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Prescriptive analytics

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280: 191:, and uses a combination of advanced analytic techniques and disciplines to predict, prescribe, and adapt. It can continually take in new data to re-predict and re-prescribe, thus automatically improving prediction accuracy and prescribing better decision options. Effective prescriptive analytics utilises hybrid data, a combination of structured (numbers, categories) and unstructured data (videos, images, sounds, texts), and business rules to predict what lies ahead and to prescribe how to take advantage of this predicted future without compromising other priorities. Basu suggests that without hybrid data input, the benefits of prescriptive analytics are limited. 216:, and signal processing. The correct application of all these methods and the verification of their results implies the need for resources on a massive scale including human, computational and temporal for every Prescriptive Analytic project. In order to spare the expense of dozens of people, high performance machines and weeks of work one must consider the reduction of resources and therefore a reduction in the accuracy or reliability of the outcome. The preferable route is a reduction that produces a probabilistic result within acceptable limits. 288:
5,000 - 35,000 feet below the surface and to describe activities around the wells themselves, such as depositional characteristics, machinery performance, oil flow rates, reservoir temperatures and pressures. Prescriptive analytics software can help with both locating and producing hydrocarbons by taking in seismic data, well log data, production data, and other related data sets to prescribe specific recipes for how and where to drill, complete, and produce wells in order to optimize recovery, minimize cost, and reduce environmental footprint.
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analytics software can also provide decision options and show the impact of each decision option so the operations managers can proactively take appropriate actions, on time, to guarantee future exploration and production performance, and maximize the economic value of assets at every point over the course of their serviceable lifetimes.
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anticipates what will happen and when it will happen, but also why it will happen. Further, prescriptive analytics suggests decision options on how to take advantage of a future opportunity or mitigate a future risk and shows the implication of each decision option. Prescriptive analytics incorporates both
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All three phases of analytics can be performed through professional services or technology or a combination. In order to scale, prescriptive analytics technologies need to be adaptive to take into account the growing volume, velocity, and variety of data that most mission critical processes and their
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Prescriptive analytics can help pharmaceutical companies to expedite their drug development by identifying patient cohorts that are most suitable for the clinical trials worldwide - patients who are expected to be compliant and will not drop out of the trial due to complications. Analytics can tell
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Prescriptive analytics can help providers improve effectiveness of their clinical care delivery to the population they manage and in the process achieve better patient satisfaction and retention. Providers can do better population health management by identifying appropriate intervention models for
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have a keen interest in more accurately predicting gas prices so that they can lock in favorable terms while hedging downside risk. Prescriptive analytics software can accurately predict prices by modeling internal and external variables simultaneously and also provide decision options and show the
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Energy is the largest industry in the world ($ 6 trillion in size). The processes and decisions related to oil and natural gas exploration, development and production generate large amounts of data. Many types of captured data are used to create models and images of the Earth’s structure and layers
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Prescriptive Analytics software can accurately predict production and prescribe optimal configurations of controllable drilling, completion, and production variables by modeling numerous internal and external variables simultaneously, regardless of source, structure, size, or format. Prescriptive
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The first stage of business analytics is descriptive analytics, which still accounts for the majority of all business analytics today. Descriptive analytics looks at past performance and understands that performance by mining historical data to look for the reasons behind past success or failure.
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Prescriptive analytics can also benefit healthcare providers in their capacity planning by using analytics to leverage operational and usage data combined with data of external factors such as economic data, population demographic trends and population health trends, to more accurately plan for
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Prescriptive analytics uses algorithms and machine learning models to simulate various scenarios and predict the likely outcomes of different decisions. It then suggests the best course of action based on the desired outcome and the constraints of the situation. Prescriptive analytics not only
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industry embarks on the necessary migration from a largely fee-for service, volume-based system to a fee-for-performance, value-based system. Prescriptive analytics is playing a key role to help improve the performance in a number of areas involving various stakeholders: payers, providers and
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With the value of the end product determined by global commodity economics, the basis of competition for operators in upstream E&P is the ability to effectively deploy capital to locate and extract resources more efficiently, effectively, predictably, and safely than their peers. In
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unconventional resource plays, operational efficiency and effectiveness is diminished by reservoir inconsistencies, and decision-making impaired by high degrees of uncertainty. These challenges manifest themselves in the form of low recovery factors and wide performance variations.
