Organisations have invested in state of the art BI technologies to achieve competitive advantage. However, as more organisations successfully achieve their basic BI goals, the competitive advantage of BI is reduced, thereby eroding the long-term return on investment. As we move from a period of BI value creation to one of exploitation, how can you build on your existing BI investments and raise the game to once again out-smart your competitors?
To further extract competitive advantage from company data and build on existing BI investments to maximise returns, PA Consulting Group works with organisations to adopt an “intelligent” business intelligence (IBI) approach. An IBI approach integrates your data warehouse with predictive analytics and optimisation tools, and an intelligent learning component to provide automated real-time recommendations to support decision-making in your business.
Making the right decisions is easy, the gap exists in knowing what the right decisions are.
If your organisation has mature BI competencies you will already have vast amounts of knowledge to support management decisions. However, management may still not know what the “best” decisions are. The future of Business Intelligence is in solutions which bridge that gap; providing answers and recommendations rather than large amounts of knowledge in the form of reports.
An Intelligent BI solution is able to suggest an optimal course of action based on historical data by incorporating optimisation and prediction components as the basis of its recommendations, and a learning component to improve future recommendations. This solution will help your business managers make decisions that increase efficiency, productivity, and competitiveness.
The components that make up Intelligent Business Intelligence solutions are not new, in fact there are mature practices typically performed as silos in different departments or teams. Intelligent BI merges these mature practices into a new and integrated solution to maximise the value of your BI investment, thus improving your organisation’s competitive advantage in the market.
IBI is not an alternative to traditional BI, nor can an organisation leap-frog over a failed BI endeavor to reap the benefits of IBI, because success in IBI is predicated on an existing successful BI culture, practices and systems. Therefore, before embarking you need to ensure you have: strong support and sponsorship from business management; access to mature Business Intelligence competencies and practices; and lastly access to strong capabilities in predictive methods and optimisation techniques.
Delivering a greater return
PA has worked with a range of clients to apply these techniques to improve the return from investment. For example:
PA worked with a leading electric utility company in the US to help them reduce receivables and operational costs. PA was able to run collections scenarios in order to identify the optimal strategy for bad debt management to optimise revenue given budget and regulatory constraints
PA worked with a Leading Fast Moving Consumer Goods company to help them optimise profitability. PA was able to predict the impact of different combinations and timings of product moves, and factory closures in order to optimise profitability throughout our client’s EU operations and establish a five-year plan of the future number of factories and product mix.
To learn how we can integrate prediction and learning into your current BI capability to help you outsmart your competition, please contact us now.