Advanced Analytics Operates in What Could Be
Advanced analytics operate in what could be You have spent thousands, even millions, on IT: data warehousing, data collection and BI software, including graphs, reports and charts. But what are you getting for it and how much more could you be getting if you added advanced analytics to your tool kit? The opportunities to maximize profitability and improve efficiencies through the use of advanced analytics are virtually limitless, and are applied to any industry or resource-from tracts of land, roads and bridges, to carbon emissions credits and manufactured items.The NBDoT applied advanced analytics software, including linear programming, to spot efficiency trends. It showed the most profitable alternative through its trade-off analyses and scenario-modeling capabilities. In the end, the system offered an objective and strategic approach to long-term investment planning and program development. It identified the right time and the right way to make improvements to the province's highway infrastructure at the lowest cost to taxpayers. The more information you can include in your analysis, the more you can mitigate risk and ensure a defendable result. This is perhaps best illustrated in a recent land valuation case in which the battle to decide the final outcome of Pacific Lumber Company's bankruptcy confirmation proceedings was determined by Judge Richard Schmidt. Schmidt confirmed the reorganization plan for PALCO by Mendocino Redwood and PALCO creditor Marathon Structured Finance Fund. The opinion that won Schmidt's approval was an advanced analytics approach that applied linear programming techniques to consider a wider range of alternatives for a more defendable result.
A good example comes from the province of New Brunswick and the recent overhaul of its entire asset management program for civil infrastructure. Through advanced analytics, the New Brunswick Department of Transportation (NBDoT) found that the most cost-effective way to manage its assets was to use a "least life cycle" cost approach where, previously, the accepted way to manage its 18,000 kilometers of roads, 2,900 bridges and various ferry crossings was to fix the worst first. The result had been a slowly deteriorating infrastructure and steadily increasing maintenance costs.