Critical appraisal of player performance of NUFC by implementing and developing Business Intelligence /Data Analytics system
Business Intelligence and Analytics Systems for Decision Support can be used for the player performance analysis and appraisal. Business Intelligence and Analytics Systems for Decision Support help for making effective decision along with data analysis regarding the performance of the company. Here, Newcastle United Football Club (NUFC) is a renowned football industry which has so many remarkable achievements overs the years. While observing the current situation of NUFC, it is seen that turnover scenario of NUFC is not increasing well compare to the previous financial statement and it is being incurred for last 5 years. Similarly, the profit scenario of NUFC is also getting for last 5 years as the operating costs is getting higher. Moreover, it is becoming difficult for management to control this excessive expenses where all the expenses very common and regular to NUFC. NUFC need to pay wages and salaries on regular basis, the expenditure for security cost and player amortization cost is making effect on the operating profit and it makes sense to reduce the profit. Therefore, the reason behind shortage of revenue is just because of decreasing the sale of match day tickets since 2012. There is also other reason for shortage of revenue as NUFC is not getting a better outcome from English premier league for last few years and it is mostly seen during 2015-16 season. It is stated that there have been drop down of revenue from £128.80 million to £125.80 million while the operating profits almost 20 time smaller than previous years at £0.90 million (down from £19.10 million). So, when the rate of buying season tickets by the fans are decreased and reducing the flow from English Premium league, it is very common as of resulting in low revenue (Newcastle, 2011). Although NUFC has achieved a better revenue from commercial advertising and media but still it is very urge to increase the revenue by improving game performance of NUFC. When the game performance will be improved, then it will subsequently increase revenue from tickets sale. Business Intelligence and Analytics Systems for Decision Support help for making effective decision along with data analysis regarding the performance of the company (Negash, 2004). As the business cycle is becoming faster, therefore the necessity of Business intelligence is essential to run the business within this competitive business environment, and making the operation faster. For every company, it is important to keep the performance at a standard level where data analysis plays a great role. The aspect of big data form various sources helps to apply the business intelligence system taking a good position in market. So, while considering the importance of using Business Intelligence, it will very helpful for the board of directors and coaches of NUFC to find out the problem regarding performance. As the main problem is identified regarding poor performance of the players, then business intelligence will help to point out the factors that is affecting on the overall performance of NUFC along with players performance. Therefore, it will be easy to suggest the solution for improving the performances. As the performance improvement of the players, co-ordination between club to coach and Hiring good coaching stuff is a great is indicator along with player rating for rising overall competition in whole league for NUFC, then the gap analysis is very important for measuring the performance with compare to current and previous performance and it would be done by the help of business intelligence mechanism to implement effective strategy for increasing performance. In addition, player performance development helps to increase the company profit. This system will helps to solve the problem for the future. As well as need strong management team for implement those strategic decision. CATWOE analysis helps to solve the player performance for the NUFC. Coaching stuff is the key factor for improve the player performance. So, the discussion helps to illuminate the player performances for club (Ranjan, 2009). In synopsis, issue/opportunity explanation of this report will investigate the player rating of NUFC to decide the goal of current performances. So as to improve current exhibitions, we examine player objective, playing minute, position, card, and compensation and so on.
This report of Business Intelligence and Analytics Systems for Decision Support help for making effective decision along with data analysis regarding the performance of the company make a linkup between hypothetical structures and the above issue/opportunity with BI framework. After that MS EXCEL and SAS assists with making the dashboard for data visualization. What’s more, basic investigation help to decide proficient and adequacy of BI framework. End of the report will show ends up conclusions and recommendations.
