Page 134 - DCAP208_Management Support Systems

Unit 8: Usages, Benefits and Success of Business Analytics and Data Visualization

Notes
building data models, and creating simulations. For example, when CEO Bob McDonald
and his executive committee meet each Monday, one data slice they look at is the “top 503
– combinations of products and country markets (Brazil hair care, perhaps, or U.S. pet
care) that are the company’s 50 largest, making up about 60% of sales. Data visualizations
show at a glance if sales or share are moving materially. If they are, and executives want
to drill down, Jeffrey Goldman is the business analyst in that key meeting who delivers
those insights, delivering analysis in real time on screens that all the executives see. Is a
sales dip in detergent in France because of one retailer, so that’s where to focus? Is that
retailer buying less only in France, or across Europe? Did P&G cut promotions or raise
prices, letting a rival grab share, or is the category overall losing sales? Goldman delivers
this kind of data so executives can decide how to respond. Passerini pictures analytics
experts like Goldman sitting in on more meetings to make sure the “how” to solve
problems gets sorted out right then and there, not postponed until everyone gets more
information. The old model would mean “let’s get back to this in two weeks,” he says.
“You need to be able to answer that question immediately. “Passerini describes the video
and data collaboration efforts, and the role of the business analysts, as “harmonizing”
how people do business across P&G. It’s the opposite of creating standard reports. It’s
about creating a standard environment with the right tools, then it’s up to the experts in
that room to use whatever data they need to make the right decisions.

Question
Discuss the Evolution of the P&G Decision Making model.
Source: http://www.saama.com/blog/bid/79545/Procter-Gamble-A-Case-Study-in-Business-Analytics

8.4 Summary

Take an enterprise approach to data management and analytics to effect better decisions.

Develop or recruit analytic thinkers who seek and explore the right data to make
discoveries.
Generally, there are no wrong ways to communicate information but the traditional
textual forms are slowly giving their way to data visualisation.
Data visualisation enables you to present a considerably larger amount of data in
comparison to the textual format which often requires repetition in order to help the
audience understand the information.

Business analysis employs many different methods to help them with this including data
and applications.
Data visualization is the practice of representing data in graphic or abstract form in order
to concisely demonstrate information and results.

Paralysis is a common condition when it comes to organizations and analytics.
Informed decision making is the foundation upon which successful businesses are built.

8.5 Keywords

Basic Charts: Basic charts allow decision makers to examine the data and reduce the time
required to extract key information.
Business Analytics: Business analytics (BA) is the practice of iterative, methodical exploration of
an organization’s data with emphasis on statistical analysis.

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