MRKM 61: Fundamentals of Business

Analytics

Designing and
Building Analytics

MRKM 61: Fundamentals of Business Analytics

Business Performance Tracking

Execution and Measurements

Overview[1]
In this Module we will focus on the execution and measurement pillar. Our
goal is to elevate the discussion on how to monitor, measure, and
analyze the business performance of actions taken by the
organization.
The BASP framework is made up of the following pillars:
Business
Challenge
Pillar

Data
Foundatio
n Pillar

Analytics
Implementation
Pillar

Execution and
Measurement
Pillar

Insights
Pillar

Innovation
Pillar

Distribute
d
Knowledg
e

Overview[1] (continued)
Exhibit 8.1: Business Performance Five-Step Process
Analytic
Fundamental
Questions

Analytic
Execution

What is
Performance
Checking?

Why track
Business
Performance?

Business
Analytics
Questions
that
Analytics
aims to
Address

Putting
Analytics
into
Execution

Definition
of
Performan
ce
Tracking

Outline
the Main
Reasons
why One
needs to
Track
Business
Performan
ce

Step 1

Step 2

Step 3

Step 4

Performance
Tracking Cases

Performan
ce
Tracking
Examples
for
Multiple
Departme
nts in any
given
Organizati
on
Step 5

MRKM 61: Fundamentals of Business Analytics

ANALYTICS' FUNDAMENTAL
QUESTIONS

ANALYTICS' FUNDAMENTAL QUESTIONS[1]

Fundamental concerns in analytics questions are:
Reduce cost
Increase market share
Increase customer retention
Increase customer acquisition
Increase profitability

ANALYTICS' FUNDAMENTAL QUESTIONS[1]

(continued)
Advanced Business Analytics Questions

MRKM 61: Fundamentals of Business Analytics

BUSINESS PERFORMANCE
TRACKING

BUSINESS PERFORMANCE TRACKING[1]

Key questions to answer business reports to measure the results of
analytic based actions.
Have we seen any changes in the way that sales
representatives cover their territories?
Have we seen any increase in customer retention?
Have we seen any increase in customer acquisition?
Have we seen any increase in the average spend per
customer?
Have we seen any increase in customer up-sell?

Benefits of Performance Tracking [1]

Return on investment (ROI) tool
Organizational goal settings and reinforcemen
Change management engine
Adoption, incentives, and rewards
Enhanced accountability
Value of leading with analytics
Progress tracking and updates for stakeholders on the value of
analytics

Return of Investment Tool[1]

Performance reporting is a tool and a manner by which one can justify
investments and provide relevant meaningful answers to the following costbenefit business questions:
Was
Was
Was
Was

it
it
it
it

worth
worth
worth
worth

investing in business intelligence resource tool solutions?

spending money in marketing for traffic?
it to pay for a TV ad?
it to run a marketing CRM campaign?

Organizational goal settings and reinforcement[1]

Helps set up some goals of the business intelligence solutions
Generates people's interest and belief across the entire organization

Change Management Engine [1]

Offers the ability to properly implement analytics and leverage it
Provides an opportunity to assess your company's capacity to undertake
analytics implementation
Helps identify the different types of risk, in terms of resources, to achieve
the target goals

Adoption, Incentives and Rewards

Measures how the organization manages change as a whole and embraces
new processes
Increase the adoption of analytics
Help sell analytics to other groups by sharing what is working and other
best practices

Enhanced Accountability [1]

Setting up clear goals to be achieved and measuring the results will
definitely reinforce accountability at every level of the organization that is
involved
Drives a change in behavior and usually helps get things done

Help redefine roles and responsibilities, based on business expectations on

achieving the business's core objectives
Reinforce accountability, productivity, and efficiency by improving
ownership and appraisal

Value of Leading with Analytics [1]

Helps demonstrate the following attributes of advanced analytics:
validity, reliability, credibility, and functionality
Helps reinforce credibility and visibility with its underlying results. It helps
you ensure that the entire organization sees the added value of analytics
Shows the contribution of everyone in the organization toward the end
goal.

Progress Tracking and Updates for Stakeholders

on the Value of Analytics
Gives a company the opportunity to assess and improve analytics quality,
as well as people's underlying actions and activities
Helps a company evaluate whether the changes dictated by the analytics
solutions are working
Helps a company track progress and improve the quality of the service
delivered to internal and external customers.

MRKM 61: Fundamentals of Business Analytics

ANALYTICS AND MARKETING

18

ANALYTICS AND MARKETING[1]

19

Responsibilities of Marketing [1]

Depending on the corporate structure, key responsibilities of the marketing
department may include
Owning the brand
Managing customer relationships
Focusing on customers' experience
Planning the overall company business strategy
Managing the company's market mix: product, promotion,
placement, and price
Supporting sales, service, and distribution partners
Managing the competitive strategy
Managing external company communications

Business Performance Tracking

To be effective, business performance tracking should be an enterprisewide initiative culture that enables intelligent execution across all
departments of the organization. Therefore, performance tracking and
execution should enable
Customer service to optimize call center and staffing levels,
identify problem areas that need attention, and respond more
effectively to customer service calls.
Sales to better manage the pipeline and track key opportunities,
plus effectively forecast revenues and transactions.
Marketing to monitor and measure the efficacy of CRM campaigns
and make some adjustments to maximize the response rate.

ANALYTICS AND MARKETING[1] (continued)

The main objective of analytics is to address key business
challenges, and business performance analytics is about benchmarking
how you performed against your goals.
After anticipating the future with analytics, performance tracking will
provide a state of

22

How did you do?

How are you doing, and why?

What should you do?

References
[1] : Isson, J.P. and Harriott, J. (2012) Win with Advance Business Analytics

23

MRKM 61: Fundamentals of Business Analytics

END OF LECTURE

24