Various business utilize distinctive hypothesis as indicated by the difficult they are looking to discover arrangement and upgrade the performances in the frail section. The administration of NUFC needs to do conceptualizing on the various parts of operating costing increased generally speaking turnover to move towards a superior business operating margin. The theory of performance management will empower NUFC to move techniques energetically. The central rule of Performances Management that we consider regarding finance is to assist association with heightening performances as far as revenues and operating margins and increment shareholders esteem by connecting technique to plan and execute them through key cycle of objective setting, arranging, displaying, monitoring, financial reporting and close administration. (Ramesh Sharda, 2015) The most noticeable performances management framework is utilized as Kaplan and Norton’s Balanced Scorecard (BSC).
The four viewpoints of balanced scorecard to be specific customers, internal business process, finance, learning and development (Raynus, 2011).
1) Customers point of view -Importance of consumer loyalty in any business is the key for association to succeed. Client point of view’ alludes to fans who are ones who contribute significantly to tickets income as well as tail them on TV or web. This is measured by participation at home scenes and backing in post season play by selling out of ticket allotments and then again, media revenue can show the prevalence patterns for following on TV or on the web. Poor performances of the group from this viewpoint will subsequently cause no expansion in the sale that is seen from last 5year.
2) Financial point of view -It plans to make sense of financial data and complete ideal and precise performances of business regarding revenues, operating costing and business profit. The financial strength of business might be a slacking marker demonstrating consequence of past choice, yet it is still unfathomably significant (Kerzner, 2011).
3) Internal business measure point of view: It takes the fact at how productively business is running. It urges organizations to take a break if things are not working out in a good way and become minimal philosophical about a firm. For example, NUFC can concentrate inside towards parts of the club during yearly summer breaks. Selecting of player is another feature that would fit under the inside business process.
4) Learning and development point of view: Now the age of globalization with fast mechanical changes, it is important for the administration of any organization to be in a nonstop development and learning mode. Consequently, NUFC administrator should pass judgment on the exhibition of their player through a progression of marker normal evaluations tangible metric in match, training performances and player attribute (Bhattacharyya, 2013). Making a BI execution dashboard frameworks will assist with checking, measure, and oversee definite operational performances on intermittent premise. The scorecards on other hand are utilized to screen vital arrangement and accomplishment with key goal and target. The manager & accountant can utilize such strategic and operational and dashboard to screen strategic activity with help of BSC alongside marketing/sale performances. This dashboard can help NUFC survey money related execution extensively for last 5years and fundamentally evaluate sale, expense and profit. In this way, they can design vital change and execute them for a superior business in future.
Critical analysis and justification of developed dashboard (MS Excel/SAS)
The major financial indicators like turnover, operating costing, operating profits and net profits were used to prepare my dashboard. Data collected for getting ready dashboard for the most part is included financial statements of NUFC for past 5years. The documenting history of club is accessible on one of governmentwebsite from which shortlisting’s was done and shown required information in a table.
Dashboard will help manager, investor and credit lender to recognize blemishes in current performances and improve future performance. Data of different boundaries must be gathered that add to total turnover and operating costing from various segment and join it in single table.
Premier league performances of NUFC for the last 5 season has likewise been appeared in table utilizing conditional formatting.
The utilization of various chart, for example, a pie chart, bar chart and column chart in stacked and grouped arrangement inside dashboard permit BI client to see data in outwardly appealing manner. Conditional formatting exhibited inside pivot table permit information to be seen in a practical way.
Pie chart (Fig) shows generally speaking turnover for various year appeared in the legend. The chart demonstrated that turnover expanded in year2014 by about 35.00% contrasted with year2013 that further remained fairly same in year2015 and fell by 3.00% in year finishing year2016.
Column chart (Fig 1) shows operating cost which appear to be very controlled in year2015 with £90.10m and £96.50m in year2016 when contrasted with £125.00m in year2014 which was because of expanded staff costing and other operating costing.
