The tasks of data analysis are to develop rules for the formation and improvement of a theoretical understanding of the object.

To perform data analysis, this data must be collected. The data must be organized in a specific format. For example, the data table should contain an object and its attribute. Attribute may be as quantitative as not.

Data analysis methods are applied to the collected data. Next, the patterns are defined. Results should be based on identified patterns.

Classification of data analysis methods:

Principal component analysis, Independent Component Analysis used to form quantitative concepts.

Сluster analysis is used to form quantitative concepts.

Regression, Classification and Support Vector Machine Methods are used to form patterns and predict based on them.

Modern manufacturing requires data analysis to establish business processes, production, and more. For example, demand forecasting allows you to rationally purchase components. In result, The entire value chain is optimized.

Science and engineering is another area in modern high-tech manufacturing where data analysis techniques can be used. For example, the selection of chemical formulas for future medicinal preparations. Undoubtedly, this requires a large database of accumulated data. Hence a large number of experiments must be carried out. But do not think that only large commercial giants can afford to work with data analysis. For example, scientists and engineers involved in the synthesis of materials have created an open database that anyone can use. The biggest drawback is the inability to check the relevance of the data. However, good results have been achieved in this area.

by Dimerion Steelson

Сообщение Data Analysis for Manufacturing появились сначала на strategic.tools.

According to the survey, fundamental digitization is present in 23% of all enterprises in this area. 41% have a moderate level of internet engagement. A high or advanced level is held by 36% of SMEs. Customers’ engagement grows as a result of digital tools, according to the executives of organizations with a high and advanced level of digitalization. At the same time, such businesses have a fivefold improvement in their chances of attracting overseas clientele.

Companies with a high level of digitization have a better understanding of their customers.

New markets are opened as a result of innovation. There are many more fresh product and service development concepts. According to experts, businesses with a high level of digitalization are three times more likely to penetrate new markets.

Almost all businesses communicate using digital means. Sales management tools are used by less than half of SMEs – 40%**. Email – 75 %, company website – 68 %, social networks – 53 %, video conference – 36 %, and smartphone application are among the most popular digital communication platforms – 24 %. SMEs employ cloud-based technologies for internal management and logistics – 67 %. For these goals, corporate social networks proved to be the least popular – 19 %). Customer relationship management (CRM) tools accounted for 30% of the total, while intranets accounted for 24%, internal software to connect sales and supply-chain processes accounted for 21%, and enterprise resource planning solutions accounted for 20%.

The tools that businesses employ to manage sales are critical. Approximately 40% of SMEs sell their products online. They do this by using websites or marketplaces. 30% of all businesses have their own website. CMEs are sold through marketplaces in 20% of cases. 60 % of internet retailers use client data gathered for their own purposes in order to increase loyalty and revenues. 40% of small businesses sell them in their shops. Internal communications, logistics, and sales management can all benefit from digital solutions, as previously mentioned. Now let’s have a look at the advantages of corporate digitalization. The rise in customer satisfaction is the most favored (60 percent). This can be aided by a more personalized approach, customer service, chat bots, and a variety of other methods. A decrease in operational costs was observed by 22% of CMEs. Attracting new consumer segments, offering products and services, and so on are all major advantages.

The following were identified as the most important tools for attracting customers: the corporate website, social media, CRM, SEO, and a mobile app. All digital technologies are designed to help you earn more money. As a result, the key growth drivers, according to the poll, were existing customers – 61%, existing products or services – 41%, new customers – 80%, and new products or services – 31 %.

by The Editorial Board

^*Final Report, Deloitte Financial Advisory, 2019

^**In brackets is the percentage of surveyed companies that gave positive answer

Сообщение Digitalization of Small and Medium Enterprises появились сначала на strategic.tools.

In order to understand what PESTEL analysis is, below we present the main areas of analysis:

– P (Political)

– E (Economic)

– S (Social)

– T (Technological)

– E (Environmental)

– L (Legal)

Let’s take a look at each area of ​​analysis.

