“Business Analytics and Business Intelligence - An untapped yet value addition tool in South-East Asian Cement Industry”

Most of us are well aware of the charm cement industry possesses in terms of profit margins and selling capacity in different regions. Cement players addresses the challenges and opportunities of their respective industry in their own ways which makes them leaders, competitors and so. Business Analytics and Business intelligence are the two most valuable tools through which each cement player can attain and sustain long term benefits and business growth.

In general, Business Intelligence helps to clarify the picture about What, When, Who and How it happened? Whereas, Business Analytics gives precautionary information like why did it happen? And will it happen again? What will happen if we change X and What does the data tell us that never thought to ask?

Following mentioned functional areas of cement factory seems most relevant where BI & BA can be efficiently utilized:

1. Sales- Finished Goods

2. Bulk-Buying- Direct Procurement

3. Inventory Management/Controlling- Indirect Material/FG

4. Operations-Production Planning.

A data of top 10 members of “Association of South Asian Nations in 2015” (sourced from Global Cement Magazine) is taken to understand the industries and their potential:

The above country-wise data shows the number of integrated plants and their production capacity in Metric Tons/ year. It also shows GDP, percentage of GDP growth and percentage of Industrial production growth.

The motive of this blog is to seek reader’s attention towards:

· How Cement manufacturers all over the world may acquire the major chunk of the total capacity?

· What role BA& BI can play in achieving competitive edge over other competitors

· What’s going on in the bulk buying market and which factors can affect the price variation so that they can be pro-active towards buying?

· Changing trends of the “Global Commodities Exchange” that will affect the buying behavior in their local market.

· Sales patterns can be observed in different regions.

· Seasonal effect/boom and other factors that may affect sales in numbers during different quarter of the year can be proactively addressed and subsequently, numbers could be increased to the fullest.

· When it comes to production planning, every industry requires periodic maintenance shutdowns and at times uncertain breakdowns also occurs. This normally affects the production plan and creates disturbance in operations and numbers get uncertain. If BA & BI is taken into consideration, the impact of these uncertainties may not be greater on results and can be efficiently controlled.

Let’s consider market size of Vietnam: What charm is there to attain the major chunk of the market share for their players? Indeed, it seems to be a not so important area for cement players but in actual it can bring great positive difference as a result, if taken into considerations seriously.

Who gets the higher chunk of the market share?? Proactive player and looks at the bigger picture, takes different factors into consideration and plans his actions accordingly to control uncertainties!

Companies should have a competent planning and strategic team to look after all the operations pertaining to BI and BA and must use different effective tools that are available to gauge performances in various parameters.