The right data is a huge competitive advantage, but you have to know how to use it. Data analytics, and the insights that arise, is where data is made valuable. This is the new business intelligence, the new key to having the insights you need to differentiate yourself and get ahead.
On the cutting edge of all business analytics is prescriptive analytics. Prescriptive analytics shows you what you could do… and why you should. It shows you what the best course of action would be.
These insights show you how your business is doing, what you should do to optimize performance, and helps you get a clean bill of health for your business for years to come.
Using data-driven insights to drive prescriptive analytics will earn you an M.D.—making you a master of data, the world’s most valuable resource.
Archie Moore, Strategic Account Manager at HG Insights says, “Over the last few years we have witnessed our customers investing heavily in data required to fuel predictive analytics and reduce inefficiencies in their Go-To-Market. Unique IT Budget, IT Install and Contract Renewal intelligence from HG Insights enables them to transform from historical ‘rear view’ view facing propensity models—which rely heavily on assumptions that success in the past will continue to help them prosper in the future—to forward-looking models that take into account the trends in prospects IT investment decisions to better predict future sales.”
Moore continues, “For example, identifying companies’ significant adoption of cloud or over-reliance on legacy and obsolete products in their technology stack, coupled with significant budgeting for digital transformation, enhances our customers’ ability to better align their solutions and services to the predictable customer challenges manifesting in their ecosystem and focus resources behind the companies that truly have the highest propensity to buy.”
3 Types Of Data-Processing Analytics
The data analytics industry’s meteoric growth has changed how businesses understand data-driven insights. And as artificial intelligence (AI) and machine learning (ML) develop, the way we are able to use analytics follows. And it’s growing fast: the global market for AI is growing 54% year-over-year growth.
Just like the data analytics industry itself, we’ve seen so many companies grow rapidly, perfect their Go-To-Market, and scale with velocity using data-driven insights. But just like an emerging field, there are a few things you need to grasp before diving in completely.
Here’s where you should start:
- Descriptive Analytics
- Descriptive analytics is the first step in data analysis. It provides you with information about what your company has already done. It gives you insights into how a past project performed—like a postmortem examination.
- Predictive Analytics
- Predictive analytics takes this one step further. This type of analysis takes the data on what your business has already done (read: descriptive analytics) and predicts what will happen—not so different from reading a patient’s biometrics in order to predict the onset of disease or other maladies.
- Prescriptive Analytics
- Now, we’re right on the cutting edge of innovation in analytics. Prescriptive analytics helps you find the best opportunities based on your business’s historical information. It tells you what could happen, which helps you optimize your decision-making process. Using all the data and insights available shows you the most promising path forward—like a doctor prescribing medicine to set your health back on track.
Now, we’re right on the cutting edge of innovation in analytics. Prescriptive analytics helps you find the best opportunities based on your business’s historical information. It tells you what could happen, which helps you optimize your decision-making process. Using all the data and insights available shows you the most promising path forward—like a doctor prescribing medicine to set your health back on track.
Why You Need Prescriptive Analytics
Prescriptive analytics is just like following the doctor’s orders—it’s designed to get you the best outcome.
It gives you the sophisticated insights to help you optimize decision-making motions that are too complex for spreadsheets or basic data analytics tools, for example:
- What should I account for in my business, my competition, my industry, before I Go-To-Market?
- When should I reach out to prospects in order to effectively sell my solution?
- How can I size markets by IT spend, technology installs, and technology footprint?
Prescriptive analytics allows you to account for disparate variables and run complex scenarios in order to understand what you’re dealing with (moving your insights past descriptive analytics…), how it will affect you (moving past predictive analytics… ), and how you can use it to your advantage. This is how we get to prescriptive analytics, which anticipates what could happen and when it would happen AND why it will happen.
Rob Fox, HG Insights’ CTO, adds, “predictive analytics may help you understand what accounts you should focus on, but prescriptive analytics can help you understand what your next action should be to maximize conversion, or said differently, give you a much better chance at a successful outcome.”
Fox continues, “a prediction in business is worthless until it results in an outcome.” Prescriptive analytics builds on this belief while constantly taking into account real-time data previously unincorporated into the original model, allowing it to “re-predict and re-prescribe.” That means that you’re always operating with the best data available to you.
Here are just a few of the many benefits of prescriptive analytics:
- An evergreen roadmap to success. Using data-driven insights, prescriptive analytics delivers the optimal use of your constrained resources. Taking millions of variables into account using AI and ML, it prescribes you the most promising path to success.
- An efficient use of time, energy, and money. Resources are not like cells in the body, constantly dividing and renewing themselves. Instead, they are finite and constrained. Prescriptive analytics increases your sales and marketing teams’ efficiency and decision-making methods. It helps you manage your constrained resources better, and remove some risk.
- Avoid subjectivity and bias. We all make mistakes. Whether that’s misremembering the value of a contract from last year, not aligning your sales and marketing teams, or misdiagnosing the outcome of a campaign—it happens. The better your data and the insights that come from it, the better the decisions you can make with it.
The benefits don’t stop here—they trickle into almost every facet of your business. Everyone is better off for saving time, reducing program inefficiencies, or optimizing processes.
Simply put, it just makes every decision you make, and process you use, healthier.
How To Use Prescriptive Analytics
You can’t leverage prescriptive analytics without quality data. Good data informs the insights you can draw from it, which in turn give you sound prescriptions for your optimal course of action.
Quality data is both accurate and precise. Partnering with a firm like HG Insights, which has data precision level of around 90% or higher, is a great way to ensure you’re getting accurate, and useful, prescriptive analytics. It is also important to have a solid foundation in data science applications of AI and ML to build up competitive technology, account, and market intelligence.
Your data also needs to be robust. With technology and market intelligence on over nine millon global companies across 14,000 technology products, HG can provide the accurate, precise, and actionable insights based on market-leading data so you can benefit from using prescriptive analytics.