5.1.5 Analytical tools
There are enormous amounts of data created in the IoE. To apply this data to processes, people use analytical software. Analytical software ranges from simple spreadsheet tools to determine statistics for a given range of data, to sophisticated business software suites. The software may be created and sold by a large organisation, developed independently and provided through open source means, or designed by the business that uses it for a specific purpose.
The majority of analytics were used as a method of forecasting supply, based on the number of units sold in a given amount of time. Analytics in the IoE has advanced to address many new aspects of business. Some of the following types of analytics are used to help shape how a business functions:
- Descriptive – uses historical data to create reports designed to facilitate understanding.
- Predictive - uses data mining and modeling techniques to determine what could happen next.
- Prescriptive – uses simulation, business rules, and machine learning to recommend a course of action and what the outcome of that action might be.
In the healthcare solution model, the health monitoring company uses analytics of all kinds to improve the quality of healthcare.