Make sure to understand measures which drives your business and measures which could help you proactively develop your business.
Key Performance indicators
Most companies only measure results, by looking at the results in the financial statements. BUT they don’t know what impacted the results “The causality – the why of the results”
Does your company analyses or reports allow you to ask ”why did this happen” and how should I prioritize my resources in the future if I want to increase profit or volume growth?
If yes congratulations – If not keep reading and we will give you some ideas of how to reach a state where business intelligence is helping you making better business decisions = Computer aided business decisions
Senior managers, business developers and other key decision makers still report a huge gap between the information they need and the information they get. Most get the results and the data that looks at the past without allowing them to understand the causality. They know what happened but they only know very little about why it happened making it impossible to predict what will happened when the company make changes to parameter values such as changes to, product portfolio, media plans, promotions, prices, distribution, displays, customer agreements, online versus offline focus etc.
To manage the complexity of the data possibilities in the consumer goods and retail industry in the future – Will require specific ability and experience with do’s and don’ts to avoid IT nightmares.
Many companies which already works with both internal and external data do not have one solution to manage and handle data.
To try to get the knowledge and understanding they need; a key decision makers often has to work with many different systems and set up’s to manage their business and to take qualified decision.
It often becomes very ineffective when key decision makers has to work with and understand data and setup form several sources without a service and or solution to support them.
Key Performance Indicators, causes and effect
Think of the possibilities that data and business intelligence can help you to understand result and cause in the same set up.
These are KPI’s made up off historical figures often with a financial focus and ratios correlated to profit and loss statements
Those are also KPI’s made up off historical data but there is an important difference – The focus is on measuring the parameter values such as:
The weather, New product introductions, Promotions, Sales visits, Shelves space, Distribution, Displays, Prices, Online and Offline media efforts, Competitive efforts, etc.
Those are also KPI’s made up off historical data, but with focus is on measuring the Point of Sales effect of your different parameter values such as:
Sales effectiveness (purchase per shopper) Sales per M2, A, B and C placements of products, Sales per household etc.
These KPI’s are well known in the online world but they are often not used effectively in the offline world.
The way to successfully move forward is to determine where you want to start with BI and where you want to go the next 2 or 3 years.
How do you want BI to support your business development process and how should you integrate BI into your business management process in a smart way increasing the effectiveness of key employees and key decision makers?
Becoming an intelligent business isn´t about building thousands of reports, but rather finding out what is important to stay ahead and be competitive in your market.
CatMan Solution can support you on this path, we are probably the most experienced Nordic company when it comes to business intelligence in the consumer goods industry.