322:, there are more than 130,000 electric submersible pumps (ESP's) installed globally, accounting for 60% of the world's oil production. Prescriptive Analytics has been deployed to predict when and why an ESP will fail, and recommend the necessary actions to prevent the failure. 199:
and include objectives constraints, preferences, policies, best practices, and boundaries. Mathematical models and computational models are techniques derived from mathematical sciences, computer science and related disciplines such as applied statistics, machine learning,
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which suggests decision options for how to take advantage of a future opportunity or mitigate a future risk, and shows the implication of each decision option. It enables an enterprise to consider "the best course of action to take" in the light of information derived from
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Prescriptive analytics is the third and final phase of business analytics, which also includes descriptive and predictive analytics. Referred to as the "final frontier of analytic capabilities", prescriptive analytics entails the application of
259:. The data inputs to prescriptive analytics may come from multiple sources: internal, such as inside a corporation; and external, also known as environmental data. The data may be structured, which includes numbers and categories, as well as 317:
In the realm of oilfield equipment maintenance, Prescriptive Analytics can optimize configuration, anticipate and prevent unplanned downtime, optimize field scheduling, and improve maintenance planning. According to
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in that its format varies widely and cannot be stored in traditional relational databases without significant effort at data transformation. More than 80% of the world's data today is unstructured, according to IBM.
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In addition to this variety of data types and growing data volume, incoming data can also evolve with respect to velocity, that is, more data being generated at a faster or a variable pace. Business rules define the
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can improve their negotiating position with health insurers by developing a robust understanding of future service utilization. By accurately predicting utilization, providers can also better allocate personnel.
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future capital investments such as new facilities and equipment utilization as well as understand the trade-offs between adding additional beds and expanding an existing facility versus building a new one.
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The final phase is prescriptive analytics, which goes beyond predicting future outcomes but also suggesting actions to benefit from the predictions and showing the implications of each decision option.
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Examples of structured and unstructured data sets generated and by the oil and gas companies and their ecosystem of service providers that can be analyzed together using Prescriptive Analytics software
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Prescriptive Analytics extends beyond predictive analytics by specifying both the actions necessary to achieve predicted outcomes, and the interrelated effects of each decision.
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by Texas-based company Ayata, the underlying concepts have been around for hundreds of years. The technology behind prescriptive analytics synergistically combines hybrid
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Stewart, Thomas. R. & McMillan, Claude Jr. (1987). "Descriptive and Prescriptive Models for Judgment and Decision Making: Implications for Knowledge Engineering".
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The next phase is predictive analytics. Predictive analytics answers the question of what is likely to happen. This is where historical data is combined with rules,
1073: 279: 54: 1072:, Kalakota, Ravi, Taylor, James, Lampa, Mike, Franks, Bill, Jeremy, Shapiro, Cokins, Gary, Way, Robin, King, Joy, Schafer, Lori, Renfrow, Cyndy and Sittig, Dean, 623: 801: 370:"  as one of two main classes of checkable calculations by dedicated numerical tools and algorithms for verifying safety of ship hull construction. 1174: 1082: 1135: 857: 746: 1306: 1125: 873: 329:, prescriptive analytics can predict and preempt incidents that can lead to reputational and financial loss for oil and gas companies. 659: 223:
One criticism of prescriptive analytics is that its distinction from predictive analytics is ill-defined and therefore ill-conceived.
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Davenport, Tom (November 2012). "The three '..tives' of business analytics; predictive, prescriptive and descriptive".
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companies how much time and money they can save if they choose one patient cohort in a specific country vs. another.
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Evans, James R. & Lindner, Carl H. (March 2012). "Business Analytics: The Next Frontier for Decision Sciences".
