The current economic environment is indeed unprecedented. No one could have foreseen that we’d be where we are now from both an economic and social perspective.
Whilst government intervention has succeeded in slowing the impact on businesses and employees, once these initiatives are withdrawn the full impact will become evident. No economic forecaster will argue that the UK isn’t heading for recession, so taking a data-led approach to mitigate this risk should be front of mind for every CFO and CEO.
The businesses that fully understand their cost base, customers and market position will be the ones with the best chance of survival. At a time when business leaders need to make rapid and often difficult decisions, having confidence in the data which underpins these judgements is of paramount importance. When such decisions may need to change at short notice based on macro or micro economic factors, having the capability to harvest and assimilate data at speed is critical.
Right now, the key focus for organisations is to maintain operational control as well as a strong liquidity position, whilst also keeping the workforce happy and motivated. Given the current backdrop, this is no easy feat!
Often, when we talk to our clients, we describe Business Intelligence (BI) in terms of enabling them to properly understand their customer base, develop a thorough understanding of their cost base and inefficiencies in processes, and spot opportunities which would otherwise go unnoticed. BI therefore has a massive part to play in supporting how businesses best structure themselves to weather all storms.
Here are the 5 main areas in which BI provides benefits:
1. Business Strategy
Organisations that invested in a robust IT and data infrastructure are reaping the benefits, with most employees now working remotely. Putting the data used in business decisions within easy reach of decision makers ensures that the organisation is ‘fleet of foot’ when it comes to calculating which course of action to take.
BI has a massive role to play in supporting these critical decisions being made. BI tools transform opaque data into crystal clear data that can be viewed from a variety of angles and differing perspectives, ensuring the decision reached is backed up by fact rather than a gut feeling or hunch.
2. Operational Control
Some industries are experiencing an increased spike in operational activity, which must be managed efficiently. The Financial Services sector, for instance, has been inundated with requests for payment holidays on mortgages, credit cards and loans. This has placed increased demand on these operational areas. BI has a huge part to play in successfully managing this volume by enabling B&FS organisations to understand demand, resourcing and case throughput as well as warning which cases will not be processed in time, especially for vulnerable customers. Irrespective of operational challenges, BI can provide rapid, accurate and easy to digest information so these situations can be managed effectively.
3. Financial Control
Often during tough times, organisations will cut costs down to the bone without foresight or understanding where the true fat is. Effort should be focused on protecting growth and profitability through modelling and scenario planning. Reliable and timely data is the most important factor in this process.
Data Warehouses and BI tools will often be the main input source and calculation engine for these models. We’ve seen the most value created when inputs to the model can be flexed and the outputs are displayed in near real time via an easy to interpret dashboard. Any previous data from economic impacts that can be incorporated into these models can increase the accuracy of predicted outcomes.
4. Managing Customers
Customers are the lifeblood of any organisation. Organisations who understand their customer base and have an insight into how their customers’ behaviour is likely to change will be ahead of the game. BI can help businesses to understand customers using two lenses:
Commercial– Which are most and least profitable? Whose buying trajectory is increasing and whose is diminishing? How is the product mix changing and how does this impact profits and losses? Service– “Cost to serve” modelling as well as analytics on meeting the typical servicing timelines of customers from enquiry to order to fulfilment. BI will be the precursor to using predictive analytics to better understand your customer base. Now would be great time to start considering use cases such as customer churn, lifetime value, optimising customer experience, next best product, price optimisation and early assessment of vulnerable customers.
5. Workforce
In any business, it’s always the people that are the greatest asset. Employee health and wellbeing are therefore crucial to an organisation’s success. However, the working environment has been reframed with most of the workforce now working remotely.
BI helps HR professionals and business leaders to understand what’s happening with their people and forward plan to ensure business success is maintained. Absence management, furlough arrangements and understanding employees’ location are all use cases which BI can support. People working from home also need the necessary tools to enable them to do their jobs remotely. BI provides support in terms of making sure all employees have all the information they require to fulfil their role.
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