Dealing with Business Risk
The one thing that is definite about modern business and the times we live in, is that everything will change, and in recent times this change is happening faster than ever before. Such constant change causes an increase in business risk as it becomes much harder to plan when the economy or society is in a state of flux. It is thus essential for successful businesses to be able to change and adapt to suit the ever-changing context or at least strategize to improve their performance under the uncertainty that is commonplace in today’s economy.
The Only Certainty Is Uncertainty
The last two years have been the most uncertain that modern business has ever faced. Generally, it is accepted that uncertainty is measured according to how long it lasts and how intense it is. The constant changes or improvements in available business technology and the current economic downturn have been the biggest changes that modern humankind has faced, their impact being felt in the form of economic instability and uncertainty. For many a business the answer has been to look to improve their skills and the trend has been online business analytics masters courses and degrees to provide a means to deal with increasing business risk and planning through economic lows.
Business risks are those circumstances or factors that can have an adverse effect on the business. Generally, these are classified as either internal or external risks and although business risk cannot be eliminated altogether, a competent business will be aware of the risks and put in place mitigating measures to deal with them. Understanding data is a huge part of this and is why it is important to seriously consider the benefits of an online business analytics masters.
The number, variety, and seriousness of global business risk has increased dramatically and for any business to succeed there needs to be a clear strategy for times of uncertainty and heightened risk.
Externally, the economy is in a constant state of flux, politics is an ongoing minefield and technology is being transformed on what seems like a daily basis. Internally, the business must deal with the organizational structure, people management and the constant need to innovate. These are the most common risks faced by all businesses all of the time.
Business arguably needs new models of operation and innovative strategies to deal with both the evolving business risks, but also the ever-changing technology, which in itself could be a risk factor if the business is not up to date or able to use the aforementioned technology. One excellent way is through the online business analytics masters in order to keep tabs on your business’s data and understand how changes will impact your business as a whole.
Insurance is vital to manage risk, especially in businesses where a catastrophe could impact society as a whole, such as energy production.
A large number of businesses have simply folded and will cease to exist when risks are not dealt with in time or sufficiently. However, there are those who have stood firm and thrived in the face of great risks, dealing with them as they come. Knowledge in this regard is definitely power and the trend has been for many to look for the online business analytics masters as a source of skills and knowledge to be able to work a way through uncertain times.
When Existing Business Models Fail
Business risks can undermine most, if not all, of the assumptions associated with the normal business cycle planning. Oftentimes, existing management models are not suitable to overcome extreme risks and there are gaps in knowledge as well as possible solutions. The financial planning and predictions are then totally thrown out the window as the economy then goes through a massive contraction. A prime example of this is the 2008/2009 financial crisis, and more recent global health issues that have affected the economy and will continue to affect it for some time to come. Existing business processes and reporting structures may be too structured and rigid, both results of the aforementioned 2008/9 crisis, as financial institutions and all businesses across the board put in place measures to deal with what was then considered an extremely serious financial catastrophe
Business leaders need new models to be able to adequately respond in time to extreme business risk. Online business analytics masters study provides a concise breakdown of how to deal with some of these risks.
What Is Business Analytics?
Business analytics is becoming increasingly popular and even essential for the modern business. It is the process of gathering, analyzing, and interpreting large data sets generated over time by the business. Then using this analysis or interpretations of the data to predict or map a way through uncertainty. This enables detailed examination and assessment of risk and plotting both a short-term and a long-term strategy for the business.
Bid data includes integrating data across all business functions and levels, and it includes financial data, customer data, smart data and all the transactions that have occurred in the lifetime of the business. It is the new way of preparing the groundwork for any business decisions in the data age and without it many a business would be left in the doldrums.
Although online business analytics is a modern trend, it is still not as widespread as many have predicted with the uptake of the use of business analytics for decision making noted only at 52% of US businesses. The reason for this is not that the data does not exist, on the contrary, most businesses have some form of big collection function at their disposal. Two decades of information technology and the move of many business functions online and onto servers and remote external storage means that any data-collecting business can access its valuable historical data.
The main reason this data is not being used in all business is the fact that the skills to do so are in short supply. There is a global shortage of data analysts and that demand will only grow as more businesses realize how data and detailed analysis of such data can be the way out of an economic downturn linked to global economic risks and possible failure. This only highlights the importance of an online business analytics masters.
