Recession-proofing your business with data
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The webinar by Ganes Kesari discusses strategies for businesses to navigate the economic challenges posed by COVID-19, focusing on how data analytics can empower decision-making. It outlines a three-stage approach: survive, stabilize, and strategize, emphasizing the importance of prioritizing data collection and actionable insights to mitigate risks and enhance operational efficiency. The session encourages businesses to communicate insights in a personalized manner to drive prompt actions and address specific challenges related to business recovery.
Recession-proofing your business with data
- 1. ‘Recession-proofing’ your Business with Data Ganes Kesari Webinar, May 2020S Anand
- 2. WHAT NEEDS YOUR ATTENTION? HOW YOU SHOULD PRIORITIZE? HOW DATA CAN EMPOWER YOU?
- 3. Introduction Ganes Kesari Co-founder & Head of Analytics 100+ ClientsInsights as Stories Help start, apply and adopt Data Analytics & Visualization for Business impact S Anand Co-founder & CEO @kesaritweets /gkesari @sanand0 /sanand0
- 4. COVID-19 has impacted every industry, leaving some in deep shock 4 1. Source: BCG Covid-19 report, Apr 2, 2020
- 5. We are heading towards a slow, long economic recovery 5 1. Source: McKinsey Article: Executive expectations about the shape of the coronavirus crisis, Apr 2020 Virus spread and public health response Effective response, but (regional) virus resurgence Broad failure of public health interventions Rapid and effective control of virus spread Executive expectations about the shape of coronavirus crisis in the World Survey of 2,079 global executives; % of respondents Knock-on effects and economic policy response Ineffective interventions Partially effective interventions Highly effective interventions Most likely scenarios
- 6. But, the pace of recovery will vary by industry and organization 6 1. Source: Bain & Co - Ample Data, often free, can predict consumer behaviour through the Covid-19 crisis, Apr 9, 2020
- 7. Your response must be dictated by the stage of recovery you’re in 7 Stage 1: Survive Disrupted business, impacted operations in an uncertain economy Deepening impact, unsettled operations in a sluggish economy Challenges scaling up, lost opportunities in a recovering economy What are the top challenges? Stage 2: Stabilize Stage 3: Strategize Survival. Address the immediate challenges and ensure business continuity Stabilization. Address near-term operational issues & lay groundwork for recovery Strategy. Prepare your business to grow stronger & compete in the ‘new normal’ What should you prioritize?
- 8. In your function, here’s what you should solve for 8 Stage 1: Survive Increase collections effectiveness Increase control over discretionary expenses Leverage cash to acquire market share/competitionFinance Stage 2: Stabilize Stage 3: Strategize “What threatens your survival the most?” “What can destabilize you the most?” “How can you eliminate competitive threats?”
- 9. In your function, here’s what you should solve for 9 Stage 1: Survive Increase collections effectiveness Increase control over discretionary expenses Leverage cash to acquire market share/competitionFinance Stage 2: Stabilize Stage 3: Strategize Resolve employee collaboration and productivity issues Reduce health risk for employees at offices when resuming work Help employees adapt to ‘new normal’. Balance flexibility with demands People “What threatens your survival the most?” “What can destabilize you the most?” “How can you eliminate competitive threats?”
- 10. In your function, here’s what you should solve for 10 Data can be a powerful enabler to solve your use case Stage 1: Survive Increase collections effectiveness Increase control over discretionary expenses Leverage cash to acquire market share/competitionFinance Stage 2: Stabilize Stage 3: Strategize Resolve employee collaboration and productivity issues Reduce health risk for employees at offices when resuming work Help employees adapt to ‘new normal’. Balance flexibility with demands People Impact to production due to shortage of raw materials Remote delivery of services Ensure supply chain health; support vendorsSupply Assess customer impact, assess change in behaviour & monitor churn Rationalize discounts to minimize margin impact, while building trust Assess customer health, expand offerings and recapture share of wallet Customer “What threatens your survival the most?” “What can destabilize you the most?” “How can you eliminate competitive threats?”
- 11. Poll 11 What’s your stage of response? Here’s a short & simple poll to help you reflect.
- 12. Focus and prioritization are your most powerful responses when using data Where to focus depends on your data maturity
- 13. We don't have the right data to solve the problem well We analyze the data. But the analysis doesn't reveal much Our insights do not suggest any clear actions Focus and prioritization are your most powerful responses when using data On any use case, one of these will be your top problem. Focus & prioritize within that area. 13 Where to focus depends on your data maturity DATA INSIGHT ACTION For example, let’s take a finance use case. Increase collections effectiveness DATA We don’t have sales transaction data & collections merged or readily accessible INSIGHT We know our sales outstanding by client, and our top dues. But that’s how it’s always been ACTION We know that big order quantity changes delay collections. But this hasn’t translated to action You can easily determine this with one question: Which of these is your biggest problem?
