In order to ‘explore your business’, it is crucial to first establish well-defined business objectives and key measures for success to gain the maximum value from your business analytics projects. These should never be approached in isolation, but should be aligned to support strategic goals and objectives
This process may include defining or isolating one or more business objectives (such as reducing customer churn or increasing revenue). Quantifiable measures need to be established (for example this measure may be the monthly customer retention rate). Targets for success will need to be identified (for instance increasing the customer retention rate from 80% to 90% by a certain date). Heads of business processes need to be involved and engaged with to ascertain and assess their information needs for expectation and delivery of actionable knowledge.
The next step is to identify all data sources, information and resources available. These can be selected based on expectations by the business users. The quality of data needs to be analysed to assess its suitability. Business analytics models are only as good as the data used to create them. Good sources of data contain a large number records and other variables so that patterns and relationships in the data can be drawn to have significant business value.
A variety of different data types can be used to build analytical models, (these can be transactions, demographics, data summaries or many other types of data). A large majority of this data is already stored within a data warehouse, however, it may be necessary to search for data across multiple systems.
At Pairview, we believe that this exploratory stage is the foundation to any effective business analytics project for organisations wishing to innovate and fully exploit all the information they have at their disposal.