Robert Kugel's Analyst Perspectives

For the past several years Ventana Research has focused more on analytics and their importance to improving business performance. We’ve done extensive benchmark research in business analytics, detailing how they are used generally in business and in major functional areas of companies as well as their application in specific industries. We adopted this focus because technology advances are changing the landscape of analytics. Its use in business management, for example, is getting new scrutiny...

Management decision-making typically involves a three-step process of inform, analyze and act. In the earliest days of what came to be known as business intelligence, developers created decision support systems that provided information and analytics to help executives and high-level managers choose the best course of action. Working with numbers rather than gut instinct still is viewed as a best practice. After all, a pilot who doesn’t trust his or her instruments is heading for an accident.

I thought of writing a note on this topic when multinational corporations started to withdraw their deposits from eurozone banks, but the pessimism that event engendered was short-lived. Now, as the monetary crisis deepens in Europe, it’s perhaps time to ask what your company would do if parts of its financial system implodes. You may think that your company will not be affected because it doesn’t do business with the eurozone. Or you may believe that it’s unlikely to happen and therefore not...

I hadn’t thought about the exact definition of “driver-based planning” until the question came up in the context of our planning benchmark research showing that only 6% of companies with more than 100 employees do driver-based planning. Broadly defined, the term could be applied to the use of any spreadsheet-planning model because these almost always have built-in volume-times-price formulas, which are components of driver-based plans. However, this is not what most people have in mind when...