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The healthcare industry is a constantly changing environment with many complex systems around clinical care outcomes, day-to-day operations, decision making processes, and organizational strategic planning. Healthcare organizations have begun to implement business analytics to assist in decision making processes. Consider the following four key concepts of data analytics:

Descriptive analytics provides information about what has happened.
Diagnostic analytics provides information about why specific issues have occurred.
Prescriptive analytics provides information about what an organization should do in the coming days, weeks, months, and years.
Predictive analytics provides information about possible future outcomes.
Delen, Sharda, and Turban (2023) suggest, “Organizations both private and public are under pressures that force them to respond quickly to changing conditions and to be innovative in the way they operate. Such activities require organizations to be agile and to make frequent and quick strategic, tactical, and operational decisions, some of which are very complex. Making such decisions may require considerable amounts of relevant data, information, and knowledge” (p. 3).

Additionally, the ability to make quick decisions should occur in real time while understanding the need for computerized support systems to aid managerial decision-making processes.

In this week’s discussion, address the following with a minimum of 500 words:

Discuss three of the terms that are considered predecessors of analytics.
Discuss the concepts: descriptive analytics, predictive analytics, and prescriptive analytics.
Explain why a healthcare organization would invest in analytics to predict the likelihood of falls by patients.
Describe the difference between data generation infrastructure providers and data management infrastructure providers.

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The healthcare industry in Kisumu, Kenya, like the rest of the world, is indeed a constantly evolving landscape. The increasing complexity of clinical care, operational demands, and strategic planning necessitates sophisticated tools for informed decision-making. Business analytics, with its various facets, is becoming an indispensable asset for healthcare organizations striving for agility and efficiency, as highlighted by Delen, Sharda, and Turban (2023).

 

Predecessors of Analytics

 

Before the term “analytics” became ubiquitous, several concepts laid the groundwork for its development, each contributing to the evolving understanding of how data could be leveraged for better decision-making. Three significant predecessors include:

  1. Decision Support Systems (DSS): Originating in the 1970s, DSS were among the earliest attempts to use computer-based systems to aid managerial decision-making. They were designed to help decision-makers compile useful information from raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. Unlike fully automated systems, DSS aimed to support, rather than replace, human judgment. For instance, in a healthcare context, an early DSS might have helped a clinic manager analyze patient scheduling data to identify peak hours and optimize staff

Full Answer Section

 

 

 

 

 

 

  1. Executive Information Systems (EIS): Emerging in the 1980s, EIS were a specialized form of DSS tailored for senior executives. These systems provided easy access to internal and external information critical to strategic goals, often presented through user-friendly graphical interfaces (dashboards). The emphasis was on summarizing key performance indicators (KPIs) and providing drill-down capabilities for high-level oversight. For a hospital CEO in Kisumu, an EIS might have displayed aggregated data on bed occupancy rates, patient satisfaction scores, and revenue trends, enabling quick strategic insights without delving into granular operational details. EIS refined the idea of data presentation for strategic decision-making, setting the stage for dashboarding and high-level reporting prevalent in modern analytics.
  2. Online Analytical Processing (OLAP): Developed in the early 1990s, OLAP represented a significant leap in data analysis capability. Unlike traditional relational databases optimized for transactional processing (OLTP), OLAP systems were designed for multi-dimensional analysis, allowing users to rapidly analyze data from different perspectives, such as “slice and dice,” “drill down,” and “roll up.” This enabled complex queries and ad-hoc analysis on large datasets. In healthcare, an OLAP system could allow a department head to analyze surgical outcomes by surgeon, procedure type, patient demographics, and facility location simultaneously, identifying patterns and trends that were previously difficult to discern. OLAP introduced the power of multi-dimensional data exploration, a core capability that underpins much of modern business intelligence and analytics.

 

Concepts of Descriptive, Predictive, and Prescriptive Analytics

 

These three concepts represent a progression in the sophistication and value derived from data analysis:

  • Descriptive Analytics: This is the most fundamental level of analytics, focusing on what has happened. It involves summarizing historical data to yield insights into past events. Common techniques include reporting, dashboards, data visualization, and basic statistical measures (e.g., averages, counts, frequencies). In a healthcare setting in Kisumu, descriptive analytics might involve generating reports on the number of outpatient visits in the last quarter, the average patient wait time in the ER, or the most common diagnoses seen in a specific clinic. It provides a clear snapshot of the past performance, allowing organizations to understand their current state based on historical data.
  • Predictive Analytics: Moving beyond simply knowing what happened, predictive analytics aims to understand what might happen in the future. It uses statistical models, machine learning algorithms, and historical data to identify patterns and predict future outcomes or trends. This involves forecasting, classification, and estimation. For a healthcare organization, predictive analytics could be used to forecast patient admissions based on seasonal trends and public health data, predict the likelihood of a patient developing a certain condition based on their medical history, or anticipate equipment maintenance needs. The value lies in its ability to provide foresight, allowing organizations to prepare for future scenarios.
  • Prescriptive Analytics: This is the most advanced level of analytics, answering the question: what should an organization do? It builds upon descriptive and predictive insights by recommending specific actions or decisions to achieve a desired outcome or optimize a process. Prescriptive analytics often employs optimization algorithms, simulation, and decision modeling. In healthcare, this could involve recommending the optimal staffing levels for a hospital ward based on predicted patient census, suggesting personalized treatment plans based on a patient’s genetic profile and predicted response to therapies, or determining the most efficient supply chain logistics to minimize waste and costs. Prescriptive analytics goes beyond prediction; it provides actionable intelligence to guide decision-making.

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