Analytics is to management as a light bulb is to darkness: it is illuminating and helpful in revealing both future opportunities and pitfalls. Descriptive analytics seeks to understand past data and is widely used. Predictive analytics seeks to understand the future. This is a challenge for many firms, since it brings in risk (the future is uncertain) and the need to manage risk. Prescriptive analytics tries to identify what the firm should do. This too presents a major management challenge since humans have intuitive ideas as to what the firm should do that may conflict with the results of prescriptive analytics.
Author: Peter Bell
Source: Ivey Business Journal
Subjects: Analysis, Information, IT / Technology / E-Business