Anil Kaul & Sudeshna Datta
The life-threatening novel coronavirus has made its strong ripple effects felt beyond the health sector. It has jolted various businesses across the globe. It has been associated with a surge in unemployment and a potential recession to provide a fillip to 5G and working remotely. All tech companies have reacted differently to the situation. So what role can analytics play in how a company deals with such a crisis?
Analytics can help businesses in five ways
At present, we have two options. We can sit back and let it pass or we can spring into action by utilising analytics to make a difference. In fact, one can deploy analytics at this very moment to garner better results. Here are five ways data analytics can influence:
- A common information source – To curb contrasting information or misinformation, it is vital for the administration to create and maintain a single platform to disseminate information. A common shared database that provides accurate and critical data which aids in rapid decision-making on business challenges and uncertainties.
- Predicting possibilities – Analytics can be brought in to predict possible results of the present situation. For eg, what if the crisis continues for longer than projected? Businesses can fool-proof their strategies by considering either side of the outcome.
- Comparative study – What steps did others in the business take when faced with a similar situation? Studying competitors’ action or analysing strategic approaches of other businesses across geographies, markets and industries could support in formulating an effective game plan.
- The course of action – A thorough understanding of your markets, customers and channels may prove a game-changer, at such unprecedented times. Knowing what market and areas will be affected more and focusing on preserving their status by incorporating short-term or targeted responses for some markets and broader sets of action for others. Analytics can assist you in devising effective steps for varied products, markets and geographies.
- Managing resources – Analytics is instrumental in developing a course of action to curb expenditure (restrict or pause media spending) and not drain the revenue sources. The data can be used to determine the demand at the SKU level which can aid in limiting the production and sourcing accordingly, as per the new plan. Data analytics makes changing the operational plan to optimise production capacity and management, etc. easier.