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AGATA vs BI. Time-tested algorithms for S&OP

The effectiveness of existing BI systems leaves many questions, since the quality of the results directly depends on the qualification of a particular specialist, and not on the capabilities of BI. We took this into account when developing the AGATA algorithm

AGATA vs BI. Time-tested algorithms for S&OP

The effectiveness of existing BI systems leaves many questions, since the quality of the results directly depends on the qualification of a particular specialist, and not on the capabilities of BI. We took this into account when developing the AGATA algorithm
AGATA vs BI. Преимущества готовых алгоритмов для S&OP

Relevance of BI for businesses

Business Intelligence software tools — such as Microsoft's PowerBI, Salesforce's Tableau, and others — work with external and internal data. They allow real-time structuring, visualization of Big Data and finding on its basis insights for operational and strategic processes. A marketing department in an enterprise can use BI to generate an advertising budget and track KPIs for ROI and ROMI.
Before the pandemic, BI was considered a "sleeping giant" - companies knew they needed it, but focused on Data Science and Advanced Analytics. Cloud BI adoption is now a top investment—companies need to figure out where they are currently: what’s happening with supply chains, customers, or employees

— Managing Director of Business Application Research Center (BARC), Dr. Carsten Bange.

In 2020, 54% of companies consider BI to be either "critical" or "very important" to their current and future initiatives, according to research firm Dresner Advisory Services.

Benefits of BI

  • Sources Automation
    automated upload of Big Data from a large number of sources into one platform
  • Any device, any time
    the use of digital platforms, cloud technologies allows you to work and receive data in real time
  • High-quality visualization
    data structured in graphs and charts (more convenient for the perception and analysis of large amounts of data than Excel)
  • All-in-one
    the ability to track the implementation of KPIs for all departments of the company at once
  • Quick Analysis
    reporting allows you to increase the relevance of information provided to management and increase the efficiency of employees

BI flaws and limitations

BI is a big step forward compared to the capabilities of Excel and PowerPoint. However, the benefits of its use in a company directly depend on the experience and expertise of an employee, because BI is a blank slate, a shell that can be filled with anything ... and you need to know what exactly to fill.

I. What data do you actually need?

To start working in BI, companies upload pre-assembled databases. The information in them is selected not according to specific regulatory market indicators, but at the personal discretion of the management or marketing analyst. And the latter must himself understand what data should be analyzed and in what relationship to obtain the results that top management requires.

Here, freedom of choice is a double-edged sword. The choice of data and the method of the analysis is at the discretion of the employee, and the quality of analysis and insights depends on the qualifications of the marketer.

II. ... and how it should be analyzed?

The lack of a logical structure of calculations and ready-made algorithms - for example, a user must independently select an indicator for analysis, and independently build relationships - the results obtained may be incorrect, or the analysis will turn into an endless experiment of "let's try to correlate this and that data, maybe we'll get something!"

Thus, the interpretation of the analyzed data, that is, the human factor, becomes a serious shortcoming of the Business Intelligence software tools, especially for strategic planning and marketing departments.


III. Platforms' incompatibility

Also, it is possible that for the effectiveness of the analysis, several BI systems may be required. They will cover separate areas or departments, but, at the same time, will not be compatible with each other:
Often, a manufacturing company that sells its products to a distributor encounters difficulties when requesting analytics from this distributor, since organizations have implemented different BI systems and in order to analyze the data, it is necessary to create another "system" that structures and processes all this... As a result, some technical aspects may not be implemented or implemented poorly.
— trade marketer, Olga Antuscheva

IV. Require programming knowledge

BI requires at least minimal knowledge of programming and coding for a quality setup and operation. Thus, employees should not only be experienced marketers, but also have knowledge in IT, in coding. Otherwise, you will need constant support from the IT department (if the enterprise has one) or expensive support from the vendor and integrator of the BI solution.
And, of course, BI systems are not adapted to the needs of specific company departments, as well as industries and markets. BI is such a generalized solution that covers the widest possible range of business processes for companies from different areas, for all possible departments of the enterprise, that it doesn't offer in-depth solutions for any of them.

What are AGATA benefits

AGATA algorithm is a platform designed specifically for strategic planning and operational management of marketing and sales.

I. Designed specifically for S&OP processes

The platform is built with mathematical algorithms formed over more than 20 years of experience of our team in S&OP. Therefore, AGATA, unlike BI, can be used productively by a novice employee without extensive experience in the industry, thus reducing the company's dependence on human error and the skill level of a particular employee.
Sales and Operations Planning
S&OP is an integrated business management process through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization.
- Wikipedia

II. Shows what data you actually need

The platform already has logically built models for uploading all the necessary external and internal data: for the structure of the product portfolio, for financial indicators (sales, revenue, profit, etc.), for determining the market volume (in physical and monetary terms) and many others.

The AGATA algorithms build relationships between these data points, analyze them and help carry out more accurate planning. To smoothen changing market conditions and the position of the company, indicators can be changed in real time.

III. Provides algorithms for error-free calculation

Having external data, the mathematical methods of the platform will form market benchmarks that help analysts to navigate and compare the results of the company's activities with average market indicators. Thus, by analyzing the standards, AGATA helps businesses to calculate:
  • эффективность ассортимента
    Sales / SKU
    Algorithm for calculating the product range effectiveness: sales per 1 stock keeping unit. Market average and target for the company
  • география потребления
    Consumption by GEO
    Algorithm for assessing the demand for a product or service in a particular country and its regions
  • продажи через торговую точку
    Sales per outlet
    Algorithm for calculating the company's sales benchmark per outlet and determining the target
  • эффективность рекламы
    Algorithm for calculating the target for advertising costs derived from sales volume, according to international and national benchmarks
  • маркетинговый бюджет
    Marketing budget
    Determination of the optimal budget for marketing and promotional activities
  • маркетинг-микс
    4Ps of marketing mix
    Algorithm for calculating sales and revenue by Product, Price, Place and Promotion with respective shares of growth

IV. Low-code solutions

AGATA was designed for ordinary users, for employees of the marketing and sales departments, so its algorithms do not require knowledge or experience in programming from the user. If an employee knows how to use Excel, then in AGATA algorithm he will be able to set up and start working without involving the IT department or outsourcing services.
We created AGATA as a logical extension of BI. It takes the best of Business Intelligence and adds time-tested, practical algorithms designed specifically for strategic planning and operational management of the 4P marketing mix. You can learn more about AGATA algorithms on the main site. To get demo access to the platform, please write to us here.

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