How Understanding Relationships Drives Better Data and Analytics
How much do you really know about your business partners, suppliers, sub-tier suppliers or customers? Sure, you may understand how your growth is affected by dealings with that supplier or customer you've worked with for over a decade. But what about the association that business partner has to another company you may have never even heard of? Don't believe how they do business can inadvertently effect you? Think again.
Among the business entities you work with lies potentially crucial insights and information that can be critical in third party risk assessment and opportunity. While not obvious at first glance, these business relationship insights become visible when you dive down to explore the information that links these entities to you, as well as their connections to other businesses. By doing so, you'll be able to understand the full potential of your relationships with customers, prospects, suppliers and partners. This is relationship data - when information about two or more entities are brought together along with their business activities to inform an implied business impact or outcome. Through a combination of interpreting the right signal data and implementing advanced analytics uncovered in this data, unmet needs arise, hidden dangers surface and new opportunities can be identified.
Use In-Depth Business Profiles to Uncover Valuable Relationships
Business connections can be extensive and complicated. In order to accurately research corporations or third parties you need to have comprehensive insights, or use a tool with in-depth company profiles to obtain the right information. The infographic below describes the different types of business relationships that exist; some you easily see, while other relationships are harder to decipher, but just as important to your bottom-line. Understanding the way in which two or more entities are connected is the foundation of this relationship data.
The more you connect and expose entities across your databases, the greater your visibility into the cross-company interactions with these enterprises. The ability to uncover previously hidden associations inside the data provides a catalyst for business transformation and insights. Exposing business relationships across product lines, branches and countries creates opportunities to evaluate sales coverage, modify compensation plans, renegotiate terms and conditions, adjust compliance policies, improve customer experiences, build advanced segmentation categories and uncover hidden supply chain risk.
Dive down to discover the many sources of relationship data.
It is important to remember that relationships can be one-to-one, one-to-many or many-to-many. They can be uni-directional or bi-directional in nature. Understanding the differences can be key to the types of questions you ask and what insights you draw from the data.
How Supply Chain Insights Leads to Business Growth
The deeper you go in connecting the associated entities and the information that aligns to their business practices, the richer supply chain insights you'll uncover. Ultimately, these richer data points enable you to move beyond simple modeling based on internal historical data and produce sophisticated business models grounded in multifaceted business connections.
As more businesses point to smart data as a conduit to growth, it's important to ask the right questions of your data in order to extract meaningful insights to propel your business. That means going beneath the surface of what you normally see and exploring your business relationships to fully understand the cause and effect in your very own ecosystem.
The breakdown of Important Business Connections
Easily identifiable business entities in your supply chain can include:
- First tier-suppliers
- Parent companies or public companies
Aspects of your business connections that might be harder to determine are:
- Global family trees and subsidiaries
- Secondary and tertiary suppliers
- Minority ownership
- Potential prospects
Vital information in your supply chain that could be hiding without comprehensive company research tools include:
- Private company financials
- Data governance issues
- Indications of fraudulent or malfeasance activity
- Legal filings
- Covert agreements
The Power of Business Relationship Data
In some cases, a surface level understanding of a company may be sufficient to address your business objectives, but in other instances, you need deeper insight. Diving down to explore the layers that inform the relationships between entities, you’ll discover connection and associations that can help inform more prudent and informed decisions that can impact your approach towards pricing, terms, risk and more. The data (trade data, shipping data, public legal document, etc.) enables you to interpret signals that create meaningful insights on the inter-company business dealing that can help drive your business strategies and keep you above water in a sea of fierce competition.