Data Analytics for business (What can be done right now to increase…
Data Analytics for business
What can be done right now to increase revenue, improve profitability or reduce risk?
Ideal answer: We have answers in real time. Computerised reactions to customer and market inputs in fractions of a second
Next best answer: Just in time. Human response based on access to customers historic record
Third best answer: As soon as possible, when empirically tested and shown to work, based on A-B testing
Three types of metrics
Revenue - sales and marketing
Units sold over a given time interval, compared, by region, product, new/repeat customers etc
Sales funnel, identified potential customers
Effects of marketing campaigns
Identifying, communicating and selling to customers
Sales funnel metrics
New qualified leads
Expression of interests
Meetings with the correct decision maker
Realtime customization - Amazon
Profitability - efficiency, logistics, production and operations
Operational matrics, unsold investory, spilage, wastage, unable to meet requests, variable costs pr unit of labour etc
Why minimize inventory days?
Negative float, working capital, interest cost, can run out of cash
Fixed costs of storage
Avarage number of days investory is held
Risk, risk managers, creditors and investors
Track and mitigate dangers, like high interests, net cash out/burn rate, churn rate (new subscribers drop of), financial risks (exposure to defaults, leverage)
, net cash flow, profits/looses, changes to balance sheet items such as equity capital, tax rates, regulation etc
- After the fact reporting
, Conveys urgency - what changes can we make right now to increase revenues, maximize profitability or reduce risks?
Will it change significantly over a month or two?
Will specifict actions impact the metric?
Aggregate data is kinda worthless - dynamic metrics are twichy - small changes can have an impact