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Historically workforce management has been centered on tracking time and attendance, absences and leaves. Organizations view the time and attendance system as the top priority to integrate with the payroll system; in our payroll management benchmark research half (51%) of organizations called it very important. However, only one in five have integrated the two to streamline processes. So limited an administrative and operational focus does not contribute to improving worker productivity or manager efficiency. Moreover, such an approach can foster employee turnover and undermine worker satisfaction and loyalty. Our research analysis underscores that paying insufficient attention to the worker experience can degrade employees’ sense of accomplishment and in some situations also degrade the customer experience.
Of course, managing the costs and efficiency of schedule-, time- and pay-related tasks, including compliance, remains important. However, these tasks, as well as those above, can be more easily accomplished with advanced workforce management software. Used to full capability, it can manage this operational environment and help managers drive not just productivity but also the success of the organization while also engaging the workforce.
Out of necessity, workforce management software is evolving as an integral part of systems for business units and for human resources. Importantly, advanced workforce management systems typically include analytics that help management understand workforce performance; in our previous workforce management research 61 percent of organizations said that analytics is important to workforce management. For example, analytics applied to optimization of schedules can help organizations manage workers to their expectations. Analytics also is critical to optimize workforce performance and to enable members of the workforce to understand their contributions to the success of the organization. Furthermore, analytics can guide executives and managers to improve decision-making and rectify issues that could be leading to increased costs and be out of compliance with regulations. Many organizations, however, are not prepared to undertake these efforts; they still use an array of spreadsheets or tools that are not synchronized with real-time data from workforce management systems.
As organizations evolve, their needs for more efficient and engaging workforce management is transforming workforce management. We have begun to explore this category further in new benchmark research on Workforce Management for Human Capital Management. This new research will gather and analyze data on enterprises’ current workforce management practices, the software they use and their plans for the future. Here are some of the aspects we will explore.
The availability of next-generation workforce management systems (which include analytics) through cloud computing facilitates adoption of and access to these applications and the information they use. In our previous research one-fifth (19%) of participants expressed a preference to use cloud computing for workforce management, and we expect this percentage to grow as the attraction of deploying software as a service in the cloud influences buying decisions. For most organizations there is value in having the vendor manage the implementation and maintenance of the systems, and the ability to stay current in newer releases also is significant. Organizations are most concerned with time to value in new implementations and efficiency of their teams in using it. Depending on their needs and budgets, they can choose to deploy it in a single customer private cloud or a multitenant public cloud.
Likewise the proliferation of mobile applications for workers and managers in today’s workplace dovetails with the interests and proclivities of the increasingly younger workforce. Almost half (45%) of organizations in our previous research indicated that they will deploy such new applications to improve productivity. We expect the readiness of organizations to use mobile devices including wearables will further increase demand for advanced workforce management. The use of smartphones to access information about employees, payments and benefits and corporate policies makes it easier for workers to review and request changes to schedules; it is a key way to provide the flexibility demanded by workers who want to balance their personal and business lives. Organizations that do not embrace mobile devices for their workers and managers risk decreases in productivity and workforce engagement that could lead to increased employee churn.
Younger workers also are comfortable collaborating using social technology such as messaging, forums and open threaded dialogue on topics. Employers need to learn to interact with them accordingly to retain talent; at the same time, these methods provide an opportunity to further optimize workforce management by engaging workers in new ways. These innovations include assigning goals and rewarding achievement along with using new communication channels to resolve issues quickly, easily and interactively – more than half of organizations in our research identified these capabilities as important. As social forms of collaboration become part of the communication fabric, organizations can gain valuable feedback from workers and also provide coaching to increase their effectiveness. Efforts to improve the skills and competence of workers also can benefit from learning management and other systems that are accessible on mobile devices.
Driven by the evolving nature of talent and challenges to retain it, advanced workforce management now has capabilities to address spectrum broad range of human capital management needs. Using it senior management can gain greater insight into the workforce in action while improving the work experience and complying with relevant policies and regulations. Most organizations will find that investment in workforce management can be justified by its ability to ensure compliance with regulations regarding the Affordable Care Act, the Family and Medical Leave Act and a growing variety of locally established worker rights mandates.
Employers are recognizing the value of a new generation of workforce management systems in enabling organizations to meet requirements beyond managing schedules, absences and time off. For example, one-third (34%) of those participating in our payroll management research said they plan to deploy new workforce management software by the end of 2016. Almost half (47%) said they are not satisfied with their current product’s functionality. Workforce managementas it is evolving addresses concerns common to all industries and will play a key role in tomorrow’s human capital management. Finance and operations management should examine the benefits it will deliver by bringing more efficiency into their processes, in particular ensuring a more engaged and longer-tenured workforce that contributes to financial profitability.
Implementing this new generation of workforce management will require an in-depth understanding of the options available and the people, processes, information and technology issues that must be addressed. Our new Workforce Management for Human Capital Management benchmark research will examine advances in the three years since our previous research was published. I believe that workforce management has a stronger role to play in efforts to achieve operational excellence and customer satisfaction and that the benefits organizations can realize from using these applications can be significant. Please look for upcoming announcements of how you can participate in and learn from this cutting-edge research.
CEO & Chief Research Officer
All lines of business are under pressure to meet targets and deliver expected results, but none is under more pressure than Sales. Like other organizations it must use information to derive insights about progress and problems and to decide what changes to make. Today businesses collect and analyze data from more data sources in more forms than ever before. To understand it they need effective analytics, and again none need it more than Sales.
