Module 4

Business Performance
Business Performance Management,
Analytics in Business Support
Functions & Analytics in Industries
Content
• Business Performance Management:
▫ Business performance management cycle
▫ KPI, Dashboard

• Analytics in Business Support Functions:

▫ Sales & Marketing Analytics
▫ HR Analytics
▫ Financial Analytics
▫ Production and operations analytics

• Analytics in Industries:
▫ Telecom, Retail, Healthcare, Financial Services
Introduction
• Analytics can be defines as the computational field of
examining raw data with the purpose of finding new
insights, drawing conclusions to support business decisions
and actions.
• To build analytical applications for businesses, one needs to
have different competencies.
• Analytics applications in various areas of the business vary
widely across companies.
Analytics in Business Support Functions
Sales &
Marketing
Analytics

HR
Analytics

Financial
Categories Analytics

Production Telecom
and
operations
analytics
Retail
Other
Industries
Healthcare

Financial
Services
Sales & Marketing Analytics
Gauging and optimizing performance
 Introduction
• Sales and marketing analytics are essential to unlocking
commercially relevant insights , increasing revenue and
profitability, and improving brand perception.

• Sales and marketing considers all marketing efforts across

all channels over a span of time – which in essential for
sound decision making and effective program execution.

• Sales and marketing analytics provides real time, fact-

based insights into the entire sales process.
• All enterprises leverage IT for many marketing
activities. In its most basic form, marketing
managers study reports relating to the customer
segments, revenue mix , marketing expenses
trend , marketing campaign performance and
so on.
 Area of analytics in Sales & Marketing
1. Analytics on Consumer Behavior :
Analyzing consumer behavior would help us understand when , why ,
how and where people do or do not buy product. By understanding this
, we can bring in changes to product and marketing strategy helping us
attract more customers.

2. Marketing Mix Analytics :

Analyzing returns on marketing expenditure across various channels
would help us evaluate the effectiveness of each of the marketing
activities. These insights will help us to reallocate resources from a
less effective to a more effective channel.
3. Sales Force Analytics :
Analyzing sales process and team will help us diagnose the
barrier to sales force performance. It will enable us bring more
efficiency in sales force by providing us insights on issues like
optimum sales territory size, the quality of leads and monthly
target forecasts etc.
4. Sales Pipeline Analytics :
Analyzing the flow of the sale through several stages would
help us find any problems in the sales cycle. It will help us
evaluate an optimal time period for each stage to occur so that
you can make sure your customer experience a quick and
efficient transaction. It also helps determine the capacity of your
sales process.
5. Analytics on communication Content :
Analyzing consumer behavior in the communication
content helps us observe how consumers react to our
marketing material. This gives us insights on how to
draw consumer’s attention towards our products and
will enable us convey message clearly.

6. Web Analytics :
It helps us understand user behavior on the web and
consequently generate more sales. It will provide
insights to enhance the look and layout of your website
and make a more user-friendly.
 HR Analytics

UNDERSTANDING AND OPTIMIZING

THE PEOPLE IMPACT OF YOUR
ORGANIZATION
 Meaning of HR/Human Capital Analytics

• Human Capital Analytics or Human Resources

Analytics or People Analytics or Talent Analytics.
• It is used to provide an organization with insights for effectively
managing employees so that business goals can be reached quickly
and efficiently.
• It also delivers insights about a company’s people, their
preferences , what makes them more effective and their
contribution towards the success of business.
• This data can be used to determine what makes employee happy
and more productive.
 Meaning of Human Capital Analytics

• The challenge of human resources analytics is to

identify what data should be captured and how to use the
data to model and predict capabilities so the
organization gets an optimal return on investment (ROI)
on its human capital.
 Areas of Human Capital Analytics

1. Workforce planning analytics :

It is used to acquire talent at the right time for right
positions. Human capital analytics will lead to
identification of positions that drive business results
and critical competencies need for those positions.

2. Workforce Talent Development Analytics :

It is aligned to business goals.
3. Workforce Sentiment Analytics :
It is used for enhancing employee engagement.

4. Workforce Utilisation Analytics :

It is used to ensure optimised deployment of right
talent in right functions.

5. Workforce Compensation Analytics :

It helps to optimise benefits using big data sources
including performance and benchmarks.
What are the Benefits of HR/Human
Capital Analytics?
• They can redirect the amount they spend to day from
the wrong employee initiatives to more beneficial
employee initiatives.
• The investments decided will result in tangible
outcomes that benefit shareholders, customers and
employees themselves.
• The returns on such investments can be quantified.
• HR departments can be held accountable to impacting
the bottom line.
What is Finance?
• Art and Science of managing money.

• Finance is concerned with the process, institutions,

markets and instruments involved in the transfer of
money among and between individuals, business and
governments

• It can be subcategorized into 3 types:

 Personal Finance
 Corporate Finance
 Public Finance
What is Financial Analytics?
• Financial analytics is the creation of ad hoc analysis to
answer specific business questions and forecast possible
future financial scenarios

• Financial analytics is a discipline that helps to take

multiple views of a company’s financial data and use it
to gain insight and take action.

