Cut costs, build back revenues, and help regulators, all with a single step–smart data analytics.
No one expected the COVID-19 crisis. No one had accounted for the severity and duration of its impact. No one can avoid it now. It’s a reality that many businesses are coming to terms with, some at the right time, and with readiness. Some too late.
It’s impossible to take the business impact of this pandemic too lightly. It has already wreaked havoc in the top-line and bottom-line figures for many companies.
CFOs are calculating its effects and after-effects. A PwC survey about how the coronavirus pandemic has affected business shows a significant impact on the bottom line. Almost 53% expect a decrease in revenue and/or profits of up to 25% because of the crisis. Over half of CFOs expect a decline in revenue of up to 25%. They also expect a new wave of infection (58%) and the financial impact on their company (47%).
What can businesses do to make sure they are, at least, prepared for recovery in the right direction? The answer lies in data.
Data Analytics for Cost-CutsData for Cost-Cuts
If business leaders have to know where costs are rising and where revenues can be gained, they need to know what is going wrong and what is going right. For this, they need to have fast, real-time, comprehensible, and actionable data for key business decisions.
Cost containment emerged as the top financial action that CFOs are considering as a result of the novel coronavirus (81%). About 56% are considering deferring or canceling planned investments. Of this lot, the ones for R&D are about 14%. Imagine the long-term loss if the cost-cutting measures happen on the wrong set of plans. It is very important to have clarity so that business leaders do not make detrimental decisions when determining where to cut costs. They may shrink investments and innovation in the wrong areas if they are not guided in the right direction by smart analytics.
Data for Recovery and Revenues
Smart leaders are already working towards a recovery phase. They are listing down important concerns like – financial impact on their business including effects on results of operations, future periods, liquidity, and capital resources, as seen in the PwC survey. They are also worried about supply chain disruptions and the ability to manage hybrid remote and on-site work models effectively.
The really smart ones are gathering their marketing and strategic forces with a renewed energy to rebuild revenue streams. Nearly 63% are planning changes to their product or service offerings. That’s a great sign. But how will they do that? They need to have the right data at hand, and at the precise minute. That is why they would need analytics to support them in this quest for the right balance between costs and revenues.
Understanding the ‘New Normal’ and Helping Compliance
Nothing will be the same anymore. The World Bank has already predicted that the global economy will experience the deepest recession since the end of World War II, with a 5.2% contraction in global GDP in 2020.
In the light of new business models and new customer expectations and fears, it is now the responsibility of business leaders to ensure they use the biggest power at their disposal– data. With this, they can help regulators, emergency response services, and other control measures to monitor the scenario.
For instance, one of our university clients successfully used Alteryx and Tableau to determine how to social distance their students in a classroom for the amount of space and seats available across the campus.
Having a good grip on data helps comply better with regulations and co-operate with civic services in fighting the crisis. These deployments and technologies will also help them manage the transition to the ‘new normal’ smoothly. They can design processes and services by having advanced knowledge of what is working and what is failing. They can create business models with relevance and pragmatism. But this is possible only when they know where they are going.
No one was ready for it. But you can be prepared for the next phase now. Recover and stabilize with confidence, with the power of data tools and analytics.