History has shown that information is the best antidote to uncertainty. During the pandemic, some companies have fared much better than others. That is, those who understand their business environment—from customers, partners, and employees to suppliers—and use existing data effectively.
In light of a looming recession, it’s more important than ever to understand the private company on a micro and holistic level. Too many companies act blindly in confusing environments. They tend to make rash decisions, overlook trends and miss market opportunities. Most companies use their resources incorrectly. You choose panic over possibilities.
Instead, executives will need to mine their data to determine how each business area contributes to overall success — and how to quickly take action when it doesn’t.
When a recession looms, it’s no longer enough to “guess” that data matters in some way. The best leaders know the important information positions, where they are located, and who they serve.
A good example of this Viaire Medical, a leading supplier of ventilators for global healthcare. In 2020, with demand soaring, Vyaire used reliable and comprehensive supply chain data to rapidly increase ventilator production from 60 per week to 600 per day. The data allowed the company to predict trends, develop informed solutions, and identify opportunities.
investigations She found that a combination of offensive and defensive strategies is the best way for companies to weather recessions and even thrive.
Optimally prepared managers know what needs to be done. On the defensive level, they are counting on increasing efficiency. In addition, it reduces costs, the need for qualified resources and the time required to create value. At the same time, they use strategic data-driven initiatives such as artificial intelligence or digital transformation for offensive and prudent investment in the future.
These strategies will help them weather the recession without jeopardizing their short-term competitiveness and their long-term strategies.
At the highest level, executives should view their statements as an opportunity to seize all business opportunities. About by:
Anticipating Buying Behavior: Necessary to control adapt to changing products and customer needs.
Sales forecast: Based on the data, managers can plan accurately in advance and avoid being caught off guard by major changes.
Data democratization: Fostering accessible data across the enterprise is essential for agile and informed teamwork, so IT teams aren’t overwhelmed by frantic moments.
Cosmetics company Estee Lauder Not only has it survived the data, but it has creatively shifted its business model in response to the pandemic. Before Covid-19, the company relied heavily on personal connections. Although 80 percent of customer interactions took place online, 85 percent of physical sales took place in stores. With thousands of stores closed, the company’s leadership has used data in innovative ways to completely overhaul its core business model and take full advantage of the all-digital world of shopping.
With new customer analytics, Estée Lauder has created holistic customer insight to increase personalization, drive innovative marketing, and better predict consumer trends. The result was a 30 percent increase in sales, better inventory management in the supply chain, and an increased overall competitive presence in times of economic downturn.
Estée Lauder, like most companies that innovated during the pandemic, can be traced back to the intelligent use of data in its solutions and strategic decisions.
Knowing what I was up to was always a major factor. The pandemic has shown that data is essential to survival. As the economy becomes more unpredictable, economics will continue to be an important tool in the future.
Executives owe it to both their clients and their employees to take a strategic approach to maximum protection. Organizations that prioritize data now will be more likely to weather the downturn and emerge from the crisis with a real competitive advantage.