Most enterprises are operating in reactive mode, ignoring critical external factors and relying solely on internal historical metrics to predict future performance. Proactive enterprises take a different approach to better predict and plan for the future. By leveraging the power of external data – combined with innovations in distributed computing and predictive analytics – these companies have the power to proactively drive their business forward.
Have you attended this meeting?
So I ran a report, and this month’s sales are way down. Not sure if we’ll hit our month end target. What should we do?
But this month last year was our record month! What happened? El Nino? Slowdown in China? Election year?
I think we’re way overpriced. Two customers in the East Region told me our competitors are at least 20% cheaper.
20%? There’s no way we can match them. Our margins are razor thin as it is. We can do a 5% discount, but nothing more.
Ok. Let’s try a 5% discount, but let’s do it on the WEST, where we don’t have such competitive pressure. Sounds good?
The reactive vs. proactive enterprise
Relying on past performance, anecdotal feedback, unproven tactics – these are the symptoms of a reactive enterprise. The proactive enterprise is the exact opposite. Insights are derived from factual data, using best-of-breed technology. Past performance as well as external economic data are used to provide a holistic view of company performance. Decisions are made for the future, not reacting to the past.
- Uses old BI tools based on prior investment
- Missed earnings targets, leadership changes, reduced profits
- Plans based on past internal data and gut feel
- Weekly meetings consist of current month’s activities.
- Enhances BI tools with cloud-based solutions
- Consistently outperforms competition, exceeds targets
- Fact-based planning with internal and external data
- Weekly meetings plan for 2 to 3 months ahead
Three pillars of the proactive enterprise
Transforming your company into a proactive enterprise can be surprisingly straightforward. Better decisions come from having a firm understanding of past and current KPIs, how past decisions have affected those KPIs, and how the outside world influences performance.
Including external data into a planning or forecasting process has long been considered to be costly and time consuming. Prevedere gives your company instant access to millions of global data sets and a sophisticated predictive engine to analyze it all.