Prescriptive Analytics
Make analytics work to optimize your business decisions.
Key Takeaways:
1. Your organization may have good data and a full cadre of analytic scientists, but can you use the insights to make better decisions? If data science cannot be mapped to your business problems and, importantly, to optimizing customer engagements in real time, then what good is it?
2. Prescriptive analytics, unlike predictive analytics or AI by itself, is about mapping data and analytics to YOUR business problem. Instead of simply giving insights, prescriptive analytics informs what you should do.
3. There are proven methodologies to mapping all analytics to business engagement rules — what you can do, what inventory is available, what your optimal margin requirements or risk thresholds are — to enable everyone in your business to optimally engage customers and create the best relationships — relationships that optimize both business and customer satisfaction.
4. Prescriptive analytics is the step beyond analytics or artificial intelligence. Once you’ve gathered data and gleaned insights, through human or robotic processes, being able to use those insights in real-time human interaction is only possible by investing in prescriptive methodologies.
5. FICO has invested decades in developing and improving prescriptive analytic techniques and created a unique and proven methodology that combines data, analytics, AI, decision rules, and optimization in a unique and powerful manner to deliver prescriptive analytics to businesses in every industry imaginable, including financial services, energy, transportation and logistics, retail, government, and many others
Expanded Definition:
“Data without a decision is a distraction.” — Gareth Herschel, Vice President, Gartner Group
Prescriptive analytics is considered the most sophisticated form of analytics and often achieved with artificial intelligence. Prescriptive analytic approaches go beyond describing what happened in the past (descriptive analytics), what caused something to happen (diagnostic analytics), or predicting what is likely to occur in the future (predictive analytics). They prescribe specific actions that can be taken to cause a desired future outcome.
Much like a physician may use data, your symptoms, and a breadth of knowledge, experience, and documentation to identify a patient’s ailment, that alone will not provide a cure. What and how to treat a patient is the most important last mile problem. The same is true with analytics. Collecting data and identifying appropriate analytic techniques only create insights. Where and how those insights are used by businesses to create optimal customer engagements or real-time business decisions is the true value of analytics. After all, insights for insights sake will not improve a business, grow revenue, or create a delightful customer relationship.
Additional Content:
Over the last few years with the rise of big data and AI technologies, it may seem like the advances in analytics are new. FICO has been in business for over 60 years and pioneered the use of analytics to make better business decisions. Over 20 years ago, the company invested in the necessary business rules, optimization, and application development technologies to make prescriptive analytics and decision management a reality.
Don’t be distracted by the noise created by new entrants in the data business. Prescriptive analytics is real, today. And there’s only one company with all the assets and experience to make it a reality in your business.
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