Module 16 - The Role of Data Systems and Tools in Internal and External Analysis.pptx
- 1. The Role of Data Systems and Tools in Internal and External Analysis 16
- 2. Sick Leave Did the percentage of sick leaves change over time? Time until positions can be re-staffed Is it more difficult to re-staff positions or do you need to pay more to convince candidates? Agony Box Do your employees have the chance to mention important topics anonymously? Staff Interviews Do you conduct regular Staff Interviews? Are they open to for constructive feedback? Initiative Applications Do less people send you initiative Applications? A large number of indicators for crises in early phases can be determined from the personnel department. Employees usually have a very sensitive feeling for the company - even if they do not articulate it directly. With relatively little effort you can generate important information about the state of the company – especially when you review them over time. Information Sources in the Company: HR Online Ratings as Employer Do you track online platforms for ratings of Employers? Employee surveys What are the topics your employees rate as important? Feedback Culture Do you have a constructive, open company culture? Did Mood and Motivation change?
- 3. The R&D Department or the person responsible for developing the innovations that are essential for the sustainable success of the company. Therefore, it is especially important to monitor if there are signs of deterioration in performance. Some ways you can monitor R&D performance and reveal any first warning signs are…. Information Sources in the Company: R&D # Time needed to prepare Innovations / Patent Claims # Number of Engineers / Staff with PhD Degrees € Invested in R&D per € of Sales € Cost savings achieved due to R&D / Innovations # New Products per R&D Staff # First to market products # Number of Product Development Products in Pipeline
- 4. Compliance Rate Understand if suppliers fulfill your requirements Number of Suppliers Track your level of dependency towards your suppliers Purchase order cycle time Know who to address your urgent orders to Supplier Availability Measure suppliers’ capacity to respond to demand Supplier Defect Rate Evaluate your suppliers’ individual quality In many business models, purchasing represents a central cost block and the supply chain is a key success factor. Nevertheless, surprisingly few companies have a transparent overview of the scope of data that you should be monitoring the purchasing area. Information Sources in the Company: Procurement Cost of Purchase order Control the internal costs incurred by each purchase Procurement Cost Reduction Streamline the tangible costs savings
- 5. Production Volume Track the quantities that you can produce Production Downtime Analyse and optimise your maintenance Production Costs Monitor the costs implied in the production Rate of Return Measure how many items are sent back Right first time Understand the performance of your production process An operational KPI is a quantifiable value expressing the business performance in a shorter time-frame level. They are used in different industries to track organisational processes, improve efficiency and help businesses to understand and reflect on the outcomes. Choosing the right KPIs is of course dependant on your business model. Here are some examples of indicators from manufacturing: Information Sources in the Company: Operations Asset Turnover Acknowledge your assets in relation to your revenue Unit Costs Track and optimise your unit costs over time
- 6. Shipping Time Spot potential issues in your order fulfilment process Order Accuracy Monitor the degree of incidents Delivery Time Track your average delivery time in detail Transportation Costs Analyse all costs from the order placement to delivery Warehousing Costs Optimise the expenses of your warehouse A logistics KPI or metric is a performance measurement that is used by logistics managers to track, visualise and optimise all relevant logistic processes in an efficient way. Among others, these measurements refer to transportation, warehouse and supply chain aspects. Information Sources in the Company: Outbound Logistics Number of Shipments Understand how many orders are shipped Inventory Accuracy Avoid problems because of inaccurate inventory
- 7. Costs per Acquisition Are your customer acquisition costs viable? Cost per Lead How much should you spend per lead? Sales Targets Is your sales growing and reaching its targets? Return on Marketing Investments How efficiently are you spending your marketing budget? Customer Lifetime Value Are new customers profitable in the long-run? Here we will give you a short overview about Customer related metrics that are worth to be evaluated. Information Sources in the Company: Marketing and Sales Customer Lifetime Value
- 8. Customer Satisfaction Customer satisfaction is everything. Measuring customer satisfaction is difficult Net Promoter Score The NPS measures the probability with which your customers recommend you to another person. First Response Time Speaed is a decisive factor for customer satisfaction Customer Churn Rate Customer churn helps you see trends in product satisfaction (or dissatisfaction) ServeQual Quality of service + Customer satisfaction If the quality of customer service is not measured, how can the success of actions be judged? If a company is seriously interested in improving their customer service, these are the KPIs to be reviewed. Information Sources in the Company: Service
- 9. By defining relevant observation areas and selecting suitable early detection indicators, changes in the market and in the company can be systematically identified and monitored. By significantly changing an indicator, a signal is given to discuss and, if necessary, initiate measures. There is a number of minimum areas that should be constantly observed. The Absolute Minimum that should be Monitored
- 10. The Absolute Minimum that should Be Monitored 07 08 01 02 03 04 05 06 01 Cyclical/structural developments Orders received / Business climate / Consumer sentiment 02 Technology / R&D New process + technologies / Consumer behaviour / Number of current development projects / Number of own patents/ Licenses granted / Research and development costs 03 Sales Number of enquiries per Period / Development of orders in your main industry (which will later affect your orders) / Revenues / Prices / Price and Product Strategy of your competitors / Lost Orders 04 Procurement Raw Material prices / Stocks / Quality and Adherence to delivery dates of suppliers 08 Capital Market Interest, exchange rates – See Module 2 to see what this is important 07 Financials Short-term liquidity planning / 3 Year Planning / 1 Year Forecast / Accounts Receivable / Accounts Payable 06 Employees Fluctuation / Sick Leaves / Age Structure 05 Production Age Structure of Machines / Investment Backlog / Capacity Utilization / Energy Consumption / Scrap / Cost of poor Quality / Maintenance Costs