OPTIMUM USE OF INFORMAL METHODS FOR BUSINESS ANALYTICS
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1 OPTIMUM USE OF INFORMAL METHODS FOR BUSINESS ANALYTICS Dr. Shubhangi Bhatambrekar 1, Meenal Jabde 2, Savita Mohurle 3 1,2,3 Department of Computer Science, Modern College, Pune , University of Pune, India. Abstract: Business Analytics (BA) is specified domain that has been growing at an annual rate of about 30 per cent. Analytics include complex statistical analysis, computational modelling and data mining. Business analytics is the practice of iterative, methodical exploration of an organization s data with emphasis on statistical analysis. The domain encompasses enterprise decision management, predictive science, strategy science, fraud analysis, credit risk analysis, marketing analysis and so on. Successful business analytics depends on data quality, skilled analysts who understand the technologies and the business and an organizational commitment to data-driven decision making. Companies incur significant expenditure on business intelligence or analytics. There are various software available in market for business analytics like CRM, ERP etc. provided by different companies. Using software for analysis is formal method and vital for companies achievement. Apart from these formal methods if we use informal methods, it can add more ingredients for development of company. In this paper we have introduced some of the informal methods such as: Better visibility, High resolution, Kill bottlenecks, Measure your success and map your future, Decentralization of authority, Decision making, Rethink business, Focus group, Integrated risk management, Bounce rate, Real time decision, Immediate service, Avoid problems, Continuous improvement. These informal methods aims to gain objectives such as growth, competitive differentiation & cost management by making choices about what markets to pursue, how to configure and price offering and how to make operation more effective & efficient. I. INTRODUCTION Business analytics (BA) is the practice of iterative methodical exploration of an organization s data with emphasis on statistical analysis. BA is used to gain insights that inform business decisions and can be used to automate and optimize business processes. The immediate objective is to know more methodologies about how a business analysis can be incorporated informally inside and outside the organization, so that the ultimate business goal can be achieved in future. Below are some of the informal methods that we have introduced.some of the methods is favourable to the company from customers point of view and some from employee point of view. 1.1 Better Vision: Better vision speaks about organizations present condition. Vision defines a desired future and helps guide all who accepts and understand it. Fig. 1.1 Better Vision with Zoom -shows number of birds flying in the sky. Index Words: Analytics, Visibility, Business Analytics, Informal methods Corresponding Author: Dr. Shubhangi Bhatambrekar, Department of CS, Modern College, Pune.India Id: shubhangi_sb@rediffmail.com Fig.1.1 Better Vision with Zoom If we zoom into one bird then we can visualize an individual bird clearly, so is in business.better vision increases companies agility in order to be able to deal
2 with fast changes. Companies today have to be ready to react to unpredictable growing changes. For example: a. If the government rules related to service taxes, VAT, etc. changes, changes have to be made by the company accordingly. b. Sometimes climatic conditions also creates problem like drought, flood due to which the present status of company my affect. If any company is selling cloud based software for Agro business companies and due to some natural disaster Agro business companies are not in a state to purchase software, then a selling company may have to face problems. c. Global slack (Recession) may lead to cost cutting, termination of employee, etc. d. Friendly environment for both customer and employee. e. Offer incentives Positive (Bonus, other monetary benefits) as well as negative( reducing the salary, termination intimation) f. Promotion offers for customer (festive offer, monsoon offer, etc). 1.3 Decentralization of Authority Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. 1.2 High Resolution: Like HD (High Definition) a company should have high resolution i.e. move from a macro to micro level. Company should plan and act accordingly. Fig. 1.2 High Resolution, Shows blurred image. If we increase increase resolution image becomes clear. Fig. 1.2 High Resolution So is with company, fix the task of each employee and bring employee into confidence so that they can complete the give task in a time span. High resolution can be fulfilled by following ways: a. Making resources available to employee timely services to customer. b. Giving proper training to employee. c. Motivating employee as well as customer. Fig DA In the Fig DA i.e. Decentralization of Authority, the burden of top executives of company can be reduced, so that top executives can concentrate on the major issues of company.divding the task into several group of employees increases the capacity to concentrate on the individual task of company. Decentralization of power is the ethical ways. Constant and systematics efforts are taken by the employee to achieve companies. Establishment of standards and measurement of performance of operations at the divisional level are easier. Decentralization ensures better co-ordination of activities or operations. Decentralization helps in diversification of activities or product line. The greater power and freedom of action enjoyed by them and the greater scope for initiative and responsibility give them an opportunity to develop talents required for overall managerial positions. The advantages of decentralization