Analytics applied to sales data can deliver significant value. It can help sales organizations reach quotas, forecast more accurately and make better decisions about activities and strategy. However, selecting the right tools for analytics can be difficult. People charged with identifying those tools often don’t understand the specific needs of sales groups or the full scope of evaluation criteria required for successful deployment and use.
In the past, and often still today, many sales organizations did not invest directly in analytics, instead using desktop spreadsheets, cutting data and charts from applications and reports and pasting it into presentations. In addition organizations have tried to stretch applications designed for other purposes, such as sales force automation (SFA) and customer relationship management (CRM), to provide reports on accounts and opportunities, but these systems address only some sales activities and lack complete information about customers. They need more purpose-built tools to examine sales performance in core processes such as the sales pipeline, forecasts, configuration pricing and quoting, proposals, quotas, compensation and incentives, and coaching of personnel. Used properly analytics can provide insights on all of these. But to select tools that cover all these areas, prospective users of sales analytics must be able to understand the available options and identify the capabilities that will serve them best. Should they be simple or complex? One-time or continuously used? Historical or forward-looking? In addition the tools should be easy to use and able to make data readily available. Several of our benchmark research studies demonstrate the need for effective analytics in this critical business area of sales.
The expanding use of sales analytics stems from increased attention to performance across sales processes (particularly because of the importance of sales in revenue and financial planning to meet customer demand with products and services). In sales planning, the need for quick analysis and review of actuals vs. plan is the management capability most often important (for 73%) for organizations participating in our next-generation business planning benchmark research. Many sales initiatives have failed to live up to their potential because companies did not use the right analytics tools and approaches to plan and operate them. For example, measuring the wrong things, measuring the right things the wrong way or using only partial data to measure will have negative (and often unintended) consequences. That’s because sales decisions almost always must be made in a constrained environment, in which virtually every important decision requires trade-offs (such as price against volume). To be useful, analytics must recognize trade-offs and provide guidance to help decision-makers choose those that are aligned not only with the company’s overall objectives but also with its customer, financial and sales profitability goals. Sales analytics also can support new approaches such as sales contests and gamification that motivate employees to perform better.
Analytics also is a key tool for devising, tracking and revising measures and metrics for sales processes that enable managers to make better-informed decisions faster and more consistently. Sales operations managers and executives need advice on selecting the analytics most useful for them and choosing sales metrics and performance indicators. This applies to the various kinds of analytics that sales organizations need. For example, our research finds that analytics is a priority for sales compensation management, where it is the top technology trend in 84 percent of organizations, and for sales forecasting (in 79% of organizations).
At this level of complexity sales organizations cannot continue to make do with outmoded tools. While spreadsheets are comfortable and familiar, when used for collaborative enterprise tasks they fall short in many areas such as lacking control of calculations and introducing inconsistent or erroneous data. Our research in sales compensation management finds that those that use them universally for this purpose are not satisfied with their analytics tools more often (in more than two-thirds of organizations) than those that use more capable tools.
A new generation of technologies offers more powerful and flexible sales analytics. Big data systems for processing and storing data have evolved quickly, making it possible for sales organizations to extract insights from masses of data for practical purposes. For example, visual discovery can present data in quickly graspable forms, and simplifying the presentation of key sales indicators and metrics in dashboards can put necessary information at the fingertips of nontechnical executives and managers. Advances in mobile technology enable access to analytics from smartphones and tablets, helping users on the go decide what to do next. Making sales applications and data available through cloud computing also facilitates access to and use of sales analytics. In addition collaboration enables sales teams to communicate and coordinate operations and managers and sales reps to plan more effectively. And predictive analytics enables users to look forward to anticipate trends and plan ahead rather than merely react.
Analyzing these advances and their impacts on sales organizations now and in the near future, we have released new benchmark research on the next generation of sales analytics. It examines the use of and intentions for analytics and metrics involved in sales-related activities. It uses the Ventana Research Performance Index Model® to assess the productivity and performance of organizations by size and industry. A major aim of this research is to provide understanding of the need for and potential of advanced tools to help set a business case for investing in sales analytics. It assesses the impacts of these next-generation technologies in facilitating faster, easier and broader use of sales analytics. It follows up on previous research that shows that inconsistent execution and scattered information continue to motivate investment in about half of sales organizations and explores how advanced analytics can help remedy these issues.
Our mission in this new research is to uncover the best practices companies use in measuring the performance of sales-related activities, the challenges they face and how they intend to improve their situations in the coming years. Sales analytics is a required component for any successful use of SFA to applications and activities individually or as part of sales performance management. It examines in detail issues in collecting data from a diverse set of sources that are critical for creating and maintaining useful sales metrics and indicators. It explores how data sources are reconciled through data preparation and then analyzed to produce the information sales people require to support decisions that impact their bottom line, market share and other aspects of their strategic objectives. Increasing the accuracy, confidence and timeliness of sales analytics is critical to every activity in sales, and those without a dedicated approach designed to assist sales will find themselves at a disadvantage. Sales analytics is a key resource for sales organizations facing today’s unprecedented challenges, as I recently outlined in our Sales Research Agenda for 2015. If you are responsible for sales activities or systems and want to see where the present and the future lie, please consult our research on the next generation of sales analytics.
CEO and Chief Research Officer