Prescriptive Analytics

Prescriptive Analytics

Prescriptive analytics provides companies with recommendations about optimal actions to achieve business objectives such as operational efficiency, customer experience and profits. Prescriptive analytics solutions use optimization technology to solve complex decisions with millions of decision variables, constraints and tradeoffs. Organisations across multiple industries are using prescriptive analytics for a range of applications spanning strategic planning, tactical and operational activities.

Through prescriptive analytics we can:

Plan

Produce schedules to create transport calendars in a distribution or retail system, so as to minimize the costs of travel and storage, while guaranteeing levels of service at points of sale and taking into consideration external factors that could affect expected demands.

Smart Price

Recommend, for example, the most appropriate prices for each type of room in a hotel chain in order to maximize profits, taking into account forecasts of expected demand and influencing factors such as holidays or climate calendars.

Predict Maintenance

Perform a predictive maintenance of a fleet of vehicles in a city, replacing periodic reviews or repairs in case of failure by a system that recommends the best time to review each component, thus reducing costs for breakdowns and repairs.

Estimate customers

Get an estimate number of customers that will attend a point of sale each day, and calculate the personnel that will be necessary to deploy to guarantee the service while keeping costs under control.

How does it work?

Prescriptive analytics is based on all the knowledge and techniques of descriptive and predictive analytics (classification, prediction and segmentation) and from fields such as operational research and numerical optimization. Often, a prescriptive system collects business information to predict what impact certain policies or actions will have in the company and possibly in the community, and chooses the action with the highest return on investment through an optimization process.

Each business is different and, therefore, there is no general prescriptive analytical solution for all. That is why the design of any prescriptive system starts with a consultancy process, in which 202data works with the client to build a system with every information related to the business such as costs, policies or HR, designing a smart system of constant optimization and self improvement through machine learning techniques, that is capable of finding the best action for each moment, each time better.

It is also possible to introduce in the system different options to define the risk-benefit balance in which it is preferred to operate at a given time.

Once the prescriptive system is deployed, it constantly feeds the business with data (sales, stock levels, performance metrics, etc.) to recalculate their schedules and execute them automatically or under the review of an expert.

Overall, the system allows you to improve the ROI of the business directly through your decisions, and indirectly by reducing costs in planning processes.

Scientific disciplines that comprise prescriptive analytics

Scientific disciplines that comprise prescriptive analytics big data

Benefits of prescriptive analytics

Prescriptive Analytics will not just improve fragmented business functions but the entire enterprise. Some benefits of prescriptive analytics include optimization of product planning, reduction of inefficiencies such as energy overuse, smarter operational decision-making, better resource management such as personnel, equipment, vehicles, facilities and capital, and risk mitigation through data insights.

Contact Us for more information