Start with the business and identify use cases that will drive financial impact – revenue growth, cost reduction, or margin improvement. Remember that improving employee efficiency, though beneficial, is unlikely to drive a meaningful financial impact.
Once you’ve identified those use cases, categorize them by expected business outcomes – and get very specific about this:
- reduce ground transportation costs
- increase customer retention from high revenue/high credit score customers
- reduce discounts to profit destroyers, etc.
We refer to this process as “applied analytics” – analytics applied to a use case with an identified business outcome. It’s important to understand that the use case does not need to represent a “home run” to create value. Many runs can be scored with singles and doubles in baseball. Likewise, some of the most effective uses of analytics have been applied to a single cost line item or revenue attribute.
Now that you’ve picked your use case or cases, you need data. Don’t confine yourself to what resides within the four walls of the company. Think about what’s necessary to get the business outcome that you desire. Today there are many technologies that allow you to leverage the data you need versus the data you can get, so free your mind.
Lastly, research existing solutions on the market that can address your use case and shorten your time to value. At SAP, we have pre-built industry and line-of-business analytic applications and rapid deployment solutions that address specific business scenarios. In addition, we have analytic platforms that can be the basis for you to create your own applied analytics.
So have fun with analytics, and start swinging away to create champion-worthy value for your company.Comments