The opportunity to achieve competitive advantage from “analytics” is enormous. Business analytics have become one of the most powerful tools available to companies and are being used for a broad variety of purposes.
With the right analytics, new insights can help:
Develop close relationships with customers based on a deep understanding of their behaviors and needs
Deliver the targeted advertising, promotions and product offers to customers that will motivate them to buy
Balance inventory with demand and minimize either being out of stock or carrying excess inventory
Identify operational improvement opportunities
Optimize pricing for clients
Determine the best use of marketing investments
Locate stores, distribution centers, and other facilities in optimal locations
Many companies are not familiar or comfortable with strategies built around analytical capabilities. A major issue many companies may experience while using analytics is “paralysis through analysis” whereby many analytical options and large amounts of data overwhelm the ability to generate insights and facilitate decision-making. Many find it difficult to digest all of the data, technology, and analytics that are available to them. They are drowning in data from IT systems, websites, and internal transaction processes. Companies can’t absorb all the new analytical technologies that vendors have made available. Many also don’t have the skilled analysts to help them generate insights and make better decisions. The breadth of analytical processes and applications suggests that companies need to selectively target analytics based on their strategies and industry positions. This is where we step in to help clients.
We know companies focused on low cost perhaps should not have its initial efforts address client loyalty and tighter client relationships. The margins achieved by low-cost producers would probably not justify a premium for customers for displaying loyalty. It is also likely to be an uphill struggle to get consensus around the funding needed for the information and analytical infrastructure (people and technology) to mount a major analytical initiative. Supply chain and pricing analytics would be more logical for such a firm. At the same time for clients focused on niche or the high-end of markets, customer-focused analytics would be better for initial analytics rather than supply chain and site selection analytics.
Some of the analytical processes we support are:
Fraud Detection and Prevention
Localization and Clustering
Marketing Mix Modeling
Real Estate Optimization
Supply Chain Analytics
Test and Learn
Analytical Performance Management
Multi-Channel Analytics and Data Integration
Many analytical investments can pay off rapidly through lower costs and/or higher revenues. There is little doubt, however, that the aggressive adoption and exploitation of analytics has led to competitive advantage among some of the world’s most successful companies. The willingness to make these investments in good or difficult times is a key factor that separates great business enterprises from ordinary ones. Please feel free to contact us to arrange a conversation.