"It was the best of times, it was the worst of times," wrote Charles Dickens in 1859 as the opening line of his great work: "A Tale of Two Cities." Therefore, it is most appropriate for this blog to open with a similar truth of the world's situation today almost 150 years later.
Our world is quite dynamic and bringing us alarming news every day of financial, legislative, political, and technological change. In the commercial business world, corporate leaders are seeking new methods of advancing their awareness and development of useable information based on real truths. Historical data and current actions combined are enabling decision-makers to see and act on more knowledge-based decision-making. The value of both short-term and long-term very detailed data, combined with effective business practices and processes, can lead executives to more confidence in their decisions.
Have we really thought about how to communicate this concept to upper management?
About 5 years ago, a young leader of a well-known technology company wrote in the Baylor Business Journal: "an integrated approach to enterprise decision management will no longer be a competitive differentiator, but a simple requirement. Companies that aren't already evolving toward this vision today may be too late. Vision and leadership, not technology, are the crucial components of an enterprise approach to decision management." He forecast that by year 2008, most companies would have achieved this objective. Unfortunately, we know that a large majority of firms are still struggling to complete this task and/or have decided to let individual departments and managers be responsible for their own 'truths' and BI systems.
Today most successful business leaders know:
1.That multiple versions of the truth create non-decisions and inaction
2.The multiple systems and databases created in an organization are expensive to maintain, to update, and to keep current, and also synchronized with the rest of the business
3.That customers appreciating good service and a positive experience return for more orders and more business, even bringing their friends or communicating the highest of plaudits for firms that provide very positive experiences
4.That corporations that downsize and also reduce their expenditures on managing information and providing enhanced business intelligence usually are not the ones that lead their industries when coming out of a recessionary period
Can you add to this list of known critical issues?
It is this last point above that is most important at this juncture in time. In retailing and production industries, it has been the norm to lower production and distribution, since sales are slowing and revenues are decreasing. But this may not be the only effective decision. Smart executives translate reductions in revenues into catapulted requirements to lower INVENTORIES and provide the right products to the right customers in the right markets by effectively managing both the capital assets and the human resources. Maybe producing a different distribution of products is more sensible; and reacting directly to changing customer needs drives the decisions, not just the budgets, expenditures, mass marketing, and lowered pricing.
In financial service, smarter executives understand that customer confidence and personalized inter-communications create longer-term value with customers, both retail and commercial customers. So, in difficult times, it is appropriate to move closer to the customers and work WITH them through the recession and their lifecycle and life stages. Event-Based marketing and detailed personal 'financial life planning' could accelerate customer loyalty and revenues. The large volumes of young people in credit trouble and aging 'baby-boomers' are needing new services directly aimed at their future happiness.
In travel and transportation, smart executives utilize detailed data to lower the costs of fuel (e.g. BNSF), lower the cost of inventories (or capital investment utilizations, e.g. UPR), and raise the customer confidence (through relationship and profitability pricing) to maintain and enhance business. Companies also look at excess inventories and re-price them instantly. "Next best offers" (NBO), or analytical CRM offer management, can accelerate cross-selling and reduce the exposure to reduced revenues.
In manufacturing, smart executives focus their resources to re-design, re-tool, or find new channels for distribution of their products. They also focus on lower inventories and working with both the supply-side (raw materials or distribution inbound suppliers) and the demand side (customers, retailers, distributors, or alternative channels) to maintain customer loyalty. Now is the perfect time for them to create deep detailed analytics and BI from their ERP or like-systems (that seem to lack such capabilities).
In communications, bundling of services and utilizing the high-cost capital investments (such as the network or the local stores and distribution outlets) provide an opportunity for smarter executives to focus not only on the demographics but directly on personalized offerings and bundles to keep customers happy, loyal, and communicating their value within their various communities. This is also true for the commercial side of their businesses. In recessionary times, "price is important"; keeping customers may be the highest priority; and "no revenue is no revenue". Every customer actually does count in these types of industries. If for nothing else, it's just "cash-flow", to pay fixed expenditures. CFO's need CMO's to make things happen differently in recessions, to keep customers, up-sell customers, and have them bring other customers. The need for "Near-Real Time" (NRT) with relevant, personalized, and meaningful marketing can accelerate a positive rebound or new growth.
In the health provision industry, pharma production, and health insurance the most needed services may be in the educational area. Young and older people need to understand and utilize health services much more effectively to prevent health problems. Using past and present claims provides an opportunity to communicate effectively to and through the health industry's various channels. An 'once of prevention is worth a pound of cure'. BI should be used to help people manage health and also involve them, with their consent, in new ways. In certain states, smart governments have utilized various DW and BI solutions to provide better health services, new awareness programs, enabling immunizations for children and immigrants, and even food nutrition and food stamps programs for the needy, $aving hundreds of million$.
