Optimization is the leading scientific approach underpinning Prescriptive Analytics – the other being real-time rules execution. Gartner defines optimization as “a type of prescriptive analytics that finds a 'best' solution from a set of 'feasible' solutions, using a mathematical algorithm that maximizes or minimizes a specified objective-function subject to constraints.”
Gartner identified optimization and prescriptive analytics as two of seven “data science techniques that are still underrated in their impact and therefore noteworthy to highlight.” In other words, Optimization and Prescriptive Analytics deliver significantly more value than is justified by their market awareness and adoption.
Gartner analyst Lisa Kart expects adoption to accelerate as organizations move up the analytics maturity curve, which ensures better data and drives up interest. Furthermore, vendors are making advancements in user interfaces, especially for more packaged technologies that use cloud models that rely on increased computer power at low cost, and which makes Optimization available to business analysts.
“We are thrilled that Gartner is recognizing the value of both optimization and prescriptive analytics,” said River Logic President Carlos Centurion. He then continued:
“River Logic is at the center of this trend, driven by our visual, code-free optimization platform that is designed for business analysts. The code-free platform is augmented by a robust data model that combines demand chain, supply chain, strategy , network, finance and cost accounting-related principles and allows rapid creation of industry specific business models and constraints. Furthermore, our new cloud environment is designed to support enterprise-wide use of optimization leveraging a global model of the business, thus driving transformational value across an organization.”
The following source is referenced in this article: Gartner Hype Cycle for Advanced Analytics and Data Science, 2015, published July 6, 2015.
About River Logic
River Logic provides prescriptive analytics and integrated business planning through the Enterprise Optimizer® (EO) and IBP platform products. EO provides unique insights into decision-making and significant gains in efficiency, cost and risk over traditional approaches. Clients leverage EO and IBP to make better operational, tactical and strategic decisions that integrate business planning. River Logic partners drive business transformation through rapid consulting projects and extend their analytic capabilities by easily embedding EO into their own solutions. For more information, please contact us.