What An Online Business Analytics Masters Brings to the Business
The correct use of an online business analytics masters with the right skills can provide the business with an early warning system and predictive planning for any expansion. The information about your customers, how your equipment works, payments and income, the delivery and distribution of the goods or services, can all be used to determine where you should expand and when. There will be insights found through the visualization of the data in graphs and charts and on dashboards, these are then further researched and presented in business intelligence reports. The results will determine if expansion is possible, which allows for informed planning.
Knowing and understanding your customers and clients
An online business analytics masters will allow you to examine current customer data and research what clients and customers say and think of your business’ products and services in the various areas of your operation or influence. By using social media analysis and internal customer data a clear profile of your current customer and potential customers can be determined. This information can then be linked to other available data such as the census and national demographics to identify where your future customers will likely come from and how to reach them. These analytics will thus allow you to narrow down the area that offers the most in terms of expansion and customer potential.
Creating a concise and clear marketing plan
Marketing can be a rewarding process if you have the right information and a clear plan as to which market segment you are going to focus on and for which of your products. Good use of data and analytics will allow this to happen in a seamless fashion. The information that you would have gathered on your customers and competitors with business analytics, will allow you to send the right message to the right people. With the online business analytics masters, you can take that leap above the rest of the competition. Professional analysis allows the business to narrow down the branding details, messaging tone and consumer preferences, and enables it to convey the right message to the right customer at a time that will elicit action.
The bottom line is that with professional business analytics, your business will not only be able to set down the current context in detail and plan around this, but it will also allow the business to be in a position to use the current context to its advantage.
How to Hone These Skills?
Equipping your team members and your business with these important skills can be achieved in a number of different ways. Businesses can develop the skills in-house, investing in learning and development of staff and in that way ensure those skills remain within the business. Another way is to outsource those needs to companies that provide bespoke business analytics services.
There are many advantages to investing in your team and ensuring that they have the business analytics skills to operate without having to bring in any consultants or companies from outside. Providing your team members with business analytics skills by allowing them to study an online business analytics masters means they can incorporate those skills directly and holistically into their day-to-day activities without having to bring in other resources. You will find that providing them with these skills may also increase their confidence in their core roles and give them a stronger grasp on the industry itself. This can only be good for your business and ensure employees feel valued.
While some staff turnover is normal, if you are finding that turnover among your staff is unnecessarily high, it may be because they don’t feel that you are investing in their futures. High staff turnover can cause significant disruptions and low morale for those who remain and is not good for business. Rather than having to bring in new staff with these skills, why not encourage your staff to undergo an online business analytics masters, which shows you appreciate them and value their contribution to the company. It will also certainly be less costly than having to go through a recruitment process and then having to ensure new staff are familiar with all aspects of your business.
By investing in your current staff and ensuring they are developing new skills such as business analytics capabilities means they are more engaged and ambitious. Staff that feel they are being invested in will want to prove themselves to the business and ensure that the business succeeds as much as you do. Providing new skills such as these to your employees also means that they are finding new interests in their work rather than doing the same thing day in and day out, without any excitement. Most employees will jump at the opportunity to learn new skills and develop their roles with new activities and responsibilities.
You may also want to consider outsourcing business analytics as a niche specialization that requires specialized assistance. Business analytics does require specialized skills to analyze, map, collect and collate data, and depending on the size of your business, you may need a team of people to carry out this task.
Outsourcing business analytics means you will also need to ensure that you have the security systems in place to manage the data that you are collecting and collating. This is an additional investment and may be a consideration for looking to outsource this side of your business needs. Whether you are in logistics or customer service, your business will improve by having the data you need to move forward. Ensuring that the data is secure is crucial to your business and by outsourcing the business analytics, you can bring in a company that includes this as part of their services. You will have the peace of mind that those you bring in will be able to manage, store and analyze the data across different platforms in a way that is secure and compliant.
However, you still need to consider whether the cost of having to bring someone in is more attractive than keeping the skills in-house. You will need to look carefully at the way you work with your customers and with your team members as well as your competitors to know which the right direction is to take. Fortunately, there are many talented individuals who have chosen to train through talking an online business analytics masters and are options available now that allow you to either invest in-house or bring in an external resource.
Your business has the data, and the benefits of harnessing that data are clear. What you need to do to ensure your business grows and prospers is leverage people’s skills to understand that data. Your aim should be to use the data to develop and protect your business through uncertain times, ensuring that you are thriving in a difficult context where risk and change are the only constants.