Crafting Impactful Business Cases: The Art of Data Weaving in Decision Making
"You can't make decisions based on fear and the possibility of what might happen." - Michelle Obama
In my previous entry, I talked about distilling information for decision-makers, as they often must make data-driven decisions without having the luxury of time to delve into all the details. This is all well and good until we hit the next inevitable question: what exactly is the information that needs distilling?
There are countless examples, but in this entry, I am diving into one of the most interesting, in my experience, which is preparing a business case for an industrial investment — think of a new factory, a new product line, or optimization investments. Even though this entry zeroes in on navigating growth in industrial companies, much of it is applicable in various other settings.
Data Weavers and Business Cases
“And what is the role of the Data Weaver in this?” you might be asking—or not 😉. Anyway, our role here is to integrate various data streams into a coherent story for decision-makers. My simplified model considers four concurrent pillars:
Marketing: Here, we need to ensure this business case aligns with our strategic objectives. Also, it's about gathering insights on the competitive landscape, market size, predicted penetration, and pricing strategies. Ultimately, we're identifying the most likely scenarios and pinpointing where pressures might arise.
Engineering: This involves delving into the technology—exploring the options, what’s available, its current state, potential technology agreements, development timelines, limitations, and projected capital costs. Additionally, we must consider the project's development time, implementation processes, regulations and permits, and the risks along the way.
Operations: This part outlines everything necessary to ensure the new investment operates smoothly. Who are our suppliers? How do raw material prices behave? Are we at risk of supply disruptions? What do the inbound and outbound logistics look like? What personnel structure needs to be put in place to manage this new capacity?
Finance: Cash flow is king. Here, we're looking at factors that could make or break a new venture. What's the projection period? Is your discount rate competitive? Have you forecasted sustaining Capital Expenditures (CapEx)? How efficient is the working capital?
Empowering Decision-Makers with Narrative
In the end, after addressing all these questions (and many others, varying by case), you arrive at scenarios that can ideally lead to optimized decisions. As I’ve mentioned before in this series, what makes a Data Weaver truly stand out is their ability to speak the language of all these domains. You're not just passing along information; you're translating, integrating, and most importantly, communicating. It’s about using data as your map and storytelling as your compass.
I invite you to join us in this ongoing conversation, to share insights, challenges, and successes. Together, let’s harness the power of data weaving to craft stories that not only inform but inspire action. Are you ready to transform data into decisions that propel us forward? Let's embark on this journey together, turning insights into impact.