BusinessAnalytics Implementation Plan Part 1
Table of Contents
Advantages ofBA 4
Disadvantagesof BA 4
Challenges Faced 4
Business Analytical Techniques 5
Regressionmodeling analysis 5
Time seriesforecasting 6
Implementation Plan 7
Backup Implementation Plan 7
Thisis a proposal of a business analytics implementation plan for theGlobal Company. Global is a design firm that seeks to implementbusiness analytics in its daily operations. The firm already boastsof having the proper technology required. This equipment is used indifferent operations, but are yet to be applied in the analysis ofdata for accurate business decision making. The organization’sdatabases are separate from each other and do not relate in any way.This lack of connection hinders the systematic manipulation of dataand information. The company only has a single location. However, themanagement is considering expansion by adding another location withinthe same state. They are somewhat concerned about how theimplementation of business analytics will benefit the firm.
Businessanalytics refers to the practice of systematically exploring anorganization’s data with the purpose of analyzing it statisticallyto enable efficient decision making in relation to the businessmodel. It is, therefore, useful in automating and optimizingenterprise processes. This system of operation finds use in differentareas such as data exploration to seek patterns, explanation of someresults and forecasting future trends (Kadre & Reddy, 2015).
Businessanalytics helps a company align itself with its strategic plan. Everybusiness has objectives and goals that they seek to attain within aspecified time (Bartlett, 2013).
BAbenefits an organization by enhancing smart decision making. Throughthe assessment of the company’s data and information, severalchoices that can affect the fate of the business can be made quicklyand accurately (Bartlett, 2013).
BAhelps a firm to keep up to date with the changing market trends.Through the proper analysis of information of the customer base, acompany can realize that consumers’ preferences might be shifting,and they can quickly alter their products to suit the customers’needs (Bartlett, 2013).
Themain disadvantage of business analytics is the initial cost. Thehardware and software needed to setup this system can be veryexpensive. The design firm can get credit from a bank to install thissystem (Bartlett, 2013).
Theimplementation of the BA might fail at times. The reason for thisfailure can be attributed to lack of skilled personnel. The solutionwould be for the company to hire skilled workers that would managethe changeover from the previous to the new system without anyproblems (Bartlett, 2013).
Theinformation and data collection needed for the creation of a workingbusiness analytics model can take a lot of time. Thus, the firm mightfeel like they are wasting precious time that could be used to createmore business. The best way to handle this setback would be to createa dedicated team that would efficiently gather all the requireddetails (Bartlett, 2013).
Aprimary challenge that can be faced while implementing the BA systemis obtaining the startup capital. Due to the expenses incurred increation and implementation of business analytics, Global’smanagement may shun this venture. However, by seeking financialcredit from a bank, the necessary funds can be obtained, thus, makingthe entire process achievable (Rathore et al., 2015).
Theimplementation of this system might lead to price fixing by the firm.Thus, customers will have to pay more for the products and services.This situation might make the marketing team feel that they mightlose some of their consumers. The best approach is to assure themarketing department that the business analytics system will create abetter customer service, which, in turn, will end up attracting morecustomers (Rathore et al., 2015).
Lossof privacy is another challenge that this project is expected toface. The volume of information collected for the system’soperation will have personal details of almost everyone involved withthe company. Security of this data should be provided so that theinformation will not be accessible to unauthorized people (Rathore etal., 2015).
Thereare several techniques that a business analyst can apply. Eachtechnique depends on the specific structure of the organization, andthe products and services they offer. The following three techniquesare suitable for Global Company.
Regressionmodeling and analysis
Here,the analyst will collect data of the consumer base and study it tocreate a linear graph of the variables involved. It helps inunderstanding past behavior and trends. The benefits are that themodel is easy to understand, and I can be easily updated to suitchanging scenarios. The disadvantages are that it is time-consuming,and it can require frequent updates since trends rapidly change(Kadre & Reddy, 2015).
Datapoints are gathered relating to the consumer’s opinions overspecific periods in a year and are this information is then used topredict the future behavior. The advantages of this technique arethat it becomes easy for the firm to fulfill the customer’s needs,and the firm is likely to stay ahead of its competition. Thedisadvantages are that the information needed for proper forecastingcan be very bulky, and this technique is less accurate since people’sattitudes are hard to predict (Kadre & Reddy, 2015).
Thistechnique can be used in the marketing department. The marketing teamwill show different designs of a product to a select sample of theconsumer base. The response to the different designs of the productwill determine its performance in the actual market. The advantagesare that this technique helps in efficient marketing decision making,and the firm can predict the expected performance of a product. Thedisadvantages are that the results might be erroneous if biased testsubjects are used and this strategy can be costly especially whenmany designs of a similar product are needed (Kadre & Reddy,2015).
Theimplementation plan should cover four main areas of the project. Allthese layers are crucial for the overall operation of the BA systemto function efficiently. These stages are the business layer, theanalytical layer, the capability layer and the technological layer.Every stage is crucial in determining the expected outcomes andensuring that there is no part of the system that will malfunction(Schniederjans et al., 2014).
Thebest way of changing over to the new system would be through the useof a parallel changeover. The new business analytics system will beincorporated into the firm’s operations while still maintaining theprevious system. This method can be expensive, but it is the safestsince if the business analytics software fails to work well with theavailable technology, the previous system can work as a safety net(Schniederjans et al., 2014).
Thebackup proposal for the implementation of the business analytics intoGlobal firm would be to apply the sequential changeover strategy.Unlike the parallel changeover, this strategy is less expensive. TheBA is applied to a different department of the organization such asmarketing, and its performance is assessed over a period. If theoutcome is satisfactory, it can then be gradually included in theother sectors as well (Schniederjans et al., 2014). The best place tofirst apply business analytics would be in the marketing department.
Asmore businesses and companies take to business analytics as anefficient way of improving their operations, Global Company will beadapting to the changing times. The benefits of adopting this newsystem are many. Overall the company will be able to generate morerevenues and also make better business decisions. Thus, the newventure will be worthwhile especially after the second location isopened up for expansion.
Bartlett,R. (2013). A PRACTIONER’S GUIDE TO BUSINESS ANALYTICS: Using DataAnalysis Tools to Improve Your Organization’s Decision Making andStrategy. McGraw Hill Professional.
Kadre,S., Reddy, V. (2015). Practical Business Analytics Using SAS: A Handson Guide. Apress.
Rathore,S., Panwar, A., & Soral, P. (2015). “Critical Factors forSuccessful Implementation of Business Analytics: Exploratory Findingsfrom Select Cases.” International Journal of Business Analytics andIntelligence.
Schniederjans,M. J., Schniederjans, D. G., & Starkey, C. M. (2014). Businessanalytics principles, concepts and applications: what, why, and how.Pearson Education.