• Useful in the context of profitability - a very important

component of business success and performance
management

• Achieving better business performance.

 Benefits of using Financial Analytics in
Business
• In today's data-intensive market
landscape, analytics plays a
significant role in keeping a
business agile and competitive.

• Financial analytics is one key

area that enables organizations
across industries to truly predict
the future of their strategies and
goals, and take mindful decisions
that can foster their growth.
 Benefits of using Financial Analytics in
Business
• Today’s businesses needs timely information that helps the business
people to take important decisions in business.

• Financial analytics focuses on measuring and managing the tangible

assets of an organization such as cash, machinery and others.

• It gives a deeper insight about the financial status of your business and
improve the profitability, cash flow and value of your business.

• Financial analytics will help in making smart decisions to increase the

business revenue and minimize the waste of the business

• Accounting, tax and other areas of finance are having data warehouse

which is combined with analytics to effectively run the business and
achieve the goals faster.
Popular Financial Analysis
Software
• IBM Cognos finance
• Oracle financial analytics
• SAP ERP Financial Analytics
• SAS Business Analytics
• NetSuite
Key Financial Analytics that every
organization should work with:
• Predictive Sales Analytics (PSA)
• Product Profitability Analytics (PPA)
• Customer Profitability Analytics (CPA)
• Shareholder Value Analytics (SVA)
• Cash Flow Analytics (CFA)
• Value Driver Analytics (VDA)
• Predictive Sales Analytics (PSA)

• Sales revenue is the backbone of any organization. 

• Here, predictive sales analytics applications come handy.

It enables you to evaluate how effective your forecast is,
and also, to augment your sales pipeline in approaching
years.

• Organizations making use of PSA tend to adopt an array

of competencies and tactical approaches to gain learning
about their customers.
• Product Profitability Analytics (PPA)

• In order to calculate the profit, you will need to look at

your product and its costs separately, and for sure, this
could be a difficult and time-consuming task.

• PPA enables you to gain quick insights across all your

offerings so that you can make an informed decision for
your business.

• For example, if you get to know what products customers

demand the most, then you can promote those products
strategically.
• Customer Profitability Analytics (CPA)

• A company should have a clear data about who your

potential customers are is always sage.
• A fair comparison between profitable and non-profitable
clients helps in doubling the revenue generation.
Remember, there are two kinds of customers - one that
brings value to your organization, and the other one that
brings risk to your organization.
• Extracting this detailed information about the customers
will the best complement for your future marketing
efforts.
• The best thing is this you can do it with the help of CPA as
it smoothly enables you to analyze the behavior of
customers of both kinds.
• Shareholder Value Analytics (SVA)

• How successful your strategies are will be determined by

the interpretation of the final outputs evaluated by
media, experts, stakeholders, and shareholders.
• SVA helps in adjudging the business value on the
grounds of what returns a business provides to its
stockholders.
• It also determines the percentage of risk and value
delivered to the shareholders.
• Cash Flow Analytics (CFA)

• Your business needs capital to operate. Predicting inflow

and outflow of capital is important to ensure the health
of your business.
• Herein, CFA and regression analysis tools can help in
determining how much capital you may need for future
investment.
• This is not where the CFA benefits end up. Managing
cash flow and fostering corporate functions also fall
under its responsibilities.
• Value Driver Analytics (VDA)

• Your goals will determine your value and aid you in

meeting your strategic business objectives.
• In connection with this, VDA will help you analyze
these strategic business drivers so that the expected
outcomes can be achieved.
• It is important for CFOs to embrace financial analytics
so that they can achieve their organizational goals.
• Financial analytics provides in-depth and proactive
datasets that offer better insight into profit, cost, and
market trends, thereby ensuring a rewarding experience
for your business.
Production and operations analytics
 Production analytics
• Production analytics is a type of analysis in
which analytics will be done on products’ cost
and design
Operational analytics
• Operational analytics is a more specific term
for a type of business analytics which focuses on
improving existing operations.
• This type of business analytics, like others,
involves the use of various data mining and data
aggregation tools to get more transparent
information for business planning.
• Big data and predictive analytics are used by
business and industries to change and improve
the processes and operations majorly.
• Operational analytics enable the businesses to
analyze the machine generated sensor data and /
or production data to provide real-time insight
into enterprise operations.
Production and operations analytics

• It is the increased availability, and integrated use

of relevant data by connecting all products,
resources, and enterprises involved in the value
chain.
• It includes the ability to generate additional value
from available data and for maximizing customer
benefits.
• This requires a fundamental transformation of
processes, the product, and service portfolio as
well as the existing business models.
• Production & Operational Analytics uses big data
technologies for the latest applications to
analyze machine data and gain insight, which
gives better business results. The data generated
by machines collected by the IT systems contain
valuable insights.
THANK YOU