Analytics Based Strategy
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Business Models for Internal Enhancers

Internal Enhancers still dominate the usage of analytics. And this is quite common, almost any new technology goes thru this phase. On one hand a new technology brings new opportunities and almost all developments are profitable or appear to be so. On the second hand before the technology matures external providers are few and unreliable. Specialization exists but it's not yet a big driving force at least not as seen in the well established industries.

Internal enhancers focus on four large groups of opportunities with different requirements and facing different challenges. In most cases a company should take a holistic approach and look into each of these aspects even if it is highly specialized.

Increase Revenue out of existing customers by offering new services, aggregating sales, or better targeting the group. These opportunities are mosty part of the marketing activities. A strategy reassesment is probably required more often since customers' interest changes.

Cost Reduction is the oldest and most common type of opportunity attempting to either eliminate some unnecessary expenses or maximize the production level out of existing assets. Examples abound in supply chain.

Increase Market Share within an existing market with sales as typical activity. Knowing the preferences of each individual customer and using information about store layout, shoping bag content, and physical location within a store can help asses the interest in other products allowing real-time promotions.

Blue Ocean Strategy find new markets and new ways of delivering products and services. This is the realm of pure strategy.