PRESCRIPTIVE ANALYTICS

BANTOLINO, MALIMBAN, PIEDAD, RAMOS

Review of data Warehousing
Linear Programming
 PRESCRIPTIVE ANALYTICS

use of technology to help businesses make better

decisions through the analysis of raw data.

The opposite of prescriptive analytics

is descriptive analytics

relies on artificial intelligence techniques

 MACHINE LEARNING

 ability of a computer program, without additional

human input, to understand and advance from
the data it acquires, adapting all the while.
 BENEFITS OF PRESCRIPTIVE ANALYTICS

Effortlessly map the path to success

Inform real-time and long-term business

operations

Spend less time thinking and more time doing

Reduce human error or bias

EXAMPLES OF REAL COMPANIES WINNING
WITH PRESCRIPTIVE ANALYTICS

1. CenterLight Healthcare 
CenterLight uses prescriptive analytics to
reduce the element of surprise when it comes to
patient care and scheduling.
2. SideTrade

SideTrade uses prescriptive analytics to deepen

their understandiing of a client’s true payment
behavior. Through prescriptive analytics, SideTrade
is able to score clients based on their payment
track-record. This creates transparency and
accuracy so that SideTrade and its clients can
better account for costly payment delays.
3. Airlines

Prescriptive analytics can help you do this by

automatically adjusting ticket prices and availability
based on numerous factors, including customer
demand, weather, and gasoline prices.
 DATA WAREHOUSING

process for collecting and managing data from

varied sources to provide meaningful business
insights. A Data warehouse is typically used to
connect and analyze business data from
heterogeneous sources.

 started in the late 1980s when IBM worker Paul

Murphy and Barry Devlin developed the
Business Data Warehouse.

 real concept of DW was given by Inmon Bill. He

was considered as a father of data warehouse.
OTHER NAMES FOR DATA
WAREHOUSING
 TYPES OF DATA WAREHOUSE

1. Enterprise Data Warehouse- a centralized

warehouse. It provides decision support service
across the enterprise.

2. Operational Data Store- which is also called

ODS, are nothing but data store required when
neither Data warehouse nor OLTP systems
support organizations reporting needs.

3. Data Mart- a subset of the data warehouse.

 GENERAL STAGES OF DATA WAREHOUSE

1. Offline Operational Database- data is just

copied from an operational system to another
server
2. Offline Data Warehouse- data in the DW is
regularly updated from the Operational
Database.
3. Real time Data Warehouse- data warehouses
are updated whenever any transaction takes
place in operational database.
4. Integrated Data Warehouse- data
warehouses are updated continuously when the
operational system performs a transaction.
STRATEGY OF DATA WAREHOUSE

Enterprise strategy

Phased delivery

Iterative Prototyping
 DATA WAREHOUSE TOOLS

1. MarkLogic- makes data integration easier and

faster using an array of enterprise features.

2. Oracle- is the industry-leading database

3. Amazon RedShift- allows running complex

queries against petabytes of structured data,
using the technique of query optimization.
 LINEAR PROGRAMMING

- formulated by a Russian mathematician L.V.

Kantorovich. But the present version of simplex
method was developed by Geoge B. Dentzig in
1947. Linear programming (LP) is an important
technique of operations research developed for
optimum utilization of resources.
 CHARACTERISTICS OF LINEAR
PROGRAMMING
• Objective function-There must be clearly
defined objec­tive . In business problems the
objective is generally profit maximization or cost
minimization.

• Constraints- All constraints (limitations)

regarding resources should be fully spelt out.

• Non-negativity- The value of variables must be

zero or positive and not negative. For example, in
the case of production, the manager can decide
about any particular product number in positive
or minimum zero, not the negative.
 ADVANTAGES OF LINEAR
PROGRAMMING

1. makes logical thinking and provides better

insight into business problems.

2. select the best solution with the help of LP by

evaluating the cost and profit of various
alternatives.

3. LP provides an information base for optimum

alloca­tion of scarce resources.
 APPLICATIONS OF LINEAR
PROGRAMMING
Securing least cost combination of inputs;

Utilizing the storage and distribution centres;

Proper production scheduling and inventory

control;

Minimizing the raw materials waste;

Assigning job to specialized personnel.