BUSINESS ANALYTICS

ASSIGNMENT IV

Name : R.Karthikeyan
Roll No : 950623631013
Date of Announcement : 27-05-2024
Date of Submission : : 03-06-2024
 PART-A
1. WHAT IS PRESCRIPTIVE
ANALYTICS?

Prescriptive analytics is a branch of data

analytics that focuses on recommending actions you can
take to achieve desired outcomes. It goes beyond
descriptive and predictive analytics by not only
forecasting future trends but also suggesting specific
decision options to benefit from the predictions and
guide decision-making processes.
 2. GIVE REAL WORLD EXAMPLES FOR
PRESCRIPTIVE ANALYTICS?
 Supply Chain Optimization:
Companies like Amazon use prescriptive
analytics to determine the optimal inventory levels, shipping
routes, and distribution strategies to minimize costs and meet
customer demand efficiently.

 Healthcare:
Hospitals use prescriptive analytics to
create personalized treatment plans for patients by analyzing
medical data and predicting outcomes, thereby recommending
the most effective interventions for individual patients.
 3.WHAT ARE THE ADVANTAGES AND
DISADVANTAGES OF PRESCRIPTIVE
ANALYTICS?
Advantages of Prescriptive Analytics:
 Informed Decision-Making: Prescriptive analytics provides
actionable recommendations based on data, allowing organizations
to make well-informed decisions.
 Optimization: It helps in optimizing business processes by
suggesting the best possible actions, improving efficiency, and
reducing costs.
Disadvantages of Prescriptive Analytics:
 Complexity: Implementing prescriptive analytics can be complex
and require significant investment in technology and expertise.
 Data Quality Dependency: The accuracy and effectiveness of
prescriptive analytics heavily depend on the quality and
completeness of the underlying data.
4. STATE THE PROCESS OF PRESCRIPTIVE
ANALYTICS?

 Data Collection and Integration:

Gather and integrate relevant data from various
sources to ensure a comprehensive dataset for analysis.

 Modeling and Simulation:

Develop and apply advanced analytical
models, including optimization and simulation techniques, to
evaluate different scenarios and determine the best course of
action.
5. STATE THE TYPES IN PRESCRIPTIVE
ANALYTICS?

 Optimization Models :
These models identify the best possible solutions
by evaluating numerous scenarios and constraints to achieve
the most efficient outcomes.

 Simulation Models :
These models predict the impact of different
decisions and strategies by simulating various scenarios,
helping organizations understand potential outcomes and make
informed choices.
 PART-B

1. EXPLAIN HOW PRESCRIPTIVE

ANALYTICS WORKS?
Prescriptive analytics works through a systematic process
that involves the following steps:
Data Collection and Integration:
 Collect data from various sources such as
transactional databases, sensors, social media, and
external data providers.
 Integrate and clean the data to ensure it is accurate,
complete, and consistent for analysis.
Data Analysis:
 Use descriptive and diagnostic analytics to understand
historical data and identify patterns, trends, and
relationships.
 Apply predictive analytics to forecast future trends
and outcomes based on historical data.
Model Development:
 Develop advanced analytical models using techniques
such as optimization, machine learning, and
simulation.
 These models evaluate numerous possible scenarios
and outcomes based on the data and specific business
objectives.
Scenario Evaluation:
 Run simulations and what-if analyses to evaluate the impact
of different decisions and strategies.
 Assess various constraints, objectives, and trade-offs to
understand the implications of each scenario.

Recommendation Generation:
 Generate actionable recommendations and decision options
based on the analysis and model outputs.
 Provide clear guidance on the best course of action to achieve
desired outcomes, considering the constraints and goals.
Implementation and Monitoring:
 Implement the recommended actions and strategies in
the real-world business context.
 Continuously monitor the results and outcomes to
ensure the effectiveness of the recommendations.
 Adjust and refine the models and recommendations
based on feedback and changing conditions to
maintain optimal performance.

This process helps organizations

make informed, data driven decisions that optimize
outcomes, improve efficiency, and achieve strategic
goals.
 2. EXPLAIN THE PROCESS OF
PRESCRIPTIVE ANALYTICS WORKS?
Prescriptive analytics is a branch of
advanced analytics that uses data and content to
recommend the best course of action. It uses a
combination of tools and processes, including machine
learning, algorithms, business rules, and heuristics, to
identify patterns, trends, and relationships in data
sets. Prescriptive analytics can then simulate different
scenarios and predict outcomes to suggest the best
course of action based on the desired outcome and the
situation's constraints.
Here are some steps in the prescriptive analytics
Process:

 Identify problems
Prescriptive analytics can help identify
problems within an organization faster and more
accurately than traditional analytics.

