Recession and how BI can help

?According to a Deloitte report published in 2021, 75% of CFOs believed that another economic slowdown or recession was ahead of them, and they were not wrong. This made it critical to build an organization that is resilient and able to withstand the impact of a recession. The companies that responded best to this recession were the ones that were most prepared for it. Advisors suggest that the best time for an organization to conduct a digital transformation is before a recession hits.

Acting before the recession allows a company to be proactive, rather than reactive, with its data and since it could take time to put the necessary tools in place, depending on where your organization is with its technology, it’s better to already have the tools to navigate the recession rather than wait until after the dust settles to start from scratch.

?How to prepare your business survive a recession

?#BusinessIntelligence helps to inform your business decisions with #data and #analysis, which creates the basis for success. It is an aid in all business areas, from growth to human resources to marketing, and implies a number of key processes.

These include:

• Data Preparation and Unification - This stage comprises of data cleansing, integration from any & all sources, quality management and ensuring that your data is ready to use.
• Data Architecture - This stage involves the scalability of data stores, data warehouse design, data modeling and making sure your systems are prepared for the data.
• ?Data Analysis – This is the information gathering stage that prepares and defines the metrics to be used.
• BI testing - This stage comprises of ETL testing, data quality & warehouse testing, reports & data testing. In essence, it refers to analyzing the backbone of business with data.
• Implementation - This is the active part of the process which involves data warehouse development and embedding reporting functions in the apps.
• Optimization - This stage involves improving your current BI processes with data warehouse redesign, cloud migration, and ETL process optimization.

Business Intelligence meets the needs of various functions in a variety of ways but how does it help during a recession?

As the economy goes through periods of both expansion and contraction, it is inevitable that there will be downturns. Smaller businesses are often hit the hardest during recessions.

In a recession, it is hard for any company to stay afloat. Since #HR management is dealing with the implementation of the strategies and policies relating to the management of individuals, the department becomes one of the most responsible to bring the organization on the right track during a recession time. These challenging economic times make it even more crucial to monitor your business and respond quickly to changes. If you’re not already, you should consider implementing business intelligence in your organization as soon as possible. Here’s why…

• Analytics may not be able to tell you exactly when the economy might shift. However, data can certainly help an organization mitigate the impact of a recession by giving you the right information to better target the right market, save money, and increase profits.
• The best business intelligence tools help save time and money. In a recession, finding ways to do business and spend less money becomes paramount.
• Advanced analytics tools can help organizations figure out what tasks can be automated, for example, or point to other economic efficiencies that the company can take advantage of.
• In many cases, customer retention is key. BI tools can be used to focus on customer engagement, identifying which accounts have been communicated with and whether or not there are accounts that require attention.
• Analytics can help companies figure out which aspects of their business are most likely to thrive no matter what the global economic conditions are. It may require a limited focus, but by using the data to pinpoint which products do well in certain markets, a company can direct its energies to the areas it knows will continue to sell.

Even if the forecasts are wrong and a recession is further away than analytics predict, only good things can come from taking the time now to come up with a plan for when the record expansion shifts to a downturn. It never hurts to be prepared. And the data that might help a company survive a recession could help it thrive in the current climate.

?How to choose the right BI for you?

?There are a number of steps you can take to implement business intelligence in your organization, and these are a great place to start. It is important that you do not rush this, but that you proceed with caution and forethought.

- Select a vendor: Unified BI is not something that any vendor can offer. It requires a specific set of technologies like advanced analytics and predictive modeling that can help you get started, but it also requires a skilled team to make it work. Before you begin, consult with your IT department and see what sort of system they would recommend.

- Evaluate your current situation: You need to know who your stakeholders are and what they are looking for. Once you have this, you can begin to create a plan.

?- Create a roadmap: Having a roadmap will allow you to visualize your entire process and see where you are headed. It will also help you pinpoint exactly what you need to do next to make it happen.

The concept of developing and implementing a BI strategy can seem daunting. It does require planning, resources, commitment, execution and review. By using this roadmap, however, to develop and implement a strategy, you can take a phased approach, break the work into chunks and have success in the long run.

Conclusion

In bad economic periods, companies neglect to invest in solutions like #HCMIntelligence that a #BI provides, as they think of these periods as suitable for cutting benefits and firing employees. On the contrary, companies should take advantage of these periods, to prepare themselves for the next period of strong economic growth.?Being focused on organizational culture, through its processes and the help of technology like an end-to-end data solution and a tailored HCM Intelligence solution can offer real benefits to any company.