Organizations are faced with problems, there should be a way of resolving them. Analysis of business problems provides a guide on the process of handling those problems to arrive at a reasonable conclusion. Below is a step-by-step process.
- Understanding the Situation.
- Identify and define the problems
- Define your Objective.
- Generate Alternatives
- Identify Criteria Considerations/ Limitation.
- Analysis the alternative and decide
- Develop an action
- Understanding the situation.
This is the point you identify and collect relevant information, you ask a question to determine the What, Where, When, Who, and How. This is when you have a full understanding of the problem confronting the organization. This stage enables us to determine relevant and irrelevant information.
- Identify and define the problems.
We can see a problem as an opportunity or a deficiency. Identifying the right problem is key, as this will enable you to develop the right approach to solving it. Avoid confusing symptoms with the problem.
- Define your objectives
The goal to be achieved must be clear, this will help eliminate any conflict that may arise from different perspectives.
- Generate Alternatives
Holding a brainstorming session provides a useful source of alternative. Having a group discussion brings about different opinions, which can be fine-tuned to suit the defined objective.
- Identify Criteria Considerations / Limitation.
These are the conditions that the alternatives must meet to attain establish objectives. Most time criteria are not always financial, the context of the problem gives an indicator on the likelihood of the source problem.
- Analysis of the alternatives and decide.
Evaluate the alternatives using the established criteria. You establish the qualitative and quantitative issues
- Develop an action plan.
Solutions began after a decision has been taken, a proper implementation process is also key to effect the action plan develop.
Analysis of business problems can also be breakdown using business modeling combined with advanced prescriptive analytics allows users to accurately model the effects of various variables on their business. Using built-in what-if capabilities, these tools allow organizations to accurately determine the outcomes of best- and worst-case scenarios. Other advantages usually include the ability to seamlessly access data, calculate real variable costings, evaluate constraints.
Running scenario analysis using a prescriptive analytics platform allows organizations to move beyond the limited capabilities of Excel. Benefits of a prescriptive analytics platform include:
- Ability to access organizational data, avoiding the need for manual uploads
- Capability to analyze complex scenarios
- Capacity to handle an almost unlimited number of variables
- Inclusion of constraints and trade-offs.
Various prescriptive analytics alternatives exist for creating models and running scenarios. These include hard-coded software solutions as well as others that have simple drag-and-drop modeling capabilities.
Take enough time to properly evaluate a problem before taking any action. Careful consideration is the key to avoiding unnecessary spending and ensuring better results.
Thought Process!