Reference No: KLL-FO-ACAD-000 | Effectivity Date: August 3, 2020 | Revisions No.

: 00

VISION MISSION
A center of human development committed to the pursuit of wisdom, truth, Establish and maintain an academic environment promoting the pursuit of
justice, pride, dignity, and local/global competitiveness via a quality but excellence and the total development of its students as human beings,
affordable education for all qualified clients. with fear of God and love of country and fellowmen.

GOALS
Kolehiyo ng Lungsod ng Lipa aims to:
1. foster the spiritual, intellectual, social, moral, and creative life of its client via affordable but quality tertiary education;
2. provide the clients with reach and substantial, relevant, wide range of academic disciplines, expose them to varied curricular and co-curricular
experiences which nurture and enhance their personal dedications and commitments to social, moral, cultural, and economic transformations.
3. work with the government and the community and the pursuit of achieving national developmental goals; and
4. develop deserving and qualified clients with different skills of life existence and prepare them for local and global competitiveness

MODULE
SECOND Semester, AY 2020-2021

I. COURSE CODE/TITLE : BANA 104 PRESCRIPTIVE ANALYTICS

II. SUBJECT MATTER

TOPICS TIME FRAME
A. Introduction to Prescriptive Analytics
1) Definition of Prescriptive Analytics
2) Benefits of Prescriptive Analytics 6 HRS
3) Difference Between Predictive and
Prescriptive Analytics
B. BI TOOLS
1) Definition of Business Intelligence
2) Benefits of BI Platform 10 HRS
3) BI Capabilities and Tools
4) Business Analytics Software

III. COURSE OUTCOME

A. Introduction to Descriptive Analytics

1) Define what Prescriptive Analytics is and its uses.
2) Indicate the Benefits of Predictive Analytics
3) Evaluate and Differentiate Predictive from Prescriptive Analytics

B. BI TOOLS

1) Fully understand the definition of Business Intelligence

2) Analyze the benefits of BI Platform
3) Recognize BI capabilities and tools that will help you run your business.
4) Perform the use of business analytic software

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IV. ENGAGEMENT
DIRECTIONS: Read and analyze the lessons..

A. What is Prescriptive Analytics?

Prescriptive analytics is a process that analyzes data and provides instant recommendations on how
to optimize business practices to suit multiple predicted outcomes. In essence, prescriptive analytics takes
the “what we know” (data), comprehensively understands that data to predict what could happen, and
suggests the best steps forward based on informed simulations.

Prescriptive analytics is the third and final tier in modern, computerized data processing. These
three tiers include:

• Descriptive analytics: Descriptive analytics acts as an initial catalyst to clear and concise data
analysis. It is the “what we know” (current user data, real-time data, previous engagement data, and big
data).
• Predictive analytics: Predictive analytics applies mathematical models to the current data to inform
(predict) future behavior. It is the “what could happen.”
• Prescriptive analytics: Prescriptive analytics utilizes similar modeling structures to predict
outcomes and then utilizes a combination of machine learning, business rules, artificial intelligence, and
algorithms to simulate various approaches to these numerous outcomes. It then suggests the best possible
actions to optimize business practices. It is the “what should happen.”

Prescriptive analytics is the natural progression from descriptive and predictive analytics
procedures. It goes a step further to remove the guesswork out of data analytics. It also saves data
scientists and marketers’ time in trying to understand what their data means and what dots can be
connected to deliver a highly personalized and propitious user experience to their audiences.

B. BENEFITS OF PRESCRIPTIVE ANALYTICS

If you’re a senior executive, looking to further optimize the efficiency and success of your organization’s
operations is always top of mind. Prescriptive analytics is the smartest and most efficient tool available to
scaffold any organization’s business intelligence. Prescriptive analytics affords organizations the ability to:
• Effortlessly map the path to success. Prescriptive analytic models are designed to pull together data
and operations to produce the roadmap that tells you what to do and how to do it right the first time.
Artificial intelligence takes the reins of business intelligence to apply simulated actions to a scenario to
produce the steps necessary to avoid failure or achieve success.
• Inform real-time and long-term business operations. Decision makers can view both real-time and
forecasted data simultaneously to make decisions that support sustained growth and success. This
streamlines decision making by offering specific recommendations.