- 14. Prioritize data collection for the best actionable initiatives 14 The biggest mistake teams without data make is collecting all data required to solve a problem. Sales transactions Collections transactions Team timesheets Client financials Client analyst reports Team incentive payout DATA INSIGHT ACTION Increase collection effectiveness There are many datasets that may help solve a problem. You don’t need most of them.
- 15. Prioritize data collection for the best actionable initiatives 15 Increase collection effectiveness Increase collection team variable incentive Reduce days sales outstanding Focus on customers at risk of default The biggest mistake teams without data make is collecting all data required to solve a problem. Instead, start by listing specific actions that solve the problem. DATA INSIGHT ACTION Team timesheets Team incentive payout Client financials Client analyst reports Sales transactions Collections transactions
- 16. Increase collection effectiveness Reduce days sales outstanding Focus on customers at risk of default Increase collection team variable incentive Prioritize data collection for the best actionable initiatives Collect and explore data for a known purpose – which should be your best action 16 The biggest mistake teams without data make is collecting all data required to solve a problem. 1 2 3 Sales transactions Collections transactions Team timesheets Team incentive payout Client financials Client analyst reports Instead, start by listing specific actions that solve the problem. Collect data for those actions first. DATA INSIGHT ACTION Data collection is effort intensive. Prioritize effort. Hypothesize which actions solve the problem best. Top 10 clients by days sales outstanding Even simple exploration on new data can lead to useful results
- 17. Focus your analyses on insights. These are big, useful and surprising (BUS) 17 DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Analysis Days sales outstanding is 62 days on average
- 18. Focus your analyses on insights. These are big, useful and surprising (BUS) 18 DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Analysis Days sales outstanding is 62 days on average Days sales outstanding has been steady over the last 6 months, with a small 2% increase
- 19. Focus your analyses on insights. These are big, useful and surprising (BUS) 19 DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Analysis Days sales outstanding is 62 days on average Days sales outstanding has been steady over the last 6 months, with a small 2% increase 50% of our collection outstanding is with our top 20 clients by revenue
- 20. Focus your analyses on insights. These are big, useful and surprising (BUS) 20 DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Analysis Days sales outstanding is 62 days on average Days sales outstanding has been steady over the last 6 months, with a small 2% increase 50% of our collection outstanding is with our top 20 clients by revenue The South region has the highest days sales outstanding – roughly 20% higher than average Days sales outstanding consistently increases by 10-18 days on weekends and holidays Significant increase or decrease (±50%) in orders leads to doubling DSO within 3 months Days sales outstanding is 30% less for clients who received a call in the last 30 days Such analysis typically have more noise and less signal. It’s a dump of everything we can do with the data. It’s not insight. Not all analyses are born equal. Some of them are not useful. Some of them are already known. Some of them are insignificant. Insights are analysis that are big, useful and surprising
- 21. Focus your analyses on insights. These are big, useful and surprising (BUS) 21 Analysis Big Useful Surprising Days sales outstanding is 62 days on average Low Med Low Days sales outstanding has been steady over the last 6 months, with a small 2% increase 50% of our collection outstanding is with our top 20 clients by revenue The South region has the highest days sales outstanding – roughly 20% higher than average Days sales outstanding consistently increases by 10-18 days on weekends and holidays Significant increase or decrease (±50%) in orders leads to doubling DSO within 3 months Days sales outstanding is 30% less for clients who received a call in the last 30 days DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Rate each analysis on 3 criteria: • How big / impactful is it • How useful / actionable is it • How surprising is it Not all analyses are born equal. Some of them are not useful. Some of them are already known. Some of them are insignificant.
- 22. Focus your analyses on insights. These are big, useful and surprising (BUS) 22 Analysis Big Useful Surprising Days sales outstanding is 62 days on average Low Med Low Days sales outstanding has been steady over the last 6 months, with a small 2% increase Low Low Low 50% of our collection outstanding is with our top 20 clients by revenue The South region has the highest days sales outstanding – roughly 20% higher than average Days sales outstanding consistently increases by 10-18 days on weekends and holidays Significant increase or decrease (±50%) in orders leads to doubling DSO within 3 months Days sales outstanding is 30% less for clients who received a call in the last 30 days DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Rate each analysis on 3 criteria: • How big / impactful is it • How useful / actionable is it • How surprising is it Not all analyses are born equal. Some of them are not useful. Some of them are already known. Some of them are insignificant.
