High Stakes Business Analytics Across Industries

This Wednesday I had the pleasure of participating in the first Aberdeen Business Analytics Summit in Boston. It was a fascinating collection of business and I.T. speakers across industries: banking, packaged goods, semiconductors, auto, health, etc. These business leaders have critical jobs like forecasting customer demand, optimizing the supply chain, or monitoring efficiency and profitability at retail locations across the country. Having access to real time, insightful analytics is critical to performing these jobs.

I participated in a panel on how better alignment can be achieved between "business users" and the "I.T." community. There was a surprising statistic that Aberdeen found which as 57% of business user do not see the value of business analytics. What shocked me was that... the business users should be defining and driving the value in the first place!

At times it can seem like two very different environments: the world of data and technology on one hand, and the world of marketing, sales, and supply chain on the other. I've been fortunate in my career at General Electric, Pfizer, and even now at The CementBloc, to be part of a "bridge" department that spans both worlds.

However, in these days of convergence, the more each of us can understand the language and motivations of our collaborators, the better our companies will be.

I would love to hear comments from readers on your perspective!

promotional planning on rainy days

Sometimes rainy days come unexpectedly, and one must rapidly determine how to respond. This weekend was a great lesson for me and thousands of others in Blacksburg Virgina. At the Virginia Tech graduation, the initial ceremony in the large football field was curtailed as lightning and rain approached. However, spirits remained high. Some wondered if the ceremony should have been moved indoors, meaning more safety but far fewer attendees. Anyway,the next day grads got diplomas, the sun stayed around for photos, and then the rain continued off and on. At a barbecue were wetness made it seemed lost, a group of us pressed on and served up a happy lunch repast in celebration.

In business, rainy days can mean a quarter or two of disappointing product sales, and businesses should keep two things in mind:

* dig deeply into your analytics dashboards as to what the root causes are. Which customer segments are performing better than others, and in which channels? Which promotions and media are more effective than others.

* plan for efficiency in promotion, and invest where the highest sales leverage is.

* use quality and six sigma frameworks to trim the inefficiencies. However, by all means, keep investing in what has been working.

Startup companies: reason for failure - meta analysis

Fortunately at The CementBloc I am at a successful startup that is now heading for 11 years. Now, in my line of work at analytics and technology for healthcare communications, I am continually working with young startup companies: software companies, advertising agencies, analytic consultants. Also, with downsizing, many of my talented former colleagues in the corporate world are starting their own small firms.

With this in mind I was very intrigued to read the post-hoc meta-analysis of 32 failed startups done by Chubby Brain. This is summarized as "Top 20 reasons why startups fail."

The top reasons include customer focus, responding to a dynamic marketplace, and team chemistry. But there are others as well. I encourage anyone in small business to take a look. I might also encourage those who employ small companies to look as well, for the right signs in who they are giving their contracts to.

Quality Time: when to be there in person

Working for a marketing and sales consulting agency, where some of my clients are hours away by plane, I think keenly about when to travel for an expensive face to face meeting, and when to conduct a phone call, perhaps with a Webex or Netmeeting presentation.

Here are some guidelines I've determined:

Need to be in person when:

* Creating relationships
* Major milestones
* Significant decisions made
* Building of trust
* Showing new creative concepts
* Discovery gathering, or knowledge engineering
* Creating consensus as a group

Over the phone or webex is sufficient for:

* Updates to presentations or analyses similar to those seen before
* Direct transfer of orders among people who have already met.

I have seen poor decisions made on both sides: consultants giving up a major trip and taking a phone call when in fact consensus was needed, or when their client relationship was shaky. I've also seen clients insist on face to face meetings continually even for matters where a phone call is sufficient.

The best account directors will think through the scenarios and consequences of each fly vs no-fly decision.

Sales Reps and Customer Relationships

A recent news item in Medical Marketing and Media pointed out that GlaxoSmithKline will reward its sales reps for the relationships they forge with doctors, and is developing tools for these evaluations.

There are already several approaches to evaluating a company's sales force, such as the Scott-Levin survey of sales rep performance. However, this new approach by GSK is geared toward evaluating individual representatatives. There may be several methods to the tactical measurement:

* The first that comes to mind is a direct survey to a represenative's called on physicians, asking about that rep's performance and added value. It could be conducted online, via phone, email, or even within the sales rep tablet after calls. One challenge may be the busy nature of the physicians' day, which can impact expected completion rates of the surveys.

* An alternative can be development of business plans by sales representatives for their key accounts, including insititutions and group practices. The business plans are scored at year end by achievement of valuable activities with these customers, perhaps correlated with sales figures.

* The more fundamental question is "what is customer satsifaction" for healthcare professionals? The same types of questions come up in developemnt of PRM: often this means helping the professionals grow their practice, handle bureaucracy, manage their time, and better educate their patients.

This taxonomy of healthcare professional needs is a good place to start, whatever the evaluation tool and channel may be.