Using Analytics to Manage Risk

As the commercial world changes at an unprecedented rate, the single biggest risk faced by many organisations is that of market failure through irrelevance.

That’s where so-called “uncertainty modelling” comes in — analysing data to create useful, workable visions of the future that enable your organisation to remain indispensable to your customers…

Increasing numbers of companies across the world are recognising that the only way to ensure their continuing relevance and survival is to actively build their organisations’ market strategy around satisfying the customer’s changing needs..

They can do this in many ways, from taking major strategic decisions such as developing new channels to market and revamping product line-ups to comparatively minor pricing and packaging changes.

What unifies all such decisions is the shared need for them to be based on the correct analysis of accurate and relevant customer data that provides an effective basis for a long-lasting and productive relationship.

That is because, in this era of unparalleled technological advancement and the increasingly empowered consumer, being able to identify and trace emerging trends and new preferences has never been more important.

Fortunately, the ability to see into the future is moving out of the world of “guestimations” and into the sphere of increasingly precise analysis, based on custom built software applications that give companies real-time feedback on key metrics and help them mitigate the risk of making the wrong decisions.

Analytics that can reduce uncertainty through accurate modelling have the potential to become an enormously valuable company asset, which drives new product development and strategic marketing initiatives.

They also enable companies to identify obsolescence, to predict the impact of price changes and promotional initiatives, and to estimate the likely impact of new information.

In other words, while nothing that remains in the future can ever be predicted with 100% certainty, such analysis tools can do much to eradicate the risk of alienating future consumers, either through inaction or taking the wrong action..

Companies that are serious about ensuring their long-term relevance by building better customer relationships need to get to grips with this source of potential advantage before their competitors do.