BUSINESS MANAGEMENT
Using Data Analytics to Manage the Pandemic BY MARC D. MINTZ, CPA, MARC MINTZ & ASSOCIATES, LLC
While the use of data analytics had been slowly gaining acceptance, the financial effect of the coronavirus pandemic has elevated data accumulation and analysis into the mainstream for a variety of businesses. From industry segments that have been decimated by the virus (lodging, tourism, airlines, dine-in restaurants and small brick and mortar retail establishments), to businesses that have greatly benefited (online sales, PPE manufacturers, delivery services and pharmaceutical companies), the need to swiftly analyze data has never been greater. Once unimaginable weekly and monthly swings in revenues, and business metrics of every type, have necessitated the accumulation of business data so that actionable decisions can be made in near real time. Legacy systems that were developed to provide judgements based on data that is months, quarters and even a full-years old is no longer as meaningful an approach to manage business.
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SPRING 2021 | NEW JERSEY CPA
IMPROVED DECISION MAKING Unable to purchase your favorite menu item at the McDonalds drive thru lane? Can’t get that bougie pocketbook in the exact shade to match your shoes? The pandemic has inspired dramatic operational adjustments as businesses reacted to uncontrollable customer, employee and supply line changes. Using real-time data provided from point-of-sale registers and online sales transactions, businesses are now attempting to maximize sales while conserving cash, reducing payroll cost and enhancing rates of return on assets. Leveraging data analytics, fast food restaurants moved to reduce item choices while maintaining revenue. Providing everything to everyone at any time has been upended with a more strategic approach; eliminating slow-moving and less-profitable menu items simplifies multiple aspects of the fast-food business model. Likewise, reducing stock-keeping units (SKUs) of a high-priced luxury item
from hundreds to a few dozen improves a retailer’s profits by decreasing inventory carrying costs, simplifying consumer decision making, and reducing product returns and exchanges. No matter how long this strategy of offering less remains viable, data analytics will guide assessments of when to begin offering more again. Employee staffing can also be enhanced with the use of data analytics. Instantaneous review of call center and online shopping activity allows human resources departments to schedule customer service representatives on a shift-by-shift basis. Using the Internet of Things (IoT), fuel storage tanks at retail gasoline stations are continuously monitored. Fuel truck deliveries can be efficiently scheduled, factoring into account such diverse priorities as fuel grades required, delivery truck availability and road traffic conditions. By adding small increments of efficiencies to more and more of the
