Prescriptive analytics goes a step beyond advanced data analytics options such as descriptive or predictive analytics, by not only anticipating what will happen and when but why something will happen and recommends actions to take based on those predictions. By acting on these insights, companies can maximize opportunities, mitigate risk, and gain a competitive advantage.
Are companies capitalizing on prescriptive analytics? Tech Pro Research conducted an online survey in May 2019 to find out.
The survey included the following questions:
Prescriptive analytics may be an emerging technology, but it has definitely piqued the interest of enterprise users. Of survey respondents, only 28% said that their companies actively use prescriptive analytics; however, 42% of respondents listed prescriptive analytics as a top corporate priority in 2019, and 49% of respondents are currently researching prescriptive analytics.
Applications for prescriptive analytics varies. More than one half of survey respondents (54%) apply prescriptive analytics for operations, while 43% use it for marketing and sales. Interestingly, only 29% of respondents from finance and IT report using prescriptive analytics. No matter the reason behind implementation, the data used in prescriptive analytics gained a vote of confidence from more than two-thirds of respondents (61%); 36% said they were somewhat confident in their data. Only 4% responded that they lack confidence in the data used for prescriptive analytics.
Overall, most survey respondents admit prescriptive analytics remains in the early stages of adoption. While some companies (26%) have deployed and actively use prescriptive analytics, the majority remain in the early research and trial stage. This won't deter prescriptive analytics growth, however, as (39%) of respondents said their organizations are eager to plan and deploy prescriptive analytics within the next 12 to 24 months.