Make no mistake -- Big Data is here, and it is here to stay. Proven cutting-edge tools emerge every day for the business world to analyze endless numbers and facts. Daily, thought leaders identify data challenges that enterprises face. According to IBM, 2.5 quintillion bytes of data are born every day – enough to fill 531 million DVDs. Additionally, 90 percent of the world’s data information was produced in just the last 10 years. In an effort to get (and maintain) a handle, companies such as SAP are exploring new strategies with new ways to approach tools, models, processes, and governance
From analyzing the impact of fast food giant, McDonalds' billion-dollar advertising campaigns to how consumers react to traffic patterns to how much hot fudge is being used at Cold Stone, analytics play a crucial role in franchise progression, improvement, and innovation.
Data can be gathered for every facet of daily operations. For example, franchisors use financial data analytics tools and resources to make strategic and timely business decisions.
Here are key ways franchisors utilize financial data analytics:
Collect and Analyze Financial Statement
Most franchisors realize the benefit of collecting their franchisees' financial statements. However, many have a difficult time with the administrative burden of collecting, analyzing, and summarizing the data. Automating the process of collecting financial statements eliminates the need for manual roll-ups and spreadsheets. Franchisors use financial management tools to save franchisees significant time and resources.
Improve Performance with KPIs
Using real time data to gain insight into franchisees' operational activities and key performance indicators provides franchisors with powerful decision-making abilities to assess the market, identify trends, and provide timely solutions.
Gain Visibility with Franchise Accounting
Franchisors can customize their franchise accounting to create a simple yet intuitive experience. Systems that interface with the franchisees' POS systems, payroll solutions, banking institutions, and other back-office data saves franchisees valuable time and money. Franchise accounting experts such as ProfitKeeper also provide a separate franchisor portal to view consolidated and individual financial statements, rankings, benchmarks, and other analysis tools.