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 • Spend less time thinking and more time doing. The instant turnaround of data analysis and outcome
prediction lets your team spend less time finding problems and more time designing the perfect solutions.
Artificial intelligence can curate and process data better than your team of data engineers and in a fraction
of the time.
• Reduce human error or bias. Through more advanced algorithms and machine learning processes,
predictive analytics provides an even more comprehensive and accurate form of data aggregation and
analysis than descriptive analytics, predictive analytics, or even individuals

C. Predictive vs. Prescriptive Analytics: What’s the Difference?

The purpose of any analytics program in business is to combine the troves of internally sourced data
with data from public and other third-party sources into actionable insight to improve business operations. Of
the four analytics disciplines in the analytics portfolio, two — descriptive and diagnostic — are more concrete
and give hindsight into what has happened and why. These analytics are typically called business
intelligence and are much used in corporate America.

The other two disciplines, predictive and prescriptive, are a step up the analytics ladder. Both give
insight, and even foresight, to support decision-making. Predictive and prescriptive analytics incorporate
statistical modeling, machine learning, and data mining to give MBA executives and MBA graduate
students strategic tools and deep insight into customers and overall operations. Below are examples of real-
world applications of these powerful analytics disciplines.

Predictive Analytics
You may be tempted to think of predictive analytics as a fortune-teller who tells you what the future
holds. Dr. Michael Wu of Lithium Technologies cautions against that notion. “The purpose of predictive
analytics is not to tell you what will happen in the future,” he said. “It cannot do that. In fact, no analytics can
do that. Predictive analytics can only forecast what might happen in the future because all predictive analytics
are probabilistic in nature.”
The three keystones of predictive analytics are decision analysis and optimization, transactional profiling, and
predictive modeling. Predictive analytics exploits patterns in transactional and historical data to identify risks
and opportunities. As Wu said, “You basically take data that you have to predict data you don’t have.”

Here’s another way to look at the differences between business intelligence and predictive analytics:
Business intelligence answers the question, “What ZIP code do my most valuable customers come from?”
Predictive analytics, however, answers, “How much revenue can I expect from customers in a particular ZIP
code?”

On the operational side, businesses are using predictive analytics to maximize efficiency and predict
anomalies across the IT infrastructure to prevent interruptions.

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Prescriptive Analytics

Prescriptive analytics is an emerging discipline and represents a more advanced use of predictive
analytics. Prescriptive analytics goes beyond simply predicting options in the predictive model and actually
suggests a range of prescribed actions and the potential outcomes of each action. Wu said, “Since a
prescriptive model is able to predict the possible consequences based on a different choice of action, it can
also recommend the best course of action for any pre-specified outcome.”

Google’s self-driving car, Waymo, is an example of prescriptive analytics in action. The vehicle makes
millions of calculations on every trip that helps the car decide when and where to turn, whether to slow down
or speed up and when to change lanes — the same decisions a human driver makes behind the wheel.
In the energy sector, utility companies, gas producers, and pipeline companies use prescriptive analytics to
identify factors affecting the price of oil and gas to get the best terms and hedge risks.

Predictive and prescriptive analytics are co-dependent disciplines that take business intelligence to
unprecedented levels. With both forms of analysis, business executives and leaders gain both insight and
foresight.

What is business intelligence?

Business intelligence (BI) is software that ingests business data and presents it in user-friendly
views such as reports, dashboards, charts and graphs. BI tools enable business users to access
different types of data — historical and current, third-party and in-house, as well as semi-structured
data and unstructured data like social media. Users can analyze this information to gain insights into
how the business is performing.

According to CIO magazine: “Although business intelligence does not tell business users what to do
or what will happen if they take a certain course, neither is BI only about generating reports. Rather,
BI offers a way for people to examine data to understand trends and derive insights.” 1

Organizations can use the insights gained from business intelligence and data analysis to improve
business decisions, identify problems or issues, spot market trends, and find new revenue or
business opportunities.
How does business intelligence work?

BI platforms traditionally rely on data warehouses for their baseline information. A data warehouse
aggregates data from multiple data sources into one central system to support business analytics and
reporting. Business intelligence software queries the warehouse and presents the results to the user
in the form of reports, charts and maps.

Data warehouses can include an online analytical processing (OLAP) engine to support
multidimensional queries. For example: What are sales for our eastern region versus our western
region this year, compared to last year?

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“OLAP provides powerful technology for data discovery, facilitating business intelligence, complex
analytic calculations and predictive analytics,” says IBM offering manager Doug Dailey in his data
warehousing blog. “One of the main benefits of OLAP is the consistency of information and
calculations it uses to drive data to improve product quality, customer interactions and process
improvements.”

