The four stage journey becoming truly data driven
We see the journey little as a high jumping competition.
Everyone knows the local record, the regional record, the national record and even the world record. BUT what really matters in growth and development, is how high your company “is jumping” and what it takes to move your company upwards form your present “performance”.
What will it take to move your company from a 100 cm to 110 cm and to 140 cm and beyond if it is needed to stay competitive in your business.
You can not buy yourselves faster to a higher stake – you need to get all key employees involved and above the bar as you develop your relative competitiveness using business intelligence.
The four stage journey towards a data-driven business organization:
- Stage one: Assessment, alignment and objectives
- Stage two: Basic Business Intelligence and analytic
- Stage three: Integrated business planning
- Stage four: Computer aided business decisions
Stage one – Assessment, Alignment and setting up your objectives
First you need to define “what’s” business intelligence, and agree to it’s importance in your company.
Excel spreadsheets is often mistaken for business intelligence – which it is not.
Multiple Excel spreadsheets developed and maintained by individuals, is static, it is volatile, it is difficult if not impossible to maintain when working with multiple and dynamic data sources. Using tailormade Excel spreadsheets is an excellent tool for individuals working with limited data, not for organizations and it is not suited for business intelligence in the future.
Definition of business intelligence:
Pulling live data form multiple sources and building dynamic analyses, using history and understanding to predict the future is our definition of business intelligence 2020
Why is it important:
To stay competitive in 2020 you will need a sufficient business intelligence set up. Managing your business with out it would be like a “woodcutter” using a traditional manual saw trying to meet the accord.
A sufficient set up will at least need data models capable of managing both internal and external data in the same solution.
A pivot table is not business intelligence !
Assess the use of data in the company
Stage one – Assessment
Many companies are using the same sort of information as they did 10 – 15 years ago, standard reports produced via their ERP systems and static analysis created in Excel.
We consider this a pre-analytic stage because these companies have not entered the business intelligence journey yet. Many systems from the “zero’s” are outdated for measuring and monitoring the KPI’s of the future. The use of the systems is time consuming, difficult, and open to many type of errors. Usually it can only be run by a few key persons and or the IT department so those who need the information can’t pull it or adjust it themselves. That often means that KPI’s are only being monitored monthly or weekly at best.
“If it takes days to run a single report, it´s not possible to make sufficient business decisions based on facts”
Stage one – Alignment and objectives
- What are the key business drivers and which KPI´s support the understanding of the development of those key business drivers.
- Distribution, Zero sales, Out of shelves
- Sales effectiveness, sales per 1000 shopper, sale per household, sales per m2, sales per shelf space etc.
- Media investments, promotions, competitive actions, different prices relations and levels.
- Sales efforts, demo´s, displays etc.
- Innovations, penetration of new product introductions
- Place and space
- Other parameters
- Which data sources do you need and want to work with monitoring your KPI´s and to stay competitive
- Which user groups in the company should get involved and how
- Plan how to get from present status, working with business intelligence to next level and beyond
Stage two – Basic business Intelligence and analytics
Senior management has committed to expand the use of data beyond internal data. One or more super users mainly in finance and sales are using basic standard reports and analytics to support operational decisions such as forecast, managing sales force efforts, customer and brand P&L’s, monitoring planned promotion and other type of activities etc.
Some characteristics related to stage two
Stage three – Business Intelligence and Integrated business planning
The volume of structured and unstructured data is increasing and key decision makers are consequently using both internal and external data sources in ONE dynamic solution.
As data volume, variety and velocity increase so does the ability of key decision makers to use it proactively. Decision making is spread throughout the company because business intelligence is arming users with the information they need to make decisions and take actions with confidence.
User adoption increases with features like embedded BI which places business intelligence directly in the applications and portals which key decision makers are using daily and mobile BI makes it possible for users to access the information they need from any devise, no matter where they are.
Increasingly, analytics is used not only reactive, to look back on past performance and inform corrective action, but proactively to make real time adjustments to parameters. Real time connections to data sources mean data is always up to date, allowing faster reactions when decision need to be made.
At this stage key decision makers have begun to take advantage of some of the more power full BI tools such as” Power BI” – Data discovery with data mashup provide instant answers to variables.
“With Power BI big data discovery is no longer a competence of super users”
As the value of business intelligence integrated into the business planning process becomes more and more clear to the whole organization, decentralized users throughout the organization begin to embrace” Power BI” to support business decision at all levels form operation to strategies. Making it much more effective to work together cross department and functions using the same easy to assess.
Working with a dynamic business intelligence set up, like CatMan Solution, makes it difficult to “maintain” ineffective “silo’s” in the organization. “Silo’s where each key decision maker can create their “own truths” will belong to the past.
“CatMan Next Power BI models is business intelligence using both internal and external data in ONE integrated solution supporting your decisions from strategy to execution in a very effective way increasing your competitiveness in a though environment”
Some characteristics related to stage three
Stage four – Computer aided business decisions
This is when both dynamic and ad-hoc analytics with external data sources really come in to play and where external data exceeds the use of internal data.
Internal data is often used to describe and analyze WHAT is happening and external data generating knowledge and understand to WHY it is happening. Better understanding the causalities.
Combining the WHAT with the WHY using machine learning (AI) to create “hidden patterns” between parameters and different value settings to each key parameter, makes it possible to have the computer to propose best practice business tactics in the future.
Stage four is where you get close to understand and utilize the true in market potential of present business solutions and strategies.
Understanding the true potential is a prerequisite to business development and business management. Companies who have the competences to harvest the opportunities in computer aided business decisions will become very competitive and effective in terms of market investments.