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Business Transformation in Action

Joe McKendrick

Six Processes Where Analytics Can Make a Difference

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We know everyone wants to compete on analytics. But before we compete, we need to decide what, exactly, should be analyzed? Mike Meyer, senior consultant with The Robert E. Nolan Co., has some suggestions:

  1. Benchmarking: "Benchmarks are often thought of as an external comparison (e.g., relative to peers, competitors, or the industry), but benchmarks are just as valuable when used internally to analyze different geographic locations (such as service centers or sales offices) to determine performance strengths, weaknesses, and best practices."
  2. IT Assessment: "IT costs and allocations are often not clearly understood."
  3. Cross-Functional Expense Views: "Business analytics tools can provide new and different views of expenses that can, in turn, provide new insights into opportunity areas."
    Unit Costing: "Marrying expense and volume data from different perspectives can create some interesting insights into unit costs... The global view is a bit more complex in that it requires allocations of overhead, but it can provide a true view of what a function or process costs an organization."
  4. Product Costing: "Understanding costs at this level can help to ensure that products are priced effectively and profitably in the marketplace, and to determine when it makes sense to under-price a product in order to gain market share."  
  5. Incentive Plan Financial Soundness: "Business analytics data can be developed for key business metrics and corresponding incentive payouts. These become the basis of incentive plan fine-tuning or redesign to ensure ongoing financial soundness and ROI."

In this blog (formerly known as "SOA in Action"), Joe McKendrick examines how BPM and related business and IT approaches can promote business transformation.

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. View more


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