Advanced Analytics – Getting the best results from your data

A treasure trove of data

Many companies are sitting on a treasure trove of data. It is becoming increasingly important for companies not only to manage this data efficiently, but also to evaluate it systematically. This is because the insights gained can be used to optimize structures and processes in companies. This is where data analytics comes into play…

Businesses that want to analyze their data  in order to optimize their day-to-day operations and improve decision-making processes are faced with several analytics options. Basically, there are four main types of play, which we will highlight below:

  • Descriptive Anayltics
  • Diagnostic Analytics
  • Predictive Analytics
  • Prescriptive Analytics
Interested in our factsheet: “Predictive & Prescriptive Analytics”?

Descriptive Analytics

Descriptive Analytics asks the question “what happened?” to better understand a current situation. It is the most basic form of analysis and uses data mining and data aggregation to extract the necessary information and create a summary in the form of graphs, charts or statistics.

Diagnostic Analytics

Diagnostic Analytics goes deeper. It is about finding out why something happened and whether the problem can be solved. Descriptive Analytics tells you, for example, that your sales have decreased, Diagnostic Analytics investigates the root cause of the problem by analyzing the relationships between different data sets.

For most businesses, however, knowing what has happened and why it has happened in the first place, still doesn’t go far enough to solve a problem and help make decisions. We want to know how to avoid these problems in the future, or rather, how we can make things better. While nothing is 100% certain (COVID-19 has certainly proven that!), technologies such as Machine Learning and optimization can help us get a fairly good idea of what the future holds and what measures we should take. And so this brings us to the next, more advanced analytics categories:

Predictive Analytics

 This type of analytics goes beyond the two types we described above. You could actually call it the crystal ball of analytics. This is because, by analyzing the historical data it has at its disposal, it can – as its name implies – predict what is likely to happen in the future. Needless to say, this kind of data is valuable for businesses as it makes it easier for them to set more realistic goals, plan more effectively and make better decisions. Predictive Analytics uses Machine Learning algorithms to make these predictions.

Prescriptive Analytics

Described as “the final frontier of analytic capabilities”* , Prescriptive Analytics goes one step further than Predictive Analytics. By applying mathematical optimization techniques and simulation it asks the question: what future action should a business take?  Special software, such as the OPTANO platform, which deploys Prescriptive Analytics, can simulate multiple future scenarios and analyze them in order to find the best result, which will then be recommended as the best action to take. This enables businesses to plan far more effectively and reach their targets when it comes to deciding on costs, inventory and production workflows.

Interested in our factsheet: “Predictive & Prescriptive Analytics”?

The best of both worlds – OPTANO combines predictive and prescriptive

As mentioned earlier, both predictive and prescriptive analytics have their respective use cases. Prescriptive analytics works more effectively the more data it can use. Predictive analytics can be used to generate that additional data that reflects the specific characteristics and conditions of an organization. What about combining both methods in one application?

This is exactly the idea we put into practice. The result…

The Predictive Blueprint

OPTANO has combined both forms of analysis in our latest feature: the Predictive Blueprint. This is a machine learning functionality that basically allows you to create machine learning models for different scenarios. With these models, you can predict future developments based on historical (i.e. known) data and act accordingly. The Predictive Blueprint is powered by ML.NET, an open-source machine learning platform that has a sophisticated feature: Auto ML. This has been integrated into the Blueprint.

Thanks to the Predictive Blueprint, we can use historical data and interrelationships to make informed planning decisions for the future. The Predictive Blueprint makes the treasure trove of data accessible so that it can be used with the help of prescriptive analytics to sustainably improve planning results. An invaluable advantage for our customers.

One more thing….

It sounds impressive, doesn’t it? And it is! What’s more, no programing knowledge is required to use the feature. All you have to do is click a few buttons and let OPTANO do the rest for you….

You want the information on this topic summarized as a factsheet? No problem, you can download it here.

In our factsheet “Predictive & Prescriptive Analytics” we explain more closely  how Advanced Analytics (Predictive Analytics und Prescriptive Analytics) functions  und how it can benefit your business.

To obtain our factsheet, all you need to do is enter your name and e-mail address in the space below. You will then receive an email with a link to the download. Please note that by providing us with your email address, you agree that we may contact you on this topic. You may revoke this agreement at any time by contacting privacy@optano.com.