Implications of Predictive Analytics & Reporting in Business

Analytics

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 Table of Contents
Introduction...................................................................................................................3

Discussion....................................................................................................................4

References...................................................................................................................8

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Introduction
Predictive Analytics is considered the most supportive aspect used for customer
management. The process provides a comprehensive view to the organisation regarding
the varying consumer, behaviours, as well as their preferences. Predictive Analytics assist
the organisation to outline effective product operations that will help them to attract more
consumers towards them. Business analytics is the process that states the widespread
usage of various data, assimilated by various sources, quantitative analysis, descriptive
and predictive theory and models, as well as evidence built management to determine
results and movements to appropriate shareholders of the organisation. In order to
perform this activity, business analytics uses methods or techniques derived from data
science, active research, and machine learning as well as information technology
structures arenas (Harris, 2018). In this context, business analytics compact with
descriptive models as well as with other models which will be helpful for generating
significant insights as well as associate decisions regarding the performance of the
business. Considering this, business analytics has developed further than a modest raw
data analysis on the huge number of available data with the main purpose to deliver a
considerable competitive advantage solution to the organisations (Bokolo, et al., 2019).
Moreover, Business analytics is classified into three major parts based on various levels of
problems, significance, and intellect which include descriptive analytics, predictive
analytics, and prescriptive analytics as shown in the below figure:

Figure 1: Types of Business analytics

(Source: Bokolo, et al., 2019)

In the present times, the massive mainstream of business analytics determinations is

focused more on predictive analytics as well as descriptive analytics with a distinctive
methodology such as machine learning, big data analysis, data mining artificial

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intelligence, information technology and replication (Dar, and Rai, 2021). Descriptive
analytics supports the organisations to understand the details of the actions that occurred
in the past as well as recognise connections between diverse types of data. However, in
the present times, prescriptive analytics has been progressively collecting research
interest as compared to other analytics (Cristea, 2020). Prescriptive analytics has been
deliberated as the succeeding stage in the way of growing data analytics development as
well as primary to enhanced decision-making ability, time consistency in order to improve
the performance of the business. In view of this, various innovative information and
communication tools have boosted the use of prescriptive analytics which include the
Internet of Things (IoT), live streaming, and device focused business actions. It has also
delivered businesses with precise preparations enabling consistent as well as an operative
decision-making process. The developments in information and communication tools are
also helpful in stimulating the functioning research society to the improvement of methods
that can take the progression of accessible tools and machinery as well as work in
interaction with the approach of prescriptive analytics, which will be facilitating business to
understand better solution required for resolving the problems occurred in the process of
business.

In view of this, there are various literature review studies regarding predictive analytics. In
the present research report, the researcher is focused on targeting a methodical literature
review on the selected topic of prescriptive analytics. Considering this, the main objectives
of the research report are given below: 

i. To examine the prevailing literature study about prescriptive analytics as well as

protruding methods for implementation of prescriptive analytics.
ii. To offer transparency on the selected research areas.
iii. To amalgamate the literature review to classify the prevailing research problems,
iv. To summarise the instructions for research on prescriptive analytics in future.

Discussion
In the present section of the literature review, prescriptive analytics is the most refined
form of business analytics which will help to outline the utmost intelligence as well as value
to a business organisation as well as enhance the performance of the business
(Mariani, et al, 2018). Prescriptive analytics purposes at signifying the superlative decision-
making opportunities to take benefit of the forecast future using the huge number of

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available data (Mariani, et al, 2018). In this context, it integrates the outputs of predictive
analytics as well as uses artificial intelligence, algorithms as well as skilled structures in a
prospective way to offer supportive, mechanised, controlled, and ideal results (Mariani,  et
al, 2018). Prescriptive analytics has mainly two types of human interference i.e. decision
provision, and decision mechanisation. 

In the present section, the researcher has framework the method of the literature review
based on several academic research papers. The methods were considered to be broadly
utilised in literature reviews which include effective research, management knowledge, and
big data analysis. In this context, the methods of predictive analytics are broadly classified
into three parts in order to thoroughly discuss the section which includes probabilistic
models, machine learning or data mining and statistical analysis which is shown in the
below figure:

Figure 2: Methods of predictive analytics

(Source: Mariani, et al, 2018)

In view of this, the reviewed paper will be discussed on the basis of the methods of
predictive analytics.

Probabilistic models
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In the view of predictive analytics, the probabilistic model measures the improbability by
assimilating information with available data to internment the subtleties in a supply above
model forecasts for formal evolutions among samples. According to Sivakkolundu, and
Kavitha (2021), the research observes that the predictive model evaluates the probability
of definite actions happening as a replacement for observing real data in an exploration of
proceedings as well as data facts that follow fixed rules definite by old analysis. However,
it is not applicable for finding the most accurate data at the present time. Therefore, it can
be stated that this model is not useful for predicting the occurrence of data based on future
outcomes.

