All the above are the derivatives of BigData analytics. None of them produce value with only lot of digital data but they can be tremendously valuable with proper big-data infrastructure.Then what distinguishes these three key types of analytics?
Descriptive Analytics : As the name suggests, the analytics that describes past “What has already happened?”. It provides insights in past by aggregating & mining the past data. So that by looking into the analytics of past, future can be predicted. There are almost 80% of business analytics fall under this category Ex. Social Analytics(No of page clicks, views, following, shares etc)
Predictive Analytics : After descriptive, predictive Analytics follows. Similarly, as the name suggests, it predicts the future, “What could happened?”. It is based on probabilities, however correctly studied descriptive analytics, predictive analytics can never be 100% but by using various statistical methodologies, data modelling etc, future can be forecasted. Ex.Determination of Credit scores of customer in financial services by analysing past payments. In businesses, by understanding customer behaviour, predicting sales for future.
Prescriptive Analytics : It is a suggestive analytics, “What should be done?”. Predictive analytics forecast future but not with 100% certainties. Prescriptive analytics uses simulation techniques, algorithms like machine learning etc to find no of possible outcomes & accordingly suggest what action to be taken.This is the final frontier of analytics.
Still in businesses, the most prominent areas sales, marketing, operation & finance departments depend on descriptive analytics & predictive analytics.
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