Advanced analytics use math, models and statistics to extract information. They can be used to analyze and interpret current and historical data from various sources to find data patterns to not only support decisions, but to predict the future.
- Descriptive analytics collects historical data in order to report and perform analysis on past performance. Most business applications use this type of analytics for reporting on finance, sales, production, etc.
- Predictive analytics incorporates modeling, statistical information, machine learning and AI with other data sources, such as third-party systems, to predict scenarios or outcomes. Demand management is an example of where predictive analytics would be used by incorporating qualitative information such as housing starts, stock prices, interest rates, etc.
- Prescriptive analytics uses mathematical and scientific computations to suggest options and make recommendations for decision-making. It takes advantage of the results of descriptive and predictive analytics.
Watch the short video below to learn more about how advanced analysis is being used in the evolution of supply chain.
Download video transcript here.