Posts

StrategyDriven Organizational Performance Measures Article

How Data Flow and Statistics Are Growing in Importance Across Public and Private Sectors

StrategyDriven Organizational Performance Measures Article
The collection of data has never been more important in both the private and public sectors. With the likes of Amazon’s AWS cloud service now offering their Snowmobile data truck that will pull up to your server room, copy your exabytes of data on request, and then drive away to place it in the cloud (saving potentially years of upload time), the size of the data collection effort often relating to customers past and present is immense.

Big Data & It’s Implications

The era of big data is certainly upon us. Collecting the data isn’t the big problem now. For companies and public services like the healthcare sector, sifting through the data and organizing it into useful records that inform at the right time to make better decisions is the real challenge ahead of us. Big data and its data management are becoming a specialist area in its own right now because of the complexities involved.

In the health field, health informatics is a fairly new area that specializes in the collection and management of computer health files. There’s an online master in health informatics degree at the University of Cincinnati where students learn the fine art of data management, protecting systems from a security breach and what to do for disaster management. Their online MSHI program prepares health staff for the patient data challenges ahead from privacy concerns to merging technology and data record access together to let both doctors and nurses have access to patient records when and where they need it.

Web Analytics

The concept of data analytics for anyone who owned a website was something that often passed them by. Some webmasters in the early days didn’t know who was visiting their website, how long they stayed or what pages they viewed. They might have known how many people visited yesterday, but beyond that, the information was far too limited to be really useful.

With the advent of Google Analytics, a free web analytics SaaS from the search giant, the ability to see how many people were visiting, what they did, which pages were the most popular, the average on-page time and host of other pertinent information were available at your fingertips.

Using Data to Get an Edge Over the Competition

Data is becoming a specialist area now. How to collect it, store it and analyze it for potential advantages. Managers can pose the question whether the company has enough stored information to properly determine whether existing customers will approve of a new product launch, a redesign or simply a new flavor or color choice. Data experts can then determine the best way to go about confirming the information that’s being requested using all the available resources available to them with in-house data, along with public information sources like message boards, Facebook groups, Twitter feeds, and more.

It’s fair to say these days that it’s all in the data. For busy or cash-strapped public and private organizations, not having to guess saves money and time while speeding up implementation of ideas to turn them into reality.

StrategyDriven Organizational Performance Measures Article

Doing Big Business With Big Data? Avoid These Big Dangers

StrategyDriven Organizational Performance Measures Article
Photo courtesy of Pexels

Big Data is that important that businesses are doing more than using it to increase traffic. Today, savvy enterprises realise there is money to make, and they are trying to monetise the information they have. In fact, this blog has a post about why a business needs to start monetising data.

There is no doubt that companies can make a lot of money from information, as seen by Big Data’s rise in popularity. However, just because there is an opportunity for revenue doesn’t mean it is worth taking. Before you attempt to get into the Big Data world, you should understand the big pitfalls.

Here are the ones to watch out for regarding monetising info.

Ownership Rights

Don’t make the mistake of assuming the data is yours to sell in the first place. It is important to remember that the company might not have the rights depending on the chain of events. For example, you might not have asked customers to accept the terms and conditions when they landed on the site. Or, the info might have come from a third party which muddies the waters. Before any data goes on sale, you need to have the right of ownership. Otherwise, they could be a lawsuit in the firm’s near future.

Contracts And Privacy Policies

Understand that the contracts and policies which apply now might be void in the future. It is possible for a stipulation to exist which terminates the security protocols in place and leaves the firm vulnerable. At the very least, a disclosure will be necessary to cover all of the bases. As a rule, take a look at the policies which relate to data and double check the fine print. It is better to be safe than sorry.

Laws And Regulations

The government takes the transference of data seriously, particularly in the day and age of extremist terrorism. Therefore, they pass laws which prevent the sale or transmission of certain pieces of information. If you are in possession of such a file and don’t comply, the consequences will be severe. Depending on who the info goes to, it could be treason. The way to stay on the right side of the law is to research ITAR compliance and EAR compliance. These are the regulations that deal with data transference.

Probably the biggest issue with monetising data is confusion. Because there is a lot to handle, it is easy to mess up the collection and storage processes. Not only does this affect the money side of things, but it is also a security flaw. Big data monetisers, to avoid this problem, form different organisations to specialise in this area. Although it seems like a big move, it is a clever and hassle-free way to cash in on data. Keeping the two sides separate negates confusion and smoothes out the business side of things.

There are lots of opportunities with Big Data, but there are lots of dangers, too.

Rhian Silvestro

Surf your data!

Is your strategy built on received wisdom or analysis of performance data? – management rhetoric or business reality?

Are you building your business strategy on received wisdom or real data? Corporate strategies are often based on assumptions about what drives business performance rather than data from the company itself. J.W. Marriott (founder of Marriott Hotels) is famous for saying “You’ve got to make your employees happy. If the employees are happy, they are going to make the customers happy”. TNT Express promotes the slogan “Take care of your people, let them take care of your customers and the rest will take care of itself”. The implication is that happy employees make happy customers, which drive profits. But does this really happen in your organisation?