Some newer business intelligence solutions can extract and ingest raw data directly using technology
such as Hadoop, but data warehouses are still the data source of choice in many cases.
History of business intelligence

The term business intelligence was first used in 1865 by author Richard Millar Devens, when he cited
a banker who collected intelligence on the market ahead of his competitors. In 1958, an IBM
computer scientist named Hans Peter Luhn explored the potential of using technology to gather
business intelligence. His research helped establish methods for creating some of IBM’s early
analytics platforms.

In the 1960s and 70s, the first data management systems and decision support systems (DSS) were
developed to store and organize growing volumes of data.

“Many historians suggest the modern version of business intelligence evolved from the DSS
database,” says the IT education site Dataversity. “An assortment of tools was developed during this
time, with the goal of accessing and organizing data in simpler ways. OLAP, executive information
systems and data warehouses were some of the tools developed to work with DSS. 2

By the 1990s, business intelligence grew increasingly popular, but the technology was still complex.
It usually required IT support — which often led to backlogs and delayed reports. Even without IT,
business intelligence analysts and users needed extensive training to be able to successfully query
and analyze their data.

More recent development has focused on self-service BI applications, allowing non-expert users to
benefit from their own reporting and analysis. Modern cloud-based platforms have also extended the
reach of BI across geographies. Many solutions now handle big data and include real-time
processing, enabling decision-making processes based on up-to-date information.
Why business intelligence is important

Business intelligence gives organizations the ability to ask questions in plain language and get
answers they can understand. Instead of using best guesses, they can base decisions on what their
business data is telling them — whether it relates to production, supply chain, customers or market
trends.

Why are sales dropping in this region? Where do we have excess inventory? What are customers
saying on social media? BI helps answer these critical questions.

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“Business intelligence provides past and current insights into the business,” says Maamar Ferkoun in
his IBM cloud computing and business intelligence blog. “This is achieved through an array of
technologies and practices, from analytics and reporting to data mining and predictive analytics. By
providing an accurate picture of the business at a specific point in time, BI provides an organization
with the means to design a business strategy based on factual data.”

Business intelligence helps organizations become data-driven enterprises, improve performance and
gain competitive advantage. They can:

 Improve ROI by understanding the business and intelligently allocating resources to meet strategic
objectives.
 Unravel customer behavior, preferences and trends, and use the insights to better target prospects or
tailor products to changing market needs.
 Monitor business operations and fix or make improvements on an ongoing basis, fueled by data
insights.
 Improve supply chain management by monitoring activity up and down the line and communicating
results with partners and suppliers.
Retailers, for example, can increase cost savings by comparing performance and benchmarks across
stores, channels and regions. And, with visibility into the claims process, insurers can see where they
are missing service targets and use that information to improve outcomes.
Business intelligence best practices

Organizations benefit when they can fully assess operations and processes, understand their customers,
gauge the market, and drive improvement. They need the right tools to aggregate business information
from anywhere, analyze it, discover patterns and find solutions.

The best BI software supports this decision-making process by:

 Connecting to a wide variety of different data systems and data sets including databases and spreadsheets.
 Providing deep analysis, helping users uncover hidden relationships and patterns in their data.
 Presenting answers in informative and compelling data visualizations like reports, maps, charts and graphs.
 Enabling side-by-side comparisons of data under different scenarios.
 Providing drill-down, drill-up and drill-through features, enabling users to investigate different levels of
data.

Advanced BI and analytics systems may also integrate artificial intelligence (AI) and machine learning to
automate and streamline complex tasks. These capabilities further accelerate the ability of enterprises to
analyze their data and gain insights at a deep level.

Consider, for example, how IBM Cognos Analytics brings together data analysis and visual tools to
support map creation for reports. The system uses AI to automatically identify geographical information. It
can then refine visualizations by adding geospatial mapping of the entire globe, an individual neighborhood
or anything in between.;

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 According to a report on digital reinvention by the IBM Institute for Business Value: "Looking five years
out, 58 percent of 1,100 executives we surveyed in the Digital Reinvention Study expect new technologies
to reduce barriers to entry and 69 percent expect more cross-industry competition."

"Advanced analytics enable deeper business intelligence and consumer insight to be drawn from big data,
producing information that ranges from descriptive to predictive."

