BUSINESS ANALYTICS

ARTIFICIAL INTELLIGENCE AND DATA SCIENCE

BY -
20L31A5422-HENRY AMAL GADEPE
TOPICS -
DESCRIPTIVE ANALYTICS (WHAT HAPPENED),
DIAGNOSTIC ANALYTICS (WHY DID THIS HAPPEN),
PREDICTIVE ANALYTICS (WHAT MIGHT HAPPEN IN THE
FUTURE),
PRESCRIPTIVE ANALYTICS (WHAT SHOULD WE DO
NEXT)
DESCRIPTIVE ANALYTICS -
Definition :
Descriptive analytics is a statistical method that is used to search and summarize historical data in order to
identify patterns or meaning.
Descriptive analytics is a branch of data analytics that focuses on the examination and summary of
historical data to gain insights into past patterns, trends, and characteristics of a given dataset. It involves
organizing and presenting data in a way that can be easily understood, allowing stakeholders to draw meaningful
conclusions and make data-driven decisions.

Significance : Applications :
• Historical Insights • Performance Reporting
• Performance Monitoring • Customer Behavior Analysis
• Data Visualization • Financial Analysis
• Business Intelligence • Inventory Management
• Decision-making support • Website and App Analytics
• Operational Efficiency
DIAGNOSTICS ANALYTICS -
Definition :
Diagnostic analytics is the process of using data to determine the causes of trends and correlations between
variables. It can be viewed as a logical next step after using descriptive analytics to identify trends.
It goes beyond descriptive analytics, which focuses on summarizing historical data, and aims to
understand why certain outcomes occurred. Diagnostic analytics leverages advanced techniques and algorithms
to analyze data and discover patterns, correlations, and relationships that can explain specific phenomena.

Significance : Applications :
• Root cause Identification • Healthcare Diagnostics
• Performance Improvement • Quality Control
• Risk assessment and mitigation • Marketing Campaign Analysis
• Decision validation • Supply chain optimization
• Continuous Improvement • IT performance
• Fraud Detection • Customer churn analysis
PREDICTIVE ANALYTICS -
Definition :
Predictive analytics is the use of data to predict future trends and events. It uses historical data to forecast
potential scenarios that can help drive strategic decisions.
Predictive analytics is a subset of data analytics that uses historical data, statistical algorithms, machine
learning techniques, and modeling to make predictions about future events or outcomes. It goes beyond
descriptive and diagnostic analytics by providing insights into what is likely to happen in the future based on
patterns and trends observed in the past data.

Significance : Applications :
• Anticipating future trends • Sales forecasting
• Risk assessment and mitigation • Financial risk management
• Resource optimization • Healthcare diagnoses and treatment planning
• Personalization and segmentation • Marketing and customer behaviour prediction
• Fraud detection • Human resource and employee attrition
• Maintenance and reliability • Supply chain management
• Energy management
PRESCRIPTIVE ANALYTICS -
Definition :
Prescriptive analytics is the process of using data to determine an optimal course of action. By considering all
relevant factors, this type of analysis yields recommendations for next steps.
Prescriptive analytics is the highest level of data analytics, combining insights from descriptive,
diagnostic, and predictive analytics to recommend optimal decisions and actions. It uses advanced algorithms,
optimization techniques, and machine learning models to simulate various scenarios and suggest the best course
of action to achieve specific objectives. In essence, prescriptive analytics goes beyond predicting future
outcomes; it aims to provide actionable recommendations that can improve business performance and
outcomes.
Significance : Applications :
• Informed decision making • Supply chain optimization
• Efficiency and effectiveness • Resource allocation
• Real-time adaptation • Financial portfolio management
• Competitive advantage • Healthcare treatment plans
• Risk management • Marketing campaign optimization
• Energy efficiency
• Preventive maintenance