The problem is that often some drivers of performance aren’t measured at all; let alone the correlations between them. For example, you may believe that loyal employees create satisfied, loyal customers, but do you have data which demonstrates that your longest serving staff create the highest levels of customer loyalty? Another assumption is that loyal customers are the most profitable; we’re often told ‘it is five times more profitable to serve existing customers than loyal customers’. It makes sense. The better we know our customers the better we are likely to serve them. And because customer spend tends to increase over time, it may well be cheaper to serve long-term customers than keep attracting new ones. But, can you prove this is the case in your organisation?

Performance topology mapping is a tool that can help with this analysis. The first step is making sure that you’re measuring the right thing. So if your business is built on the assumption that employee loyalty is necessary to create loyal customers, collect loyalty data. Identify your key performance indicators, and then measure the correlations between them in order to build a map of business drivers.

The findings can be astonishing. For example, the link between customer loyalty and financial performance is often regarded as a basic principle of retail management. However when they came to explore the data in their own organisation, the management of one home improvement retail chain discovered that there was no such correlation. They could not prove that the stores with the most loyal customers were the most profitable.

Analysis of the performance topology map of one of the UK’s big four grocery superstore chains also revealed counter-intuitive results. Its management bought into the idea that satisfied employees created customer satisfaction which drove store profitability. But the data revealed negative correlations! In fact the stores with the highest levels of employee satisfaction were the least profitable. The explanation for this lay in the value proposition: customers in these stores did not value contact with staff so much as product availability, price and checkout speed. Therefore their shopping experience did not hinge on the quality of their interaction with employees.

In other businesses, of course, the interactions between staff and customers are likely to be much more critical. Take, for example, the professional services of clinicians or lawyers. Their services are based on more sophisticated interactions between staff and clients, and long-term business relationships may well be an essential part of the value proposition. Therefore employee engagement is likely to be a more important driver of profitability in professional services.

Understanding the performance drivers is crucial. Because failing to understand what drives profitability is to fail to understand why your company has succeeded… or indeed failed. The reality is that your business strategy is based on all sorts of assumptions about what investments will yield increased market share, revenue growth or profitability. To get the strategy right, better start testing those assumptions… surf the data wave!

About the Author

Dr. Rhian SilvestroDr. Rhian Silvestro is Associate Professor of Operations Management at Warwick Business School. Rhian has conducted service management research in a number of large, leading edge organisations including retail companies, banks, transport companies, health services and call centres. She has publications in over ten international journals in the fields of service design, performance improvement and supply chain integration.

Do You and Your Organization Speak Data?

Speaking two languages makes you bilingual, and speaking three makes you trilingual. Any more than that, and you are a polyglot. In today’s data-driven business world, you are a data scientist if you can “speak data”.

Our world is becoming more and more about the data it generates. As pressure mounts, people who can analyze, visualize, and interpret data are becoming indispensable, much like a well-versed polyglot who can interpret and translate multiple languages with ease.


Hi there! This article is available for free. Login or register as a StrategyDriven Personal Business Advisor Self-Guided Client by:

Subscribing to the Self Guided Program - It's Free!


 


About the Author

Anteneh Ayanso is an Associate Professor of Information Systems at Brock University’s Goodman School of Business. He is certified in Production and Inventory Management (CPIM) by APICS and teaches and researches in the areas of data management, business analytics, electronic commerce, and electronic government. Anteneh Ayanso can be contacted at (905) 688-5550 x 3498 or [email protected]

Lang Smith

5 Ways Predictive Analytics Make or Break a CRM System

Size doesn’t matter: why predictive analytics prove your customer relationship management methods are likely falling short

 
For a sales-driven organization, it isn’t the size of your data that matters, it’s what you do with it. No longer a discretionary luxury, predictive analytics are now the name of the game for those who seek to utilize customer metrics in a meaningful way to establish a tremendous competitive advantage, gain notable market share and significantly boost bottom lines. In fact, according to the 2015 State of Sales Report published by Salesforce Research, “smart selling fueled by predictive analysis is expected to jump 77% among high performers,” throughout 2016. Not only that but high performers are also four times more likely to use predictive analytics.


Hi there! This article is available for free. Login or register as a StrategyDriven Personal Business Advisor Self-Guided Client by:

Subscribing to the Self Guided Program - It's Free!


 


About the Author

Lang SmithLang Smith is the founder of Cloud Signalytics – a first-of-its-kind predictive intelligence software platform helping major franchise auto dealerships create highly precise, individualized customer profiles to maximize sales. He may be reached online at www.cloudsignalytics.com.

Source: https://secure2.sfdcstatic.com/assets/pdf/misc/state-of-sales-report-salesforce.pdf