You’re quite familiar with the dialogue: “The more data we own, the better our metrics, the better fact-based decisions we can make.” But, are you confident your Portfolio Company can really find “the nuggets in the noise?”
A recent study by the respected International Data Corporation says most are not. According to the study, the average company uses less than 10% of the data they store and collect. Translation, most Portfolio Companies are “data-rich and insight-poor.”
It’s even possible, you as the Portfolio Company owner, may not realize your investment (s) have this challenge! So, based on our experience performing thousands of Portfolio Company engagements on behalf of our PE partners during the last decade, we offer THE five critical signs to watch for:
1. Portfolio Company managers spend too much time creating and analyzing Excel spreadsheets.
2. Different Portfolio Company departments make different decisions based on different sets of data.
3. Portfolio Company budgeting and forecasting appears complex and time-consuming.
4. Portfolio Company data analysis and reports are not created on a single platform.
5. Your Portfolio Company appears to possess marginal inter-departmental data collection.
The Good News? Your potential data conundrum is not fatal. An intelligent implementation of Business Intelligence can aggregate mountains of data and identify insights that will increase the EBITDA and Portfolio Company Exit Value of your industry-specific investment (s). And, designed properly, your BI solution can be surprisingly cost-effective and operationally non-disruptive.
If ANYTHING we’ve said rings a bell, give us a call or send us an email, we are always happy to help.
We have also developed an information-filled Business Intelligence workshop which offers practical tips and suggestions about what to look for, and how to find a solution to make data analysis more EBITDA focused. The 45-minute workshop can be delivered in person or remotely, and is also complimentary to PIP Private Equity clients.
