Many automotive OEMs are reassessing their data tech stacks, knowing that effectively harnessing data can drive strategic decisions and boost network performance. While there’s a wealth of excellent business intelligence tools available, we’re exploring why it’s important to choose one that goes beyond merely providing data dashboards. It might seem logical to think that getting your data into one centralised solution is job done. However, Loop, a custom-built multi-site franchise solution, has taken the fundamental elements of a BI tool - data dashboards - and bolstered them with a retail performance element, bringing actionable insights to the forefront.
10 risks of a dashboard-only data management approach
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Missed opportunities for efficiency gains
Data dashboards deliver raw operational data in a centralised analytical format, but they fall short when it comes to setting action plans based on that data. Without this, your team can’t easily spot roadblocks or opportunities to support the network. Best practice remains hidden and unshared, even though multiple sites will be facing similar challenges. Imagine how much time could be saved if these processes were streamlined using experience from other sites. Urgent priorities can’t easily be communicated across locations, slowing reactions to market changes —an issue if your competitors are using a more holistic retail performance solution.
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Inability to identify issues
With data visualisation alone, data can often seem very detailed yet difficult to interpret. It tells you what is happening, but not why. With a tool like Loop, anomalies in data are represented visually in charts, maps and graphs, allowing the team to investigate potential errors and rectify them.
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Delayed decision-making
Without the ability to set actions based on your KPIs, the process of driving business outcomes becomes disjointed. With long delays before Head Office publish results, decisions across the network are likely being made based on gut feeling. With a retail performance management tool, the team can access real-time data, enabling more timely decisions.
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Resource misallocation
Without actionable insights, many of which are automated, the team may focus on the wrong priorities, impacting profitability and productivity. With an Actions tool, the system highlights improvement opportunities, such as identifying when a dealership is close to achieving a target and what action is required to ensure success. Automated flags and reminders pop up as deadlines loom to keep tasks on track.
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Increased operational costs
This misallocation of resources can cause operational costs to skyrocket. The problem persists due to the lack of visibility of inefficiencies, so the cycle continues. Automation saves time across the network by streamlining operations, enabling the business to achieve KPIs faster.
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Data overload leading to confusion
When there’s a surplus of data but no clear action plan, confusion ensues. There may be unnecessary task duplication. Action Planning software assigns next steps to relevant team members, so they know what to prioritise, rather than feeling overwhelmed.
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Performance disparity
Managing teams across multiple sites is complex, and it’s likely people are working in different ways or making the same mistakes, but with no visibility on best practices across the network. A BPM tool can help bring this performance disparity under control. While a BI tool centralises the data, a more comprehensive tool like Loop drives the desired outcomes. Franchisors can identify at-risk KPIs, benchmark performance and provide underperforming retailers with proactive measures to plug knowledge gaps and streamline processes.
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Failure to adapt to changing conditions
Taking automotive as an example, with the rise of electrification, are you aware of your retailers’ EV readiness? Significant changes like this, mean even more data. Implementing such projects without insights and actions is tough. A retail performance management tool allows you to assign actions and track results, ensuring retailers are doing the necessary work to respond positively to new market demands.
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Reduced employee accountability
If you’re not empowering your network, the team might not take full ownership of their responsibilities. A retail performance management solution provides visibility into what’s happening across the organisation and explains why decisions are made. The software shows whether actions are being followed up, whether the field team is effective and if KPI targets are being achieved. The tool gives the team the best chance to get results, while also ensuring that no one can shy away from their role.
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Limited strategic alignment
Data dashboards alone lack the capacity to influence business decisions and strategy. This is where Balanced Scorecards can make a real impact. Real-time updates and automated KPI data feeds help visualise needs and opportunities and then drill down to identify areas of improvement. These rapid insights are invaluable to the current automotive landscape, where extensive market developments require regular strategic updates.
The Loop approach to retail performance management
There’s no doubt that data dashboards are great for centralising data into an orderly state, but with no actions attached, you’re going to struggle to drive business outcomes. Rather than taking a passive approach to data consumption, implement a tool like Loop that proactively highlights issues so you can seize opportunities in real-time. If you’re ready to see how Loop can solve your data challenges, book a personalised demo with our team.