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and suggests decision options for how to take advantage of the results of descriptive and predictive phases.
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risk stratified population combining data from the in-facility care episodes and home based telehealth.
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Basu, Atanu (November 2012). "How Prescriptive Analytics Can Reshape Fracking in Oil and Gas Fields".
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Soltanpoor, Reza; Sellis, Timos (2016), Cheema, Muhammad Aamir; Zhang, Wenjie; Chang, Lijun (eds.),
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Foster, Roger (May 2012). "Big data and public health, part 2: Reducing Unwarranted Services".
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Mohan, Daniel (August 2014). "Machines Prescribing Recipes from 'Things,' Earth, and People".
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Predictive Analytics in Field Service, Practical Ways to Drive Field Service, Looking Forward
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http://www.ge-energy.com/products_and_services/products/electric_submersible_pumping_systems/
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Basu, Mohan, Marshall, & McColpin (December 23, 2014). "The Journey to Designer Wells".
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Global Openlabs for Performance-Enhancement Analytics and Knowledge System (GoPeaks)
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Key Questions Prescriptive Analytics software answers for oil and gas producers
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Predictive Analytics Practical ways to Drive Customer Service, Looking Forward
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Basu, Atanu (December 2013). "How Data Analytics Can Help Frackers Find Oil".
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providers to dramatically improve business processes and operations as the
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Mohan, Daniel (September 2014). "Your Data Already Know What You Don't".
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Prescriptive analytics is about enabling smart decisions based on data
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Riabacke, Mona; Danielson, Mats; Ekenberg, Love (30 December 2012).
1256:"The Future of Big Data? Three Use Cases of Prescriptive Analytics" 1228:"How Prescriptive Analytics Can Reshape Fracking in Oil & Gas" 1126:"The Difference Between Operations Research and Business Analysis" 362:
Common Structural Rules for  Bulk Carriers and Oil Tankers (
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INFORMS' bi-monthly, digital magazine on the analytics profession
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Emerging Role of the Data Scientist and the Art of Data Science
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The scientific disciplines that comprise Prescriptive Analytics
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Fischer, Eric, Basu, Atanu, Hubele, Joachim and Levine, Eric,
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Wheatley, Malcolm (May 29, 2013). "Underground Analytics".
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Form of business analytics offering future decision options
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While the term prescriptive analytics was first coined by
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International Institute for Analytics (December 15, 2011)
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and tools are available to assist in formatting, such as
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Exploration & Production Magazine, September, 2014.
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fluctuate dramatically depending upon supply, demand,
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Basu, Atanu; Brown, Scott; Worth, Tim (2019-10-25).
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Exploration & Production Magazine, July 1, 2013
