Prescriptive Analytics technology achieves recommended actions using optimization modeling
What is Prescriptive Analytics?
Understanding Prescriptive Analytics
If you’ve heard about (Business) Analytics or Advanced Analytics, then you’ve probably encountered analytics terms such as ‘Descriptive’, ‘Predictive’ and ‘Prescriptive’. AIMMS is considered to be a Prescriptive Analytics technology – we offer you a way to get recommended actions during a decision making process using optimization modeling that is working under the hood of a user-friendly interface.
What is Prescriptive Analytics? Exploring Key Terms, Use Cases and Drivers
Unlike Descriptive (focused on reporting with basic trend or pattern recognition) or Predictive Analytics (focused on predicting the future with forecasting techniques), Prescriptive Analytics determines ways in which business processes should evolve or be modified. This is crucial to make data and business rules actionable instead of only providing insight into your data’s behavior.
AIMMS enables you to define your business logic though a business modeling process while defining the input as well as the required output, variable decisions, and objective(s). Using advanced mathematical programming optimization engines, AIMMS provides recommendations against a (combined) objective such as maximal revenue, minimal cost, optimal service etc. We do this in such a way that regular business users can analyze various options (scenarios) through a highly interactive user interface.
Those who are using advanced analytics are winning
Gartner research (2018) has found that the use of advanced analytics in the supply chain is improving forecast accuracy, cycle time reduction, capacity availability and contributing to cost reduction.
What you should consider
Embracing Prescriptive Analytics requires your (extended) team to be enthused about its benefits and ready to make the leap towards data-driven decisions. Moreover, the recommendations provided by a Prescriptive Analytics tool need support from the organization – as they can sometimes appear to be counter-intuitive. Ensure your technology supports, and not hinders, this process. With AIMMS you have the ability to do rapid prototyping and immediately start working with end users that do not necessarily need to know the intrinsic qualities of analytics, but understand the results.
Discover the power of prescriptive analytics
Our Community Edition gives you instant access to start building models and applications for non-commercial purposes. It’s the quick way to see prescriptive analytics in action.