We live in a crazy world where time is money and the faster you can make key business decisions, the more likely your business will still be here 10 years from now. Perhaps you’ve read this statement by Richard Foster of Yale University.
“The average lifespan of a company listed in the S&P 500 has decreased from 57 years in the 1920s to 15 years today.”
The radical change in lifespan on the S&P 500 has a lot to do with today’s increased pace of change and a company’s ability to react and / or be proactive in its decision-making. You may have also noticed a flood of companies actively assessing how to analyze their data to make good use of it, and in some cases, monetize its value.
Now, the story goes well beyond large companies and heads into smaller companies. In fact, smaller companies often have the ability to move faster than an S&P entity just by way of having to head through far fewer “approvers” before a decision can be executed.
Businesses of all types and sizes are now finding ways to deliver better business outcomes like increased revenue, lower costs, better quality and increased profit. Today, the need to gain insight into decisions affecting these outcomes is crucial for everyone.
With today’s analytical tools, using business analytics to “see into” one’s business, is no longer out of reach from a budget standpoint. The battle in the business intelligence world is so fierce today that prices have become reasonable and tools are more accessible.
As one example, we’ve put an incredibly simple dashboard online for everyone to see. Click here to view it. We’ve greatly reduced the number of parts in this example since the real world application has over 10,000 parts to look at!
Even an example as simple as this one allows a company to make key decisions. If you didn’t click the link, it’s a look into a company’s product profitability where we can easily visualize which products contribute to the company’s bottom line, and which may need to be considered for deletion. Additionally, we can see that products that bring in the most revenue, don’t always bring in the most profit. Further, the company’s marketing department can use this information to target their marketing budget in the direction of increasing volumes sold on higher profit part numbers. This is just one of hundreds of examples we can present for valuable decision making.
The benefits of analytics are well documented:
- Greater visibility and capability to analyze data and make important decisions with it,
- Ability to measure detailed performance or products, services, warranty, customer service… almost anything you can imagine,
- Company-wide access for employees and leaders to use information interactively and see data the way they need to see it for their own job, and
- Ability to increase business results.
Insights lead to better decisions, which leads to better business outcomes.
Does this sound like something you’d like to hear more about? Use the registration link below and we’ll send you a free case study paper describing the business outcomes that can be obtained by looking at this information.
Register here to receive a Case Study paper. Available to new registrants.
Until next time,
Numerical Insights is passionate about using data to solve business problems. We have helped both well-known and little-known companies in multiple countries use data to make decisions which impact the bottom line.