- 23. Focus your analyses on insights. These are big, useful and surprising (BUS) Focus and prioritization are your most powerful responses. Focus on insights 23 Analysis Big Useful Surprising Days sales outstanding is 62 days on average Low Med Low Days sales outstanding has been steady over the last 6 months, with a small 2% increase Low Low Low 50% of our collection outstanding is with our top 20 clients by revenue Med Med Low The South region has the highest days sales outstanding – roughly 20% higher than average Med Med Med Days sales outstanding consistently increases by 10-18 days on weekends and holidays Med Med Low Significant increase or decrease (±50%) in orders leads to doubling DSO within 3 months Med High High Days sales outstanding is 30% less for clients who received a call in the last 30 days High High Med DATA INSIGHT ACTION Teams that have data have often already explored it and are generating analyses. Here are the results of analysis to reduce days sales outstanding. Rate each analysis on 3 criteria: • How big / impactful is it • How useful / actionable is it • How surprising is it Not all analyses are born equal. Some of them are not useful. Some of them are already known. Some of them are insignificant.
- 24. Communicate insights as personal, actionable messages 24 DATA INSIGHT ACTION Teams with insights typically share them as they discovered them. Here are the results of an insight – that calling clients after 30 days of invoice (instead of 90 – the current practice) reduces average days sales outstanding to 55 – a 30% reduction in days sales outstanding. This proves the insight well. But it doesn’t help users act on the insight. 40 50 60 70 80 90 100 0 20 40 60 80 100 120 140 160 180 200 Days sales outstanding is 30% less for clients who received a call in the last 30 days Average DSO # days since last call DSO 19 d First call is on 90th day 30th day call reduces CSO 30% Prioritize actions over proof when sharing insights
- 25. Communicate insights as personal, actionable messages Communicate to allow your entire team focus on prioritized actions 25 DATA INSIGHT ACTION Teams with insights typically share them as they discovered them. Here are the results of an insight – that calling clients after 30 days of invoice (instead of 90 – the current practice) reduces average days sales outstanding to 55 – a 30% reduction in days sales outstanding. This proves the insight well. But it doesn’t help users act on the insight. Teams need inputs on what they should do. Design your dashboards to communicate specific actions. Days Sales Outstanding Dashboard for Eliyahu Montgomery Client Dues DSO Action Alpha Corp $120 K 172 Email 3rd & final reminder. Contact legal team Beta Inc $480 K 32 Call them. High volume, not called in 30 days Gamma Ltd $80 K 20 Sudden drop in orders. Check for risk of increase in DSO Delta LLC $160 K 134 Email 2nd reminder Epsilon Inc $200 K 38 Call them. High volume, not called in 30 days Zeta Corp $20 K 60 Sudden drop in orders. Check for risk of increase in DSO Iota Foundation $100 K 95 Send invoice reminder Focus on these accounts to improve collections. These are ordered by importance An actionable dashboard tells each person exactly what they need to act on. No more, no less.
- 26. Focus within your stage of recovery. Focus within your data maturity stage Focus and prioritization are your most powerful responses when using data 26 Stage 1: Survive Stage 2: Stabilize Stage 3: Strategize Know your stage of recovery Focus on the most critical aspect there Pick the use case most critical for your function “What threatens your survival the most?” “What can destabilize you the most?” “How can you eliminate competitive threats?” Know your stage of data maturity DATA INSIGHT ACTION Collect and explore data for your best action first Filter your analyses that are big, useful & surprising Communicate insights as personalized actions 1 2 3 4
- 27. Poll 27 Your data maturity stage? Here’s a short & simple poll to help you focus. This will identify the data maturity stage for your chosen use case. We conduct workshops to help clients solve problems on data, insights & action. Tell us if you want us to contact you.
- 28. @sanand0 /sanand0 Thank You! @kesaritweets /gkesari Get in touch to explore how your business can benefit from a data-driven response
Editor's Notes
- #2: Photo by Jaime Spaniol on Unsplash
- #3: Photo by Waldemar Brandt on Unsplash Photo by Matt Duncan on Unsplash Photo by Perry Grone on Unsplash
- #9: Photo by Josh Appel on Unsplash Photo by Stoica Ionela on Unsplash Photo by Micheile Henderson on Unsplash
- #10: Photo by Anomaly on Unsplash Photo by Brian McGowan on Unsplash
- #29: Photo by Goh Rhy Yan on Unsplash