43 lines
5.4 KiB
Markdown
43 lines
5.4 KiB
Markdown
---
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title: "Prescriptive analytics"
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chunk: 2/2
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source: "https://en.wikipedia.org/wiki/Prescriptive_analytics"
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category: "reference"
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tags: "science, encyclopedia"
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date_saved: "2026-05-05T03:56:54.207294+00:00"
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instance: "kb-cron"
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---
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=== Unconventional Resource Development ===
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With the value of the end product determined by global commodity economics, the basis of competition for operators in upstream E&P is the ability to effectively deploy capital to locate and extract resources more efficiently, effectively, predictably, and safely than their peers. In unconventional resource plays, operational efficiency and effectiveness is diminished by reservoir inconsistencies, and decision-making impaired by high degrees of uncertainty. These challenges manifest themselves in the form of low recovery factors and wide performance variations.
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Prescriptive Analytics software can accurately predict production and prescribe optimal configurations of controllable drilling, completion, and production variables by modeling numerous internal and external variables simultaneously, regardless of source, structure, size, or format. Prescriptive analytics software can also provide decision options and show the impact of each decision option so the operations managers can proactively take appropriate actions, on time, to guarantee future exploration and production performance, and maximize the economic value of assets at every point over the course of their serviceable lifetimes.
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=== Oilfield Equipment Maintenance ===
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In the realm of oilfield equipment maintenance, Prescriptive Analytics can optimize configuration, anticipate and prevent unplanned downtime, optimize field scheduling, and improve maintenance planning. According to General Electric, there are more than 130,000 electric submersible pumps (ESP's) installed globally, accounting for 60% of the world's oil production. Prescriptive Analytics has been deployed to predict when and why an ESP will fail, and recommend the necessary actions to prevent the failure.
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In the area of health, safety and environment, prescriptive analytics can predict and preempt incidents that can lead to reputational and financial loss for oil and gas companies.
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=== Pricing ===
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Pricing is another area of focus. Natural gas prices fluctuate dramatically depending upon supply, demand, econometrics, geopolitics, and weather conditions. Gas producers, pipeline transmission companies and utility companies have a keen interest in more accurately predicting gas prices so that they can lock in favorable terms while hedging downside risk. Prescriptive analytics software can accurately predict prices by modeling internal and external variables simultaneously and also provide decision options and show the impact of each decision option.
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== Applications in maritime industry ==
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Common Structural Rules for Bulk Carriers and Oil Tankers ( managed by IACS organisation ) intensively utilizes the term "prescriptive requirements" as one of two main classes of checkable calculations by dedicated numerical tools and algorithms for verifying safety of ship hull construction.
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== Applications in healthcare ==
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Multiple factors are driving healthcare providers to dramatically improve business processes and operations as the United States healthcare industry embarks on the necessary migration from a largely fee-for service, volume-based system to a fee-for-performance, value-based system. Prescriptive analytics is playing a key role to help improve the performance in a number of areas involving various stakeholders: payers, providers and pharmaceutical companies.
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Prescriptive analytics can help providers improve effectiveness of their clinical care delivery to the population they manage and in the process achieve better patient satisfaction and retention. Providers can do better population health management by identifying appropriate intervention models for risk stratified population combining data from the in-facility care episodes and home based telehealth.
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Prescriptive analytics can also benefit healthcare providers in their capacity planning by using analytics to leverage operational and usage data combined with data of external factors such as economic data, population demographic trends and population health trends, to more accurately plan for future capital investments such as new facilities and equipment utilization as well as understand the trade-offs between adding additional beds and expanding an existing facility versus building a new one.
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Prescriptive analytics can help pharmaceutical companies to expedite their drug development by identifying patient cohorts that are most suitable for the clinical trials worldwide - patients who are expected to be compliant and will not drop out of the trial due to complications. Analytics can tell companies how much time and money they can save if they choose one patient cohort in a specific country vs. another.
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In provider-payer negotiations, providers can improve their negotiating position with health insurers by developing a robust understanding of future service utilization. By accurately predicting utilization, providers can also better allocate personnel.
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== See also ==
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== Notes ==
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== References ==
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== Further reading ==
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== External links ==
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INFORMS' bi-monthly, digital magazine on the analytics profession
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Menon, Jai "Why Data Matters: Moving Beyond Prediction" IBM
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Global Openlabs for Performance-Enhancement Analytics and Knowledge System (GoPeaks) |