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Operations Research and Analytics

Lapland, Finland - sennarelax]
[Lapland, Finland - sennarelax]
 


- Three Types of Analytics

Operations research (OR) and Analytics enable organizations to turn complex challenges into substantial opportunities. They transform data into information, and information into insights for making better decisions and improving results. 

Operations research is defined as the scientific process of transforming data into insights to making better decisions. Analytics is the application of scientific & mathematical methods to the study & analysis of problems involving complex systems. 

There are three distinct types of analytics:

  • Descriptive Analytics gives insight into past events, using historical data.
  • Predictive Analytics provides insight on what will happen in the future.
  • Prescriptive Analytics helps with decision making by providing actionable advice.


Working Together to Transform How We Do Business

Though similar in definition, and there are instances of overlap, Analytics and OR are actually two unique but related fields. Analytics helps realize business objectives by analyzing data to create predictive models for forecasting and optimizing business processes for enhanced performance.  

OR employs highly developed methods using advanced tools and techniques to provide analytical power. This is something that no ordinary software or spreadsheet can deliver out of the box. OR draws upon the latest analytical technologies including simulation, optimization, probability, and statistics.  

Together, OR and Analytics, as well as the related fields of management science, data science, computer science and decision science, drive performance and change in organizations of all types, large and small, private and public, for-profit and not-for-profit. They enable business leaders to address complex problems and make more effective decisions based on data, a fuller consideration of available options, and careful predictions of outcomes and estimates of risk. This helps inform high-level strategy, enhance day-to-day operations, design better public policies, and more.



[More to come ...]

 

 

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