What is Prescriptive Analytics

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What is Prescriptive Analytics?

Prescriptive analytics allows you to realistically represent your business or business function—including millions of variables, constraints, and key objectives—and explore key trade-offs in order to determine the best path forward and optimize business performance.

Prescriptive analytics is the most impactful form of analytics because it has the greatest impact on large-scale business objectives, such as profit, cost of goods, service levels, risk mitigation, efficiency, and decision-making agility.

Prescriptive Analytics with River Logic


River Logic uses optimization technology to produce prescriptive insights. As a company laser-focused on placing prescriptive analytics in the hands of business leaders, our code-free solutions demonstrate value in less than four months—all without a single data scientist.

Prescriptive analytics is the application of logic and mathematics to data to specify a preferred course of action. While all types of analytics ultimately support better decision making, prescriptive analytics outputs a decision rather than a report, statistic, probability or estimate of future outcomes.


Forecast Snapshot: Prescriptive
, Worldwide, 2017

Understanding Prescriptive Analytics and Your Business


Benefits to Your Business

Improve Performance: Typical impact can range from 2 to 5% of your annual revenue in additional profit.

Increase Efficiency: Typical impact includes 15-20% higher throughput or 10-15% reduction in addressable cost.

Maximize ROI: Typical impact ranges from 25 to 100%—better NPV than Excel or similar, rules-driven tools.

Drive Agility: Rapidly evaluate dozens of scenarios and develop a faster approach to making trade-off decisions.

Mitigate Risk: Identify and better quantify risk associated with both short- and long-term decision-making, plus develop potential risk mitigation strategies.

Address New Planning Challenges: Unlike other forms of analytics, prescriptive analytics helps you make the most profitable decisions even in the midst of competing objectives.

Companies like PepsiCo are all working on moving from the traditional descriptive and diagnostic analytic capabilities to prescriptive analytics. Adopting prescriptive is critical for supply chains to gain a competitive advantage now and in the future.

Leslie Keating

Former SVP, PepsiCo

Not Sure if You’re Ready for Prescriptive Analytics? Request a Free Assessment.

It starts with a quick 20-minute call to see if prescriptive analytics could be applied in your business to deliver fast, transformational value. We’ll then help you understand if you have the data and the resources to move forward. Lastly, we’ll quantify the expected value.