Difference Between Predictive and Prescriptive Analytics
Key Difference
Predictive analytics uses historical data to forecast future outcomes, focusing on what might happen. Prescriptive analytics goes a step further by suggesting actions and strategies based on predictive analyses, concentrating on what should be done.
Comparative Analysis
- Objective:
- Predictive Analytics: Forecasts future possibilities.
- Prescriptive Analytics: Recommends actions based on predictions.
- Data Utilization:
- Predictive Analytics: Analyzes past data for trends.
- Prescriptive Analytics: Uses predictive data for decision-making.
- Complexity and Tools:
- Predictive Analytics: Less complex, uses statistical models.
- Prescriptive Analytics: More complex, often incorporates AI and machine learning.
- Application in Decision Making:
- Predictive Analytics: Informs about potential future scenarios.
- Prescriptive Analytics: Advises on the best course of action.
Table Summary of Predictive vs Prescriptive Analytics
Feature | Predictive Analytics | Prescriptive Analytics |
---|---|---|
Objective | Forecasting the future | Recommending actions |
Data Utilization | Trends from past data | Decision-making from predictions |
Complexity | Statistical models | AI, machine learning |
Application | Informing about scenarios | Advising on actions |
While both predictive and prescriptive analytics are valuable in strategic decision-making, they serve different purposes, with predictive focusing on what might happen and prescriptive advising on what actions to take.