At academic and organizational levels, you can find the need to forecast trends for small as well as large projects. The analysis techniques play a significant role in the business sector. From different analysis techniques, the use of predictive and prescriptive can be seen very frequently because of the ever-changing and perplexing demands of growing technology. In the research or business world, data collection is a basic need, and its analysis is required to make effective decisions. From predictive and prescriptive analysis, you can get insights into data and find the way to make a particular decision.
There are several similarities between these two analysis methods, including the incorporation of machine learning. Irrespective of some similarities, there is a clear boundary between these analysis methods, which makes them different from each other. If you are asked to work on these analysis methods, you must start with an understanding of the differences between them to get the best end results. Otherwise, things will keep confusing you may not meet the right end of a project. In order to avoid the unpleasant results of the study, this article aims to discuss the differences between predictive and prescriptive analysis.
What Is Meant By Predictive And Prescriptive Analysis?
From several analysis methods, predictive analysis is one which plays a significant role in sensing the collected data and making decisions for future work. There are different categories of data which can help in predictive analysis. It includes raw data in the form of statistics, charts, graphs and figures from history. The condition for using the raw data is that it needs to be the latest one.
One of the most important things in this analysis is related to data segregation. In this way, you can better identify the useful and useless data. So, you can discard useless data to get benefits from reliable and valuable data.
On the other hand, the prescriptive analysis works for aspects of the future, but the approach is whole new, and it does not match to a predictive one. In this analysis method, you can see that the major contribution is of smart techniques related to mathematics, machine learning, algorithm and many more advanced features. In prescriptive analysis, you are not only supposed to identify the problem or solution, but you have to evaluate the reason behind every happening and decision.
What Are The Key Differences Between Predictive And Prescriptive Analysis?
Following are the key differences between predictive and prescriptive analysis:
Decision Making Metrics
You can make a difference between predictive and prescriptive analysis based on the decision-making metrics. The predictive analysis helps you develop a short-term decision for any issue raised at an organizational level. Also, it works to identify the system and its changes. In contrast, the prescriptive analysis answers the identified question, and you have to list down the solutions on long-term metrics.
Difference of Procedure
In predictive analysis, the procedure revolves around 5 main segments. These segments are mentioned below:
- First of all, identify and define the requirements for study
- Investigate the data required for analysis
- Generate the advanced models by using collected data
- Organize the selected model for data analysis
- Come up with reliable results of an analysis
On the other hand, the prescriptive analysis includes different procedures having the following steps:
- First of all, define the model which helps you signify the problem.
- Settle and compare data with the existing one
- Go for model authorization to ensure its best use
- Prepare and transform the data for running in the selected model
- Use an analytics tool to have perfect decisions out of driven data.
Value Brings to Any Sector
Both predictive and prescriptive analysis bring value to the specific sector, but the type of value is different. If you see the value provided by predictive analysis, it is more focused on parameters with narrow sets, including the short-term analysis of problem, risk and solution. On the other hand, the prescriptive one helps you get more rewards in the same duration by having control over risk factors.
Difference Of Problems
In predictive analysis, the problem that needs to be addressed is a risk as well as identification of opportunities, demand planning and inventory control. At the same time, the prescriptive one is more inclined towards the increase in efficiency of the system for creating loyal customers and optimizing and establishing strategies.
Type of Software/Tool
For predictive analysis, you have to use SAS. At the same time, the prescriptive one works well on AI (artificial intelligence), Improvado and Sisense. If you are unable to use these software for data analysis, you can ask experts working at coursework writing services.
Type Of Data
For predictive analysis, you have to use specified data types. You have to collect historical data to find the patterns. Also, the best approach is to go for real-time data for precise prediction. You can make a mixture of historical as well as real-time based on the need for an hour. On the other hand, the prescriptive analysis uses a different database. So, you have to be careful about it.
Forecasting Of Data
The predictive analysis follows traditional forecasting to know about the end result of a particular project with the help of explanatory variables. At the same time, prescriptive forecasting is the advanced level of predictive forecasting. Prescriptive forecasting counts on artificial intelligence. In this forecasting, you have to be careful about the data formulation. There can be structured as well as unstructured data so that you can forecast well by data formulation.
Impacts On Business Strategies
Following are the impacts that predictive analysis can make on business strategies:
- Design campaigns for any project
- Changing patterns of business
- Risk identification
- Improvement in the relationship with potential customers
Following are the impacts that prescriptive analysis can make on business strategies:
- Better decisions within the required resources
- Determine the potential areas for investment
- Identify the need for efforts and their intensity
Final Thoughts
By reading the above-mentioned points, you can grasp the core differences between predictive and prescriptive analysis. The organization can get compelling outcomes but using both analysis methods. In this way, the project can surely stand out in the market.