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"ESP for ESPs". 1242:"Science Fiction Now a Fact in the E&P World" 1090:Laney, Douglas and Kart, Lisa, (March 20, 2012). 1164:Ghosh, Rajib, Basu, Atanu and Bhaduri, Abhijit, 1084:Prescriptive Analytics and Data: Next Big Thing? 529:"Five pillars of prescriptive analytics success" 1209:, SAS Global Forum 2012, Paper 165-2012 (2012). 502:Atanu Basu is the CEO and president of Ayata. 8: 1276:"Why Data Matters: Moving Beyond Prediction" 961:: CS1 maint: multiple names: authors list ( 38:, which are uninformative and vulnerable to 1176:TV ads, Wanamaker’s Dilemma & Analytics 53:and maintains a consistent citation style. 1191:Brown, Scott, Basu, Atanu and Worth, Tim, 271:Ayata's trade mark was cancelled in 2018. 160:– uses this type of post-mortem analysis. 784: 683: 212:, pattern recognition, image processing, 95:Learn how and when to remove this message 1249:"Your Data Already Know What You Don't" 1150:"The Technology Behind Image Analytics" 848:Inmon, Bill; Nesavich, Anthony (2007). 586:"Predictive analytics in field service" 514: 495: 1158:Analytics and the Future of Healthcare 1152:Analytics. (November / December 2012). 1145:Analytics. (November / December 2012). 1138:Analytics. (November / December 2012). 954: 522: 520: 518: 1206:Bringing Optimization to the Business 1161:Analytics. (January / February 2012). 1143:"Images & Videos: Reall Big Data" 1032:Watson, Michael (November 13, 2012). 829: 827: 727:"Prescriptive Analytics for Big Data" 668:"Data is Dead…Without What-If Models" 7: 1115:Business Analytics Information Event 720: 718: 579: 577: 144:Most management reporting – such as 292:Unconventional Resource Development 45:Please consider converting them to 1230:, DataInformed, December 10, 2013. 1103:McCormick Northwestern Engineering 1087:InformationWeek. (April 15, 2013). 711:. NATO AS1 Subseries F35: 314–318. 709:Expert Judgment and Expert Systems 366:) intensively utilizes the term " 337:Pricing is another area of focus. 14: 1167:From ‘Sick’ Care to ‘Health’ Care 1075:Predictions for Analytics in 2012 731:Databases Theory and Applications 672:Proceedings of the VLDB Endowment 358:Applications in maritime industry 1188:Analytics. (July / August 2010). 1170:Analytics. (July / August 2011). 1148:Venter, Fritz and Stein, Andrew 1141:Venter, Fritz and Stein, Andrew 1120:The George Washington University 402:In provider-payer negotiations, 354:impact of each decision option. 23: 1179:Analytics. (March / April 2011) 1155:Horner, Peter and Basu, Atanu, 850:Tapping Into Unstructured Data 800:Bill Vorhies (November 2014). 327:health, safety and environment 313:Oilfield Equipment Maintenance 49:to ensure the article remains 1: 1200:. (November / December 2010). 773:Advances in Decision Sciences 378:Multiple factors are driving 1258:Datafloq, December 29, 2014. 1182:Basu, Atanu and Worth, Tim, 993:Exploration & Production 880:. 2012-03-07. Archived from 739:10.1007/978-3-319-46922-5_19 364:managed by IACS organisation 1307:Business intelligence terms 1237:WIRED Blog. (January 2014). 1216:DataInformed, May 29, 2013. 275:Applications in Oil and Gas 206:natural language processing 1333: 821:, accessed 4 December 2022 806:Predictive Analytics Times 387:pharmaceutical companies. 374:Applications in healthcare 220:environments may produce. 666:; Tan, Wang-Chie (2011). 368:prescriptive requirements 685:10.14778/3402755.3402802 384:United States healthcare 598:10.1287/lytx.2010.06.03 541:10.1287/LYTX.2013.02.07 949:Oil & Gas Investor 934:Oil & Gas Investor 301: 284: 251:, business rules with 231: 168: 138:computational sciences 108:Prescriptive analytics 1129:OR Exchange / Informs 664:Selinger, Patricia G. 590:The Analytics Journey 533:The Analytics Journey 438:Business Intelligence 299: 282: 229: 166: 1122:(February 10, 2011). 1070:Davenport, Thomas H. 1053:Government Health IT 646:CIO Enterprise Forum 527:Basu, Atanu (2019). 453:Decision Engineering 257:computational models 121:predictive analytics 1254:van Rijmenam, Mark 786:10.1155/2012/276584 662:; Maglio, Paul P.; 478:Operations Research 448:Decision Management 253:mathematical models 202:operations research 1297:Types of analytics 1219:Presley, Jennifer 1212:Wheatley, Malcolm 1081:Bertolucci, Jeff, 433:Business analytics 423:Applied Statistics 339:Natural gas prices 302: 285: 232: 214:speech recognition 169: 112:business analytics 1038:SupplyChainDigest 859:978-0-13-236029-6 852:. 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Index

bare URLs
link rot
full citations
verifiable
Several templates
reFill
documentation
Citation bot
documentation
Learn how and when to remove this message
business analytics
descriptive
predictive analytics
mathematical
computational sciences
sales
marketing
operations
finance

algorithms
structured
unstructured data
business process
operations research
natural language processing
computer vision
speech recognition

IBM

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