Understanding Prescriptive Analytics
If you've heard about (Business) Analytics or Advanced Analytics, then you've probably encountered analytics terms such as 'Descriptive', 'Predictive' and 'Prescriptive'. AIMMS is considered to be a Prescriptive Analytics technology - we offer you a way to get recommended actions during a decision making process using optimization modeling. Unlike Descriptive (focused on reporting with basic trend or pattern recognition) or Predictive Analytics (focused on predicting the future with forecasting techniques), Prescriptive Analytics determines ways in which business processes should evolve or be modified. This is crucial to make data and business rules actionable instead of only providing insight into your data's behavior.
AIMMS enables you to define your business logic though a business modeling process while defining the input as well as the required output, variable decisions, and objective(s). Using advanced mathematical optimization engines, AIMMS provides recommendations against a (combined) objective such as maximal revenue, minimal cost, optimal service etc. We do this in such a way that regular business users can analyze various options (scenarios) through a highly interactive user interface. This is fully integrated in your organization through our AIMMS PRO deployment platform.
Getting started with Prescriptive Analytics
Prescriptive Analytics is considered to be at the cutting edge of data science by many and is often referred to as 'the final frontier' of business analytics. However, you do not need to complete the different analytics phases sequentially as diagrams sometimes suggest. In fact, you can jump right into Prescriptive Analytics and start enjoying its benefits immediately. Our key recommendations for companies embarking on the journey:
Focus on rapid and successful implementation
Bring together the missing links in your team – boost collaboration
Work only on real and urgent business problems
Use the proven Proof of Concept methodology to start and to continue
Be agile- move seamlessly from a "white-board solution" to a business application you can quickly test and improve
Ensure your technology fits
What you should consider
Embracing Prescriptive Analytics requires your (extended) team to be enthused about its benefits and ready to make the leap towards data-driven decisions. Moreover, the recommendations provided by a Prescriptive Analytics tool need support from the organization – as they can sometimes appear to be counter-intuitive. Ensure your technology supports, and not hinders, this process. With AIMMS you have the ability to do rapid prototyping and immediately start working with end users that do not necessarily need to know the intrinsic qualities of analytics, but understand the results.