Brexit and Business Intelligence, What Now?
With the stunning and unexpected vote last month enabling the United Kingdom to regain its national identity, while weakening the European Union, no one really knows what is next for the World and Global Economy? Will there be a trickle down effect on a macro-economic level and or corporate level? Your guess is as good as anyone’s, but a good way to start to plan for the impact, is by leveraging your business intelligence and analytics tools, systems and models, to prepare your organization for the inevitable downstream currents that will be seen for the next several years.
If you harken back to the 1920’s after WWI, and formation of the League of Nations, easy money was the name of the game for most of the decade until the 1929 stock market crash. About eight years ago, the US and the world went through an eerily similar scenario created by the complex Mortgage Derivative Products, which lead to the Housing Bust, and a Financial shock felt globally. For the last 8 years we have seen an economic upturn that many viewed as unnatural, almost contrived, as the US Government held interest rate close to zero. With easy money, the stock market recovers but what has really changed? One could argue that a huge geopolitical event similar to Brexit, could be the start of a domino effect on so many levels. By the 1930’s, the League Of Nations was a House of Cards, leading to Germany’s demise and the rise of Hitler. Is this similar to the current state of EU? Could something that catastrophic occur in 2016?
So what – what does that mean to my company and my organization? In the mid-2000’s, after the first Internet Bubble burst, one noteworthy airline leveraged their early stage analytics programs and products to run scenarios on the price of oil and gas, their most important KPI (Key Performance Indicator). As a result, they ran scenarios and hedged themselves against any possible price increase and were able to buy oil at $25 Dollar a Barrel versus the actual market, well above $100 Dollars. Many airlines went out of business, this one flourished.
The point is major events that rock the world, eventually will have an impact on your organization, large and small. Leveraging your most important assets, including: data, big data and analytics will help you prepare for anything that might occur in the coming years. Think Big, Start Small!