Business Analytics Assignment 1.docx

Business Analytics Assignment 1.docx - Descriptive...

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Descriptive, Predictive and Prescriptive Analytics in Decision Making Business analytics help decision makers determine risk, weigh outcomes, and quantify costs and benefits associated with decisions. Analytics refer to the use of skills, technologies, and practices to explore and investigate past performance, gain insight, and drive business decision making. Predictive and descriptive analytics are two methods of using data and statistical methods to assess actual outcomes against target standards and goals. These methods focus on sets of techniques that use models constructed from past data. These types of analysis can explain the relationship between factors that influence outcomes in the future; they can also help prioritize improvement and other planning efforts. Prescriptive analytics indicate the best course of action to take, improving decisions, which can subject to constraints of the situation. Companies can use these analytics and their capabilities to create advantages over competitors and better perform in the marketplace. Descriptive analytics seeks to understand past performances by using historical data to analyze the reasons behind past success or failure. Understanding cause and effect can help companies refine their business and operational strategies. “Descriptive analytics means describe or summaries raw data and present it in a user-friendly easily interpretable format. It uses two techniques, namely data aggregation and data mining that help describe the past.” (Intellectyx.com). It gives an idea of "what has happened" in the past, which could be one minute ago or one year ago. It is very critical information as it allows users to learn from our past behaviors and help with predicting future outcomes. Looking at Microsoft’s organizational
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