‍

The Analytics-to-Value is a strategic approach to data-driven decision-making to provide insight into dramatic increases in product costs and portfolio efficiency. It can generate results quickly for better product development decisions.  

The Analytics-To-Value approach starts with identifying the best business use case. We need to identify the business problem, followed by the proper method to deal with it. The business objective must be clearly defined, followed by the appropriate technology intervention for achieving the goal. The Analytics-to-Value approach has four major pillars.‍

Customer value and product design

A solid understanding of customer needs is the basis for product optimization. Companies must collect suitable data points on customers and the product to find the perfect trading point for increasing customer value and reducing product cost. This pillar focuses on designing the right product or service.

Portfolio and modularity

Companies can alter their portfolio by introducing standardizations in their production environments. Utilizing existing modules and platforms can also be a great way to reduce internal complications and increase margins. ‍

  Technical specs of solution engineering

The main drivers of product cost are meeting the excessive technical specifications of the product. A cost optimization effort through benchmarking the costs as per the competitor's product and features. This aspect focuses on getting the right technical specifications.

Components and supply

Analytics enables companies to secure the best cost for a given service or product and evaluate the suppliers in terms of reliability and quality through continual monitoring of price changes for suppliers and their raw materials. This pillar focuses on getting the best price and quality for standardized components.

These four pillars can be used individually or in a combination based on the goals of the organization. If the business wants to align the company products with customer preferences, using the pillar of customer value and product design and the portfolio and modularity can help it achieve its targets.

The entire process, when implemented correctly, can yield powerful business results, which can lead to improved product designs and customer value, reducing the internal compliance issues and higher margins for the product and service, which can provide the company an edge over its competitors and ability to leverage technology for improved business results. To read more articles like this, visit the Cogent Infotech website.