What Is Prescriptive Analytics?
Prescriptive analytics goes a step further than predictive analytics by not only forecasting what is likely to happen but also recommending specific actions to take based on those predictions. It uses advanced techniques such as optimization, simulation, and machine learning to suggest the best course of action to achieve desired outcomes. For example, in the healthcare industry, prescriptive analytics can assist in determining the optimal treatment plan for a patient by analyzing data from similar cases. Similarly, in supply chain management, it can recommend the most efficient routes or inventory strategies to minimize costs and maximize efficiency. By turning data-driven insights into actionable strategies, prescriptive analytics enables organizations to make informed decisions that align with their goals.