Analytical Disruption Fuels the Emergence of the Era of Prescriptive Analytics
The radical disruption underway in the
field of business intelligence (BI) and analytics is poised to drive the global market for Prescriptive Analytics to reach US$1.61
billion by 2022. Analytical disruption
is defined as the disruptive use of data that creates value in the practice of
business intelligence. It refers to radical innovation in both the use of big
data and application of big data. Analytical disruption is going beyond the use
of data for information and value creation, it refers to leveraging data to
become more predictive and proactive. The modern insight-driven enterprises are
no longer running their businesses based on historical data. Rear view business
intelligence is increasingly falling out of favor and emerging over the horizon
is the development of supply chain data science. New analytical capabilities
such as those epitomized by prescriptive analytics are enabling business
intelligence to emerge from reactive models to proactive and predictive models
to automated business decision making. Improving technologies, rapid rise of
data discovery tools, easy access to multi-structured data, innovation in data
preparation tools, ubiquitous access to cheap smartphones, evolution of
business oriented social networks, breakthroughs in big data mining for
developing behavioral insight, proliferation of cloud computing and its
epitomized cheap and nearly limitless processing power and storage capacities,
augmented reality interfaces, development of neural networks
and machine learning and intelligence, are major factors acting as agents of
disruption.
Traditional practice of BI is changing
from descriptive, predictive to the now final stage of prescriptive analytics.
Prescriptive analytics is a disruptive force in the field of business
intelligence given its ability to truly harness the real power of data driven
business insights with the potential to shape the future of an enterprise. There is continuous activity in the
development of advanced tools and technologies that help organizations make the
most of its data. Defined as an advanced form of BI and business analytics
which helps go the last mile by recommending actions to be taken to improve
outcomes, prescriptive analytics holds the potential for becoming the future
standard for business intelligence. By providing answers to what should be done
or what can be done, prescriptive analytics facilitates the holistic creation
of business insights vital for data driven decision making. The rising popularity
of automated business decisions, especially against the backdrop of an evolving
on-demand consumer economy, is expected to expand the addressable market for
prescriptive analytics. With consumers, suppliers and partners wanting
real-time responses, there is heady activity in the field of automated analytics. Some of the factors driving the prominence of automated decision
support systems include enhanced productivity by eliminating the time
associated with taking repetitive decisions, reduction in routine information
processing, improved decision making as it eliminates the human limitations in
information acquisition and information overload, and the growing need for mass
customization/personalization and micromarketing. Continuous technology
improvements are benefiting confidence in new analytical concepts such as
prescriptive analytics and a greater willingness to rely on software algorithms
to guide the direction of an enterprise.
As
stated by the new market research report on Prescriptive Analytics, North America represents
the largest market worldwide. The dominance of the region is supported by the
growing commitment of companies in the region to big data projects and the
focus on prescriptive analytics as the most desirable tool for big data synthesis.
Also driving growth in the region are the rising investments in IoT
infrastructure and the ensuing focus on IoT-enabled prescriptive analytics; and
rise in cybercrime and the resulting focus on prescriptive analytical models of
cybercrime prevention as a necessary and vital security technology.
Major players in the market include Ayata,
Compellon, Datawatch Corporation, Frontline Systems Inc., IBM Corporation,
NGDATA, Profitect Inc., River Logic Inc., SAP SE, SAS Institute Inc., and TIBCO
Software Inc., among others.
The
research report titled “Prescriptive Analytics: A
Global Market Report” announced by Global Industry Analysts
Inc.,
provides a comprehensive review
of market trends, issues, drivers, mergers, acquisitions and other strategic
industry activities of global companies.
The report provides market estimates and projections for the North
American and Rest of World markets.
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