3 Uses for Prescriptive Analytics
Prescriptive analytics is the practice of using data and analytics to identify and prescribe actions that can improve an organization’s performance. It is a field of data science that deals with finding the best course of action for a given situation. It uses predictive analytics to determine the most likely outcome of a particular decision, and then provides advice on the best way to achieve that outcome. Prescriptive analytics is used to improve decision-making, operations, and business strategy.
Benefits of Prescriptive Analytics
Prescriptive analytics is ideal for businesses that want to increase their revenue. They can use analytics to identify patterns in their data and figure out the best way to exploit them. This can lead to increased profits and a better bottom line. Prescriptive analytics can also help business owners and managers better understand how changes in gross margin will impact the company’s bottom line. Armed with this knowledge, they can then make more informed decisions about pricing, production, and other strategic decisions that impact gross margin.
For example, prescriptive analytics might show that a small increase in the price of a product will have a significant impact on the company’s overall gross margin. Armed with this information, the business owner can then decide whether or not to raise prices, and by how much. Or if the analytics show that the company is paying too much for raw materials, the business owner can work to find a more cost-effective supplier. This is just another way for predictive analytics to help reduce costs by looking over historical data. Check out three uses for analytics below.
1. Health Care
Prescriptive analytics is particularly well-suited for the health care industry. In health care, there is a high demand for actionable insights that can improve patient outcomes and reduce costs. For example, prescriptive analytics can help healthcare providers optimize their resources and staffing levels, and identify opportunities to improve patient care.
Prescriptive analytics can also help healthcare providers to identify and prevent Fraud, Waste, and Abuse (FWA). FWA is a major issue in the healthcare industry, costing taxpayers billions of dollars each year. Predictive analytics can even help healthcare providers to identify FWA by identifying patterns in billing data that may indicate fraudulent activity. Overall, data is a powerful tool that can help the healthcare industry to improve patient outcomes and reduce costs.
2. Travel and Transportation
Prescriptive analytics is a field of analytics that is concerned with recommending actions to improve a situation. This can be done through predictive modeling, which uses past data to forecast future events, or it can be done through prescriptive modeling, which uses past data and a set of rules to recommend actions. Prescriptive analytics has been used in a number of industries, including healthcare, retail, and manufacturing.
In the transportation and travel industry, prescriptive analytics can be used to improve traffic flow, optimize routes, and recommend travel plans. There are a number of ways that prescriptive analytics can be used in transportation and travel. One way is to use prescriptive analytics to improve traffic flow. By analyzing traffic data, prescriptive analytics can be used to identify bottlenecks and suggest ways to improve traffic flow.
Another way that prescriptive analytics can be used in transportation and travel is to optimize routes. By analyzing data on traffic, weather, and other factors, prescriptive analytics can be used to create the most efficient route for a given journey. Finally, prescriptive analytics can be used to recommend travel plans. By analyzing data on traffic, weather, and other factors, prescriptive analytics can be used to create a customized travel plan for a given journey.
3. Oil Production
In the oil production industry, prescriptive analytics can be used to optimize production by identifying and addressing issues before they cause any problems. Fracking has been on the rise and knowing where to frack and how to make the process safer is a great use of the process.
These are just three uses in which the statistical model can help find the ideal way forward.