Predictive vs Prescriptive Analytics: What’s the Difference?

Predictive vs Prescriptive Analytics: What’s the Difference?

In the world of data analytics, two approaches dominate discussions: predictive analytics and prescriptive analytics. While they are closely related, they serve very different purposes. Predictive analytics answers “What is likely to happen?” while prescriptive analytics goes further to ask “What should we do about it?”

To make this distinction clear, let’s explore real-world case studies showcasing how organisations use both.

🔹 Case Study 1: Predictive Analytics in Retail

Challenge: A retail chain wanted to forecast seasonal sales to optimise inventory.
Solution: Predictive models analysed historical sales and customer behaviour.
Outcome: The retailer improved stock accuracy by 20%, reducing overstock and shortages.

🔹 Case Study 2: Prescriptive Analytics in Retail

Challenge: Beyond forecasting, the same retailer wanted to know how best to allocate products across stores.
Solution: Prescriptive analytics recommended distribution strategies using optimisation algorithms.
Outcome: Increased profit margins by 15% while cutting logistics costs.

🔹 Case Study 3: Predictive Analytics in Healthcare

Challenge: Hospitals needed to anticipate patient admissions during flu season.
Solution: Predictive models analysed historical admissions and regional health data.
Outcome: Improved resource allocation and reduced ER overcrowding by 25%.

🔹 Case Study 4: Prescriptive Analytics in Healthcare

Challenge: Hospital administrators wanted actionable recommendations for staffing and bed allocation.
Solution: Prescriptive analytics provided optimal schedules and care pathways.
Outcome: Enhanced patient outcomes and reduced staff burnout.

🔹 Predictive vs Prescriptive: Key Takeaways

Predictive Analytics: Forecasts future outcomes using past and current data.

Prescriptive Analytics: Suggests the best course of action to achieve desired results.

Combined Power: Businesses often use both together for maximum impact.

🔹 The Bottom Line

Predictive analytics tells you what’s coming, while prescriptive analytics tells you what to do about it. Businesses that integrate both can make smarter, faster, and more profitable decisions.

At NextGen, we help organisations design predictive and prescriptive analytics solutions that turn foresight into action.