We will explore four types of analytics, which include descriptive, diagnostic, predictive, and prescriptive, to help you understand the most commonly used terms.
- Descriptive analytics involve analyzing past data to monitor and track key performance indicators (KPIs). For example, descriptive analytics can help organizations make decisions about allocating resources and developing strategies based on trends or for benchmarking purposes.
- Diagnostic analytics uses data to identify and uncover the root cause of a problem and provides valuable insights—for instance, a quality issue. Diagnostic analytics will help operators and engineers understand the cause-and-effect relationships between different variables, which can be used to optimize processes and improve overall performance.
- Predictive analytics uses algorithms and statistical models to analyze large amounts of historical data, identifying patterns, trends, and relationships between variables to make predictions about future events or outcomes. Anticipating maintenance with data can improve efficiency, reduce waste, and prevent an unplanned production standstill.
- Prescriptive analytics takes predictive analytics further and recommends specific actions or decisions based on the insights gained from predictive analysis—for example, optimizing production schedules using the best course of action to ensure efficient and just-in-time (JIT) production.
It is essential to consider the organization's needs and the digitalization stage. Does data exist, or is data collection in the early stages? Are there proven benefits from existing data analytical tools? An already digitalized organization might benefit from advanced analytical tools like artificial intelligence (AI) or machine learning (ML) -driven predictive or prescriptive applications.
With the right solution, the full potential of data will facilitate valuable performance insights, leading to measurable and quantifiable improvements.
Find out about how we assist our customers to access and analyze their data: Value-driven Intelligence with dataPARC cloud | Voith
