Reboot your business through data analytics

The COVID-19 pandemic has caught many businesses off-guard. Manual processes that served Philippine companies well before are now impossible to carry out in one of the longest lockdowns the world has ever seen. According to Google’s Community Mobility Report, the enhanced community quarantine limited Filipinos’ movement by as much as 80% in terms of retail and recreational activities. This left businesses struggling to make the agile shift from physical to digital.

Unfortunately, most companies have postponed digital transformation for quite some time. And while it may seem uneconomical to do so at this period, it is now more important than ever to invest in technology and data analytics. According to Nielsen’s estimates, a seven-fold return on investment can be realized from the appropriate analytics program coupled with relevant data, right approach and insights. And, with e-commerce projected to grow at 37% current value compound annual growth rate (CAGR) from 2019 to 2024 according to Euromonitor, Philippine companies should not be left behind in the channel shift, especially with all the uncertainty going on.

Through the use of data and insights to drive decisions, companies can manage their operations in this new business environment, while meeting the needs of their people and stakeholders.

Here are just some ways that data analytics can help businesses emerge stronger in the long run:

Manage liquidity and risks

A short- term cash flow forecasting dashboard with sensitivity capabilities would be very useful in identifying any liquidity pinch points and headrooms (e.g. discretionary spending) and can identify potential funding gaps quickly. Further, an effective enterprise resource planning (ERP) system will help automate dynamic discount models for different customer categories. Lastly, a very good credit scoring model can also help companies identify appropriate terms and customized collection policies for certain customer groups.

Demand forecasting and supply chain management

A key challenge in this crisis is that companies are blind to their customers’ pent-up demand. Supply chain issues brought by the lockdown have also led to either significant write-offs of inventory or disruptions in the manufacturing process. The use of predictive analytics can help businesses have better visibility on demand per consumer group, per site or location, per product type or segment. They can also effectively manage supply and distribution through the use of geospatial analytics.

Workforce management and safety

With the pandemic reshaping the way we work, it is inevitable that a majority of employees would continue to work remotely, while those in the frontlines continue to brave the new normal. This makes productivity and safety on top of the minds of every business owner. PwC has developed a contact tracing app that uses geofencing technology that allows identification of any individuals that may have come in direct contact with a potential carrier. On the other hand, for those working remotely, productivity apps help monitor employee tasks and keep track of milestones and progress. This also ensures employee engagement during the crisis period.

Digital connection with your customers

Through sentiment analysis, businesses could identify the best channels to use in reaching out to customers. Companies may also identify impacts to the brand as well as consumer confidence in the face of sudden shifts in business model brought by the pandemic through analyzing searches, tweets, likes, and other social media posts or feedback. A thorough analysis of their purchasing patterns using online and offline channels will help companies develop cross-selling or upselling opportunities in order to increase revenues.

Scenario planning

Future-proofing a business means being able to forecast different scenarios and having ready plans to adapt to those different situations. Using various econometric models that can predict different crisis scenarios (e.g. deep contraction with quick recovery or oscillating contraction and recovery), combined with different variables such as consumer behavior, consumer sentiment, disposable income, mobility and location (e.g. areas under total lockdown or more relaxed) allow an agile pivot to the new normal.

Nowadays, your database is no longer simply a repository of information. With uncertainty continuing to plague the business environment, now is the time to assess what data your company currently has and what is available externally, your current operating processes, and be able to adjust accordingly to limit any adverse impact that this crisis may bring. In these times of economic instability, you will need data analytics to help you act with urgency through data-driven measures.

Organizations should automate where they can, upskill employees, and build on their data capabilities. By investing in data analytics and preparing your workforce now, you can help your business accelerate and come out stronger and more resilient in the future.