Political – this area includes such factors as the political environment and stability, trade policy, tax policy, foreign policy of the country, etc. Analysis of these factors makes it possible to determine how government policy affects the industry in which the company operates, and, accordingly, to assess the influence of these factors on the company.

Economic – this area includes factors such as interest rates, inflation, economic growth, exchange rates, unemployment rate, household disposable income, etc. These factors can have both direct and indirect impact on the business. The fact is that these factors can affect the purchasing power of the population, and, accordingly, are associated with changes in the models of supply and demand in the economy.

Social – a group of these factors is focused on the social environment and includes such elements as demographic indicators, cultural values, lifestyle of the population, etc. Analysis of these factors makes it possible to determine the current and future needs of the population, and to adapt products / services to the needs of specific customers.

Technological – this area includes such factors as the rate of technological growth, the emergence of new technologies and materials, services and products, i.e. all technological changes that may have an impact on business development. With technological awareness, a company can make proactive decisions, optimize processes and costs, produce competitive products, and more.

Environmental – this area consists of environmental factors that have recently become increasingly important due to the increasing importance of corporate social responsibility and focus on long-term sustainable growth. These factors include indicators of environmental pollution and emissions under established standards, recycling procedures, waste management, etc.

Legal – a group of these factors includes regulatory and legal factors such as various standards, legislation, regulatory requirements, etc., that regulate the company’s activities or affect the company’s activities, both domestically and internationally, if the company carries out an international activity.

Now we will describe how the analysis is carried out.

The first stage of the analysis is the identification of factors and the collection of information. Further, the factors are prioritized and ranked. The factors can be ranked by the method of weighted average assessments with the involvement of internal experts, and such parameters as relevance and impact can be used as assessment indicators. Such a parameter as relevance shows the ratio of a certain factor and the company’s business, i.e. shows how important a particular factor is for the company. Such a parameter as impact shows what impact a certain factor can have on the company’s business (positive or negative impact). The final weighted score for each factor is obtained by multiplying the relevance and impact parameters.

The results obtained are interpreted as follows:

– factors with high marks require special attention

– factors with a high negative value are business-relevant factors that can have a strong negative impact

– factors with a high positive value represent good business opportunities

So, the results of PESTEL analysis allow you to get a general picture of the external environment of the company and highlight the key factors that can have both positive and negative impact on the business. Thus, PESTEL analysis is an effective tool that creates the basis for making optimal management decisions.

Сообщение What is PESTEL Analysis and Why it is Needed? появились сначала на strategic.tools.

Probability is an estimate of the event occurring possibility. Probability theory allows you to link random events into a mathematical model. A prime example is the insurance business.

Insurance is a business that is entirely based on the theory of probability. For example, many types of car insurance depend on the driving experience. Why is that? Because insurance companies have statistics. They have calculated from this that the probability of accident with experienced driver is several times less than driver who received a license yesterday.

Product quality assessment is another example of the use of probability theory. For example, recently produced TVs were tested in different way. One type of test were performed as follows. TVs were turned on and they worked without interruption. Gradually, some of the TVs broke down. Thus, it was possible to draw a conclusion about what percentage will fail in the first year of operation, in the second, and so on. Manufacturer’s guarantees must base on assessment of product quality.

You can calculate the probability from statistics. Statistics can be learned from past experience. Everything is clear here. But what if there is no data. For instance, you are planning to open a store, but you do not know which one: candy, grocery or a store with gifts. Sample comes to the rescue here. You need to do a random sample study and approximate this data. For example, study the needs of 100 single people, 100 young families with children and 100 retirees. You will get the preference of each group. You will get the preference of each group. Next, find out how many people live in your area and what group they belong to. For example, in your area there are new buildings with a large number of children. They need a store with milk shakes, which is rarely needed by the elderly because of health problems and by single people, since they, unlike children, are often watch them figure.

