21 Jun
Naturally, the meta-task of BI and related solutions is to assess the company’s performance. The effectiveness of the company is assessed according to a certain model, which is determined by a number of target functions.
Roughly speaking, there is data, and there is a methodology for evaluating this data. And the model of the relationship of various components with each other.
We collect the actual data values using classic Business Intelligence systems. For many, this is where BI ends – it is often a trivial problem to combine supply and production, because they are made in different places and systems.
Further, the data is driven into the model of the enterprise. The classical methodology – the same BSC – was created back in 1987, and has not changed much since then. In a sense, updates and forks are in stock, but the principle is the same everywhere. In short, the activities of the company can be decomposed into 4 components: the financial part, the client part, personnel and reserves (that is, personnel) and the development strategy. Even state-owned enterprises are assessed in the same way, only instead of profits they get into the given budget.
The beauty is in the detail. The fact is that when the company is watched by auditors or when something is discussed at the board of directors, a maximum of 20 aggregated indicators such as net revenue, turnover, etc. are usually assessed. It is these indicators that go to shareholders in reports and it is on them that recommendations are made. To evaluate not on feelings – but for yourself every day indicators in the form of numbers.
And BI allows you to take a report and not just get the “total” line, as is usually done, but see what each indicator is composed of. And then – to fasten a variety of things to the model, which are recalculated almost in real time.
The indicators cascade to people – and the motivation system is turned on. For example, if the shareholders decide that after 3 years the profit should be 20% more, then it is easy to build state A and state B. And a model of transition in 3 years from state A to the desired B. At the end of the year (quarter, day) you can see operating indicators and understand whether you are digging there or not. The metric model can decompose the entire transition process and there will be a strategic map of how to change. Each leader will have a plan to do.
Once again: there is a strategy in which it is specified at the macro level what to do. And there is the automation of operational activities – and we can work with it too.
If the Gann line is directed upwards, then we have a growing trend. If the price is below the Gann line, it means that the market is downtrend and you need to place sell positions. And vice versa. In places where the price breaks the Gann line, a change in the market trend can be expected.