],"authors":[{"term_id":1706,"user_id":175,"is_guest":0,"slug":"michael-riemer","display_name":"Michael Riemer","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Riemer","first_name":"Michael","job_title":"","description":"Michael Riemer is Principal \/ Advisor (Enterprise IoT, Insur\/Fin-Tech, MarTech, MedTech at ABJJ Consulting. &nbsp;He has more than 30 years of building companies, teams, products, programs and relationships that deliver valuable customer outcomes.&nbsp; He is a regularly requested speaker, author, and industry authority on Industrial IoT and Digital Transformation."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/175"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=1360"}],"version-history":[{"count":2,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1360\/revisions"}],"predecessor-version":[{"id":29604,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1360\/revisions\/29604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3100"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=1360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=1360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=1360"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=1360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}