Kishore Jethanandani

What You Need to Know About Prescriptive Analytics

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kq4ym
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Re: Interesting perspective on the trend towards prescriptive analytics
kq4ym   3/23/2016 10:08:43 AM
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I would also like to hear more about the case of abandoning a client in favor taking on a new one. I'm wondering can the results be objectively shown to be a result of the analyticss or maybe just a chance result. It would be interesting to compile case studies and see just what's reliable or not in these decisions.

jmyerson2
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Re: Beyond prescriptive analytics: cultural analytics
jmyerson2   3/22/2016 7:18:02 AM
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@Kishore, you told me it would be instructive to know what I was able to achieve way back.  Well, I've been thinking about writing a blog on this one.

jmyerson2
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Re: Beyond prescriptive analytics: cultural analytics
jmyerson2   3/21/2016 1:36:09 PM
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Kishore, the OR project I was involved with was about the supply chain. I could say it was part of strategy planning we used to examine various trade-offs and options. 

Kishore Jethanandani
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Re: Beyond prescriptive analytics: cultural analytics
Kishore Jethanandani   3/21/2016 12:10:22 PM
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@jmyerson2: I was responding to the question as it was framed which was at a basic level. I understand your point about operations research which is becoming more widespread with the availability of data in real-time. It is interesting that you tried to do it way back. It would be instructive to know what you were able to achieve then and could not do with a limited toolset.

 

The example of supply chain illustrates that point. OR is being done for supply chain for manufacturers, transporters and retail companies. 

 

However, operations research is not the only use case. Strategic planning is also a way to use prescriptive analytics because again you examine multiple options. In general, it is about looking at trade-offs. For those of us who have studied economics, this is fairly straightforward but I might have assumed too much. 

jmyerson2
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Re: Beyond prescriptive analytics: cultural analytics
jmyerson2   3/21/2016 6:09:52 AM
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Kishore, your distinctions are good ones for those who don't know.  But I already knew the distinctions. See my previous comment about that I was selected out of 500 employees by the Director of Operations Research to build prespective analytics models from the results of the OR -- decades ago.

jmyerson2
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Beyond prescriptive analytics: cultural analytics
jmyerson2   3/20/2016 10:15:55 PM
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@Terry, prescriptive analytics is not new.  The era of big data created a boon in operations research.  The volume and variety of big data helps OR build prescriptive analytics models.  These models however are not the final stage of development in the analytics evolution.  The next stage is cultural analytics (think IBM Watson machine). How do I know about the applying big data to OR. My answer is an easy one.  I was selected (out of 500 employees) by the Director of OR to build "prescriptive analytics models" a couple of decades ago. 

Kishore Jethanandani
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Re: Making distinctions
Kishore Jethanandani   3/19/2016 12:27:48 PM
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Hi Terry: Great question to ask to clarify the basics of analytics. There are three types of analytics--descriptive, predictive, and prescriptive. Descriptive is like reporting--summary statistics of the data. Typically, it will lay out the dependent and independent variables in a tabular form. An example would be the gender and preferences for say types of shoes. Predictive statistics has forecasts such as how much demand will be generated based on historical data and real-time data on traffic. Prescriptive is about alternative courses of action and the outcomes you could expect. So it will tell you, for example, what decisions to take if your predicted sales are falling short of the desired outcome. Should you expand your territory to expand sales. If yes, what would be the impact on margins if you invested more in marketing to more regions. Hope this helps. If not, feel free to let me know where it is not clear.

T Sweeney
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Making distinctions
T Sweeney   3/19/2016 11:24:42 AM
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I don't mean to quibble or be obtuse here, Kishore... but aren't all analytics essentially prescriptive analytics? Or is the position you're taking here is only as it's applied to Big Data? If you could further clarify the distinction, thaty would be helpful.

Zimana
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Interesting perspective on the trend towards prescriptive analytics
Zimana   3/17/2016 6:07:12 PM
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Good overview on prescriptive analytics, particularly noting the influence from algorthms as well as the increased spending. I think many industries have realized analytics as essential - they are developing an appreciation for advanced analytics as a necessary next step. I liked the example in this post regarding the decision of a current client vs pursuing better opportunities with new businesses.

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