PREVIOUS QUESTION & ANSWER

Q :

 WEEK 1: BUSINESS INTELLIGENCE

Read "End-of-Chapter Application Case: Nationwide Insurance Used BI to Enhance Customer Service" at the end of Chapter 1 in the textbook, and answer the following questions.

Why did Nationwide need an enterprise-wide data warehouse?

How did integrated data drive the business value?

What forms of analytics are employed at Nationwide?

With integrated data available in an enterprise data warehouse, what other applications could Nationwide potentially develop?

A :

 1.

Nationwide wished an organization vast facts warehouse due to the fact it offered a extensive vary of products. It gave insurance merchandise for auto, boat, motorcycle, farms, homeowners, and life. It additionally presented financial merchandise and services such as annuities, mortgages, mutual funds, pensions, and funding management. Hence managing facts of so many products is clearly no longer a handy task. (Hoffmann, a 2011)

Nationwide’s enterprise units worked independently and with a lot of autonomy. ‘TO ERR ISHUMAN’, manually entering information led to a lot of errors in the data, duplication of efforts, broadly distinctive information processing environments and severe information redundancy, resulted in greater expenses. The state of affairs obtained complex when Nationwide pursued any mergers or acquisitions. Hence to limit these problems Nationwide started the use of organization statistics warehouse technological know-how from Teradata.

2.

In Marketing and Customer relations

The Customer Knowledge Store (CKS) initiative helped in -

• Developing a customer-centric database (a customer information mart) that integrated information pertaining to customers, products, and externally-acquired-data from more than one sources and linking this with CRM initiatives to help with advertising and marketing campaigns that used behavioral evaluation of patron interactions. This resulted in a 3% annual boom in incremental sales.

• Integrated records allowed for sophisticated client analytics main to proactive patron communications and multiplied levels of patron satisfaction. The company can now furnish extraordinarily private client service.

• Integration of customer contact history, product possession and charge records helped in assigning priorities and identifying interactions of importance.

• Customer retention expanded by way of one percentage point

In Finance

• Integration led to standardized reporting.

• It enabled the agency to operate analytical centers of excellence with top notch planning, capital management, hazard assessment plus other decision-support-capabilities that delivered timely, efficient & correct accounting/reporting/analytical services.

• There was once a 50 percentage enchantment in the monthly closing process

• Closing intervals had been decreased from 2 weeks to 7 days

In Mergers and Acquisitions

• Integration through the Goal State Rate Management initiative enabled Nationwide to merge Allied Insurance’s vehicle policy device into its own. (Loshin, D 2012).

• It introduced about trendy dimensional reporting and helped in performing the what-if analyses.

• Uncertainties in top rate swings were controlled to an amazing extent - benefiting policyholders.

3.

The company uses latest analytics to work with consolidated records from all its business units. The types simply seen are-

Exploratory - analytics to fetch and report consumer data

Descriptive - analytics to examine past files and study purchaser relations

Predictive - analytics to determine wishes in boost and result in proactiveness in dealing with customers

Prescriptive - analytics to prescribe commercial enterprise plans - standardization of processes, merging values and cultures etc.

4.

Nationwide ought to potentially strengthen the gadget of predictive, descriptive and prescriptive analytics. The case described consumer relationships and financial reporting. Other areas of decision making for an insurance plan commercial enterprise would encompass the improvement and pricing of products, regulatory compliance hiring, risk management, and the area of facilities.


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