...Question: Give examples of how OLAP works and its Predictive Analytics INTRODUCTION On-line analytical Processing (OLAP) refers to a computer-based processing with a capability of manipulating and analyzing large volumes of data from multiple perspectives (different points of view). It is one technique you can use to transform data into information. The original system of the OLAP is also known as the multi-dimensional cube or hyper cube. For example, a user can request that data be analyzed to display a spread-sheet showing all of a company's products sold in Ghana in the month of January, compare revenue figures with those for the same products in March, and then see a comparison of other product sales in Ghana in the same time period. Historical Background The first fully functional on-line analytical system was introduced in 1970 by Express, and later in 1995, the Oracle acquired the release for the resource of information. The formal launching for acquisition of OLAP was held in 2007. Oracle also released its own system called Essbase using the OLAP theoretical background and functionality. In 1998, Microsoft stepped in for upgrading and advancement in the OLAP technology. Microsoft worked on the mainstream idea and developed highly advanced online analytical system that is deployed in many large organizations today. Types of OLAP There are 3 types of the on-line analytical systems each with different properties according to the level of use. Multi-dimensional...
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...MODULE 2 SESSION 1 STUDENT ID # 2001691 GOODS SPEND ANALYSIS ASSIGNMENT Goods spend Analysis is the process of organizing a company’s spend, leveraging spend data for the purpose of gaining visibility into cost reduction, performance improvement and uncovering hidden savings opportunities. Spend Analysis consist of three different components which are; Suppliers, Customers and Commodities and Services. Each component should be measured in dollars and number of transactions which should be a potential source of improvement and cost saving. I believe spend Analysis serves three internal user groups in a company which comprises of: ❖ Leadership of the organization usually the chief executive officer and chief Operating officer who needs up-to- date reports to drive strategic direction. ❖ Managers, Accountants or Chief Financial officer who need to drill down into a spend data set to explore specific areas of interest or track down payment specifics. ❖ Sourcing power users who need to locate, drive, and monitor the next set of savings initiatives. Goods spend Analysis consists of both direct and indirect spend and my organization deals with both. I will be discussing the various steps I will use in conducting goods spend analysis in my organization. The first step is to identify the system containing spend data in my organization; there are many systems and...
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...1. Why are data analysis skills and thinking so important to spend analysis? Can’t software applications be used to generate the information needed automatically? In today’s world, advanced technology has provided us with a lot of tools to help sift through and process huge amount of data. However, in spite of all this, the fact remains that data is useless without the skills to analyze it. Critical thinking is still a skill inherent only to humans. Software applications are much capable of generating data automatically, however, only one equipped with data analysis skills can translate that data into information that can support corporate decision-making. Equipped with the right data analysis skills, one would be able to select the significant data from the wide array available and turn it into actionable information. These skills are important in spend analysis as the most critical stage is making sense of the output and deriving strategic solutions based on the information available. The employment of data analysis skills and critical thinking in spend analysis is necessary to reach the goal of enjoying the benefits of spend data management which include reduced material and services costs, better supplier and product management, and lower inventory costs. 2. How might a structured process such as Six Sigma methodology be useful here? The Six Sigma Improvement Model known as DMAIC can be used in implementing spend management in the enterprise with the aim of continuous...
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...Spend analysis is performed in an organization to manage the spend tactically and strategically. The main objective of performing spend analysis in Rexel Canada is to achieve cost savings and to determine with which vendors it will be beneficial to maintain long term relationship in order to get better pricing and to get maximum service. Rexel Canada is an electrical components distribution company dealing with around 3500-4000 vendors. Thus it becomes very necessary to do good spend analysis to monitor organization spending. Spend Analysis is also important for various business strategies such as budgeting, inventory management and spending patterns. Steps used to conduct Goods Spend Analysis • Procurement department coordinate closely with accounts payable department to collect the data on annual spend for products and services at divisional level and matches with our ERP. • Gathered data is divided into Direct Spend and Indirect Spend Direct Spend includes organizational spending on goods and services related to business. Indirect spend includes spending on operational expenses such as stationeries, overhead expenditure etc. • Data collected is cleansed to rectify the error of duplication such as supplier's names spelled differently and treated as different suppliers. • Making sure the companies listed in our ERP recently merged with other listed vendor is not considered as separate vendor and thus considered as one vendor. • Converting the amount spend into...
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...managing procurement. Below is a list of commonly used strategic procurement tools that will aid decision-making and support the efforts of commissioners. 1. Spend analysis 2. Collaborative procurement 3. Procurement strategy and plan 4. Category Management 5. Supplier Relationship Management 6. Supply/Value Chain Analysis 7. Competition 8. e-Procurement 9. Standard Terms and Conditions of Contract 10. Framework agreements 11. Preferred supplier lists 12. Sustainable procurement In addition the following section contains information on how to apply the tools above: 13. Applying Strategic Procurement Tools in Practice 1. Spend analysis When used at a strategic level this is a powerful and invaluable tool for identifying and manipulating detailed spend data by, for example, category, provider, cost unit and time period and combinations/permutations of these. This information is the key foundation for other strategic procurement decisions such as category management, supplier relationship management and the procurement strategy. It forms an important part of resource mapping and planning as it allows organisations and their commissioning partners to identify where financial resources are being allocated currently, and commitments in the future. Spend analysis will be particularly useful if carried out regularly and the information is kept up-to-date at a corporate level. If this has not been done then it should be...
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...Spend Analysis Lisa Fitzsimons BUS 307 Instructor Peter Thuleen 02/23/2015 Spend analysis is a process that an organization can perform that will allow them to identify wasteful spending and increase company profits. A spend analysis will also show spending patterns and bottlenecks that occur, which will increase company long-term savings (Sharfaei, 2013). This process may be difficult and time consuming, however, with cooperation with each department and proper data analysis and presentation, a spend analysis will be extremely beneficial in the long run. The following information describes what a spend analysis is, skills and tools needed for the data analysis, how a Six Sigma methodology will help with a spend analysis, and what makes up the analysis team who will work to create the spend analysis. What is a Spend Analysis Spend analysis is the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement. This process involve collecting, cleansing, classifying, and analyzing the expenditures within an organization with the purpose of reducing procurement costs, improving organizational efficiency, and monitoring organizational compliance (Bozarth & Handfield, 2012). A spend analysis can be used to identify a number of different questions regarding where is the bulk of company spending, how much is the organization spending with their suppliers, and does the organization...
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...Other areas 4 Supplier management: No established preferred supplier list leading to long lead time. Lack of supplier evaluation leading to lower quality 2 Logistics organization: Decentralized organisation with limited oversight from HO ~20% spend influence. Limited volume pooling and cost savings. 5 Procurement Strategy Procurement Organization Strategic Sourcing Operating process management Supplier Relationship Management Material management: Formal planning and communication could be improved. Lack of material categorisation to determine category level storage strategy 3 Strategic sourcing / Operating process: High time requirements, leading to suboptimal budget realization (80% PGN source-able(1) spend, compared to ~20% currently 1 Strategic Sourcing & Category Mgmt 1 Strategic Sourcing • Conduct strategic sourcing activity for center led categories 0 Category Management 13 1 Contract Management 1 • Establish sourcing plan and strategy for center led categories • Establish frame contracts for center led categories Strategic Sourcing team will progress to become Category Managers • Monitor price agreements and compliance to frame contracts • Conduct supply market analysis and benchmarking activities for the respective...
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...Case Study Analysis: Salem Telephone Company Contents Summary 2 Analysis 2 Questions 3 Recommendations 5 Works Cited 6 Summary In 2000, Peter Flores, president of Salem Telephone Company (STC) told the Public Service Commission that a profitable computer service subsidiary would reduce pressure for telephone rate increases. Once approval was received from Public Service Commission, STC, a regulated public utility, established Salem Data Services (SDS) in 2001, an unregulated wholly owned subsidiary, to perform data processing for the telephone company and, additionally, to sell computer services to other companies and organizations in its immediate metropolitan region. Following three years of operations, SDS has not been able to post profits and the president of STC is now faced with a challenge of whether the subsidiary SDS will be a profitable business venture. The president of STC, Peter Flores, is preparing to meet with Cynthia Wu, manager of SDS, to assess and determine the profitability of the subsidiary SDS. Our group’s tasks are to: ▪ analyze and review common cost behavior, distinguishing different types of costs (variable or fixed) as they pertain to business activities; ▪ construct a contribution margin income statement; ▪ review net income relative to reduction and commercial price increases; and ▪ formulate recommendations to the president of STC based on our financial analysis on whether or...
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...among countries. These attributes are important in establishing a competitive economy for any nation. Developing the travel and tourism sector requires effective policies that can help in solving possible obstacles that can prevent the desired progress (Klingmann 2007). Therefore, this paper will present an analysis of the tourism sector in Iceland by identifying the current influences on travel organizations within the tourism industry. In addition, there will be an analysis of theories and models that help explain travel flows and trends in important destinations within Iceland. Influences on travel organizations The performance of travel organizations depends on the political systems within a region. The political setup has a significant impact on how companies form their structures and the way of operation. For example, the relationship established between two countries based on the political ties play a significant role in opening the global market for the tourism industry in Iceland. Also, an annual budgetary allocation which reflects on the spending priorities of the federal government also has a massive impact on travel agencies. That is, if the country decides to spend on security and cultural promotion, people from another region can consider it preferred destination due to the level of awareness created. The political system determines how the legal systems operates and laws...
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...in order to improve their customer satisfaction levels which in time will increase their profits. The infrastructure required to do this consists of technology, services and a new way of thinking which treats each individual customer differently. For example a company could set up a database with their customer’s details so that management could see what each customer has purchased and can match certain products to the customer’s needs. There are many services that businesses can offer to their customers to ensure that they are providing them with excellent customer service. The following are some of the services that I have chosen that businesses could use: 1. Content management 2. International selling 3. Multi- Channel sales 4. Distribution and returns management 5. Customer service 6. Website strategy and planning Content management Businesses can use a content management system to manage their work flow. It can be used to control access to data, is an easy way to store information and also can be used to improve communication between users. Distribution Businesses should be able to handle all their distribution and logistics from the minute they leave their warehouse until they reach their destination. Having a top notch distribution system is the key to having great customer service. International Selling If companies want to reach a wider audience online they need to offer their customers the option to be able to ship their products to...
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...Why are data analysis skills and thinking so important to spend analysis? Can’t software applications be used to generate the information needed automatically? Not all data presented to you may be important to make strategic decisions. One can make sense out of a large data when data analysis skills and thinking are employed. These skills help one identify the more meaningful information and understand patterns, consistencies or irregularities, to make sound decisions. Flanagan of Pepco Holdings, in the article provided, shared that one will be better able to assist internal clients in planning spend strategies and also better understand supplier’s cost proposals. Analysis is important because most automatically generated results do not provide the information needed. It is important to know what data is meaningful and understand what the output of the data means and how to employ it in a real world application How might structured process such as Six Sigma methodology be useful here? Data analysis is important for a company’s continuous improvement efforts. Six Sigma is a business process improvement tool to significantly minimize mistakes at a stringently high level. The methodology of Six Sigma itself, when followed correctly (i.e. DMAIC), will allow a person to identify process inefficiencies and address them to generate cost savings, deliver quality of service and achieve more consistent good results. Why is it important to get other functional areas,...
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...A Study of Tourists on Attraction, Service Quality, Perceived Value and Behavioral Intention in the Penghu Ocean Firework Festival Wen-Chieh Hsieh, Lecture, Department of Leisure and Sport Management, Far East University, Taiwan ABSTRACT The purpose of this study is to analyze the cognitive tourists for Penghu Ocean Firework Festival attraction situation. There is also analysis of attraction, service quality, and perceived value for behavioral intention. This study used questionnaires to the island of Taiwan to the Penghu ornamental Penghu Ocean Firework Festival targeting tourists, adopted the designated non-random sampling in the active site and proximity to downtown streets to investigate, a total of 593 valid questionnaires. The data were descriptive statistics and SEM (structure Equation modeling) analysis, this study found that: 1. Tourists Penghu Ocean Firework Festival is attraction cognitive highest "Want to feel the charm of the beauty of the sparkling fireworks." 2. Attraction directly service quality and behavioral intention positive effects. 3. Service quality direct positive effect on perceived value. 4. Perceived value have a direct positive effect on behavioral intention. 5. The attraction will through service quality indirect effects on perceived value. 6. The service quality will through perceived value indirect effects on behavioral intention. Based on these results, this study is not only to give the Penghu's tourism industry and government units operating...