3 is work will be done in a short time span. Employee will feel privileged and work with more enthusiasm. The customer will be entertained properly and the work of customer will be done soon and also he will get an opportunity to interact with all the employee of company and create friendly relationship. This will be very beneficial for the company growth and progress. Fig The Continuum of Delegation -shows percentage wise company s progress due to centralization and decentralization. g. Road shows h. Advertisement through newspaper, television, hoarding, flex, etc Rethink Business: A company may go in mesh. They may lose relationship with employee, customer or other organization/company from whom they earn profits. At this time it may happen that company are willing to rethink to define loyalty.an employer or company should balance loyalty with customer, employee and other organizations. Fig. above should how a loyalty can be maintained by a company. 1.4 Bounce Rate: It is a percentage at which number of customers leaves direct relationship with company. Fig. 1.5 Rethink Business Fig. 1.4 Bounce Rate From Fig 1.4 Bounce Rate, we can have Eight (8) ways through which we can reduce bounce rate: a. Build friendly relationship with the customer. b. Greet customers on specific occasions. c. Make your customer well-known with company. d. Keep promotion offer for specific products. e. Organize trade fare. f. Increase E-Marketing Fig.1.5 shows- how a loyalty can be maintained by a company. There are various ways to rethink business: a. Maintain relationships. b. Work with variety & autonomy. c. Grow with company goals. d. Identify the real method & set back. e. Identify the links & connections that break business. f. Follow chain reaction. 1.6 Focus Group: Organization generally use focus group in planning, marketing or evaluation, to improve specific service provided by the companies or globally by the company during development of strategic plans or mission. Fig 1.6 Focus group generally concentrates on: a. Making predictions & assumptions.
4 b. Discuss on major issues like product sales, marketing, profit, etc. c. Make employer learn. 1.8 Integrated Risk Assessment (IRA): It is a cornerstone of understanding whether the existing systems, organization and resources are working perfect. Fig. 1.6 Focus Group The participants of focus group can be dignitaries and delegates from inside our own company or from different organization to tackle major issues of company. 1.7 Kill Bottlenecks: Bottlenecks is a phenomenon where capacity and performance of entire system is limited by a single or number of components or resources. Bottlenecks occurs indecision making process. It reduces throughput or performance of company. As shown in the Fig 1.7. Fig. 1.8 IRA Fig 1.8 IRA illustrates on lesson learnt from one area of risk can quickly spread to another area of risk.risk should be properly assessed and managed, it can help set. To implement IRA conduct screening level integrated risk assessment. It helps company better understand the environmental, property and reputational risk they face. 1.9 Immediate service: Customer service is the overall activity of identifying and satisfying customers need. It is one of the most important ingredients of the marketing mix for product and services. Immediate customer service help create customers loyalty. Fig. 1.7 Kill Bottlenecks Physical bottleneck can be killed by increasing the capacity of equipment s, office area,clutter,etc.nonphysical bottleneck can be killed by changing companies policy, negative attitude of employee, appreciating customers, crediting employee,etc Real time decision: To be successful companies must shift from transaction based to event driven based decision making. It is a strategy aimed at solving a business problem. It provides real time close loop selflearning component for use in business Continuous improvement (CI) : To meet both internal and external need every organization, large or small, is interested in continuous improvement as shown in Fig 1.11 CI.
5 Identify your past success and map it with your future. II. CONCLUSIONS Fig CI To support continuous improvement business professional continually examine their processes to discover and eliminate problems Measure your success map your future Be more a customer oriented than a product oriented,since customer are the one who are creating milestone for company s success. By implementing all these informal methods, it will be possible for a company or a business entrepreneur to resolve many problems related to business analysis like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) etc. Formal methods are required subject knowledge along with statistical applications so these informal methods may bring solution or output from experienced experts with minimum cost and time. Optimum use of informal methods may bring in continuous improvement in the business process of a company. It will attempt to fulfil all the promises and business goals steadily. REFERENCES [1]. Johannes Ledolter: Data Mining and Business Analytics with R, 2013 [2]. [3]. Fig Success map From the Fig 1.12 Success map, some of the important things that an entrepreneur should keep in mind and those are: See your future with a great clarity. Determine the area where improvement is needed. Encourage employee to work willingly. Focus on current inventory of customer knowledge. Satisfy customer. Satisfy employee.
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