Top 3 Business Stresses of Global Financial Crisis
In times of global market change or chaos there is a natural tendency for customers to demand more value from products they consume which manifests three key stresses in the business that produce or re-sell the products where they buy.
Fear and Change The most significant impedement to changing metrics is fear of loss which impacts businesses much more than customers who change their behaviours because they demand more. Business fears losing customers though in these times of global financial crisis it is a misguided fear as their customers have changed how they measure success and only the businesses that change how they measure will align with the new customer reality. Businesses that fear changing their measures, like the gambler that refuses to change their lucky shirt or underwear they wore when they won big may soon get a big surprise.
Old Measures create Risk Risk or rather the fear of the consequences to the exposure of risk is a key top-of-mind topic for good executives and oddly enough old measures actually create risk by exposing executives to risk by not making them aware that things have changed and fast action is required to retain customers or successfully deliver a project. Predictive Analytics & Old Measures Business is moving rapidly from older business intelligence software and techniques to embrace predictive analytics to adapt to the turmoil in global markets but unless their customer and business measures are re-aligned or tuned predictive analtyics will take businesses quickly to a place where the customer no longer appreciates. Tuning Measures with Predictive Analtyics Predictive analytics may be used to tune business measures by helping the business understand the changes in customer behaviours and this is done by starting with the customer and then tuning internal measures accordingly. How is this Done The first stage of using predictive analytics to tune measures is to understand the impact of measures in three steps. Once we understand the process and software impact of measures they may be tuned to reflect new customer or market need and then we apply predictive analytics to understand when and how measures might change in the next 12 months. Focusing on moving to measures that reflect customer and market needs today is a big improvement for most businesses big or small and predictive analytics combined with scenario analysis or future customer needs then anticipates how to tune measures to exploit future opportunities. Ask us about reviewing your measures and using predictive analytics to determine which measures to tune to reflect the present and future needs of your business and customers. Cheers, Nick Trendov @eDiscovery_ @ResonantView @SpeedSynch nick@scenario2.com @Scenario_2