Machine learning or Data mining

Machine learning is considered as the method that helps to build the analytical model
based on data dispensation without exhausting clear directions. From the research of
Mahya, and Fereshteh (2020), it is observed that algorithms used in machine learning form
an arithmetical model for sampling data for the purpose of predictions without being openly
programmed to complete the undertaking. Moreover, it has been assumed as a subsection
of artificial intelligence. On the other hand, big data is used for analysing huge numbers of
data to outline accurate findings. However, it requires a huge set of data to operate which
is not sufficient in most cases. Additionally, it is one of the most preferred tools of analysis
used by organisations. Therefore, it is very suitable for predictive analytics for the supply
chain in various organisations.

On the other hand, data mining is considered as one of the most used processes for
determining configurations in an enormous set of data with the purpose to mine evidence
and facts as well as alter it into a clear and logical pattern for additional use. According to
the study of Velmurugan, et al., (2021), it is observed that data mining includes analysis, a
huge set of data as well as data management features, processing of data, implication
thoughts, appropriate metrics, complication deliberations, processing of revealed
arrangements, conception, as well as digital apprising of the data. Moreover, data mining
techniques build algorithms to extract data as well as view significant concealed
information. However, in the view of predictive analytics, it is observed from the recent
research that information can be predictable for the future result from the relevant data on
preceding forms (Velmurugan, et al., 2021). Therefore, it can be stated from the discussed
fact that, data mining can be considered as the effective approach for predictive analytics
in the future scope.

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Statistical analysis

Statistical analysis is considered as the division of mathematics that deals with the process
of collection of data, analysis, an explanation as well as presentation. According to the
research of Aggarwal (2018), statistical analysis contracts with the complete process of
data, which involves the preparation of data collection considering the proposal of surveys
as well as academic papers, as well as resolve issues associated with the statistical model
used for predictive analytics in the healthcare units? However, Yi-Ting, Wan-ni, and Sun
(2019) argued that there is a lack of interest and proficiency found in the process of
mathematical methods. Moreover, in predictive analytics, this concept is utilised to mine
the most relevant evidence from the data to predict tendencies as well as patterns of
behaviour. 

According to the research of the present literature review, it is observed that there is a
strong inclination to predictive analytics concepts proficient of presence performed in an
actual time, coursing computational in the perspective of technologies and communication.
Additionally, the extensive obtainability of big data over the varied data sources covers the
method for reducing social decision that agonises from partiality as well as for misusing
the factual that can be ensuing from data dispensation. In this context, predictive analytics
will be capable to build as well as rationalised energetically when there will be a collection
of new data. Thus, it can be suggested that there is a necessity for generic prescriptive
analytics concepts as well as systems that may have the ability to fulfil the needs as well
as resolve the problems. Apart from this, most generic prescriptive analytics will help the
management to work more efficiently as well as improve the process of business in the
long run.

References
Aggarwal, R. 2018, "Statistical literacy for healthcare professionals: Why is it
important?” Annals of Cardiac Anaesthesia, vol. 21, no. 4, pp. 349-350.
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accountid=30552

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Bokolo, A.,Jr, Petersen, S.A., Ahlers, D., Krogstie, J. & Klaus, L. 2019, "Big data-oriented
energy prosumption service in smart community districts: a multi-case study
perspective", Energy Informatics, vol. 2, no. 1. Available at:
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Cristea, L.M. 2020, "Emerging IT Technologies for Accounting and Auditing

Practice", Audit Financiar, vol. 18, no. 4, pp. 731-751. Available at:
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Dar, M.A. & Rai, M. 2021, "Performance Evaluation Of Application Specific Big Data
Systems With Multi-domain Big Data Framework Using Machine
Learning", IOP Conference Series.Materials Science and Engineering, vol.
1070, no. 1. Available at:
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Harris, R.J. 2018, The Evaluation of Constraints Within Information Technology

Departments Concerning the Statistical and Analytical Problems of Big Data,
Northcentral University. Available at:
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Mahya, S. & Fereshteh, M. 2020, "Predictive big data analytics for supply chain demand
forecasting: methods, applications, and research opportunities", Journal of
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Mariani, M., Baggio, R., Fuchs, M. & Höepken, W. 2018, "Business intelligence and big
data in hospitality and tourism: a systematic literature review", International
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Sivakkolundu, R. & Kavitha, V. 2021, "CANONICAL VARIATE FEATURE SELECTION
BASED ADAPTIVE ENHANCED WINNOW MAP REDUCE
CLASSIFICATION FOR PREDICTIVE ANALYTICS", IOP Conference
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Velmurugan, M., Ouyang, C., Moreira, C. & Sindhgatta, R. 2020, Evaluating Explainable

Methods for Predictive Process Analytics: A Functionally-Grounded
Approach, Cornell University Library, arXiv.org, Ithaca. Available at:
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Yi-Ting, C., Wan-Ni, L. & Sun, E.W. 2019, "Jump Detection and Noise Separation by a
Singular Wavelet Method for Predictive Analytics of High-Frequency
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