How to Ensure Profitability: 6 Tips

 
 
By Steve Palmer  |  Posted 2009-02-16 Print this article Print
 
 
 
 
 
 
 


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:

Tip No. 1: Start with the endgame

"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.



 
 
 
 
Steve Palmer is co-CEO of Remsoft Inc. Steve's primary focus is on corporate strategy, finance and on expanding the company's growth in the areas of Business Intelligence and Predictive Analytics. Prior to joining Remsoft, Steve had an impressive career in the technology sector in New Brunswick. Most notable was his position as Chief Operating Officer for Whitehill Technologies where he played a key role in growing the company to the fifth-largest private software company in Canada. Steve holds a Bachelor of Science degree in Biology and an MBA from Dalhousie University. He also holds the FCMA designation. Giving back to his community is a priority for Steve. He commits time and energy to mentoring others in the tech sector and spearheads the Rising Stars Program of the New Brunswick Knowledge Industry. Steve is also chair of the Greater Moncton Knowledge Industry Network and is a member of the Moncton Technology Planning Group. He can be reached at Steve@Remsoft.com.
 
 
 
 
 
 
 

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