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...CASE 7: INVESTMENT ANALYSIS AND LOCKHEED TRI STAR INVESTMENT ANALYSIS QUESTION 1: A) Payback, NPV, IRR: (35,000) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 1 (35,000) 2 3 4 5 6 7 8 5,000 5,000 5,000 5,000 5,000 5,000 5,000 9 Machine Cost Duration (years) Cash Flows Cost of capital Payback (years) 35000 15 5000 12% total cost annual cash flow 10 11 12 13 14 15 7 NPV IRR present value of cash inflows - present value of cash outflows 3.07% ($9,073.04) B) Should Rainbow Products purchase the machine with service contract? perpetuity annual receipt discount rate 4500 0.12 37,500 $37,500 - $35,000 = $2,500 Based on the perpetuity, Rainbow Products should purchase the machine with the service contract. C) �� = �� �� − �� V= 4,000 .12 - .04 4,000 0.08 $4,000 cash flow 12% cost of capital 4% growth rate 50,000 50,000 - 35,000 = 15,000 Rainbow Products should reinvest into new machine parts each year; by doing so, Rainbow Products will have a net present value of $15,000. INVESTMENT ANALYSIS QUESTION 2: Incremental Cash Flows Investment Year 1 Year 2 Year 3 ($75,000) 44,000 44,000 44,000 Project Add a New Window IRR 35% NPV 22,140.79 Update Existing Equipment Build a New Stand Rent a Larger Stand Discount Rate 15% -50,000 -125,000 -1,000 23,000 70,000 12,000 23,000 70,000 13,000 23,000 70,000 14,000 18% 31% 1208% 2,186.24 30,283.27 24,756.42 *...
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...Potential interruption of supply of marconil (used for air filters) will have negative effect on sales revenues. 2. Current suppliers are pressuring Sabor to enter into long-term contracts. 3. Air filters currently represents 9% of corporate sales and is increasing 4. Current supply practice is to purchase needs on quarterly, semiannual or annual contracts. 5. Sabor is unknowledgeable in manufacturing process of marconil. 6. Rumors are that a lower-cost substitute for marconil will be developed in a few years. 7. Sabor air filters provide guaranteed continued sales volume for years due to replacement needs every six months 8. Marketing forecasts for moconil air filtration sales have been off-target (undervalued) ANALYSIS OF OPTIONS The first step of analysis of the potential shortage of supply of marconil, is to determine and classify the operational, financial and reputational risk this material has our current business. If we are unable to meet our current needs, what impact will this shortage have on our operations? Given that our total company sales last year totaled $800 million...
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...Chapter 6: 1. What is a spend analysis? 2. Describe the strategic sourcing process from start to finish. 3. Describe the portfolio analysis matrix tool and how it is used to develop supply management strategies. 4. What are the major types of supply management strategies? 5. Why must organizations develop suppliers? Is supplier development a long-term trend? Explain. 6. What do you think are the reasons why there are so few companies classified as Stage 4 companies? 7. What are the tools to conduct market research on suppliers? Briefly explain each. 8. A/An _____ refers to a specific family of products or services that is used in delivering value to the end customer. a. spend analysis b. decentralized structure c. category * d. centralized structure e. hybrid structure 9. A _____ is concerned with (1) the scope or boundaries of each business and the links with corporate strategy and (2) the basis on which the business unit will achieve and maintain a competitive advantage within an industry. a. commodity strategy b. corporate strategy c. business unit strategy * d. functional strategy e. supply management strategy 10. A/An _____ is an annual review of a firm’s entire set of purchases. a. cost analysis b. price analysis c. make-buy analysis d. technology roadmap e. spend analysis * 11. Which of the following...
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