In an earlier post, we explored why one-line data fields, used by easy-to-use and affordable financial solutions, limit the data’s usefulness in other areas such as operations and data analytics. Here, we examine how segmented data can unleash the power of a company’s data. This results in better decision-making and increased operational efficiency – which is critical for AlcBev companies to remain competitive.
Microsoft Power BI describes business intelligence as “uncover[ing] insights for making strategic decisions. Business intelligence tools analyze historical and current data and present findings in intuitive visual formats.”
Business intelligence tools require the data to be broken down into pieces, or segments, so the information can be reassembled in different ways. This process of breaking apart data and creating new relationships reveals hidden patterns and trends. In turn, these trends and insights can yield powerful business insights.
One-line data fields
One-line data fields are useful for invoicing and purchasing, but reports relying on this data can only provide superficial insights. A deeper understanding requires breaking down this data into smaller pieces.
In this example, one line of data contains eight or nine important pieces of information:
Chat X Napa Chardonnay 2019 12/750 mL
- Beverage Type: Wine
- Type of Wine: Still
- Wine Color: Red
- Wine Producer Name: Chat X
- Fanciful Name: Napa Chardonnay
- Vintage Year: 2019
- Case Size: 12
- Container Size: 750 mL
- Container Type: Glass bottle (inferred)
Applications of Segmented Data
Now that the one-line data fields are segmented, the data is ready for use by business intelligence and other analytics tools. These tools create relationships across one or more segments, which provide a more thorough understanding of inventory and sales management.
By adding cost and sales price data to segmented inventory and sales data, companies get a clearer idea of cost, sales, and other performance metrics. The simple addition of category/type and geography allows for increased revenue and gross margin reporting granularity.
In future articles, we’ll explore examples in more detail.
Better information means better decisions and improved efficiency
Competition between BevAlc companies is, and has always been, intense. Those taking advantage of business intelligence and reporting tools stand to gain a competitive edge.
Companies that understand their data make more informed operational decisions and do it more quickly than companies that don’t. Better and faster decision-making lowers costs and increases revenue.
More granular and segmented data produces better reports leading to smarter decision and strategy-making.