Prescriptive Analytics

Prescriptive Analytics – What Actions are Needed?

prescriptive-analytics

Prescriptive analytics is less well-known than predictive analytics.   However, as IoT adoption accelerates, prescriptive analytics will become much more common and understood by a wide variety of managers.  As is described in our video IoT: Challenges and Opportunities, capturing business value in IoT (Internet of Things) requires action quickly on real-time events, or the value disappears.  But taking intelligent actions quickly requires more than a prediction – it requires knowing exactly what to do and when to do it – specific recommended actions are required.

Prescriptive analytics fills this critical gap for IoT Analytics.  The predictions that flow from predictive analytics are transformed into a set of recommended actions that will generate business value.  The actions could be a wide variety of scenarios.  It might involve:

  • Recommending a marketing offer to a customer or prospect based on instore location or traffic
  • Doing a repair on a critical piece of machinery in a manufacturing line to ensure continuous operations.
  • Shutting down a server or internet connection if suspicious web traffic is detected
  • Recommending maintenance on a machine at a customer site to prevent a more expensive repair sometime in the future
  • Adjusting resource allocations in a large service infrastructure such as a call center to ensure that sensitive SLA commitments (service level agreements) are met.

The common theme is that in IoT – specific actions at specific time are fundamental.  Historical analytics, descriptive, analytics, and even predictive analytics are all necessary – but not sufficient.  As we describe in our Value Chain concept, most of the value is generated by acting, not simply analyzing.  Prescriptive analytics provide the recommendations for whatever action is needed to capture value.

 

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Learn more about how IoT Analytics are: