Due Week 6: BA Plan Section 3: Analytics Dashboard Examples

Author: Emmanuella Annevil

Date: February 27, 2020

SECTION 1: Company Background and Strategy

1.1 Organization Name

Apple Technology Inc.

1.2. LexisNexis Dossier

1.2 Strategic Positioning Diagram

1.3 Product Innovation

1.3.1 Explanation of Product Innovation Positioning

Apple maintains a strong market presence in regard to product innovation. They are a market leader in determining what products and features their customers will want prior to its existence. Apple demonstrated its innovation abilities through the development of their iPad and the advancements they continue to make, not only on the iPad but on other products as well. The development of the apple watch also demonstrates their ability to succeed through product innovation. They took feedback from their customers and continued to improve the design and feature to meet expectations.

1.3.2 SMART Objective for Strategic Positioning

I would recommend Apple continue their innovation through artificial intelligence applications to broaden their market penetration with an initial launch date in 2020. Apple will increase their revenue through advancements in this sector and take a 20% market share by year-end 2020.

1.4 Customer Intimacy

1.4.1 Explanation of Customer Intimacy Positioning

Apple excels in maintaining high levels of market presence when it comes to customer satisfaction. They have a strong following of customers that will only own Apple products guaranteeing a certain level of revenue. Even with their high product prices, compared to their competitors, they are still able to achieve customer loyalty. Customer loyalty is a vital concept for Apple as this strengthens their brand equity that is already known worldwide

1.4.2 SMART Objective for Customer Intimacy

I would recommend Apple to utilize their customer feedback to improve the functionality of MAC computers to increase sales in 2018 by 10%. The sale of their MAC computers is lower than competing brands. Their computers are high priced however offer less compatibility with outside services making them less popular with the overall consumer. Excelling in customer satisfaction in all products offered by meeting and exceeding customer expectations will ensure a stronger customer following further solidifying their brand image in the technology market.

1.5 Operational Excellence

1.5.1 Explanation of Operational Excellence Positioning

Operational excellence is the ability of an organization to be efficient in their production process and delivery services. Apple succeeds in this discipline are as well. They have an exceptional in-house design system that has only one focus. They have an entire team dedicated to designing new products with that being their only focus and job from start to finish. This method allows for a streamlined process, as it does not travel through various departments allowing for miscommunication and delayed response times. They also outsource many of their production processes for parts and other components to dependable partners that will ensure the process runs smoothly with little error.

1.5.2 SMART Objective for Operational Excellence

I would recommend bringing in 30% of the product development process in-house and a goal to reduce production costs from this change by 5% by first quarter 2019. This allows additional control from a quality perspective and higher production efficiencies thus cutting costs. Another benefit of bringing development and production in-house is reducing the level innovation leaks to their competitors. While Apple has their suppliers sign non-disclosure agreements that do not mean they do not release valuable information to the competition.

Section 2: Critical Success Factors (CSFs) and Key Performance Indicators (KPIs)

2.1 CSFs and KPIs for Product Innovation

2.1.1 Product Innovation CSF #1

Strategic factors include the existence of an innovation strategy that details how a company will compete within its competitive environment by means of its new product and service development plans.

2.1.1.1 KPI #1 for Product Innovation CSF #1

The effectiveness of an innovation strategy can be evaluated by the extent to which supporting structures and systems are aligned to the strategy and the degree to which innovation objectives succeed in meeting the strategic objectives of the company.

2.1.1.2 KPI #2 for Product Innovation CSF #1

Best practices for strategic innovation initiatives usually include investments in Research and Development (R&D). R&D spend was found to be useful for products but not service industries.

2.1.2 Product Innovation CSF #2

An efficient product development process is critical to innovation. 

2.1.2.1 KPI #1 for Product Innovation CSF #2

An efficient product innovation process is described as formal processes that contain stage-gate processes where the product development process is separated into distinct stages with milestones, checkpoints and stop/go decisions (Cooper, 1990).

2.1.2.2 KPI #2 for Product Innovation CSF #2

The speed of innovation has been shown to improve customer satisfaction and quality (Adamset al ,2006). Innovation speed is measured as duration, speed and performance against schedule (Cebonet al, 1999; Chiesaet al , 1994). Unused capacity or slack resources were determined as another prime indicator of innovation.

2.2 CSFs and KPIs for Customer Intimacy

2.2.1 Customer Intimacy CSF #1

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2.2.1.1 KPI #1 for Customer Intimacy CSF #1

Revenue Generated: These KPIs will also be used by Apple to solve the problem. Apple is the 2nd largest IT firm after Samsung based on revenues. Revenue was raising beginning in 2004, but the flattening growth trajectory being witnessed is an indication of diminishing growth

2.2.1.2 KPI #2 for Customer Intimacy CSF #1

Providing consumers with quality products will assist Apple to maintain the high-profit level. The more consumers get satisfied, the more they will purchase Apple’s products. Apple will thus use revenue as KPI to manage quality.

2.2.2 Customer Intimacy CSF #2

Building brand equity one customer at a time results in a strong market reputation that will lower your ongoing marketing and sales costs. People discuss the things they like and people they trust with friends and business associates. This will serve the company well as new customers are engaged.

2.2.2.1 KPI #1 for Customer Intimacy CSF #2

Consultative solution-based selling model. Consultative selling requires a sales force that does not look at the customer simply as a paycheck and a delivery team that is highly competent and focused on producing measurable results.

2.2.2.2 KPI #2 for Customer Intimacy CSF #2

Building brand equity one customer at a time results in a strong market reputation that will lower your ongoing marketing and sales costs. People discuss the things they like and people they trust with friends and business associates. This will serve the company well as new customers are engaged.

2.3 CSFs and KPIs for Operational Excellence

2.3.1 Operational Excellence CSF #1

Focuses on quality not quantity

2.3.1.1 KPI #1 for Operational Excellence CSF #1

Supply Chain Management: Apple can also use SCM as a KPI to manage quality. Its supply chain entails raw material suppliers, producers, intermediaries (wholesalers-retailers) and end users/consumers.

2.3.1.2 KPI #2 for Operational Excellence CSF #1

Communication metric is also important in SCM since effective SCM help check whether the needs of customers are met through effective communication amongst all key stakeholders (Samsonowa, 2012). Apple SCM will help determine business success if it can help Apple communicate effectively with its stakeholders to identify what consumers want. Where customers’ needs are reflected in the finished products, communication within SCM is effective.

2.3.2 Operational Excellence CSF #2

It’s far crucial to be careful with the emphases placed on essential fulfillment aspect and how rewarding humans are entails in accomplishing them.

2.3.2.1 KPI #1 for Operational Excellence CSF #2

Employee Satisfaction: Employee remains critical assets to Apple based on the operational nature they undertake. Some jobs are technical and hence require specific employees with some specialty and experience levels. Thus, it would be detrimental if Apple was to lose such employees (Zylla-Woellner, 2013).

2.3.2.2 KPI #2 for Operational Excellence CSF #2

Apple should also analyze rates of staff turnover where high rate denote dissatisfied workers. Apple can use employee participation level in improvement activities where high level indicates satisfied workers.

Section 3: Analytics Dashboard Examples

3.1 Example Chart #1

Chart #1 Explanation:

I choose the last 4 years worth of sales to show how sales has increased. Even more surprising is how fast Apple’s services revenues have taken off. Just three years ago, in Q4, 2016, the company reported $6.3 billion in Services revenue, roughly half this quarter’s number. The Q4 2019 services revenues were up 18 percent from the same quarter a year ago. And in fact, on a year-over-year basis, the company has been able to grow services revenue every quarter since the start of 2016.

"We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad," said CEO Tim Cook. "With customers and reviewers raving about the new generation of iPhones, today's debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we're very optimistic about what the year has in store."

3.2 Example Chart #2

Chart #2 Explanation:

The iPhone has been Apple’s biggest product for many years now, and Apple has leveraged it to become the first trillion-dollar company. But things are starting to change. In Apple’s recent earnings call, the company said that it would no longer break out unit sales of the iPhone or its other products.

Many services are subscription based; they don’t depend on people upgrading a device or making an impulse purchase, but rather bring in money every month. This is the case for iCloud storage, Apple Music subscriptions (though you can subscribe for 12 months at a time), and the coming video and Apple News services. Against falling iPhone sales in countries like China and India and flat sales overall, services growth, while it won’t replace lower iPhone revenue, will prop up the company.

Section 4: Business Analytics Center Location and Projects

4.1 Business Analytics Center Location

I believe the BA center should be centralized because the centralized structure is where few people create many of the decision in an organization. The centralized model is much considered in competitive in institutions where business specializes in the same commodities to their competitors. The centralized model ensures that the top management in a Apple has total regulation on training and the goods they produce. It provides benefits of standardization of commodities, reduces costs and exchange of excellent techniques. Also, it makes sure there is consistency in production, and there is a proper use of limited assets.

The BA center should report to the company’s product manager. It is important to get then product managers involved because they are accountable for building products with the team in order to achieve main business objectives and solve customers’ needs, they are responsible for the speed and quality of the team’s decisions to maximize impact.

4.2 Business Analytics Projects

4.2.1 Project #1

4.2.1.1 Analytical Question: What reason would you consider in switching out of Apple product?

4.2.1.2 Information Source(s): Customer Survey

4.2.1.3 Analytical Method: SWOT Analysis

4.2.1.4 Benefits: SWOT analysis is one of the most popular business analysis techniques followed in the industry. Furthermore, it is easy. It is an enterprise level analysis technique and not only limited to business analysis. It could be used at any stage of the project if the unit needs it and most of the people know it.

4.2.1.5 Strategic Value: If Apple tends to listen to their customers feedback and concerns and utilize the data to better their products and services, they build a lifelong relationship with their customers. Moreover, Apple releases more than one version of a product when released, that way their customers have options based on their needs and wants.

4.2.2 Project #2

4.2.2.1 Analytical Question: Will providing consumers with quality products assist Apple to maintain the high-profit level?

4.2.2.2 Information Source(s): customer surveys, market research

4.2.2.3 Analytical Method: Business Intelligence

4.2.2.4 Benefits : It will benefit Apple through faster and accurate reporting, planning or analysis, and better business decisions. It will also help Apple have increased employee satisfaction and data quality. BI also has helped Apple reduce costs, boost revenue and decrease IT headcount.

4.2.2.5 Strategic Value: Concentrating on internal growth by developing new products for the markets that they have already established and by finding new markets for their current products. For example, Apple created a new market for their Macintosh computers by pushing them into the education market and creating their mark among students and teachers.