Sep

Powerful BI Solutions For Business Acquisitions

Written by Jerome Prescott Published in: Journal, Technology PDF

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by JeromePrescott

A merger occurred between two North American manufacturing companies. They were able to unite forces to bring unique value to the construction, transportation, materials handling, and agricultural industries in Canada and the United States.

With multiple IT systems resulting from earlier acquisitions and mergers, it was a challenge to consolidate information for analysis and decision making. There was growing pressure to remain competitive and profitable while serving customers in Europe and Asia as well as the Americas.

Their staff was becoming overwhelmed with the number of systems and data sources. They needed a consistent, accurate data repository for reporting and analysis. The disparity in the sales and distribution models among the different business units were further complicating matters.

To the Rescue - A BI Bridge and Gasket Solution

The client was surprised to learn how datacubes could be used to 'bridge' data from their various ERP systems and other sources including Excel. Business users would then have access to a consolidated view of sales and profits across divisions and regions.

The datacubes dramatically reduced the IT reports backlog and accelerated the ability to create complex one-off analysis required in competitive and dynamic international markets. This is the Gasket.

Discovery of Outdated Business Practices

The Business Intelligence solution provided other benefits. A user analyzing the datacubes discovered that customers that bought on-line were paying full price while phone orders were often discounted. A decision was made to restrict the discounts available for certain items. This immediately drove profits higher as on-line ordering increased and profit margins were restored.

Poor Forecasting and the China Syndrome

In the good old days the company would ask the sales managers to forecast sales by key customers, customer groups, geographies, key products and product classes. This model began to break down as Chinese suppliers entered the market with comparable products of similar quality.

As more and more products were sourced overseas, the purchasing options for end customers increased. Often there were similar products offered by Chinese suppliers that were only slightly different from similar products sourced in North America.

While this supplier substitution delivered a new competitive price and quality combination, it created havoc with customer forecasts effectively reversing the business model from customer driven to product driven. Forecasts became useless over time.

A unique approach was adapted to their growing problem of dealing with product driven business models and forecasts. Yet another way a perspective-driven business intelligence approach increases margins and drives profits for companies in aggressive industries.

About the Author:

Learn how focused business intelligence for mergers and acquisitions will bridge disparate systems and help you better manage numerous business models. Our BI Road Map Accelerator offers a try-before-you-buy option for immediate, low-risk results.

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