7 Key Strategies for designing an Analysis based Company

by Linda Williams on February 16, 2011

In today’s fast changing environment being an analysis based company is critical to survival and profitability. Different industries will have different needs for analysis but there are some key components of an analytical strategy that are foundational to the majority of businesses. Here are the top 7 strategies for designing an Analytical Strategy:

  1. Taking an existing business model and innovating against it: Some of the most successful companies over the last decade have been innovators in their space: Netflix, Google, Amazon, Apple, and Priceline. Each took an existing model and made compelling technological and structural changes. This model can be used by other sectors to take advantage of emerging trends and technologies.
  2. Keeping aware of changes in the technical environment and quickly growing your offerings to take advantage of newly emerging trends: The pace of technological change has been steadily increasing and businesses that miss these trends miss opportunities to thrive. For example, Netflix moved from postal delivery of movies to downloads on laptops and WII based systems and now is moving into offering content on iPhones and iPads. Its competitors are scrambling to catch up as evidenced by Blockbuster’s recent filing for bankruptcy.
  3. Developing an easy interface for customers, customizable to their interests: Customers have come to expect near instant response to changing orders, tracking, and complaints. Using technology is part of this equation but it should also include value- added services such as presenting relevant suggestions on what else they may find valuable either in products or shipping options. This is seen in the use by Amazon and Netflix of making recommendations or suggestions for new orders given past orders.
  4. Focusing on listening to the customer to develop and improve your service; capitalize on complaints customers have with your competitors: One of the key differentiators for companies is their real (or perceived) focus on the customer. People have come to expect superior service and are quick to go to a competitor when they don’t get it. It is critical to develop robust customer service capabilities for handling questions, complaints, and surveying customers on speed of delivery. Social media blogs are now an expected forum for customers to use to exchange ideas and suggestions.
  5. Offering a variety of service plans/products at several price points: This feature was a key to Netflix’s initial strategy which was to get customers to try their new delivery service – who can’t afford $4.99 per month. Then there is a simple upgrade plan with many levels that is flexible to meet anyone’s needs. Again, the pricing plans are very customer focused. This same approach could be used for pricing services for a support service giving various price points each with a higher level of services.
  6. Designing logistics so as to ensure cost effective, fast delivery: Logistics are pivotal to any business providing a product especially as the business expands internationally. Any product business must be able to deliver their goods/services in a timeframe that not only meets their customer’s needs but exceeds them.
  7. Having a data-driven culture that supports your strategy, direction, and profitability: Successful companies rely on using data-driven information to strengthen their product offerings and emerge ahead of the competition. This includes being able to identify top purchasers based on profitability, sales by market segment, or potential. Having a robust marketing analytics program has now become indispensible to providing valuable insight to drive the company’s strategy, direction, and profitability.

In summary, the increasingly competitive environment makes it critical to gain the advantages that an analytically focused strategy can give to your company’s success

Written by Linda Williams who is partnered with Datacenter Trust and also has a Business Intelligence consulting practice where she provides businesses with assistance in performance measurement, process improvement, and cost reduction.
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