How to Ensure Profitability: 6 Tips
How to ensure profitability: 6 tips Once you have invested in the best people and tools to accomplish your goals, identify the strategies or best practices to ensure profitability. But keep in mind that your relative success in using advanced analytics is determined by your ability to act on the recommendations provided. Keep the following six tips in mind:"Here's what I want. How do I accomplish it?" Rather than identifying what you do currently and then playing with known strategies until you reach an acceptable outcome, turn the problem around. Define the outcome you are looking for, and ask the advanced analytics software to give you the best strategy to accomplish it. For example, use advanced analytics to explore, "What is the best strategy to maximize the net present value of my asset?" It may give you a different answer than you expected, but you will get the best answer. Tip No. 2: Incorporate BI data Make the most of your IT investment by gathering and leveraging all the data and technology in which you already have invested. It can be on a variety of platforms and from multiple sources, including Teradata, Oracle, DB2 and SQL Server-based data warehousing environments. Tip No. 3: Open your mind to the possible It's limiting to identify only strategies that you already have in mind based on your BI and personal experience. Instead, use advanced analytics technology to explore completely off-the-chart "what-if" scenarios. Examples of these might be: "What if I didn't repair equipment in the worst condition first? How can we ensure that the total value of our civil infrastructure is not decreasing over time? How do compliance requirements impact our planning?" Tip No. 4: Put it all in the mix and break some barriers Consider all options and explore multiple "what-if" scenarios. Expand the scope of your analysis to include all data and related factors that may be of relevance. It takes sophisticated tools, algorithms and complex modeling capabilities that are not found in less-advanced BI software to accomplish this. But you'll get a deeper, more insightful analysis. Tip No. 5: Consider constraints Take steps to understand and identify all the constraints (such as budget, timing, regulations and so on) under which you are operating. Constraints may eliminate some options and reduce your overall results, but including them will ensure you get the most realistic results. And a proper analysis can help you see how each of the constraints affects the bottom line, allowing you to relax or tighten them if appropriate. Tip No. 6: Collaborate Use collaborative technology to ensure that key people, even those without analytical expertise, have opportunities to offer their expertise and feedback.
Tip No. 1: Start with the endgame