There are three levels of analytics:
Level | What it does |
|---|---|
Descriptive | what happened |
Diagnostic | why it happened |
Predictive | What will happen |
Prescriptive | What should we do |
Example:
Descriptive
You sold 200 units last week
Diagnostic
Sales increased because promotion startedPredictive
You will likely sell 240 next week
Prescriptive
Order 300 units to avoid stock-out