Recommendation on potential outcomes .
It uses optimization and simulation to get an answer for – What should we do? Further, it explores varied actions that are suitable to perform. It is an approach that suggests optimal solutions for all your business needs or determines a suitable solution for all your operational issues. In a nut-shell, it basically provides advice on what action to take for better future. It predicts not only what will happen but why it will happen?
It recommends one or more actions that allow companies to assess a number of possible outcomes depending upon the actions taken. It is a relatively new concept as this method is complex to administer; hence most of the companies do not prefer to use it in daily course of business. Bigger organizations are using it successfully to optimize production, scheduling and inventory in supply chain so that right products can be delivered at the right time. Thus, it offers an optimized customer experience.
Prescriptive Analytics Methods .
As is known that prescriptive analytics translates a forecast into a feasible plan and helps customer identify what is the best way to implement it. For performing this prescriptive analytics there are two primary approaches as:
- Simulation: This method is best suited for a design situation where there is a need for identifying system behaviours under different configurations. It ensures that all important performance enhancing metrics are met.
- Optimization: This method supports ongoing operational, strategic and tactical business planning and leverages liner programming in order to find the best results for a business. On a broader scale, this optimization model helps in calculating the impact of various forecasts on the business. During the process it considers various constraints such as capacities, emissions, financial limitations, and regulatory requirements. If performed on an advanced level, it ensures internal data consistency and identifies infeasible outcomes.
Activities involved .
We at Intellectyx utilises prescriptive analytics to its core, hence it has a large impact on the overall running of the business and enhances its decision making capabilities.
- Offer this forward looking approach that suggests multiple actions
- Performs Stochastic optimization
- Offer optimization and decision rules for future events
- Focus on optimal decisions for future situations
- Use combination of tools and techniques including business rules, algorithms, computational modelling procedures and machine learning for better analysis
- Use simple rules to complex business models that can be either automated or programmatic
- Use historic and transactional data, real-time data feeds and big data for analysis
- Provide distinct forecast of each data set based on their similarities and differences