V. ACTIVITY

CROSSWORD PUZZLE

1. 2

ACROSS DOWNWARD
1. An example of prescriptive 2. Acts as an initial catalyst to clear and concise
analytics in action data analysis.
3. Applies mathematical models to . 4. The tree keystones of predictive analytics are:
the current data to inform (predict) decision analysis and optimization, transactional
future behavior. It is the “what could profiling, and predictive BLANK.
happen.”

VI. OUTPUT (RESULT)

1. Submit your output in hard copy or soft copy @[email protected]

VII. EVALUATION

A. Enumeration

Direction: Enumerate each of the following:

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  BENEFITS OF PRESCRPTIVE ANALYTICS

a. ENUMERATION (3pts each)

TOTAL 12pts
B. ESSAY
Direction: Explain similarities and differences of PREDICTIVE and PRESCRIPTIVE ANALYTICS.

b. ESSAY
EXCELLENT(5) AVERAGE(4) VERYGOOD(3) NEEDSIMPROVEMENT(2) UNACCEPTABLE(1)
IDEAS This paper is clear This paper is The writer is Topic is not well-defined and/or As yet, the paper has no
and focused. It mostly focused, beginning to define there are too many topics. clear sense of purpose or
holds the reader's and has some the topic, even central theme. To extract
attention. Relevant good details and though meaning from the text, the
details and quotes quotes. development is still reader must make
enrich the central basic or general. inferences based on
theme. sketchy or missing details.
ORGANIZATION The organization Paper (and The organizational Sentences within paragraphs The writing lacks a clear
enhances and paragraphs) are structure is strong make sense, but the order of sense of direction. Ideas,
showcases the mostly enough to move the paragraphs does not. details, or events seem
central idea or organized, in reader through the strung together in a loose
theme. The order, order, and text without too or random fashion; there
structure of makes sense to much confusion. is no identifiable internal
information is the reader. structure.
compelling and
moves the reader
through the text.
SENTENCE The writing has an The writing The text hums The text seems choppy and is not The reader has to practice
FLUENCY easy flow, rhythm, mostly flows, along with a steady easy to read orally. quite a bit in order to give
and cadence. and usually beat, but tends to this paper a fair
Sentences are well invites oral be more interpretive reading
built, with strong reading. businesslike than
and varied musical, more
structure that mechanical than
invites expressive fluid.
oral reading.
CONVENTIONS The writer The write The writer shows The writer seems to have made Errors in spelling,
demonstrates a understands reasonable control little effort to use conventions: punctuation,
good grasp of good writing over a limited spelling, punctuation, capitalization, usage, and
standard writing conventions and range of standard capitalization, usage, grammar grammar and/or
conventions (e.g., usually uses writing and/or paragraphing have paragraphing repeatedly
spelling, them correctly. conventions. multiple errors. distract the reader and
punctuation, Paper is easily Conventions are make the text difficult to
capitalization, read and errors sometimes handled read.
grammar, usage, are rare; minor well and enhance
paragraphing) and touch-ups would readability; at
uses conventions get this piece other times, errors
effectively to ready to publish. are distracting and
enhance impair readability.
readability.
PRESENTATION The form and The format only The writer's The writer's message is only The reader receives a
presentation of the has a few message is understandable occasionally, and garbled message due to
text enhances the mistakes and is understandable in paper is messily written. problems relating to the
ability for the generally easy to this format. presentation of the text,
reader to read and and is not typed.
understand and pleasing to the
connect with the eye.

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 message. It is
pleasing to the eye.
TOTAL 25pts

VII. REFERENCE:

https://www.sisense.com/glossary/prescriptive-analytics/
https://www.talend.com/resources/what-is-prescriptive-analytics/
https://onlinemasters.ohio.edu/blog/predictive-vs-prescriptive-analytics-whats-the-difference/
Essentials of Business Analytics – Philippine Edition ( Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey
W. Ohlmann, David R. Anderson, Dennis J. Sweeney, Thomas A. Williams)
https://www.ibm.com/topics/business-
intelligence#:~:text=Business%20intelligence%20(BI)%20is%20software,%2C%20dashboards%2C%20ch
arts%20and%20graphs.

Prepared by:

EDISON L. MANALO, LPT

Instructor I

Checked by:

Department Module Editing Committee

Approved by:

BIBIANA JOCELYN D. CUASAY, Ph.D.

Module Editing Chair

AQUILINO D. ARELLANO, Ph.D., Ed.D.

Vice President for Academic Affairs and Research

Noted by:

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MARIO CARMELO A. PESA, CPA
College Administrator

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