Paper360 - March/April 2018 - 18

intelligence supporting the project was less than
0.2 percent of one year of the market's potential.
Case Study 5: Aftermarket sales strategy
A major paper machine manufacturer, seeing
declining spare and wear parts sales, wanted to
define short-term tactical actions to earn more
market share and longer-term strategic moves
to increase the size of the available market. The
supplier defined its share of every customer's
consumption by comparing its sales to the business intelligence tool's calculation of each mill's
consumption, which was extrapolated from
details about the paper machine. Segmentation
and trend analysis showed how each customer's
behavior had changed and suggested the design
of a new service and pricing strategy (Figure 5).
The cost of business intelligence and the related
analysis was just over 0.1 percent of one year of
the business's annual sales.
BUSINESS INTELLIGENCE AS A
STRATEGIC WEAPON
In the cases described here, the critical
factor was credible, high-quality business
intelligence that was an integral part of a datadriven decision making process. The leverage
it brought to clients far outweighed the cost.
Companies that successfully use business
intelligence to drive decision making realize
greater profitability, often at the expense of
their competing peers. Purposeful data-driven
decision making isn't just a way to become
a better business; it's a competitive weapon
that businesses cannot afford to bypass.
Rod Fisher is president of Fisher International,
a global paper industry business intelligence
consulting firm. Fisher serves producers of pulp
and paper and their suppliers, investors, and
end-users, and is known for helping people in
those organizations make business decisions
using hard data and analysis. The company is
launching a powerful new generation of its business intelligence platform, FisherSolve™. Learn
more at www.fisheri.com.

18

Paper360º

MARCH/APRIL 2018

Fig. 5: Market share analyses suggested sales strategies for each country. *Business intelligence
contained in FisherSolve, a product of Fisher International, Inc.

The Problem with Unproven
Business Intelligence
Let's say you are using business intelligence to evaluate the size of a market to justify a
new R&D project. Your new product would be targeted at machines possessing four characteristics that may be described by their speed, energy cost, furnish, and press configuration.
Now suppose your business intelligence resource has 80 percent of the data on each
characteristic for each machine (that's a lot; most databases have nowhere near this level of
completeness). When you add up the number of machines or sum up the tons you've filtered
out, you don't get an "80 percent good" answer; your answer's reliability is actually 80 percent
of 80 percent of 80 percent of 80 percent- or one that is just plain wrong.
HOW BUSINESS INTELLIGENCE RESOURCES DIFFER
In this example, you created a segment based on a number of technical details and then
profiled it using a few different factors (say, breaking down the total number of machines
by size, company, territory, or grade). To do that, your business intelligence tool needs to
be able to perform all five of these:
* filter on every factor in the database
* sum, count, average, min, max, etc. on every database field
* produce tables, graphs, charts, maps, etc. designed any way you need
* integrate with your own information, e.g., sales history and competitive data
* roll up and drill down, show "What-ifs", and offer complete transparency
Most business intelligence tools limit filtering to a few columns such as
company, region, and grade, making it impossible to address most real-world
business issues. This is because most databases were built as look-up tools; they
lack the detail, completeness, and the database structure necessary to support
flexible and powerful segmentation. Database design limitations also prevent
systems from data integration and hierarchical analysis, which are critical to
understanding your competitive environment.
Without an appropriate foundational database structure and tool design, it
isn't possible for business intelligence resources to perform at the level required
for data-driven decision making.

