Using predictive analytics, it can provide insights what will happen, why it will happen, and how it will happen based on your enterprise data (financial data, sales/marketing data, manufacturing data, procurement data, inventory data, etc). It does not only help corporate management to make strategic and operational decisions, but also enables the company to better anticipate future changes.
Sample use-cases of prescriptive analytics in real world are:
- Demand optimization to maximize revenue, profit, and sales volume at minimum production cost.
- Optimal resource allocation based on capital constraints and production capability.
- Optimizing manufacturer-retailer supply chain based on different parameters.
- Price optimization to match dynamic demand and supply in generating maximum profit.