As discussed in the blog on dashboards and visualizations, there are increased benefits when integrating multiple software packages a company uses, such as general ledger, inventory management, customer relationship management, human resource information system and point-of-sale systems. Once the applicable software packages are integrated, the customized reports and analytics can be prepared.
Examples of customized reports and analytics.
- Manufacturing Industry – There are major advantages to setting up reports and analytics in this industry space as it helps a company determine and analyze the cost of production and overall sales activity/volume for the same parts, ultimately determining which parts are more profitable and determining overall time to procure raw materials and produce final product. Depending on the data available, a company can also determine productivity of its employees, profitability of contracts, and efficiency and cost/benefit of machinery.
- Healthcare Industry – Analytics and reporting can be used in a variety of areas in the healthcare industry. Patient satisfaction is the first area of focus; looking at patient wait times based on the convergence of client appointments and staffing and scheduling systems, improve satisfaction by delivering data-based quality of care, and potentially reduce readmission rates based on predictive analytics of a high-risk patient. There is also the availability to use reporting and analytics to improve business operations, identifying potential human error on billing claims prior to submission, reviewing variety of insurance contract pricing models, predictive impact of changes in Medicare or insurance reimbursement rates, identify at-risk fraudulent claims, marketing to prospective clients/patients and analyze provider performance.
- Hospitality Industry – The hospitality industry including hotels and restaurants is overflowing with guest and visitor data, website activity and point-of-sale (“POS”) data. Using this data there are a variety of areas that can be focused on; inventory management; staffing and scheduling; marketing and even guest experience. Using the POS data a hospitality Company can better estimate expected usage of inventory to avoid waste and to ensure sufficient supply to meet customer requests. In addition, aggregating POS data with general ledger costing data, a restaurant can refine their food costs and determine which menu items are generating the most revenues or if pricing should change. Using historical data along with reservation data, a hospitality client can determine what the required staffing needs are and determine the most efficient way to schedule their team to reduce overhead and excess payroll. Improving guest experience leads to return visits, thus using the data on a customer to determine their preferences, determining whether they are celebrating a special event exists, or whether or not they are first time visitors can lead to an improvement in guest experience and potential return visit.
- Not-for-profit Industry – Depending on the organization’s mission and its operations the variety and wealth of data can vary, but for general non-profits that aren’t running a typical business there is data in website activity, donor and volunteer activity and demographics, email data, and overall marketing data. Using these different forms of data will allow an organization to edit and fine tune its fundraising activities. Utilizing website activity to monitor online donations and determine source of visitor and typical website patterns and conversion rates. Using donor and volunteer activity and demographics o to monitor donor retention rates, giving history, internal efforts, and overall demographics to assist in marketing to the volunteer and donor. In addition, using email data such as email open rate and email read rates to determine effectiveness of email campaigns and to assist in the overall marketing for the organization and its fundraising efforts.
- Fraud and Purchasing Card Analytics – Along with industry specific models, data analytics can be used to potentially find fraud transactions by using a variety of means, date, time, who, dollar value, clustering and segmenting of data based on these metrics and others. Using these methods can generate a list of abnormal patterns or characteristics that would lead to a transactions that has a higher risk of fraud. In addition, data analytics can be utilized to analyze corporate purchasing cards, which typically have a greater exposure to fraud. Purchasing card data which generally includes the vendor name, transaction date, amount and MCC code, and with certain providers also include enhanced data which includes details of purchased items. Using this additional data can help a Company determine whether or not use of the card meets Corporate guideline or if the cards was potentially used at invalid business, used to purchase gift cards or get cash back, do spending patterns or time period indicate a risk factor, and do prices agree to negotiated prices/terms amongst many other analytics/options.
Reach out to Henry+Horne to determine how customized reports and analytics can take your business to the next level. Please contact us with any questions or to get the ball rolling on building your own data analytics dashboard.
Kevin Bach, CPA