Question

Which of the following does this statement belong with:

Develop our products mix to maximize profits

A. Description Analytics

B. Diagnostic Analytics

C. predictive analytics

D. prescription analytics

also this statement:

Evaluate attributes of customers by product segments

A. Description Analytics

B. Diagnostic Analytics

C. predictive analytics

D. prescription analytics

Answer 1

(1) The correct option is Prescription Analytics

Nowadays the business organizations depend upon the huge voumes of customer & business related data to develop their product/service mix, maximize profits & to take various other business decisions. Hence, now data is the key element of business. But all these facts & figures don't make any sense if they can't be analyzed properly to gain meaningful insights from them. Hence, various analytics solutions have been developed to use these business data. By using these data analytics solutions, the companies can analyze the historical data and forecast the future market trends, optimize their supply chains, lower operating costs, increase revenues, inprove their customer service & product mix. There are 4 types of data analytics :-

• Descriptive analytics - In this analytics data aggregation & data mining tools are used analyze the raw historical data and to gain meaningful insights about what happened in the past. Some examples of descriptive analytics are like the past records, graphs, charts & reports regarding the comapany's productions, financials, operations, invesntory, sales & revenue.
• Diagnostic Analytics - It is the next step of descriptive analytics, where the further analysis is done to know the causes behind the incidents that happened in the past. The analytical tools used here are like data discovery, data mining, data drill down & drill through.
• Predictive Analytics - This data analytic solution helps the organization to predict the future market trends. It provides an estimate about the probability of a future outcome. Under this method the historical data is fed into a machine learning model that deals with key trends & patterns. Then this model is applied to the cuurent available data to predict the future trends. For example in healthcare, based on past available data on the spread of pandemic, this solution can predict the future demand of hospital beds.
• Prescriptive Analytics - It is the next step of predictive analytics. After perdicting the probabilities of the future outcomes, this analytical tool helps to outline the possible implications of the future events and hence recommend the appropriate courses of actions. The tools and techniques used in this analysis are like business rules & algotithms, machine learning & computational modelling procedures. These tools and techniques are then applied on the inputs derived from the various historical & transactional data sets obtained from the org.'s ERM CRM, HR functions, real-time data feeds obtained from the POS systems & big data. The predictive analytics if applied properly can largely influence the business decisions. By using this solution the large companies can optimize productions, scheduling the inventory & supply chain, providing the right product at the right time to maximize customer satisfaction.

(2) The correct option is Predictive Analytics.

The customer segmentation based on product attributes is a part of predictive analytics. The organization's Customer Relationship Management dept. uses the predictive analytics tools and techniques like data mining, predicitve modelling, machine learning etc. to help the company know its customers better. The CRM systems organizes all the sales data, monitor the sales activities and helps the company to keep track on all its sales processes. Segmenting & groupin simmilar customers based on their product choices is a part of the predictive analytics.