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Lyndsay Wise

Hi and welcome to my blog! I look forward to bringing you weekly posts about what is happening in the world of BI, CDI and marketing performance management.

About the author >

Lyndsay is the President and Founder of WiseAnalytics, an independent analyst firm specializing in business intelligence, master data management and unstructured data. For†more than†seven years, she has assisted clients in business systems analysis, software selection and implementation of enterprise applications. Lyndsay conducts regular research studies, consults, writes articles and speaks about improving the value of business intelligence within organizations. She can be reached at lwise@wiseanalytics.com.

Editor's Note: More articles and resources†are available in Lyndsay's BeyeNETWORK†Expert†Channel. Be sure to visit today!

August 2014 Archives

The struggle between business units and IT seems to be a challenge that will never fully be solved within some organizations. In a recent study by IBM Global Analytics, 79% of respondents stated that cohesion does exist between business and IT within the organization, while 50% said that most decisions were left to IT or individual departments. These responses highlight a disconnect between a collaborative approach to working and actual decision making. Additionally, 29% (click here to access the InfoGraphic referenced) admit to a disconnect between business acumen and analytics know-how, meaning that gaps definitely exist with the current approach towards analytics. All of this makes sense because, until more recently, analytics and BI implementations were driven and managed primarily by IT resources. As business units start to take more responsibility for their data assets, departmental struggles are more likely to occur. Additionally, employees who were solely focused on the business side of things have to become more involved in data. Understanding analytics and being able to interact with data to get answers to business questions is becoming more essential Рnot only for organizations on a whole to become successful, but for individuals as well.

As information becomes more important and businesses collect more diverse data, the way decisions are made will also shift. Silos are no longer acceptable. IT acting on its own can only act from its perspective. The same exists for individual departments. Even decisions that seem to be limited to one department require broader analysis. For instance, increasing sales requires knowing more than previous sales. To be successful, the organization needs insights into customers, competitors, products, supply chain, weather patterns, etc. Much of this information may be made available to one department, but people with a variety of experiences are required to make decisions that will effect the broader sales channel. 

What all of this means for mid-sized businesses is that companies seem to be making headway towards the right direction:

  1. Cohesion between IT and business does exist within many SMBs.
  2. Half of identified businesses seem to have organization wide decision making strategy.
  3. 70% of organizations have resources that can link business and data related insights to leverage analytics successfully.

As data becomes more widely available to more employees within more departments, organizations will begin to share information with each other and increase collaborative efforts. After all, working in silos or relying on IT will only limit the benefits that can be realized by analytics. Big data is just an extension of the fact that organizations need information from a variety of sources in order to gain the visibility required to remain successful. The reality, however, is that data only represents half of what is required to maintain success. People and departments collaborating more broadly and sharing data across the organization are also required for data to remain valuable.

This post was brought to you by¬†IBM for Midsize Business¬†and opinions are my own. To read more on this topic, visit¬†¬†IBM’s Midsize Insider.¬†Dedicated to providing businesses with expertise, solutions and tools that are specific to small and midsized companies, the Midsize Business program provides businesses with the materials and knowledge they need to become engines of a smarter planet.

 

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Posted August 25, 2014 5:12 PM
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It is slowly becoming easier to tie in business analytics with real world value to enhance customer experiences. Technologies support diverse data collection, storage, management, analytics, and delivery. Organizations can identify trends, customer preferences, and customer satisfaction levels by looking at a variety of factors and information sources. Algorithms can be defined to take into account a variety of scenarios and identify outliers. Advanced analytics, big data storage, and the like seem to be the answer to many company challenges that exist in a competitive marketplace where customers can choose similar products and services from multiple providers. If this really is the case, then why does it seem as if many businesses are missing the boat?

Case in point: Although I normally don’t use personal examples, this one jumped out at me. I am in the middle of a move and after an unhappy journey with my telecommunications provider I have decided to use a different provider. About a week after giving notice, I received a lovely letter in the mail inviting me to call their office to see if anything could be done to win me back. Although a very nice gesture, the reality of the situation is that had they evaluated me as a customer over the past several months, they would have realized that I was lost to them before formally cancelling. Therefore, the after the fact letter was just a waste of paper and stamp. If this service provider really cared about keeping me as a customer, they would work towards identifying dissatisfied customers, the reasons they are not happy, and which ones have a potential high customer lifetime value to know which ones to invest in trying to retain. If I fall into that category, then sending a letter after I’ve already cancelled is too little too late.¬†

This situation reminded me of a case study presentation at a conference by a leading North American Bank that was worried about competing with other large financial institutions and their struggle with customer satisfaction ratings. A trend was occurring whereby long term customers with good standing would want to deposit a check and withdraw money automatically without having the bank hold the check. What ended up happening is that there was a higher than average turnover rate with these customers who were looking to other banks to provide them with immediate transactions. In order to maintain high customer ratings, the bank began to analyze what was happening. The results of the analysis were that the customers with large investments in the bank were the ones who decided to leave because they weren’t being serviced the way they wanted, as opposed to a number of customers who complained a lot but didn’t leave. It was found that the customers who stayed didn’t have as much invested with the bank. Consequently, the bank decided to take the risk and provide the long standing, high investing customers with immediate access to their funds because they were low risk. The result was higher satisfaction and less turnover. The lower investing customers would be addressed based on their individual situations, but the main effort was placed on the customers the bank felt would do more business with the bank over time.

These examples are simple and yet highlight the value of information insights. Organizations may struggle with their BI investments, but the reality is that BI can no longer be a separate tool set within the wider organization. Businesses need to understand the fact that they risk losing business and missing opportunities without the insights they require to identify trends and opportunities. Broader access to information is key, and now the market is flooded with solutions that can address the variety of needs that exist. All of which can help align organization goals with higher customer satisfaction.

This post was brought to you by¬†IBM for Midsize Business¬†and opinions are my own. To read more on this topic, visit¬†¬†IBM’s Midsize Insider.¬†Dedicated to providing businesses with expertise, solutions and tools that are specific to small and midsized companies, the Midsize Business program provides businesses with the materials and knowledge they need to become engines of a smarter planet.

 

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Posted August 12, 2014 4:47 PM
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