Operating costing and turnover rate is appeared in section (Fig 3) and bar chart (Fig 4) beneath with assistance of practical slicer of year. Operating costing generally rely upon the expenditure on wage and salary, security costing, lease amount, depreciation, amortization costing and some other charges with fees. The primary issue originates from turnovers perspectives wherein tickets sale revenues are not expanding despite the fact that media and commercial revenues have risen. Low turnover and high operating costing had a negative influence on club with loss they looked in year2012 and year2013 of £5.00m and £1.70m individually. They ready to rebound with £4.80m and £19.10m profit in year2014 and year2015 yet fell forcefully to £0.90m again in year2016.
In spite of the fact that net profit didn’t go negative with club getting profit on removal of player consequently making net benefit of £1.40m and £8.80m in year2012 and year2013. Net profit augmented to £18.80m and further to £32.50m in year2014 and year2015 separately on account of better harmony between turnover operating costing.
There have again observed tremendous drop of net profit in year2016 by around 85.00% producing just £4.60m. The board didn’t prescribe installment of dividends due to low profit. Subsequently, of this fans were additionally frustrated and ticket sale succumbed to that year because of this slow season.
SAS Reports-SAS is a visual exploration BI device that gives quick bits of knowledge from any information. The SAS report shows that the mean, median, minimum, maximum and standard deviation for the information which is imported from the excel worksheet. By taking a gander at the yield of handled information it is seen that the median, mean and standard deviation for turnover is low. Operating costing standard deviation is high which is coming about a lowdeviation for the benefits. The SAS yield couldn’t give charts &frequency variety to given information on the grounds that data input isn’t as it is required by SAS framework.
Conclusion and recommendations – Business Intelligence and Analytics Systems for Decision Support
To finish up, NUFC management should begin putting resources into great player. Player ought to be prepared properly in learning &growth point of view of the balanced scorecard hypothesis. It must assist group with performing admirably allied which will make fan placated. It must empower ticket sale and revenues from media to increment.
It is proposed that for lowering salary &wages costing, they should left with greatest profit at end of year (Eckerson, 2011).
NUFC ought to invest in the area of marketing which may increase sponsorship revenues with goal that general turnover grows. It must be providing ticket at low pricing to explicit client, for instance, giving tickets in mass to university where student purchase that help maximum tickets sold.
Management should operate internal business productively. It is desire to enrol youthful player having great ability by hiring with less money. The players ought to be given all benefits and facilities so they feel cheerful playing for the club.
Financial viewpoint ought to be concentrated inside and out to find out the reason behind lowering turnover and profit (Eckerson, 2011).
Consequently, a suggestion for the manager &accounting staff is have a definite investigation of the dashboard in light of the fact that this will assist them with making future financial decision in an effective manner. To build income through business cooking also by giving the arena to occasions, for example, shows during the slow time of year breaks. The ticket revenue should increment by performing admirably in the associations. Operating costing should be chopped down through salary &wages.
Utilization of SAS report will be valuable for manager to have vital authority over consumption and increment turnover in coming year (Eckerson, 2011).
This will help increment profit margin for better future investment.
References – Business Intelligence and Analytics Systems for Decision Support
- Negash, S. (2004). Business intelligence. Communications of the association for information systems, 13(1), 15.
- Ranjan, J. (2009). Business intelligence: Concepts, components, techniques and benefits. Journal of Theoretical and Applied Information Technology, 9(1), 60-70.
- Bhattacharyya, D. K. (2013). Performance-Related Pay. Compensation & Benefits Review , 215-222.
- Eckerson, W. (2011). Performance Dashboards. Measuring, Monitoring and Mangaging your business. New Jersey: John Wiley & Sons, Inc.
- Kerzner, H. (2011). Project Management Metrics, KPIs, and Dashboards. New Jersey: John Wiley & Sons.
- Newcastle Utd. (16 de October de 2011). Newcastle United FC Mission Statement. Obtenido de Newcastle United Footbal Club
- Raynus, J. (2011). Improving Business Performance Management. London: CRC Press Taylor & Francis Group.
Email: [email protected]