 Simulate scenarios
Prescriptive analytics uses machine
learning and algorithms to simulate different scenarios
and predict the likely outcomes of different decisions.
 Suggest actions
Prescriptive analytics suggests the best
course of action based on the desired outcome and the
situation's constraints. It can also suggest decision
options on how to take advantage of future opportunities
or mitigate future risks.

 Alert the right people

Prescriptive analytics can quickly alert
the right people by informing them exactly what to do
next.
 Prescriptive analytics can be used in many
different fields, including supply chain
optimization, sales and marketing, financial
planning and budgeting, operations optimization,
and risk management. For example, in the
healthcare industry, prescriptive analytics can
analyze patient data, medical history, and
treatment outcomes to recommend personalized
treatment plans for individual patients.
3. EXPLAIN THE TYPES OF PRESCRIPTIVE
ANALYTICS WORKS?
Prescriptive analytics is a type of
business analytics that helps companies understand and
forecast performance. It can include the following types
of analytics:
Predictive analytics
Descriptive analytics
Diagnostic analytics
Scenario analytics
Decision analytics
Predictive Analytics
 Uses past data to predict future outcomes, such as sales
and customer behavior. This type of analysis is often
used after descriptive and diagnostic analytics to
understand the past and identify problems.

Descriptive Analytics
 Uses descriptive statistics and arithmetic operations on
raw data to help people understand it. This can help
investors, shareholders, and managers analyze key areas.

Diagnostic Analytics
 Another primary type of business analytics that helps
companies understand and forecast performance.
Scenario Analysis
 Explores different "what-if" scenarios to help people
understand the potential outcomes of different decisions.

Decision analysis
 Separates beliefs about uncertainties from value
preferences in modeling to help people make
decisions. This type of analysis can help people handle
complex decisions that require subjective judgments.

Prescriptive analytics can help businesses

make strategic decisions and mitigate risks. For example,
businesses can use prescriptive analytics to forecast
demand and make their supply chain more efficient.
4. MAKE YOUR OWN PRESCRIPTIVE
ANALYTICS FOR THE FOLLOWING
PRODUCTS?

Dabur Honey
Apple iPhone
Milton Water Bottle
Peter England Shirts
Dabur Honey:
Objective: Increase market share and enhance customer loyalty.

1. Targeted Promotions: Use consumer purchase data to

identify regions with lower sales and design targeted
promotional campaigns and discounts in these areas.
2. Health Campaigns: Collaborate with health influencers and
nutritionists to promote the health benefits of honey, especially
in urban areas where health-conscious consumers are
concentrated.
3. Product Variations: Introduce new variants (e.g., organic,
flavored) based on customer preferences analyzed from sales
data and social media trends.
4. Loyalty Programs: Implement a loyalty program rewarding
repeat purchases, which can be tracked and optimized using
purchase frequency data.
2. Apple iPhone
Objective: Maximize sales and customer retention.

1.Personalized Marketing: Utilize customer purchase history

and browsing behavior to send personalized offers and product
recommendations.

2. Upgrade Programs: Promote upgrade programs that allow

existing users to trade in old models for new ones at a
discounted rate, based on data showing device lifecycle.

3. Geographic Expansion: Analyze sales data to identify

regions with untapped potential and focus marketing efforts in
these areas, including localized promotions and partnerships.

4. Feature Improvements : Collect and analyze customer

feedback to identify the most desired features or common
complaints, guiding future product development.
3. Milton Water Bottle
Objective: Increase brand penetration and diversify product
offerings.
1. Eco-Friendly Campaigns: Promote the environmental
benefits of reusable bottles, using data to target demographics
with high environmental awareness.
2. Seasonal Promotions: Launch campaigns tied to seasons or
specific events (e.g., summer discounts, back-to-school offers)
based on sales data showing peak periods.
3. Customization Options: Offer customizable bottles (e.g.,
personalized prints) by analyzing consumer trends towards
personalization and uniqueness.
4. Retail Partnerships: Identify top-performing retail channels
through sales data and strengthen partnerships with these
retailers for exclusive promotions.
4. Peter England Shirts

Objective: Boost sales and improve customer experience.

1.Style Recommendations: Implement an AI-driven
recommendation system that suggests styles and fits based on
past purchase behavior and trending fashions.

2. Omnichannel Experience: Ensure a seamless shopping

experience across online and offline channels by integrating data
from both to personalize customer interactions and promotions.

3. Customer Feedback Integration: Regularly analyze

customer feedback and reviews to refine product quality, design,
and fit, aligning with customer expectations and preferences