Utilizing existing data to drive value with business analytics
TECHNOLOGY BULLETIN |
Middle-market companies use significant resources to collect transactional data, but most do not realize the true potential of that information. Data is a key asset, and effective business analytics can help make better decisions, improve financial standing and get a leg up on competitors. Organizations must implement strategies to get a positive return on investment from data, driving more value than the cost of collecting it.
A holistic business analytics strategy helps companies put data into use to drive additional value. Three achievable ways that businesses can leverage existing data as a strategic tool for growth are business planning, profitability analytics, and benchmarking and performance analytics.
Successful business planning projects the organization’s trajectory, allows for objective decision making, sets financial and operational targets and proactively manages risk. It helps chart the organization’s course both in the short and long term, and determines whether the organization has the available resources to achieve planned objectives. Leveraging technology solutions such as corporate performance management systems can support planning by increasing automation and analytics, and using data to support decisions.
A probability analytics strategy views a company’s full portfolio of products, services, customers and regions from a top-down and a side-by-side view. An effective process will help determine the product and service mix, what areas to focus on and whether to develop new products or services. A key to successful analytics is utilizing technology to access portfolio results in real time through dashboards and comprehensive reporting.
Benchmarking and performance analytics
To be truly successful, organizations must know where the company has been and make comparisons to peers. Companies must identify key performance metrics and indicators that are important to the organization. Each business is different, but metrics must be measurable, readily available, crucial to meeting current and future goals, promote additional value to the organization and tied to the budget and forecast.
For more information on putting data to use within your organization, read our new white paper, 3 strategies to drive value from existing data with business analytics.