The accuracy of your calculation (business model) depends on the amount of data according to the law of large numbers. Namely, the more data you use for a model, the more accurate the model will be. Owner of candy stall took the summer season sales statistics for the future prediction. It is obvious that the data will not be enough, since the Christmas holidays did not be included in the statistics.

The probability can be represented as a graph. The normal distribution is shown in the figure.

It seems that all of nature is under the influence of a normal distribution (for example, a hole in the road in the form of a normal distribution). How can this be used in business? For instance, in women, the average foot size in region A is x inches (and this is the maximum value of the distribution function). Why would a store buy a batch of the same number of shoes of each size? It is very right do order according to a normal distribution, which can be constructed using, for example, a sample or an sales experience.

Your model should always be revised and updated with new data. For example, in early 2019, you made a forecast based on probability theory that your physical store will receive 40 percent more customers in 2020 and you need to increase the area. According to the collected statistics for 2018 and 2019, your calculations are absolutely correct, but already in March 2020, due to the pandemic, everything collapses. And now it is better to direct your money to the development of an online store. Any model requires data updates that takes into account specific factors.

With such simple examples it becomes clear that the theory of probability can be very useful in business.

Сообщение Probability Theory for Business появились сначала на strategic.tools.

№1 Blogging

Bloggers are now the most influential persons. People know them, follow them and trust them. Brands want to leverage this trust.

When choosing a blogger, you should understand what you are advertising and what is the geography of your product. Maybe you shouldn’t pay for advertising to a blogger with a diamond button, but choose a local influencer. What is important for coffee shop from a small city in central Europe? Obviously, client have to knows that drinks coffee in a place where the famous person from his city goes. He or she feels that he belongs to the city get-together.

№2

Mobile Application

Use mobile application if it possible. It can be online ordering of meal or cab, company’s news, or a workout planner if you sell healthy foods.

There are 3 main steps to develop Mobile App. You should determine cases when App have to used by customers, shareholders, employees ans so on. Then development team design the key functionalities and user interface. And the last one is development the back-end Integration.

№3 Customer Relationship Management (CRM)

Solutions with Social CRM are successful in many cases. Social CRM is the use of social media to manage brand interactions with the customers and build long term relationships. Customers initiate the communications with inbound inquiries through social media. Advantage of CRM is 24/7 regime.

№4 Gamification

Powerful method to increase customer engagement is Gamification. One use game principles in ordinary life. Gamification is used as part of loyalty programs. This approach takes advantage of people’s desire to compete and be winners. Surely you yourself or someone you know collected chips for a knife at a discount. How much junk did you buy?

Gamification has long been part of the first three techniques. However, all 4 techniques can exist separately or complement each other, while enhancing the effect of customer engagement.

Сообщение 3 Plus 1 Customer Engagement Digital Techniques появились сначала на strategic.tools.

The SWOT technique helps to analyze different objects of the business process: from the product to the company’s logistics. Moreover, you should not forget about the opportunity to study a competitor using SWOT

Strength

These are the research subject properties that provide a competitive advantage in the market. This is your unique offer.

Weaknesses

Anything that holds back profits and business growth go in this section.

Opportunities

In my opinion, the most difficult point to analyze. After all, the sources of business growth are not always obvious. Especially if traditional methods are exhausted. It is not enough to research the trends and experiences of competitors. Two tips come to mind. First, look at other areas of business.

All the best is usually at the junction, for example, of industries (for example, the use of augmented reality when trying on sneakers online).Second, you team can do brainstorm. Gather a creative persons and generate ideas. Write down everything that comes to mind, and then discuss it.

Threats

Company threats are negative factors that can weaken the competitiveness of the business in the market. Everything can be here – from a pandemic to the dismissal of a key employee. It is important to determine the most significant factors for the selected research object. Obviously, factors for the produced product and for the distribution process analysis are different.

Result

As a result, you should have a well thought out plan of action. This plan should have all business strategy attributes. For example, you should include the scope of work, deadlines, tools, competencies, etc.

Сообщение Briefly About SWOT Analysis появились сначала на strategic.tools.