PRESCRIPTIVE ANALYTICS

Joseph R. Estiller
joseph.estiller@yahoo.com
 Gospel Reading
Holy Gospel of Jesus Christ according to Saint Mark 3: 22 – 30

The scribes who had come from Jerusalem said of Jesus, "He is possessed
by Beelzebul," and "By the prince of demons he drives out demons."
Summoning them, he began to speak to them in parables, "How can Satan
drive out Satan?
If a kingdom is divided against itself, that kingdom cannot stand.
And if a house is divided against itself, that house will not be able to stand.
And if Satan has risen up against himself and is divided, he cannot stand;
that is the end of him.
But no one can enter a strong man's house to plunder his property unless he
first ties up the strong man. Then he can plunder his house.
Amen, I say to you, all sins and all blasphemies that people utter will be
forgiven them.
But whoever blasphemes against the holy Spirit will never have forgiveness,
but is guilty of an everlasting sin."
For they had said, "He has an unclean spirit."
 AGENDA:
• Opening prayer

• Attendance

• Initial Grouping

• Introduction to Business Analytics

 INTRODUCTION to BUSINESS
ANALYTICS
•DECISION MAKING in OPERATIONS MANAGEMENT

Strategic decisions (long term) – involve higher-level

issues concerned with the overall direction of the
organization; they define the organization’s overall goals
and aspirations; and they are at the domain of higher-
level executives and have a time horizon of 3- 5 years.

Tactical decisions (short term) – concern how the

organization should achieve the goals and objectives set
by its strategy, and they are usually the responsibility of
mid-level management. They usually span for a year and
thus are revisited annually or even every six months.
 INTRODUCTION to BUSINESS
ANALYTICS
What makes decision making difficult and
challenging?

Uncertainty (e.g. if we know how stocks will

perform, investing would be a lot easier).

Enormous alternatives (e.g. what is the best

combination of stocks to help meet our financial
objectives; or how should an airline price its
tickets so as to maximize revenue? )
 INTRODUCTION to BUSINESS
ANALYTICS
BUSINESS ANALYTICS
- is the scientific process of
transforming data into insight for making
better decisions.

- It is used for data-driven or fact-based

decision making.
INTRODUCTION to BUSINESS
ANALYTICS
 INTRODUCTION to BUSINESS
ANALYTICS
IMPORTANCE OF BUSINESS ANALYTICS

• It creates insights from data.

• It improves the ability to more accurately
forecast for planning purposes.
• It helps in quantifying risk
• It yields better alternatives through
analysis and optimization.
INTRODUCTION to BUSINESS
ANALYTICS
 INTRODUCTION to BUSINESS
ANALYTICS
CATEGORIES OF BUSINESS ANALYTICS

• Descriptive analytics

• Predictive analytics

• Prescriptive analytics
INTRODUCTION to BUSINESS
ANALYTICS
 INTRODUCTION to BUSINESS
ANALYTICS
Descriptive analytics

- encompasses the set of techniques that

describes what has happened in the past

TOOLS: data queries, reports, descriptive

statistics, data visualization; data
dashboards.
INTRODUCTION to BUSINESS
ANALYTICS
 INTRODUCTION to BUSINESS
ANALYTICS
Predictive analytics
- consist of techniques that use models
constructed from the past data to predict the
future or ascertain the impact of one variable on
another .
TOOLS : linear regression; time series
analysis, simulation or risk analysis; and some
data-mining techniques

Data mining techniques – are used to find

patterns or relationships among elements of
the data in a large database.
INTRODUCTION to BUSINESS
ANALYTICS
 INTRODUCTION to BUSINESS
ANALYTICS

Prescriptive Analytics

- Indicate a best course of action to take.

TOOLS: linear programming; solver

 INTRODUCTION to BUSINESS
ANALYTICS

Prescriptive analytics

- Revenue management

- Portfolio models in finance

- Supply network design models in operations

- Price mark-down models in retailing

 Group work

Create your group's:

- mission statement
- values or guiding principles to ensure a
quality final paper output.
- final output roadmap or timeline of activities
showing your group strategies and action plans.

This is a group activity, thus only 1 member per

group is expected to upload the group output.