www.tappi.org


http://www.fisheri.com http://www.tappi.org

Table of Contents for the Digital Edition of Paper360 - March/April 2018

Setpoint
Over the Wire
The Importance of Safety Training
Data & Decision Making
RISI European CEO of the Year: DS Smith’s Miles Roberts
Buckman’s Junai Maharaj on ‘The Art of the Possible’
Fapajal Tissue: Old, New & Customer-Centric
Progroup Turns 25
PIMA, Paper360° Co-Host Executive Panel
Creating a Lignin Culture
Benefits of Drive-Through Design
Sustainability as Business Leverage
CIPTE Show Highlights Innovation and Sustainability
TAPPI Journal Summaries
Leadership in Maintenance: Where Do We Start?
As a New Reliability Engineer, Are you Confused About Your Role?
R&M Tips
Paper and Board Have Key Roles in the Future of Packaging
Global Paper and Paperboard Demand Growing Despite Declines in Graphic Paper
PPI Awards Showcase Industry Excellence
TAPPI News
ASPI News
Index of Advertisers
Paper360 - March/April 2018 - intro
Paper360 - March/April 2018 - ebelly1
Paper360 - March/April 2018 - ebelly2
Paper360 - March/April 2018 - cover1
Paper360 - March/April 2018 - cover2
Paper360 - March/April 2018 - 3
Paper360 - March/April 2018 - 4
Paper360 - March/April 2018 - 5
Paper360 - March/April 2018 - Setpoint
Paper360 - March/April 2018 - 7
Paper360 - March/April 2018 - 8
Paper360 - March/April 2018 - Over the Wire
Paper360 - March/April 2018 - 10
Paper360 - March/April 2018 - 11
Paper360 - March/April 2018 - The Importance of Safety Training
Paper360 - March/April 2018 - 13
Paper360 - March/April 2018 - Data & Decision Making
Paper360 - March/April 2018 - 15
Paper360 - March/April 2018 - 16
Paper360 - March/April 2018 - 17
Paper360 - March/April 2018 - 18
Paper360 - March/April 2018 - 19
Paper360 - March/April 2018 - 20
Paper360 - March/April 2018 - 21
Paper360 - March/April 2018 - 22
Paper360 - March/April 2018 - 23
Paper360 - March/April 2018 - 24
Paper360 - March/April 2018 - 25
Paper360 - March/April 2018 - 26
Paper360 - March/April 2018 - 27
Paper360 - March/April 2018 - 28
Paper360 - March/April 2018 - 29
Paper360 - March/April 2018 - 30
Paper360 - March/April 2018 - 31
Paper360 - March/April 2018 - RISI European CEO of the Year: DS Smith’s Miles Roberts
Paper360 - March/April 2018 - 33
Paper360 - March/April 2018 - 34
Paper360 - March/April 2018 - 35
Paper360 - March/April 2018 - Buckman’s Junai Maharaj on ‘The Art of the Possible’
Paper360 - March/April 2018 - 37
Paper360 - March/April 2018 - 38
Paper360 - March/April 2018 - 39
Paper360 - March/April 2018 - Fapajal Tissue: Old, New & Customer-Centric
Paper360 - March/April 2018 - 41
Paper360 - March/April 2018 - 42
Paper360 - March/April 2018 - 43
Paper360 - March/April 2018 - Progroup Turns 25
Paper360 - March/April 2018 - 45
Paper360 - March/April 2018 - 46
Paper360 - March/April 2018 - 47
Paper360 - March/April 2018 - PIMA, Paper360° Co-Host Executive Panel
Paper360 - March/April 2018 - 49
Paper360 - March/April 2018 - Creating a Lignin Culture
Paper360 - March/April 2018 - 51
Paper360 - March/April 2018 - 52
Paper360 - March/April 2018 - 53
Paper360 - March/April 2018 - Benefits of Drive-Through Design
Paper360 - March/April 2018 - 55
Paper360 - March/April 2018 - Sustainability as Business Leverage
Paper360 - March/April 2018 - 57
Paper360 - March/April 2018 - CIPTE Show Highlights Innovation and Sustainability
Paper360 - March/April 2018 - 59
Paper360 - March/April 2018 - TAPPI Journal Summaries
Paper360 - March/April 2018 - 61
Paper360 - March/April 2018 - 62
Paper360 - March/April 2018 - 63
Paper360 - March/April 2018 - 64
Paper360 - March/April 2018 - Leadership in Maintenance: Where Do We Start?
Paper360 - March/April 2018 - As a New Reliability Engineer, Are you Confused About Your Role?
Paper360 - March/April 2018 - R&M Tips
Paper360 - March/April 2018 - Paper and Board Have Key Roles in the Future of Packaging
Paper360 - March/April 2018 - 69
Paper360 - March/April 2018 - Global Paper and Paperboard Demand Growing Despite Declines in Graphic Paper
Paper360 - March/April 2018 - 71
Paper360 - March/April 2018 - PPI Awards Showcase Industry Excellence
Paper360 - March/April 2018 - 73
Paper360 - March/April 2018 - 74
Paper360 - March/April 2018 - 75
Paper360 - March/April 2018 - 76
Paper360 - March/April 2018 - 77
Paper360 - March/April 2018 - 78
Paper360 - March/April 2018 - TAPPI News
Paper360 - March/April 2018 - 80
Paper360 - March/April 2018 - ASPI News
Paper360 - March/April 2018 - Index of Advertisers
Paper360 - March/April 2018 - cover3
Paper360 - March/April 2018 - cover4
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