IST Chapter 12

In-Class Discussion

Chapter 12: Business Analytics

1. Define business analytics. Describe its process and its three targets.

2. Describe the purpose of prescriptive analytics.

3. Discuss the BA tools that are commonly used in descriptive analytics.

4. What is a dashboard? Why are dashboards so valuable to an organization’s decision makers? 


Ihab El Zein 

Prescriptive Analytics

COLLAPSE

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 Describe the purpose of prescriptive analytics.

Prescriptive analysis uses the best course action based on the scenario given. It’s related to descriptive analytics and predictive analytics, but requires action instead of monitoring data. 

Descriptive analytics revolves around what has happened. Predictive analytics forecasts possible outcomes. Therefore, prescriptive analytics attempts to find the best solution given all the choices. This helps with optimizing future events or risks. This also helps create a model to study the analysis as well. Prescriptive analysis can be used in oil and gas management. In gas/oil industries, price always changes based on political or environmental changes (and also based off of the demand). Prescriptive analysis is the third and final phase of business analytics, and it uses a combination of techniques and tools like algorithms, machine learning, and computational modeling procedures. 

Janet Nguyen 

Describe the Purpose of Prescriptive Analytics.

COLLAPSE

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           Prescriptive analytics go beyond descriptive and predictive models by recommending one or more courses of action and showing the likely outcome of each decision. Predictive analytics do not predict one possible future, but rather multiple future outcomes based on the decision maker’s actions. Prescriptive analytics helps determine what will happen, when it will happen, and also why it will happen. Prescriptive analytics also recommends decision options on how to take advantage of a future opportunity or mitigate a future risk and shows the implication of each decision option. Business analytics uses tools in Prescriptive Analytics such as statistical procedures which include optimization, simulation, and decision trees. This type of analytics use simulation algorithms to get possible outcomes with answers. Prescriptive analytics are very complex to monitor and they have a large impact on how businesses make decisions. They can help large companies make decisions that successfully optimize production. The purpose of prescriptive analytics is to help find the best solutions in a course of scenario in businesses and companies for decision making. It does this by gathering data from a variety of both descriptive and predictive sources for its models and applies them to the process of decision-making.

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