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Selling	analytics	requires	knowing	what	they	can	do	to	your	customers	
The	silver	bullet	you	were	waiting	for!	
	
Analytics!	great	stuff!		loads	of	features,	fancy	executive	charts,	etc.	But	how	can	you	sell	it?	
and	what	argument	do	you	use?	
	
Firstly,	your	customer	must	have	enough	data	to	draw	insight	from.	If	he	has	10	years’	
worth	of	operational	data,	he	could	use	Analytics	in	four	ways:	
	
1. Descriptive:	to	describe	what	transactions	took	place,	when,	by	whom,	etc.	How	
many	orders	were	placed	by	what	customer	and	when?	What	is	the	value	of	each	
order?	What	is	the	collection	record	of	certain	customers?	Average	deal	time,	deal	
value.	It	can	be	used	to	produce	“descriptive”	reports	to	senior	management	
	
2. Diagnostics:	to	diagnose	what	is	wrong.	Your	customer	receives	orders	from	a	
certain	set	of	their	customers	during	the	first	and	third	quarter.	Suddenly,	those	
orders	stop	coming	in	and	certain	sales	departments	suffer	low	revenues.	Analytics	
diagnoses	low	revenues	problem	and	highlights	the	reason	to	be	order	pattern	
anomaly	from	those	customers.	Same	goes	for	unexpected	variations	in	average	
order	values,	order	sequence	pattern,	etc.			
	
3. Predictive:	A	certain	behavior	leads	to	a	certain	outcome.	Customers	reduce	their	
purchase	value	or	timing	leads	to	losing	them	completely	after	2-3	quarters.	
Analytics	has	tons	of	data	to	draws	insights	from,	hence	it	can	predict	the	loss	of	
certain	customers.	A	pattern	of	failure	or	parts	replacement	takes	place	that	is	
usually	followed	by	a	complete	failure	and	service	outage.	Again,	analytics	links	the	
parts	replacement	pattern	and	alerts,	not	only	maintenance	department,	but	also	
production	and	sales	that	orders	might	not	be	fulfilled	because	a	certain	machine	
will	highly	likely	fail	(to	the	best	knowledge).		
	
4. Prescriptive:	This	is	the	apex	of	analytics.	Analytics	not	only	describes	what	goes	on,	
nor	diagnoses	or	predicts.	It	prescribes	the	cure.	It	says:	I	noticed	the	following:	
• Machin	ABC	represents	25%	of	your	production	capability	(descriptive)	
• 	When	this	machine	fails,	your	deliveries	and	order	fulfillment	gets	delayed	
by	2	days	on	the	average	to	east	coast	orders	and	4	days	to	west	coast	
(diagnostics)	
• When	this	machine	has	consecutive	mechanical	failure	and	parts	number	
356288,	37761,	and	997345	are	replaced	it	means	that	a	major	failure	can	be	
predicted.	This	major	failure	usually	leads	to	lengthy	production	outage	that	
causes	delays	in	order	fulfillment	and	delivery.	The	delays	result	in	increased	
overtime,	usage	of	expensive	couriers	to	ship	products,	and	late	delivery	
penalties	(predictive)	
• 	Machines	number	XX,	YY	and	ZZ	can	handle	the	production	load	in	case	the	
failure	happens.	The	best	load	distribution	in	case	of	ABC	machine	failure	is	
25%	of	its	load	to	be	handled	xx,	50%	by	YY	and	25%	by	ZZ	(Prescriptive)	
	
Good	luck	selling	analytics	…	Ashraf	Osman,	Cairo	2017

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