Pop quiz: You have an important decision to make – whether to increase the price of one of your best selling products on the market. You can ask your Executive team just ONE question:
A. Finance: What impact will this price change have on our revenues for the year?
B. HR: Is our sales team experienced enough to sell the value of the product at a higher price?
C. Operations: Do we have excess stock that is causing us significant holding costs?
D. Sales: Are there current contracts on the table that would be adversely impacted by the increase?
E. Marketing: What sentiment do our customers have about current prices?
F. Customer: Will a price increase cause some of our highly profitable customers to churn?
G. Product Management: How will the price change position us against our competitors?
Naturally, the answer is H. All of the Above! And yet, many organizations today continue to base their analytical strategy around a single business application and a biased view of overall performance.
There is absolutely a valid argument to be made for leveraging reporting tools that are packaged with Enterprise Applications, including the ability to utilize free (or low cost) licenses provided with the application, and leveraging existing skills within the IT group. Many applications also provide added-cost options for pre-built reports and dashboards that can reduce the time and effort of providing application reporting to business users. Unfortunately these often only address 60% of the organization’s true application reporting needs and often do not deliver return on investment.
The greatest concern with an application-centric approach to analytics is the tunnel-vision that can be caused by organizing data and insight around one particular part of the business. After all, how do you know whether the light at the end of the tunnel is daylight or an oncoming train?
In order to outperform the competition, it is essential to establish an analytics strategy that first looks at the business decisions your are trying to support and the data that is required to make a more informed decision and maximize business outcomes. This requires investment in a comprehensive, integrated analytics platform that supports ALL data, ALL users, ALL perspectives, across ALL time horizons. And most importantly, an analytics platform that is agnostic to the applications that are selected by individual business groups to support financial, operational and strategic processes.
An Application Agnostic Analytics strategy provides:
- Insight into all aspects of organizational performance regardless of where individual teams store and manage data, so that decisions can be made in context of all business groups.
- Insight that incorporates what has happened in the past, what is currently happening now, and what is most likely to happen in the future.
- Insight that can withstand changes to source applications.
- Insight who’s value increases with the acquisition of new companies, regardless of their technology footprint.
Most importantly, a AAA-rated platform provides the foundation for insight to Grow your customer base and retain your most profitable customers; Improve operational efficiency; Prevent fraud and manage risk and compliance efforts; and to Transform and automate financial process.
With a AAA rating in analytics, the only question you need to ask is: What is the best decision for my business?